Source: United States Senator for Colorado Michael Bennet
Washington, D.C. ? U.S. Senators Michael Bennet (D-Colo.), member of the Senate Finance Committee, and Mike Crapo (R-Idaho), Ranking Member of the Senate Finance Committee, introduced the Water and Agriculture Tax Reform (WATER) Act to ensure farmers and ranchers have access to modern and safe water infrastructure systems. This bipartisan legislation would reform outdated tax provisions hindering investment in important infrastructure advances.
In addition to Bennet and Crapo, the WATER Act is co-sponsored by U.S. Senators Jim Risch (R-Idaho) and Cynthia Lummis (R-Wyo.). Companion legislation has been introduced in the U.S. House of Representatives by U.S. Representatives Ken Buck (R-Colo.) and Joe Neguse (D-Colo.).
“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.”
“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.”
“Mutual irrigation, reservoir, and water companies play a critical role in the agriculture industry in Colorado and throughout the nation,” said 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 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% 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 American Farm Bureau Federation, Twin Falls Canal Company, Fremont Madison Irrigation District, Idaho Irrigation District, and the Idaho Water Users Association.
The bill text is available HERE. A one-page summary of the bill is available HERE.