Bill offers $10K incentive for construction of water catchment

In a move to encourage residents and businesses to build water catchment system, the government will offer tax incentives of up to $10,000 under a piece of legislation cleared yesterday by the House of Representatives.

These tanks — to be built to catch rainwater — will help in the efforts to conserve groundwater resources, particularly on Saipan where residents are perennially hit with shortage during the dry months, according to lawmakers.

Three government agencies had backed the measure sponsored by Rep. Rosiky F. Camacho, chair of the House Committee on Public Utilities, Transportation and Communications, aimed at promoting the utilization of rain to supply fresh water to island residents.

Called the Water Conservation Act of 2000, HB 12-123 will provide tax credits against any payment made to the government to any household or business establishment that will construct the water catchment system.

The bill underscored the need to store water and making it potable through purification in easing water shortages in many areas of the islands, particularly in central Saipan where groundwater resources are not enough for the growing population.

“[T]he future of our finite amount of groundwater hinges on the awareness of our community to conserve the use of our groundwater by establishing water catchment systems that will collect rainwater and use it for their personal consumption,” it stated.

A household will be entitled of up to $5,000 in credits in a single year, while a business establishment up to $10,000, which will be deducted from local wage and salary, gross receipts and earning taxes.

“Through this incentive, taxpayers will be able to invest in the purchase/design and construction of a certified water catchment system and receive a non-refundable credit on their primary local taxes,” the bill pointed out.

Qualified expenses covered under the proposal will include materials and supplies, such as rain gutters at a 3,000 gallon tank, as well as water filtration and purification devices or equipment.

The Commonwealth Utilities Corporation, which has been pushing for such incentive program following recommendations from its water consultants, will be tasked to implement rules and regulations to achieve the goal of the program, according to the measure.

HB 12-123 has been a result of existing laws enacted by the CNMI government as early as during the 6th Legislature when water conservation measures were carried out in view of increasing use of groundwater wells.

That program included provisions requiring new buildings to install water tanks — a requirement that was not enforced from April 1999 due to absence of mechanical plan reviewer working for the Building Code
Division of the Department of Public Works.

In 1995, a water catchment tank loan revolving program was created under the Commonwealth Development Authority to assist residents with no financial means to develop their own system.

But the loan program failed as CDA was restricted under the law to grant consumer loans, other than commercial loans.