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Tax Exemptions and Municipal Rebates for Rainwater Collection Systems

Updated: Jan 24




A whole house potable rainwater system is a considerable investment for most working families. Something we do not take lightly at Olympic. We strive to offer a low maintenance system and a hassle free installation. We choose to work on a client by client basis so we can optimize the client experience. One of the ways we help our clients. Is to inform them of the conservation based tax exemptions and rebates that are available in their service area.

For instance, the city of Austin offers a rebate of up to $5,000 for installing a rainwater collection system. COA water utility customers are offered a capacity based rebate that applies to rain barrels and the large capacity whole house systems installed by Olympic.

Customers are eligible to receive the rebate for materials and labor. For the collection systems we install. Components such as the storage tank, tank pad, filtration, flush diversion and dedicated plumbing for the system. Non-eligible components include irrigation components, RPZ back flow preventers, gutters etc. Notable to mention that COA does require a RPZ installed at their meters when a whole house system is installed. We recommend contacting a licensed plumber for a quote regarding the RPZ installation. We are happy to work alongside the plumber of your preference. To make sure your needs are met and your system is up to municipal code. We have included some information from the conservation district rebate form below.


WATER SAVINGS − Water captured from a rainwater harvesting system can supplement, or even replace, the water you would normally use to irrigate your landscape. REBATE AMOUNT − Up to $5,000 per site, based on rainwater storage capacity o Non-pressurized (no pump): $0.50 per gallon of capacity, up to half of the equipment cost o Pressurized (has a pump): $1.00 per gallon of capacity, up to half of the equipment cost o May apply every 12 months for system expansions until the $5,000 per site limit is met

  • − Eligible equipment costs (materials and labor) include tank, pad, screens, filters, first-flush, and selected piping installation. Ineligible for rebate are costs for gutters, irrigation system, shipping or delivery, and auxiliary water source requirements.

  • − Applicants will receive the lesser of the per-gallon calculation or half of the eligible equipment cost. ELIGIBILITY Applicant:

o Must be a customer of Austin Water or a qualifying water provider o Must be the property owner or utility account holder o May not have applied in the past 12 months or reached the $5,000 limit for the site o Must intend to keep a system 500 gallons or less in service for five years and a system greater than 500 gallons in service for ten years o Agrees to any needed pre- and post-installation inspections by Austin Water o Willing to let Austin Water reference the project in outreach materials Rainwater Harvesting System: o Must be a new system or an expansion of an existing system o Must meet City subdivision and zoning requirements, including setback and impervious cover limits (contact Development Assistance Center at 512-978-4000) and any homeowners association regulations o Systems with a pump and greater than 500 gallons of capacity (including combined capacity if multiple tanks are connected) must meet auxiliary water requirements, including cross connection testing, backflow prevention, and permits prior to rebate approval. (contact Special Services at 512-972-1060) o Equipment must be new and intended for rainwater harvesting WaterWiseAustin.org | watercon@austintexas.gov | 512-974-2199 Revised: 21-Sept-2021

RAINWATER HARVESTING REBATE o Metal tanks must be lined. Transparent tanks/pipe must be painted or enclosed o Tanks that are greater than 500 gallons must have a first-flush diversion system and a level base made of gravel, sand, or concrete CHECKLIST FOR TANKS 500 GALLONS OR LESS  Meet all eligibility requirements  Install the system  Submit the application within 30 days of installing equipment and include:  An itemized, dated, paid-in-full receipt with vendor contact and payment information IRS W-9 form (commercial & multi-family accounts only) Send application and receipts to: Mail: Austin Water Conservation, PO Box 1088, Austin, TX 78767 Email: watercon@austintexas.gov Fax: 512-974-3504 Apply for the Stormwater Management Discount Wait 6 to 8 weeks for your Austin Water rebate check FOR TANKS GREATER THAN 500 GALLONS (INCLUDING COMBINED CAPACITY IF CONNECTED)  Meet all eligibility requirements  Submit 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

  • Photographs: show existing area the cistern will be located IRS W-9 form (commercial & multi-family accounts only) Send application materials to: Mail: Austin Water Conservation, PO Box 1088, Austin, TX 78767 Email: watercon@austintexas.gov Fax: 512-974-3504  Receive a pre-approval letter from Austin Water Within 90 days after Austin Water issues the pre-approval letter: Buy materials, get any required permits, and install the system WaterWiseAustin.org | watercon@austintexas.gov | 512-974-2199

Revised: 21-Sept-2021

RAINWATER HARVESTING REBATE Submit the rebate calculation worksheet, photos of the installed tanks, and itemized, dated, paid-in-full receipts with vendor contact and payment information to Austin Water Complete a post-installation inspection (if required) Apply for the Stormwater Management Discount Wait 6 to 8 weeks for your Austin Water rebate check

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