HB289 Alabama 2013 Session

Current law provides for an expense allowance to Alabama taxpayers under Section 179 of the Internal Revenue Code for irrigation and provides for an income tax credit of 20% of the cost of the purchase and installation of certain conversion costs related to irrigation systems or the development of irrigation reservoirs and water wells

This bill would change the annual flow rate of rivers or streams, excepted from the qualified reservoir requirement, from 10,000 cubic feet per second to 8,000 cubic fee per second

This bill would allow the tax credit to be carried to each of the 5 years following the taxable year the qualified irrigation system or reservoir is placed in service

This bill would allow shareholders of certain business entities to receive a pro rata share of the credit claimed by the business entity

To amend Section 40-18-342 of the Code of Alabama 1975, relating to tax credit for the purchase and installation of certain irrigation systems; to provide for changes to the annual flow rate of rivers or streams excepted from the qualified reservoir requirement; to allow the tax credit to be carried forward 5 years; and to allow shareholders a pro rata share of the credit claimed by certain business entities.