ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: LAG DP 7-0-0-0-0-0

HB 2621: tax credit; water conservation system

Sponsor: Representative Dunn, LD 13

House Engrossed

Overview

Requires a taxpayer to file a conservation plan with an Arizona natural resource conservation district (NRCD), instead of the U.S. Department of Agriculture Soil Conservation Service (Service), to qualify for an agricultural water conservation system (system) tax credit.

History

Agricultural Water Conservation System

Statute allows a taxpayer to file for a tax credit for expenses related to purchasing and installing a system in Arizona. This credit is equal to 75% of the qualifying expenses. To qualify for this tax credit:

1) The system must be designed to substantially conserve water on land that is used by the taxpayer of their tenant to produce agricultural products, farm trees, or sustain livestock; and

2) The expense must be consistent with the conservation plan the taxpayer has filed with the Service.

Co-owners of the land on which the system is installed can claim only a pro-rata share of the credit based on their ownership interest (A.R.S. § 43-1084).

NRCDs

NRCDs are organized by local landowners to restore, conserve and protect natural resources, including land, water, wildlife and public lands. To those ends, these districts can conduct surveys into soil erosion prevention methods, create demonstration projects and carry out watershed improvement programs (A.R.S. §§ 37-1001, 37-1031 and 37-1054).

Provisions

1. Directs a taxpayer to file a conservation plan with an Arizona NRCD, instead of the Service, for an expense to qualify for a system tax credit.

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5. Initials PAB House Engrossed

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