Washington,
D.C.–To
ensure farmers and ranchers have access to modern and safe water infrastructure
systems, U.S. Senators Mike Crapo (R-Idaho), Ranking Member of the Senate
Finance Committee, and Michael Bennet (D-Colorado), member of the Senate
Finance Committee, have introduced the Water and Agriculture Tax Reform (WATER)
Act, which would reform outdated tax provisions hindering investment in
important infrastructure advances.
Co-sponsors
of the legislation include Senators Jim Risch (R-Idaho) and Cynthia Lummis
(R-Wyoming). Companion legislation has been introduced in the U.S. House
of Representatives by Representatives Ken Buck (R-Colorado) and Joe Neguse
(D-Colorado).
“The
cost of maintaining and operating aging water infrastructure has skyrocketed in
recent years, forcing higher price tags on Idaho’s farmers and ranchers,” said
Crapo. “Existing tax law penalizes mutual ditch and irrigation companies’
investments in much-needed water infrastructure projects necessary for
maintaining a thriving agriculture sector. The WATER Act would update and
reduce these current burdensome restrictions.”
“Facing
intense drought, farmers and ranchers in the West are relying on water
infrastructure now more than ever to keep their land productive,” said
Bennet. “Our bipartisan legislation helps ensure ditch and
irrigation companies in Colorado and across the West are able to keep critical
water infrastructure in good, working condition.”
“Mutual
irrigation, reservoir, and water companies play a critical role in the
agriculture industry in Colorado and throughout the nation,” said
Representative Buck. “Farmers and ranchers should be able to maintain and
develop their water infrastructure without being penalized for it. The
WATER Act
will replace a burdensome restriction with a beneficial solution that will
support America’s rural communities.”
“Across
Colorado, access to clean water and maintenance of water resources is a top
concern for our communities,” said Representative Neguse. “Today, I’m
glad to partner with Congressman Buck on the bipartisan WATER Act to reduce the
cost of water and support our rural communities. This legislation will
cut red tape and is a commonsense measure to support Colorado ranchers and
farmers.”
Current
law dictates that mutual ditch and irrigation companies must receive 85 percent
of their income from shareholder investment to maintain their non-profit
designations. Mostly comprised of farmer cooperative corporations, these
companies maintain and develop water storage and delivery systems for farmland
in the West.
The
WATER Act would revise restrictions placed on mutual ditch and irrigation
companies’ ability to raise capital to invest in infrastructure.
The bill would further allow for these companies to receive other sources of
income for operations and maintenance and still keep non-profit status.
The legislation requires that extra revenue be used exclusively for operations
and capital improvements of irrigation, ditch and water systems.
The
bill is supported by the Idaho Water Users Association, Twin Falls Canal
Company, Fremont Madison Irrigation District, Idaho Irrigation District and the
American Farm Bureau Federation.
Full
text can be found HERE. A one-pager of the bill can be found HERE.