Land Irrigation Tax Credit Bill Receives a Favorable Report in House Committee
April 25, 2017
SB 257, sponsored by Sen. Arthur Orr (R-Decatur), received a favorable report in the House Committee on Agriculture and Forestry last week.
Rep. Donnie Chesteen (R-Geneva) introduced SB 257 in the Committee meeting. Rep. Chesteen explained SB 257 is the Senate companion to HB 387 that he sponsored.
Rep. Chesteen stated this legislation would provide an additional, larger tax credit for qualified farmers who irrigate property and would increase the number of irrigated acres in the state. The bill also would encourage economic development in the state by encouraging production and recruiting industry.
Under existing law, an agricultural trade or business is allowed an income tax credit of 20 percent of the cost for the purchase and installation of irrigation equipment and for the conversion of irrigation equipment from fuel to electricity that doesn’t exceed $10,000 of tax liability. This bill would increase the amount of the income tax credit by authorizing an alternative income tax credit of 10 percent of the cost, but not to exceed $50,000 of tax liability. The tax credit would expire in five years and be repealed on Dec. 31, 2022.
An amendment was offered that would require the agricultural trade or business receiving tax credits to provide an annual informational report to the Department of Revenue. The bill received a favorable report as amended.
SB 257 is pending final passage in the Senate.
Pictured: Rep. Donnie Chesteen (end) discusses SB 257.