HB328 Summary

• Allows agricultural trade or businesses to elect to expense qualified irrigation equipment under 26 U.S.C. §179 for tax years beginning after December 31, 2011.

• Provides an income tax credit equal to 20% of the cost of purchasing, installing, and converting irrigation equipment and constructing qualified reservoirs, capped at $10,000 per tax year and not exceeding the taxpayer's Alabama income tax liability.

• Limits the credit to one purchase and installation of qualified irrigation equipment or one qualified reservoir per taxpayer over their lifetime.

• Requires surface water withdrawal irrigation systems to operate using a qualified off-stream upland reservoir, except when withdrawing directly from rivers or streams with average annual flow exceeding 10,000 cubic feet per second; ground water systems do not require a reservoir.

• Directs the Department of Revenue to promulgate implementing rules in coordination with the Alabama State Soil and Water Conservation Committee and preserves existing environmental and water laws.