H. R. 6462
IN THE HOUSE OF REPRESENTATIVES
September 20, 2012
Mr. Gardner (for himself, Mr. Matheson, and Mr. Tipton) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to facilitate water leasing and water transfers to promote conservation and efficiency.
This Act may be cited as the
Water and Agriculture Technology
Economic Revitalization Act of 2012.
Facilitate water leasing and water transfers to promote conservation and efficiency
Paragraph (12) of section 501(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Treatment of mutual ditch irrigation companies
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—
from the sale, lease, or exchange of fee or other interests in real property, including interests in water,
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
from the investment of proceeds from sales, leases, or exchanges under subclauses (I) and (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.
The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.