Rainwater harvesting rebates by state run from 1,999 dollars in Arizona to nothing in Colorado

Rainwater harvesting rebates by state depend on which utility pays

Rainwater harvesting rebates by state vary by more than 13 times for a similar sized system. A catchment system, which collects roof runoff into a storage tank, earns up to 1,900 dollars from Tucson Water in Arizona, plus a separate 99 dollar Treebate incentive, for a combined maximum of 1,999 dollars. The Albuquerque Bernalillo County Water Utility Authority in New Mexico pays up to 150 dollars at its top tier, 1,500 gallons or more. The maximum Tucson pays is about 13.3 times the top tier Albuquerque pays, a figure this publication calculated by dividing the 2 sourced numbers, not one either utility states itself.

Texas exempts the purchase entirely, with no dollar cap

Texas pays no rebate. Instead, the state removes its own sales tax from the purchase itself. Section 151.355 of the Texas Tax Code lists rainwater harvesting equipment in the same exemption as water recycling equipment, a detail visible only from reading the statute directly. The exemption took effect September 1, 2001, with no dollar cap and no stated expiration, unlike every other program named here. The statute does not state the tax rate itself, so this article does not convert the exemption into an estimated saving.

Colorado pays nothing, only made a barrel legal to keep

Colorado pays no rebate either. H.B. 16-1005, signed May 12, 2016 and effective August 10, 2016, only changed what a resident may legally do. It lets a resident of a single family home, or a building of 4 units or fewer, keep up to 2 rain barrels holding no more than 110 gallons combined, with no permit required, for outdoor use only. That 110 gallon figure is a legal allowance, not a dollar incentive, the only program named here that pays nothing at all. The companion article rainwater harvesting illegal water rights law covers the legal background further.

Tucson pays more per gallon for a system that meets its storage rule

Tucson pays by the gallon, and the rate depends on how the system is built. A catchment system that meets the 1 inch storage requirement set by Tucson Water earns 1.00 dollar a gallon, an undersized system earns only 0.50 dollars a gallon, the same rate paid for an indirect runoff flow system. A streetside basin earns the full rate only with evidence of diverted stormwater. Applicants must complete a workshop before applying, and Tucson just cut its own maximum catchment rebate from 2,000 dollars to 1,900 dollars as of July 2026.

SoCal WaterSmart pays a flat amount by tank size

Southern California pays less than Tucson for a similar system. The SoCal WaterSmart program pays a flat 35 dollars for a rain barrel, rising to 250 dollars for a 200 to 500 gallon cistern, 300 dollars for a 501 to 999 gallon cistern, and 350 dollars for the largest tier, 1,000 gallons or more. A property may claim at most 2 rain barrel rebates and 1 cistern rebate. The SoCal WaterSmart own page states amounts may vary by member agency and available funding. The companion article home rainwater harvesting system cost savings already prices the tank itself, before any rebate.