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CONGRESSIONAL RECORD— Extensions of Remarks E33 HON. GARY A. CONDIT HON. ROBERT A. UNDERWOOD

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CONGRESSIONAL RECORD— Extensions of Remarks E33 HON. GARY A. CONDIT HON. ROBERT A. UNDERWOOD January 7, 1997 CONGRESSIONAL RECORD Ð Extensions of Remarks E33 doubts about the integrity of the institution and SECTION 1. SHORT TITLE. ``(B) WATER CONSERVATION SYSTEM.ÐThe its governance, that person should be some- This Act may be cited as the ``Agricultural term `water conservation system' means ma- one not involved in the ethical issues in which Water Conservation Act''. terials or equipment which are primarily de- SEC. 2. CONGRESSIONAL FINDINGS. signed to substantially conserve irrigation the gentleman from Georgia finds himself en- water used or to be used on farm land. meshed. The Congress finds thatÐ (1) the Federal Government has an historic ``(C) FARM LAND.ÐThe term `farm land' f commitment to assisting areas of the Nation means land used in a trade or business by the taxpayer or a tenant of the taxpayer forÐ AGRICULTURAL WATER in need of developing adequate water sup- plies, ``(i) the production of crops, fruits, or CONSERVATION ACT (2) water is becoming increasingly scarce other agricultural products, and expensive in many parts of the United ``(ii) the raising, harvesting, or growing of HON. GARY A. CONDIT States, which is compounded when multiple trees, or years of drought occur, ``(iii) the sustenance of livestock. OF CALIFORNIA (3) in most areas of the United States, ``(c) LIMITATION BASED ON AMOUNT OF IN THE HOUSE OF REPRESENTATIVES farms are overwhelmingly the largest water TAX.Ð ``(1) LIABILITY FOR TAX.ÐThe credit allow- Tuesday, January 7, 1997 consumers, and (4) it is in the national interest for farmers able under subsection 9a) for any taxable Mr. CONDIT. Mr. Speaker, I rise today to in- to implement water conservation measures year shall not exceed the excess (if any) ofÐ troduce the Agricultural Water Conservation which address water conservation needs and ``(A) the regular tax for the taxable year, Act. for the Federal Government to promote such reduced by the sum of the credits allowable Over the past few years I have read count- conservation measures. under subpart A and the preceding sections of this subpart, over less articles on the need to conserve water SEC. 3. CREDIT FOR PURCHASE AND INSTALLA- ``(B) the tentative minimum tax for the and the role Federal Government has with this TION OF AGRICULTURAL WATER CONSERVATION SYSTEMS. taxable year. mission. While discussing water conservation ``(2) CARRYFORWARD OF UNUSED CREDIT.ÐIf ``(a) IN GENERAL.ÐSubpart B of part IV of methods with farmers in my district, I found subchapter A of chapter 1 of the Internal the amount of the credit allowable under cost was their overriding concern. The outlays Revenue Code of 1986 (relating to foreign tax subsection (a) for any taxable year exceeds required to implement water conservation sys- credit, etc.) is amended by adding at the end the limitation under paragraph (1) for the temsÐthat is, drip irrigation, sprinkler systems, the following new section: taxable year, the excess shall be carried to the succeeding taxable year and added to the ditch liningÐare a tremendous burden on the ``SEC. 30B. PURCHASE AND INSTALLATION OF AG- amount allowable as a credit under sub- agriculture industry. While I firmly believe most RICULTURAL WATER CONSERVA- TION SYSTEMS. section (a) for such succeeding taxable year. agriculture interest are genuinely concerned ``(d) DENIAL OF DOUBLE BENEFIT.ÐNo de- ``(a) ALLOWANCE OF CREDIT.ÐIn the case of about conserving water, cost has crippled the an eligible taxpayer, there shall be allowed duction shall be allowed under this chapter ability to implement conservation methods on as a credit against the tax imposed by this with respect to any expense which is taken farms. chapter for the taxable year an amount into account in determining the credit under For example, in the San Joaquin Valley, CA, equal to 30 percent of the water conservation this section, and any increase in the basis of a study was done by the San Joaquin Drain- system expenses paid or incurred by the tax- any property which would (but for this sub- payer during such year. section) result from such expense shall be re- age Program. This report indicates a cost duced by the amount of credit allowed under ``(b) MAXIMUM CREDIT.ÐThe credit allowed ranging from $21.06 per acre for surface irri- this section for such expense.'' gation to $131.40 per acre for linear irrigation. by subsection (a) with respect to any water conservation system shall not exceed the (b) TECHNICAL AMENDMENT.ÐSubsection (a) Drip irrigation was measured at a cost of product of $500 and the number of acres of section 1016 of such Code is amended by $272.07 per acre. As you can see, with cost served by such system. striking ``and'' at the end of the paragraph (25), by striking the period at the end of ranging from 623 to 1,294 percent above the ``(c) DEFINITIONS.