Please note for rainwater harvesting, any and all rules, regulations, and incentives are handled by local legislation on the state level. Current federal legislature hands down responsibility for rainwater harvesting to individual state legislation, who may further pass along the responsibility of building codes and rebates to cities, townships, or counties. This means any personal inquiries for your own location should be directed to your local governance, municipality, and/or county seat.
Top U.S. States with Incentives
The 5 U.S. states with the best government supported incentives for rainwater harvesting include Texas, California, Arizona, Iowa, and Illinois.
These states are ranked by the number, value amount and types of incentives each state offers, as well as the ease of finding relevant information. The type of incentives offered can and do vary by the state, city, and can even vary by the year. The rainwater incentive can also vary on what the money goes to cover the cost for and how it applies to your property, such as for taxes. There are also different incentive options available based on whether the rainwater harvesting will be for individual residences, meaning homeowners, or for businesses and organizations.
For Homeowners
For personal residences, there are incentives that completely fund the purchase of a rain barrel up to a set gallon size. There are incentives for certain dollar valuations based on the total gallon size of a larger volume rain tank or cistern. Other incentive types apply a tax rebate credit or deduction based on the installation of the entire rain harvesting system up to a specified dollar amount. Lastly, there are also incentives made to only cover the costs of certain accessory components to a rainwater harvesting system.
For Businesses
For businesses and organizations in both the public and private sectors, incentives can be available to help cover the costs associated with rainwater harvesting as a water-saving technology. Examples include high-efficiency plumbing fixtures, rain and soil moisture sensors, emergency water systems, fire hydrant flushing devices, and more, which can be associated with rainwater harvesting systems as a supplemental water and/or alternative water supply.
Potential applicants who may qualify for such support and funds include cities, public utilities and water providers, homeowners associations, schools, hospitals, farms, and industrial or commercial facilities. Individual residences may not be eligible as the funds allocated for these improvements are designated for business and organizations and are often larger in value to accommodate larger-scale improvements.
Considerations
The concept and practice of rainwater harvesting as well as promoting its use in the United States is fairly new and one that has grown in the past decade or two. Rainwater harvesting has gained greater traction in some states and areas more than others. These reasons contribute to the disparity between states and even between cities within states concerning the popularity, support, and any potential governmental incentive associated with the purchase and installation of a rainwater harvesting system.
The bottom line – when trying to figure out whether your area provides an incentive for rainwater harvesting, it is best to check with your local government. This can mean your state capitol government, your city government, or your county government. Which one handles rainwater harvesting rebates and info, (if any at all), will depend on your specific state and even the district you live in within the state.
Incentives by State
Rainwater harvesting incentives, rebates, and credits are most frequently offered by the jurisdiction of local cities. Sometimes they are extended to the smaller towns and cities around a larger metropolis or within the county. Sometimes also, rebates may be provided by the water and utility company that services the area. Note that all information may not be available online and can even be difficult to find. Often it is best to check with your local government.
Texas
The State of Texas tops the list with the number of government supported incentives and programs for rainwater harvesting, including Texas Tax Code §11.32. Texas Tax Code §11.32 of the Texas State Legislature allows for a tax-exempt status to be provided for part or all of the assessed property value on which water conservation initiatives such as rainwater harvesting are made.
The following lists the most popular cities in Texas that offer rainwater harvesting incentives, brief details on the incentive, and a source link for more info.
- City of Austin – offers up to a $5,000 per site rebate for rainwater harvesting systems with up to $0.50 per gallon for rain tank systems without a pump and $1.00 per gallon for rain tank systems with a pump. The City of Austin also offers several rebates and incentives for various other upgrades or modifications to a residential water use system.
- See the following for the City of Austin Commercial Rainwater Harvesting Rebates.
- Burleson or Milam County – offers a lifetime reimbursement maximum up to $3,000. Reimbursements are limited to $1.00 per gallon of the rainwater storage capacity of the completed system which includes tanks, gutter, tank foundation, overflow, and other misc. Items needed to create the system.
- City of San Antonio – offers up to a $2,000 rebate for systems built with a minimum 500 gallons of rainwater storage at a rate of $1.00 per gallon. They also offer rebates for rain barrels and other water conservation efforts.
- City of San Marcos – offers up to a $5,000 rebate for rain harvesting systems. The rebate provides $0.50 per gallon for non-pressurized systems without a pump or $1.00 per gallon for pressurized systems with a pump. Rebate extends up to 50% of total system cost.
- Texas State rebates are also available for:
- The City of Buda – offers rebates on rain barrels of $0.50 per gallon for 50 gallon rain barrels up to 100 gallons.
- More info can be found here.
- The City of Georgetown – offers rebates for rain barrels and irrigation upgrades.
- More info can be found here.
- The City of New Braunfels – offers monetary rebates for rain barrels and cisterns up to $250. See the City’s application. City also offers various other rebates for water conservation projects for both residential and commercial applications.
- More info can be found here.
- The City of Round Rock – offers up to $600 per water account to help cover the purchase costs of a rain barrel, certain accessories, and even gutters added as part of the rainwater system.
- More info can be found here.
- The City of Buda – offers rebates on rain barrels of $0.50 per gallon for 50 gallon rain barrels up to 100 gallons.
