SB257 Summary

• Amends Alabama's income tax credit for agricultural businesses investing in qualified irrigation equipment, fuel-to-electricity conversions, and reservoirs, with credit equal to 20% of project costs.

• Creates tiered credit structure for tax years 2018-2022: allows either 20% credit up to $10,000 or 10% credit up to $50,000, whichever is greater (compared to flat $10,000 cap in prior period).

• Limits credit to one purchase per taxpayer and allows unused credits to carry forward for five subsequent tax years.

• Requires agricultural businesses to file annual informational reports with the Department of Agriculture and Industries before claiming credits on tax returns, with information shared with the Legislature.

• Credit sunsets after December 31, 2022 unless extended by legislative action, returning to 20% credit with $10,000 maximum cap for any subsequent tax years.