Governor Chris Sununu Letter to US Senate on Tax Exemption for Regulated Water and Wastewater Utilities
Concord, NH - Today, Governor Chris Sununu spearheaded a joint letter with Governors Doug Ducey (AZ), Mike Parson (MO), and Kevin Stitt (OK), in asking Senators Chuck Schumer, Mitch McConnell, Ron Wyden, and Mike Crapo to restore the exemptions to the contributions to the capital of a corporation provision of the Internal Revenue Code (IRC) for regulated water and wastewater utilities.
Reinstating the exemption would positively impact the state’s ability to provide safe drinking water for our citizens. Currently, regulated water and wastewater utilities are required to pay unfair and regressive federal taxes on water system upgrades made by contaminators through settlement agreements and on grants issued by the state for water system upgrades. Reinstating the exemption would incentivize more investment in water and wastewater infrastructure and relieve regulated water and wastewater utilities from having to pay federal taxes on funds that directly benefit the public.