For farmers in Arkansas looking to make investments in water conservation in Arkansas, an enhancement to available tax credits are now available as of July 28, 2021. The Water Conservation and Development Act provides tax credits for on-farm investments for land leveling, tailwater recovery systems, surface water reservoirs, and irrigation efficiency technology. Primary enhancements made to the law include increases to the value of each tax credit available, a doubling of the tax credits available to claim each year from $9,000 to $18,000, an expansion of areas for enhanced tax credit cost share per project to include counties contiguous to critical groundwater areas, a universal timeline for claiming credits of up to 15 years, and an extension of the time to complete project from 3 years to 5 years.
For more information on this program contact the Natural Resources Division of the Arkansas Department of Agriculture or your local Conservation District office.
More below:
New Water Conservation & Development Tax Credit Law (Act 875 & Act 563)
26-51-1001 et seq.
More from the Arkansas Department of Agriculture (not up to date with the new law):
https://www.agriculture.arkansas.gov/wp-content/uploads/2020/05/title_14.pdf
https://www.agriculture.arkansas.gov/natural-resources/divisions/water-management/tax-credits/
For more information contact:
Ryan Benefield P.E., Acting NRC Water Resources Division Manager
10421 W. Markham St., Little Rock, AR 72205
Phone (501) 682-3962
Fax (501) 682-3991
Email: ryan.benefield@arkansas.gov