California
The following are the most popular cities in the State of California with rebates and incentives for rainwater harvesting as well as for other types of water conservation efforts offering various promotions, upgrades, or programs.
- City of Fresno – The City of Fresno offers many water conservation rebates including some for rain barrels.
- For more info, see the City of Fresno Water Conservation Rebates Info Page.
- City of Healdsburg – The City of Healdsburg offers rebates up to $500 for rain barrels and cisterns at a rate of $0.50 per gallon.
- City of Sacramento – The City of Sacramento offers rebates for rain barrels up to $150.
- City of San Francisco – The City of San Francisco offers rebates for rain barrels and cisterns.
- City of Santa Clara – The city of Santa Clara offers rebates for rain barrels.
- City of Santa Rosa – The City of Santa Rosa offers various residential and commercial rebates and incentives for water conservation. Residential rainwater harvesting rebates offer a $0.25 per gallon cash value return.
- San Diego County – The Department of Public Works for San Diego County provide rebates for newly installed rainwater harvesting systems in both residential and commercial applications. Offers up to $2,100 for residential and up to $6,000 for commercial, both for $0.75 per gallon of rainwater stored.
- San Diego County Rebate Info Page.
- See here for rebates offered by the City of San Diego.
- San Mateo County / Bay Area Water Supply – The Bay Area Water Supply and Conservation Agency (BAWSCA) in San Mateo County, California provides rebates for rain barrels for many of the towns and cities in their service area. Rebate amount varies by location.
- Water District of Southern California – The water district of southern California offers rebates for rain barrels and cisterns from $35 up to $350. This district includes Los Angeles, Orange, San Diego, Riverside, San Bernardino, and Ventura counties.
- SoCal WaterSmart Info Page. They also offer many commercial rebates; more info can be found here.
Arizona
Rainwater harvesting in the State of Arizona is increasing in popularity, especially with recent droughts, changes in weather patterns, and climate concerns. The growing interest in water conservation and *xeriscaping in Arizona is also contributing to an increase in rainwater harvesting practice and governmental support. The following three cities currently offer the most incentives for rainwater harvesting. The possibility exists with increasing interest and water conservation needs that the number of city-supported incentives may also increase.
- City of Tucson – The City of Tucson offers a rebate for both active and passive methods of rainwater harvesting up to a total of $2,000 in combination. Passive methods can receive 50% of costs back for a rebate up to $500. Active rainwater harvesting methods can receive up to a $2000 rebate depending on system design and tank capacity.
- City of Prescott – The City of Prescott offers various water conservation rebates and incentives including those for cisterns and rain barrels with value up to $500.
- City of Flagstaff – The City of Flagstaff offers rebates up to $100 for cisterns at least 1000 gallons in size. The city also has a free rain barrel program for repurposed containers.
(*For inquiring minds, xeriscaping is the process of reducing irrigation needs by designing landscapes to be water smart, incorporating passive and active rainwater harvesting, and by choosing plants and landscaping to match the growing environment and weather).
Iowa
- City of Ankeny – The City of Ankeny offers rebates up to $75 for rain barrels. The city also offers various other incentives for best management practices (BMP) in stormwater management.
- City of Des Moines – The City of Des Moines, Iowa offers rebates up to $100 for rain barrels. Des Moines Department of Public Works offers other rebates for rain gardens and landscaping associated with stormwater best management practices.
- City of Des Moines Rebate Info Page.
- Also, see here for info from the City of West Des Moines.
- City of Johnston – The City of Johnston offers a homeowner grant program offering rain barrels and/or rebates up to $75 with other BMP options available.
- City of Pleasant Hill – The City of Pleasant Hill provides rebates up to $75 for rain barrels, with other rebates available for BMP programs and upgrades.
- City of Urbandale – The City of Urbandale offers reimbursement up to $100 for rain barrels.
Illinois
- Town of Barrington – The Town of Barrington offers a 50% reimbursement up to $75 for rain barrels purchased from the town.
- City of Peoria – The City of Peoria offers up to $100 rain barrel rebate.
- City of Springfield – The City of Springfield offers a rain barrel rebate for residents within their utility district.
- City of Urbana – The City of Urbana provides special events selling rain barrels and compost bins with subsidies to provide money back on purchases.
- City of Joliet – The City of Joliet provides subsidies associated with the purchase of rain barrels.
- City of Naperville – The City of Naperville provides rain barrels to order in partnership with Upcycle Products.
- City of Aurora – The City of Aurora offers a rain barrel program.
Find Rainwater Harvesting Rebates in Your State
The information provided here for these top five states is not an exhaustive list. Other cities and towns within these states may also provide rebate incentives for rainwater harvesting. Many other states also provide rebates. A good starting point would be to do an online search for the city you live in, for the nearest largest city, or search the water utility company that serves your water district. Search using the words “rainwater harvesting rebate,” “incentive” and/or “tax credit” in the search.
If performing an online search for rainwater harvesting rebates or tax credits proves difficult or does not return accurate results, try calling your local government. Ask which department you need to talk to about rainwater harvesting codes, guidelines, and any potential rebates.
A rainwater harvesting rebate or other type of incentive is a great way to get started with collecting and using the rainwater from your own property. To check out the products we have, you can find our rainwater collection tanks here, our metal tanks here, and our rain harvesting accessories here.