April 07, 2017
Bills aimed expanding incentives for investment in on-farm irrigation passed the full Senate and a House committee Thursday.
SB 257 by Sen. Arthur Orr, R-Decatur, passed the Senate by a vote of 29-0, and HB 387 by Rep. Donnie Chesteen, R-Geneva, passed the House Ways and Means Education Committee.
Both bills 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 2011, limits the irrigation credit to 20 percent of total cost not to exceed $10,000 in tax liability.
The new legislation 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 credit would be limited to one purchase and installation of qualified irrigation equipment or one qualified reservoir per taxpayer. The credit would expire Dec. 31, 2022.
Federation Senate Legislative Programs Director Matthew Durdin praised Orr’s commitment to increasing the flexibility and usefulness of the tax credits.
"On behalf of farmers in Alabama, we thank Senator Orr for his continued commitment to help expand Alabama's irrigated acres,” Durdin said.
SB 257 will now be assigned to a House committee. HB 387 awaits action by the full House.