News Irrigation Bill Wins Final Passage

Irrigation Bill Wins Final Passage

Irrigation Bill Wins Final Passage

The Alabama Senate unanimously gave final approval to a measure clarifying irrigation tax credits for farmers Thursday. Gov. Ivey is expected to sign the measure into law.

HB 260 by Rep. Donnie Chesteen, R-Geneva, specifies farmers may claim the credit for one qualifying irrigation system or reservoir in 2011-17 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.

Federation Senate Legislative Programs Director Matthew Durdin said the legislation is vital to expanding irrigation in Alabama.

“Surveys conducted with Alabama farmers show their biggest obstacle to increasing irrigated acres isn’t access to water. It’s the cost of building reservoirs, digging wells or installing equipment,” he said. “Providing incentives through tax savings or conservation cost share programs can help make irrigation more affordable.”

Sen. Arthur Orr, R-Decatur, sponsored the original irrigation tax credit legislation. He and Sen. Gerald Dial, R-Lineville, shepherded HB 260 through the Senate.

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