HB387 Alabama 2017 Session

Under existing law, an agricultural trade or business is allowed an income tax credit of 20 percent of the cost not to exceed $10,000 of tax liability for the purchase and installation of irrigation equipment and for the conversion of irrigation equipment from fuel to electricity or for qualified reservoirs

This bill would increase the amount of the income tax credit by authorizing an alternative income tax credit of 10 percent of the cost not to exceed $50,000 of tax liability. The bill would provide that the income tax credit authorized by this act would expire and be repealed effective December 31, 2022, unless extended by a joint resolution adopted by the Legislature

Relating to agriculture; to amend Section 40-18-342 of the Code of Alabama 1975, relating to the income tax credit on irrigation equipment, fuel conversions, and reservoirs; to authorize an agricultural trade or business to be eligible for an increased cap on the amount of a credit based on a lower percent of the costs of a project; and to provide for the sunset of this income tax credit under certain conditions.