Please retain a copy of this completed questionnaire. The Alabama Department of Revenue requires you to complete a precertification process before you can claim the Qualified Irrigation System/Reservoir System Tax Credit on your tax return. A copy of this questionnaire will need to be provided as part of the precertification process. For more information about what is required, please visit https://revenue.alabama.gov/tax-incentives/about/income-tax-incentives/.
Section 40-18-342, Code of Alabama 1975, allows for an income tax credit for certain costs for irrigation equipment, fuel conversions, and reservoirs. Pursuant to Section 40-18- 342(g), all agriculture trade or business making qualified costs must file an annual informational report with the Alabama Department of Agriculture and Industries prior to claiming an income tax credit. Only qualified irrigations systems or reservoirs for which the agricutlure 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.