Water and Agriculture Tax Reform Act of 2021

Bill 117 HR 4553, also known as the Water and Agriculture Tax Reform Act of 2021, aims to provide tax relief to farmers and ranchers who invest in water conservation and irrigation efficiency projects. The bill seeks to incentivize these investments by allowing farmers to deduct the full cost of such projects in the year they are completed, rather than having to depreciate the costs over several years.

Additionally, the bill includes provisions to expand the availability of tax-exempt bonds for water infrastructure projects in rural communities. This would help fund much-needed upgrades to water systems and irrigation facilities, benefiting both farmers and local residents.

Furthermore, the bill includes measures to streamline the process for obtaining permits for water storage projects, making it easier for farmers to secure the necessary approvals for projects that can help them better manage water resources and adapt to changing climate conditions. Overall, the Water and Agriculture Tax Reform Act of 2021 aims to support sustainable agriculture practices and improve water infrastructure in rural communities, ultimately benefiting both farmers and the environment.