ÐFor purposes of this sec- least-cost approach method of surface irriga- tionÐ paragraph (26) and inserting ``; and'', and by adding at the end the following new para- tion, there are limited incentives at this time ``(1) ELIGIBLE TAXPAYER.ÐThe term `eligi- graph: for farmers to switch toward better water main- ble taxpayer' means any taxpayer ifÐ ``(A) at least 50 percent of such taxpayer's ``(27) to the extent provided in section tenance practices. 30B(d), in the case of amounts with respect The Agricultural Water Conservation Act is gross income is normally derived from a trade or business referred to in paragraph to which a credit has been allowed under sec- not a mandate for expensive water conserva- (3)(C), and tion 30B.'' tion systems, it is a tool and an option for ``(B) such taxpayer complies with all Fed- (c) CLERICAL AMENDMENT.ÐThe table of farmers. Specifically, it will allow farmers to re- eral, State, and local water rights and envi- sections for subpart B of part IV of sub- ceive up to a 30 percent tax credit for the cost ronmental laws. chapter A of chapter 1 of such Code is amended by adding at the end the following ``(2) WATER CONSERVATION SYSTEM EX- of developing and implementing water con- new item: servation plans on their farm land with a cap PENSES.Ð ``(A) IN GENERAL.ÐThe term `water con- ``Sec. 30B. Purchase and installation of agri- of $500 per acre. The tax credit could be used cultural water conservation primarily for the cost of materials and equip- servation system expenses' means expenses for the purchase and installation of a water systems.'' ment. This legislation would not require them conservation system but only ifÐ (d) EFFECTIVE DATE.ÐThe amendments to change their irrigation practices. However, it ``(i) the land served by the water is en- made by this section shall apply to amounts would allow those farmers who want to move tirely in an area which has been identified, paid or incurred after the date of the enact- towards a more conservation approach of irri- in the taxable year or in any of the 3 preced- ment of this Act, in taxable years ending gation but can not afford to do it during these ing taxable years, as an area ofÐ after such date. tough economic times. ``(I) extreme drought severity on the Palm- f This measure is not the end-all solution. er Drought Severity Index published by the National Oceanic and Atmospheric Adminis- This is just the beginning toward the demand TRIBUTE TO RICHARD FLORES tration, or TAITANO for not only in California, but over the United ``(II) water shortage (due to increasing de- States, to conserve water. I believe farmers mands, limited supplies, or limited storage) will contribute to solving water supply prob- by the Natural Resources Conservation Serv- HON. ROBERT A. UNDERWOOD lems when given the opportunity, as they al- ice of the Department of Agriculture or the OF GUAM ready have through conservation transfers and Bureau of Reclamation of the Department of IN THE HOUSE OF REPRESENTATIVES the Interior, crop changes. I also believe providing for the Tuesday, January 7, 1997 long-term water supply needs of environ- ``(ii) the taxpayer has in effect a water con- servation plan which has been reviewed and Mr. UNDERWOOD. Mr. Speaker, last Satur- mental, urban, and agricultural users is a criti- approved by such Service and Bureau, cal part of the solution. day evening on Guam, my island lost one of ``(iii) such expenses are consistent with its most outstanding public servants, Richard The Agricultural Water Conservation Act will such plan, and provide another vehicle for farmers to contrib- ``(iv) there is an irrigation water savings of Flores Taitano. His passing is an enormous ute to the solution and offer a modest credit to at least 5 percent which is attributable to loss for Guam as well as for me and my fam- share the cost with the true beneficiariesÐthe such system. ily. He was Uncle Richard to us and those in public. For purposes of clause (iv), water savings his extended family, but he wasÐSenator Be it enacted by the Senate and House of Rep- shall be determined and verified under regu- Taitano, the quintessential public servantÐto resentatives of the United States of America in lations prescribed jointly by such Service the rest of the island. Generous to a fault, eth- Congress assembled, and Bureau. ical in all of his dealings, intelligent as well as E34 CONGRESSIONAL RECORD Ð Extensions of Remarks January 7, 1997 intellectual, he embodied the best which family. If you wanted a lesson in hard work, he Leadership through personal example is a Guam has ever produced. provided the role model. If you needed a les- trite phrase, but an appropriate one when Richard Taitano achieved much in his 75 son in service to family and parents and sib- speaking about Richard Flores Taitano.
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