Land Irrigation Tax Credit Bill Passes House
February 19, 2018
Last Thursday night, HB 260, sponsored by Rep. Donnie Chesteen (R-Geneva), passed the House with a unanimous vote of 92-0.
Rep. Chesteen introduced the legislation on the House floor and stated this legislation would help incentivize farmers looking to expand irrigation on their farms. HB 260 would provide an additional tax credit for qualified farmers who irrigate property and would increase the number of irrigated acres in the state. Under existing law, an income tax credit is available for any agricultural trade or business that purchases and installs qualified irrigation equipment or a qualified reservoir. The maximum amount of the credit is $10,000 for tax years 2011 through 2017 and $50,000 for tax years 2018 through 2022.
According to the Alabama Legislative Fiscal Office, HB 260 as introduced will decrease income tax receipts to the Education Trust Fund by $1.75 million from years 2020 through 2023 and $350,000 from 2024 forward.
HB 260 now moves to the Senate for consideration.