26 U.S.C. § 90 : Internal Revenue Code — Income Taxes — Normal Taxes And Surtaxes — Computation Of Taxable Income — Items Specifically Included In Gross Income — Illegal Federal Irrigation Subsidies

7 Mar 2017

(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

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) 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).

(Added Pub. L. 100–203, title X, § 10611(a), Dec. 22, 1987, 101 Stat. 1330–451.)


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.


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].”