January 26, 2018
By Jeff Helms
Bills clarifying the sales tax exemption for agricultural products and allowing tax credits for investment in irrigation are on the House Agriculture and Forestry Committee agenda next Wednesday.
HB 242 by Rep. David Sessions, R-Grand Bay, specifies Alabama’s current state sales tax exemption applies when a farmer cultivates and harvests an agricultural product on leased or rented land. The bill also states gross receipts from the sale of pine straw products by the person who harvested the product would be exempt from state sales tax. The companion bill is SB 191 by Sen. Tom Whatley, R-Auburn.
The committee is also expected to consider HB 260 by Rep. Donnie Chesteen, R-Geneva, specifies Alabama’s current irrigation tax credit applies to the purchase and installation of one qualified irrigation system or reservoir per taxpayer. It also clarifies that an eligible farmer may claim one credit during 2011-2017 and another during 2018-22. Current law caps the credit for the 2011-17 program at $10,000 and $50,000 for tax years 2018-22.