Irrigation Tax Credit

Alabama Irrigation Tax Credit

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. *Deadline to submit questionnaire is February 28, 2025

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 Alabama Department of Revenue.

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(f)(1), 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 irrigation systems or reservoirs for which the agriculture 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 2024, and one credit for qualifying equipment purchased and installed during tax year 2024 or thereafter.

If you feel you qualify and would like to submit a questionnaire, please provide your information to us using one of the methods shown below.

* Download the "Alabama Irrigation Tax Credit Questionnaire" by clicking the button below. Complete all applicable fields, save, and either upload the document using the "Choose File" button or email to irrigation@agi.alabama.gov

    Use this method if you prefer to input your information online and submit it to us directly (preferred). This method is faster and does NOT require you to mail or email anything to us.



    Note: If you use the fillable document method, you will need to either mail or email your completed document
    to our office for it to be processed.