Hopkinton, NH – Today, Representative Annie Kuster (NH-02) held a virtual roundtable with local officials and private water utility companies to discuss the Southern New Hampshire Regional Water Project and the impact of federal taxes on utility customers. Rep. Kuster introduced bipartisan legislation last month that would eliminate a burdensome tax on water infrastructure projects that was established by the Tax Cuts and Jobs Act of 2017 – the tax reform bill passed by congressional Republicans in at the end of 2017.  

Water utility companies often depend on public and private financing when expanding water infrastructure projects. This financing is taxed by the federal government and these taxes are commonly passed along to customers. Kuster’s legislation would prevent over $1 million in these federal taxes from being passed onto water customers in the Southern Tier. The bill was originally introduced in the Senate by Senator Jeanne Shaheen.

“In New Hampshire and across the nation, the burdensome tax created by an error in the Tax Cuts and Jobs Act is causing an increase in costs and making it more difficult to ensure families have clean drinking water," said Kuster. "This mistake has led to enormous tax increases on infrastructure projects including the Southern New Hampshire Regional Water Project, and these costs are commonly passed along to consumers. I introduced bipartisan legislation to fix this error and ensure that Granite State families aren't burdened with significantly higher water rates. I greatly appreciate the opportunity to hear from local officials and water utility companies about the impact these taxes are having in the Southern Tier and on projects across the state. I look forward to sharing their insights with my colleagues as we continue our work to improve infrastructure and access to clean water nationwide.” 

“Correcting the tax liability issue for water utility participation in projects with benefits that extend not only to the utility customers but beyond their franchise areas is important to ensuring safe and plentiful drinking water to our citizens,” said Bob Scott, Commissioner of the NH Department of Environmental Services. “Utilities should be encouraged to participate in important projects like the Southern New Hampshire Regional Water Project, not penalized.”

During the discussion, Rep. Kuster heard from:

• Bob Scott, Commissioner of the NH Department of Environmental Services
• Charlie Lanza, General Manager of Hampstead Area Water Company
• Donald Ware, Chief Operating Officer of Pennichuck Water Works
• David Cressman, Town Administrator of Atkinson

Watch the discussion here. 

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