§90 — Title 26 Internal Revenue Code | U.S. Code

Summary

You must report as taxable income any illegal Federal irrigation subsidy you got during the tax year. "Illegal Federal irrigation subsidy" means the extra cost you should have paid for Federal irrigation water but did not — the required charge minus what you actually paid. "Federal irrigation water" means water for farming from the projects listed in paragraph (8) of section 202 of the Reclamation Reform Act of 1982. You may not take a tax deduction for amounts added to income for this reason.

Title 26, §90

Internal Revenue Code — Source: USLM XML via OLRC

(a)Gross income shall include an amount equal to any illegal Federal irrigation subsidy received by the taxpayer during the taxable year.

(b)For purposes of this section—

(1)The term “illegal Federal irrigation subsidy” means the excess (if any) of—

(A)the amount required to be paid for any Federal irrigation water delivered to the taxpayer during the taxpayer year, over

(B)the amount paid for such water.

(2)The term “Federal irrigation water” means any water made available for agricultural purposes from the operation of any reclamation or irrigation project referred to in paragraph (8) of section 202 of the Reclamation Reform Act of 1982.

(c)No deduction shall be allowed under this subtitle by reason of any inclusion in gross income under subsection (a).

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 202 of the Reclamation Reform Act of 1982, referred to in subsec. (b)(2), is classified to section 390bb of Title 43, Public Lands.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 100–203, title X, § 10611(c), Dec. 22, 1987, 101 Stat. 1330–452, provided that: “The

Amendments

made by this section [enacting this section] shall apply to water delivered to the taxpayer in months beginning after the date of the enactment of this Act [Dec. 22, 1987].”

§90 Illegal Federal Irrigation Subsidies