The Alabama Department of Agriculture & Industries (ADAI) wants to remind producers who performed agriculture irrigation upgrades in 2019, the required irrigation questionnaire in order to obtain an income tax credit is due this Friday, Jan. 31. An income tax credit is available for certain costs of irrigation equipment, fuel conversions and reservoirs.
Only qualified irrigation systems or reservoirs for which the agriculture trade or business has filed an annual information report with the ADAI 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 credit for tax years 2018 through 2022; and one credit for tax year 2023, or thereafter.
The tax credits will be issued by the Alabama Department of Revenue (ADOR), but ADAI is responsible for collecting the completed irrigation questionnaires. To access the on-line questionnaire, click here.