Governor to Sign Irrigation Incentives Bill
Gov. Kay Ivey is expected to sign into law legislation giving Alabama farmers greater flexibility to claim tax credits for installing irrigation equipment.
The House of Representatives approved SB 257 by Sen. Arthur Orr, R-Decatur, Thursday with one amendment, and the Senate concurred Friday.
The Alabama Farmers Federation’s Matthew Durdin thanked Orr and the House sponsor, Rep. Donnie Chesteen, R-Geneva, for their leadership in securing passage.
“We appreciate Senator Orr’s continued support for expanding irrigation in Alabama,” said Durdin, legislative programs director for the Senate. “He and Rep. Chesteen made passage of this legislation a priority in the closing days of the session when other bills were competing for spots on crowded legislative calendars.”
The measure increases the maximum tax credit for installing irrigation equipment or converting existing systems from fuel to electricity. Previous law, which went into effect in 2012, limited the irrigation credit to 20 percent of total cost not to exceed $10,000 in tax liability. The new language allows farmers to claim the greater of the current provision or 10 percent of accrued cost, not to exceed $50,000 in credit.
Credits are limited to one purchase and installation of qualified irrigation equipment or one qualified reservoir per taxpayer. The credit will be effective Jan. 1, 2018, and expire Dec. 31, 2022.