A bipartisan group of lawmakers wants to create a new tax credit for water recycling projects in a bid to reduce water use from industrial facilities and artificial intelligence data centers.
Sens. Ben Ray Luján (D-N.M.) and Katie Britt (R-Ala.) on Wednesday introduced the “Advancing Water Reuse Act.” The bill would offer companies a 30 percent investment tax credit for installing or expanding water recycling systems at manufacturing sites, including food processing facilities and data centers.
Water recycling or reuse refers to efforts to treat wastewater so that it can be used again for industry, irrigation or drinking. The idea is gaining steam across the nation, especially in the arid West and in places seeing a resurgence in manufacturing or a growing number of data center projects.
But water recycling can be a costly endeavor for municipalities and private companies. The legislation aims to incentivize greater investments in the space, something the Trump administration is also seeking to do through EPA’s Water Reuse Action Plan.
