Land Irrigation Tax Credit Bill Passes House
May 2, 2017
HB 387, sponsored by Representative Donnie Chesteen (R-Geneva), passed the House last week with a vote of 97-1.
Rep. Chesteen introduced the legislation on the floor and stated this legislation would provide an additional tax credit for qualified farmers who irrigate property and would increase the number of irrigated acres in the state. This legislation also would bring Alabama in line with neighboring states who have more than 1 million acres under irrigation. Alabama has less than 150,000.
Representative David Sessions (R-Grand Bay) thanked Rep. Chesteen for sponsoring legislation that will bring jobs to the state and move the state forward.
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 The tax credit would expire in five years and be repealed on Dec. 31, 2022.
SB 257, the companion legislation by Senator Arthur Orr (R-Decatur), is pending final passage in the Senate.