March 10, 2017
A bill aimed at expanding on-farm irrigation by increasing available tax credits unanimously passed the Senate Agriculture, Conservation and Forestry Committee on Wednesday, and similar legislation was introduced Thursday in the House of Representatives.
SB 257, by Sen. Arthur Orr, R-Decatur, and HB 387, by Rep. Donnie Chesteen, R-Geneva, 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.
SB 257 will now go to the full Senate for consideration. HB 387 has been assigned to the House Ways and Means Education Committee.