AR HB1725

Adds irrigation water efficiency improvements (equipment, devices, hardware, software, data systems, or services) as an eligible project type under the Water Resource Conservation and Development Incentives Act, treating such installations as groundwater-to-surface water conversions for tax credit purposes.

Increases maximum tax credit for water impoundments from $90,000 to $250,000 per project, with annual usage capped at $25,000 (up from $9,000).

Raises tax credit percentages and caps for surface water conversion projects: increases from 10% to 25% of project costs (outside critical areas) and from $27,000 to $90,000 maximum; increases annual usage limits to $30,000 (up from $9,000).

Increases tax credit for land leveling projects from 10% to 25% of project costs, with maximum credit raised from $27,000 to $90,000 and annual usage capped at $30,000.

Changes tax credit suspension trigger from "expire" to "not be available for new projects" when total credits used exceed $10,000,000 in a calendar year, suspending new project eligibility for one year.

Effective for tax years beginning on or after January 1, 2015.