ALtax_creditmixed

Qualified Irrigation System/Reservoir System Tax Credit

IRRIG · Alabama

Summary

Credit of 20% (up to $10,000) or 10% (up to $50,000) of cost of purchasing, installing, or converting qualified irrigation equipment or developing irrigation reservoirs/water wells for agricultural use. Rate and cap vary by tax year (see benefit_components). Carryforward 5 years.

Benefit

Percentage: —
Flat: —
Duration: —
Max annual: — (taxpayer)
Max total: — (taxpayer)
Carryforward: 5 years

Program metadata

Distribution: taxpayer_earned
Claimant subject: business
Refund/transfer election: none
Program family: —
Effective: —
Sunset: —
Application deadline: —
Transfer discount: —

Benefit components (2)

Name	Label	Benefit	Group
rate_2018_2022	Irrigation credit rate, tax years 2018–2022	10% of equipment_cost	—
rate_2023_plus	Irrigation credit rate, tax years 2023+	20% of equipment_cost	—

Hard requirements (1)

industry_keywordClaimant must be in an agricultural trade or business

Preference / tiering rules (0)

None.

NAICS industries (1)

11 Agriculture, Forestry, Fishing and Hunting

Geo zones (0)

Statewide / none specified.

Tags (2)

requires_annual_report: true
reporting_agency: Alabama Department of Agriculture and Industries

Tax bases

corporate_income_taxprimary

Source

https://www.revenue.alabama.gov/tax-incentives/income-tax-incentives/

Sections 40-18-340 through 40-18-344, Code of Ala. 1975

Last verified: 2026-04-12

Must file annual informational report with AL Dept. of Agriculture and Industries before claiming. One credit per qualifying equipment/reservoir per period.