1. Short title This Act may be cited as the Water Conservation Rebate 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 or efficiency 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 or efficiency 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 , and (C) by redesignating paragraph (2) as paragraph (4) and by inserting after paragraph (1) the following: (2) Water conservation or efficiency measure For purposes of this section, the term water conservation or efficiency measure means any evaluation of water use, or any installation or modification of property, the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units. (3) Storm water management measure For purposes of this section, the term storm water management measure means any installation or modification of property primarily designed to reduce or manage amounts of storm water with respect to one or more dwelling units. . (2) Definition