AL SB153

Allows agricultural trade or business entities to expense qualified irrigation equipment under federal Section 179 of the Internal Revenue Code for tax years beginning after December 31, 2011.

Provides an income tax credit equal to 12.5 percent of the cost of purchasing and installing qualified irrigation equipment or new qualified reservoirs, capped at $10,000 per tax year and limited to the taxpayer's Alabama income tax liability.

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; qualified reservoirs are not required for ground water systems.

Limits the credit to only one purchase and installation of qualified irrigation equipment or one qualified reservoir per taxpayer across all tax years.

Department of Revenue shall promulgate rules and regulations for implementation; existing Alabama environmental and water laws remain applicable.