; and (5) $50,000,000 for fiscal year 2025. 5. Exclusion from gross income of amounts received as incentives for the purchase of WaterSense products (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139I. Incentives for the purchase of WaterSense products (a) In general In the case of an individual, gross income does not include any amount received as an incentive under section 3 of the Water Advanced Technologies for Efficient Resource Use Act of 2020 . (b) Denial of double benefit (1) Deductions and credits No deduction or credit under this subtitle shall be allowed for any expenditure with respect to which any amount excluded under subsection (a) was provided. (2) Basis adjustment The adjusted basis of any property with respect to which an amount excluded under subsection (a) is provided shall be reduced by the amount so excluded. . (b) Conforming amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140 the following new item: Sec. 139I. Incentives for the purchase of WaterSense products. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this section. 6. 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