AL SB204

Amends Section 40-18-342 of the Code of Alabama to modify the irrigation equipment tax credit available to agricultural trades or businesses for tax years beginning after December 31, 2011.

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

Allows unused irrigation tax credits to be carried forward for up to 5 years following the taxable year the qualified irrigation system is placed in service.

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

Maintains the 20% tax credit on costs for purchase, installation, and conversion of qualified irrigation equipment, with a maximum annual credit of $10,000 and limitation to one credit per taxpayer.