April 28, 2017
Alabama farmers would have greater flexibility to claim tax credits for installing irrigation equipment under a bill approved Thursday by the House of Representatives.
HB 387 by Rep. Donnie Chesteen, R-Geneva, passed by a 97-1 vote. It would increase the maximum tax credit for installing irrigation equipment or converting existing systems from fuel to electricity. Current law, which went into effect in 2012, limits the irrigation credit to 20 percent of total cost not to exceed $10,000 in tax liability. The proposed bill would allow farmers to claim the greater of the current provision or 10 percent of accrued cost, not to exceed $50,000 in credit.
The Senate previously approved a similar bill, SB 257 by Sen. Arthur Orr, R-Decatur.
Chesteen’s bill would require farmers who receive the incentive to file annual reports with the Department of Agriculture and Industries. Credits would be limited to one purchase and installation of qualified irrigation equipment or one qualified reservoir per taxpayer. The credit would be effective Jan. 1, 2018 and expire Dec. 31, 2022.