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Shown Here: Introduced in Senate (08/01/2013)
113th CONGRESS 1st Session
S. 1441
To amend the Internal Revenue Code of 1986 to facilitate
water leasing and water transfers to promote conservation and
efficiency.
IN THE SENATE OF THE UNITED STATES
August 1, 2013
Mr. Bennet (for himself
and Mr. Crapo) introduced the following
bill; which was read twice and referred to the
Committee on
Finance
A BILL
To amend the Internal Revenue Code of 1986 to facilitate
water leasing and water transfers to promote conservation and
efficiency.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1.Short title.
This Act may be cited as the
“Water and Agriculture Tax Reform Act
of 2013”.
SEC. 2.Facilitate water
leasing and water transfers to promote conservation and efficiency.
(a) In
general.—Paragraph (12) of section 501(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:
“(I) TREATMENT OF
MUTUAL DITCH IRRIGATION COMPANIES.—
“(i) IN
GENERAL.—In the case of a mutual ditch or irrigation company or
like organization, subparagraph (A) shall be applied without taking into
account any income received or accrued—
“(I) from the sale,
lease, or exchange of fee or other interests in real property, including
interests in water,
“(II) from the sale or
exchange of stock in a mutual ditch or irrigation company or like organization
or contract rights for the delivery or use of water, or
“(III) from the
investment of proceeds from sales, leases, or exchanges under subclauses (I)
and (II),
except that
any income received under subclause (I), (II), or (III) which is distributed or
expended for expenses (other than for operations, maintenance, and capital
improvements) of the mutual ditch or irrigation company or like organization
shall be treated as nonmember income in the year in which it is distributed or
expended. For purposes of the preceding sentence, expenses (other than for
operations, maintenance, and capital improvements) include expenses for the
construction of conveyances designed to deliver water outside of the mutual
ditch or irrigation company or like organization system.
“(ii) TREATMENT OF
ORGANIZATIONAL GOVERNANCE.—In the case of a mutual ditch or
irrigation company or like organization, where State law provides that such a
company or organization may be organized in a manner that permits voting on a
basis which is pro rata to share ownership on corporate governance matters,
subparagraph (A) shall be applied without taking into account whether its
member shareholders have one vote on corporate governance matters per share
held in the corporation. Nothing in this clause shall be construed to create
any inference about the requirements of this subsection for companies or
organizations not included in this
clause.”.
(b) Effective
date.—The amendment made by subsection (a) shall apply to taxable
years beginning after the date of the enactment of this Act.