In the early hours of May 22, the U.S. House of Representatives narrowly passed a sweeping tax and domestic spending bill, branded by Republican leadership as the “Big Beautiful Bill,” by a razor-thin vote of 215-214. While the legislation faces an uncertain future in the Senate, its current text includes several key provisions long championed by the Irrigation Association and beneficial to the broader irrigation industry.
“This bill marks a significant step forward in advancing tax provisions that directly benefit the irrigation industry—especially small, family-owned businesses across the agricultural, landscape and water management sectors,” said Nathan Bowen, the IA’s vice president, policy and industry advancement. “We’re pleased to see key irrigation industry priorities reflected in the House package, and we’ll continue advocating for their inclusion in the final version.”
What’s in the bill for irrigation?
The bill includes multiple IA-supported provisions, particularly in the areas of workforce development, capital investment and business tax relief:
- 529 Expansion for Certifications (Section 110111) – Allows 529 education savings plans to be used for industry-recognized credentials, reducing barriers for workforce entry and upskilling.
- R&D Expensing (Section 111002) – Restores the ability of manufacturers and innovators to immediately deduct research and development costs.
- Full Equipment Deductibility (Sections 111101 & 111103) – Makes 100% bonus depreciation and expanded Section 179 expensing permanent, supporting investment in irrigation systems and equipment.
- Fair Interest Deductibility (Section 111003) – Reinstates a more generous EBITDA-based cap on the deduction of business loan interest.
- 199A Deduction Enhancement (Section 110005) – Increases the qualified business income deduction from 20% to 23% for pass-through businesses, with permanent extension.
As debate now turns to the Senate, the Irrigation Association will continue working to ensure that core industry-supportive provisions remain in whatever final version emerges.
