HB289 Summary

• Reduces the annual flow rate threshold for rivers or streams exempted from the qualified reservoir requirement from 10,000 cubic feet per second to 8,000 cubic feet per second.

• Allows the 20% income tax credit for qualified irrigation equipment and reservoir installation to be carried forward to each of the 5 years following the taxable year the system is placed in service.

• Permits shareholders, partners, members, owners, and beneficiaries of pass-through business entities (including S corporations, limited liability companies, and partnerships) to claim their pro rata share of the irrigation tax credit.

• Maintains the existing 20% credit on purchase and installation costs of qualified irrigation equipment and reservoirs, capped at $10,000 per tax year and limited to one installation per taxpayer.

• Becomes effective on the first day of the third month following passage and approval by the Governor.