HB2621 Summary

• Amends Arizona's agricultural water conservation system tax credit to allow 75% of qualifying expenses as a tax credit against state income taxes.

• Expands eligible conservation plan providers to include any natural resource conservation district in Arizona established under title 37, chapter 6, replacing the previous requirement for U.S. Department of Agriculture soil conservation service plans.

• Permits co-owners of agricultural land (partners, S corporation shareholders) to claim pro rata shares of the credit based on ownership interest, with total credits not exceeding the amount a sole owner could claim.

• Allows unused credits to be carried forward for up to 5 taxable years if the credit exceeds current year tax liability.

• Specifies the credit is in lieu of any deduction for such expenses under the Internal Revenue Code.