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Water and Agriculture Tax Reform Act of 2021
12/31/2022, 5:05 AM
Summary of Bill HR 4553
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.
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.
Congressional Summary of HR 4553
Water and Agriculture Tax Reform Act of 2021
This bill permits tax-exempt mutual ditch or irrigation companies to earn income from dispositions of certain property and stock interests without affecting their tax-exempt status, but requires that such income be used to pay the costs of operations, maintenance, and capital improvements of such a company.
The bill also establishes a rule regarding the organizational governance of mutual ditch or irrigation companies. Where state law provides that such a company may be organized in a manner that permits voting on a basis that is pro rata to share ownership on corporate governance matters, the tax-exempt status of the mutual ditch or irrigation company must be determined without taking into account whether its member shareholders have one vote on corporate governance matters per share held in the corporation.
Read the Full Bill
Current Status of Bill HR 4553
Bill HR 4553 is currently in the status of Bill Introduced since July 20, 2021. Bill HR 4553 was introduced during Congress 117 and was introduced to the House on July 20, 2021. Bill HR 4553's most recent activity was Referred to the House Committee on Ways and Means. as of July 20, 2021
Bipartisan Support of Bill HR 4553
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
14Democrat Cosponsors
6Republican Cosponsors
8Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 4553
Primary Policy Focus
TaxationPotential Impact Areas
- Business investment and capital
- Corporate finance and management
- Farmland
- Financial services and investments
- Land transfers
- Securities
- Tax-exempt organizations
- Water use and supply
Alternate Title(s) of Bill HR 4553
To amend the Internal Revenue Code of 1986 to facilitate water leasing and water transfers to promote conservation and efficiency.
Water and Agriculture Tax Reform Act of 2021
Water and Agriculture Tax Reform Act of 2021
Comments
Sponsors and Cosponsors of HR 4553
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