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 The bill would provide that the income tax credit authorized by this act would expire and be repealed effective December 31, 2022.
Source: Alabama Legislature