Alabama farmers may have even more reason to invest in irrigation systems, following the House of Representatives' passage of irrigation tax credit legislation Thursday.
HB 260 by Rep. Donnie Chesteen, R-Geneva, specifies Alabama’s current irrigation tax credit applies to the purchase and installation of one qualified irrigation system or reservoir per taxpayer. It also clarifies that an eligible farmer may claim one credit during 2011-2017 and another during 2018-22. Current law caps credit for the 2011-17 program at $10,000 and $50,000 for tax years 2018-22.
Chesteen stressed the importance of increasing irrigated acreage in Alabama.
“Agriculture is the No. 1 industry in Alabama, however, our state continues to lag behind our neighbors when it comes to irrigation,” Chesteen said. “HB 260 will encourage farmers to make investments in the necessary infrastructure to provide a positive economic impact in rural Alabama.”
The House approved the bill by a vote of 92-0. It now heads to the Senate for consideration.