The Alabama Department of Agriculture and Industries reminds producers that the 2021 Irrigation Income Tax Credit is available and covers costs for irrigation equipment, fuel conversion and reservoirs.
The deadline to submit is Jan. 31, 2022. For more information, see agi.alabama.gov/irrigation.
The Alabama Department of Revenue requires farmers to complete a precertification process before they can claim the Qualified Irrigation System/Reservoir System Tax Credit on their tax return.
Only qualified irrigation systems or reservoirs for which the agriculture trade or business has filed an annual information report with the Department of Agriculture and Industries are eligible for the tax credit.
The eligible taxpayer may claim one credit for qualifying equipment purchased and installed during tax years 2012 through 2017, one tax credit for qualifying equipment purchased and installed during tax years 2018 through 2022 and one credit for qualifying equipment purchased and installed during tax year 2023 or thereafter.