ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: NREW DP 8-2-0-0 | 3^rd Read 48-11-1-0 Senate: NREW DPA 8-1-0-0 | 3rd Read 18-10-2-0

---

HB 2079: conservation districts; water; invasive vegetation

Sponsor:  Representative Dunn, LD 13

Senate Engrossed

Overview

Authorizes Natural Resource Conservation Districts (NRCDs) to be involved in research and programs to eradicate invasive vegetation and increase awareness of water conservation methods and best management practices. Allows a taxpayer to file a conservation plan with an NRCD to qualify for the agricultural water conservation system tax credit.

History

Natural Resource Conservation Districts

NRCDs are organized by local landowners to restore, conserve and protect natural resources, including land, water, wildlife and public lands (A.R.S. §§ 37-1001 and 37-1031). These districts can conduct surveys, investigations and research relating to soil character, soil erosion prevention, methods of cultivation, farm and range practices, seeding, eradicating noxious growths and any other measures that will aid farm and range operations. Further, NRCDs can enter into agreements with landowners, operators or the state or federal government to carry out programs in these areas on lands within farms or ranches (A.R.S. § 37-1054(A)).

These districts can conduct demonstration projects on methods and measures for conserving water and enter into agreements with landowners, operators or state and federal government agencies to carry out watershed improvement programs. Additionally, these districts can create education centers to increase knowledge of natural resources by:

1) Offering technical guidance and training to agricultural producers;

2) Publishing scholarly materials;

3) Providing training; and

4) Conducting or sponsoring scientific studies on natural resources in Arizona (A.R.S. § 37-1054).

There are 25 education centers sponsored or cosponsored by 30 NRCDs in Arizona.

Agricultural Water Conservation System Tax Credits

Statute allows a someone to file for a tax credit for expenses related to purchasing and installing an agricultural water conservation system. 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 or 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 U.S. Department of Agriculture's Natural Resources Conservation Service.

Co-owners of the land where the system is installed can claim only a pro-rata share of the credit based on their ownership interest (A.R.S. § 43-1084). According to the Arizona Department of Revenue's Revenue Impact of Arizona's Tax Expenditures (FY 2020) report, there were 99 claims for this tax credit totaling $1,568,908 in tax year 2018 (p. 34/110).

Provisions

1. Authorizes NRCDs to:

a) Conduct surveys, investigations, and research on eradicating invasive vegetation;

b) Cooperate and enter into agreements with landowners, operators, or any agency or subdivision of the state or federal government to carry out programs to eradicate invasive vegetation; and

c) increase public awareness of water conservation statewide, including water conservation methods and best management practices through established education centers. (Sec. 1)

2. Allows an expense to qualify for the agricultural water conservation system tax credit if it is consistent with the conservation plan that the taxpayer has filed with an NRCD. (Sec. 2)

3. Repeals the requirement that the taxpayer's conservation plan must be in effect with the U.S. Department of Agriculture's Natural Resources Conservation Service.

4. Makes technical changes. (Sec. 1 and 2)

Senate amendments

1. Adds, to the powers an NRCDs, creating and administering soil health programs.

2. Allows NRCD-established education centers to increase public awareness of soil health practices.

---------- DOCUMENT FOOTER ---------

                        HB 2079

Initials PAB     Page 0 Senate Engrossed

---------- DOCUMENT FOOTER ---------