1. Short title This Act may be cited as the Water Conservation Tax Parity Act . 2. Modifications to income exclusion for conservation subsidies (a) In general Subsection (a) of section 136 of the Internal Revenue Code of 1986 is amended— (1) by striking any subsidy provided and inserting any subsidy— (1) provided ; (2) by striking the period at the end and inserting a comma; and (3) by adding at the end the following new paragraphs: (2) provided (directly or indirectly) by a public utility to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any water conservation measure, or (3) provided (directly or indirectly) by a storm water management provider to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any storm water management measure. . (b) Conforming amendments (1) Definition of water conservation measure and storm water management measure Section 136(c) of the Internal Revenue Code of 1986 is amended— (A) by striking Energy conservation measure in the heading thereof and inserting Definitions ; (B) by striking In general in the heading of paragraph (1) and inserting Energy conservation measure