 |
ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
tax credit; water conservation system
Purpose
Requires, to qualify for the Agricultural Water Conservation System Credit, a conservation plan be in effect with a state Natural Resource Conservation District rather than the United States Department of Agriculture (USDA).
Background
Statute outlines Arizona tax rates, calculations and processes for individuals' and corporations' income tax liability paid on taxable income. Statute provides various income tax credits which a qualifying person may claim against imposed taxes.
The Agricultural Water Conservation System Credit may be claimed for 75 percent of the incurred expenses for implementing an agricultural water conservation system. To qualify for the program the system must be designed to substantially conserve water on land that is used to produce crops, fruits or other agricultural products, raise, harvest, or grow trees or to sustain livestock. Current statute requires that expenses related to the implementation of the water conservation system be consistent with a conservation plan filed and in effect with the USDA Soil Conservation Service (A.R.S. § 43-1084).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires, to qualify for the Agricultural Water Conservation System Credit, a conservation plan be filed and in effect with a state Natural Resource Conservation District rather than the USDA Conservation Service.
2. Makes technical changes.
3. Becomes effective on the general effective date.
House Action
LAG 1/28/20 DP 7-0-0-0
3rd Read 2/25/20 45-15-0
Prepared by Senate Research
March 3, 2020
KN/CDT/gs