Irrigation Incentives Bill Clears House Committee
Legislation expanding tax incentives for the installation of on-farm irrigation is one step away from the governor’s desk, following approval Wednesday by the House Agriculture and Forestry Committee.
SB 257 by Sen. Arthur Orr, R-Decatur, 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 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.
A similar bill, HB 387 by Rep. Donnie Chesteen, R-Geneva, passed the House Ways and Means Education Committee earlier in the session.
SB 257 was amended in House committee requiring farmers who receive the incentive to file annual reports with the Department of Revenue. Under the bill, 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.