Ready to Store Rainwater for Later Beneficial Use
Rainwater harvesting is one part of the Texas State Water Plan by the TWDB (link) as an alternative water source. Rainwater harvesting helps to alleviate the strain on utility water as well as help managing stormwater, by putting it to a later use. Since rainwater collection is a solution for the state as well as on many local levels, rebates and tax incentives are very common in Texas. In addition, the Texas Tax Code exempts rainwater harvesting equipment and supplies from state sales tax (Texas Tax Code §151.355).
View the Section 151.355 of the Texas Tax Code (link). In order to have your system components be sales-tax free, you must fill out a Texas Tax Exemption Application Form 01-339 and give it to the supplier at the time of purchase.
In Austin, Texas the rebates available for equipment as well as the installation of a rainwater system for a home or business are up to $5,000 per qualifying site. For rainwater systems with water storage tanks with 500-gallon capacity and larger, the project must be pre-approved with the City of Austin in order to qualify for the rebate.
In order to claim the rebate, you must meet all of the eligibility requirements. The system needs to be installed, and the application submitted with an itemized, dated, paid-in-full receipt with the vendor contact information. Commercial rainwater systems need to also include an IRS W-9 form. The rebate checks take on average six to eight weeks to be mailed out.
Checklist for rainwater systems that have a 500-Gallon capacity or more
Meet all of the City of Austin eligibility requirements
Submit an application for pre-approval before you buy and install any equipment and include:
Site Drawing: show locations of buildings, streets, existing/proposed tank(s), water meter, and piping from the tank to the landscaped areas.
Identify the size of the catchment area (usually the roof) and the area you will water with rainwater
System Drawing: sketch plans for the system, include piping, first-flush diversion system, pump location (if applicable), tank material, dimensions, placement, pad materials (must be gravel, sand, or concrete) and construction
Operation & Maintenance Guide: describe how the system will function and how you will maintain it
IRS W-9 form (commercial & multi-family accounts only)
Send application materials to:
Mail: Austin Water Conservation, PO Box 1088, Austin, TX 78767
Get started with Harvested Rain Solutions, located at 11183 Circle Dr. Suite D, Austin, TX 78736.
HRS’ owner, Ron Van Sickle is a Texas State Licensed Irrigation Contractor and can help with the full development of a rainwater system from collection to use. Ron has helped many Austin residents benefit from this rainwater rebate to have a rainwater system implemented at their home, from design to installation with a maintenance guarantee.