Title 26, Internal Revenue CodeRelease 119-110

§90 Illegal Federal Irrigation Subsidies

Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter B — Computation of Taxable Income › PART II — ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME › § 90

Last updated Sep 22, 2026|Official source

Summary

Count any illegal Federal irrigation subsidy you received during the year as taxable income, and you may not take a tax deduction for that amount. illegal Federal irrigation subsidy — the excess of the amount you were supposed to pay for federal irrigation water over what you actually paid. Federal irrigation water — farm water from projects listed in paragraph (8) of section 202 of the Reclamation Reform Act of 1982.

Full Legal Text

Title 26, §90

Internal Revenue Code, Source: USLM XML via OLRC

(a)General rule

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

(b)Illegal Federal irrigation subsidy

For purposes of this section

(1) In general

(2)Federal irrigation water

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)Denial of deduction

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

Legislative History

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].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 90

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110