Section 1 Short title
This Act may be cited as the “Groundwater Conservation Incentive Act of 2015”.
Groundwater Conservation Incentive Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for conservation expenditures to reduce groundwater consumption.
Sec. 2 Reduction in groundwater consumption
In general— Section 175 of the Internal Revenue Code of 1986 is amended by inserting “or for the reduction of groundwater consumption,” after “land used in farming,” both places it occurs in subsections (a) and (c)(1).
Expenditures— Section 175(c)(1) of such Code is amended—
by striking “and ponds,” in the first sentence and inserting “reservoirs, impoundments, ponds, tail-water recovery systems and other water retention or water control structures,”, and
by striking “Such term shall include expenditures paid or incurred for the purpose of” in the second sentence and inserting “Such term shall include expenditures paid or incurred for the reduction of ground water use and the conversion from ground water use to surface water use. Such term shall also include expenditures paid or incurred for the purpose of”.
Limitation relating to conservation plan— Section 175(c)(3)(A) of such Code is amended—
in the matter preceding paragraph (1) by striking “soil conservation plan” and inserting “soil or water conservation plan or practice”,
in clause (i)—
by striking “the plan” and all that follows through “Agriculture or the” and inserting “a plan (if any) approved by the Natural Resources Conservation Service of the Department of Agriculture or a”, and
by inserting “taxpayer’s” before “land”,
by amending clause (ii) to read as follows:
“(ii) a soil or water conservation plan of a comparable State or local agency, or”
by striking “or” at the end of clause (i) and inserting after clause (ii) the following:
“(iii) any conservation practice approved in the Field Office Technical Guide of the Natural Resources Conservation Service for the State in which the taxpayer’s land is located if the purpose for such practice is consistent with one of the purposes identified in subsection (a).”
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.