The City of San Marcos, Texas Offers Up to $5,000 in Rebates for Rainwater Harvesting



Only Pioneer Keep Your Rainwater Clean Enough to Drink


The City of San Marcos, Texas encourages rainwater harvesting as a solution to supplementing utility water, as a renewable water source. The City offers up to $5,000 in rebates for purchasing rainwater system components and installation costs.


Rainwater harvesting conveys rain from a roof of a building, into a gutter system, implements pre-tank filtering and then storing it for later beneficial use. Rainwater is soft water with a neutral pH that helps plants grow, and is exempt from drought restrictions. Collecting rainwater reduces erosion around a building, as well as helps keep some rainwater from turning into polluted stormwater that plagues San Marcos with flooding.

The rebate amounts to $0.50 per gallon of storage capacity for non-pressurized systems and $1 per gallon of storage capacity for pressured systems. The City rebate can’t exceed more than half of the total system cost with a lifetime maximum rebate amount of $5,000.

Rainwater systems are sales-tax free in Texas

Components used in rainwater systems are also sales-tax exempt when purchased in Texas, 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.


> Go to the State of Texas Sales-Tax Exemption Form


In order to redeem a rainwater rebate for smaller systems in San Marcos, there are a few steps that need to be taken.

1. Review the Rainwater Harvesting System Guidelines (link).

2. Purchase and install qualifying rainwater harvesting equipment, it’s recommended to use an expert who is ARCSA accredited.

3. Submit a completed application (link) along with itemized receipts within 30 days of the purchase date.

4. The City of San Marcos staff may call to schedule an inspection to confirm the installation.

5. The rebate is issued as a credit on the next utility bill, and onward.


> Go to the City of San Marcos Rainwater System Rebate Page


For Large Systems (500 Gallons of Storage or More):


1. Review the City of San Marcos Rainwater Harvesting System Guidelines (PDF).

2. Submit completed rebate application (PDF) before purchasing and installing your rainwater system.

3. San Marcos City staff will review the application and check funds availability and may contact you to schedule a pre-installation inspection.

3. Staff will issue a Letter of Approval to proceed with the purchase and installation of your rainwater harvesting system.

4. Purchase and install your system, and submit itemized purchase receipts or invoices with 90 days after the date of the Letter of Approval.

5. The city staff will contact you to schedule a follow-up inspection. The system must be installed and functional at the time of the inspection.

6. The rebate will be mailed to you or issued as a credit on your next utility bill.


Harvested Rain Solutions are based in Austin, Texas with systems across the state. They are licensed and insured to provide sustainable rainwater collection systems based on your needs.



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