,,ii  #aac? ,,congress  #a/ ,session    
,s4 #adda  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #a1 #bjac ,mr4  
,b5net 7= himself & ,mr4 ,crapo7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to facilitate wat]
 leas+ & wat] transf]s to promote       
cons]vation & effici5cy4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,wat] & 
,agriculture ,tax ,re=m ,act ( #bjac4   
#b4 ,facilitate wat] leas+ & wat]       
transf]s to promote cons]vation &       
effici5cy  7a7 ,9 g5]al ,p>agraph 7#ab7 
( section #eja7;c7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subp>agraph3  7,i7         
,treatm5t ( mutual dit* irrigation      
companies  7i7 ,9 g5]al ,9 ! case ( a   
mutual dit* or irrigation company or l  
organization1 subp>agraph 7,a7 %all be  
appli$ )\t tak+ into acc\nt any income  
receiv$ or accru$--  7,i7 f ! sale1     
lease1 or ex*ange ( fee or o!r int]e/s 9

 real prop]ty1 includ+ int]e/s 9 wat]1  
7,,ii7 f ! sale or ex*ange ( /ock 9 a   
mutual dit* or irrigation company or l  
organization or contract rights = !     
deliv]y or use ( wat]1 or  7,,iii7 f !  
inve/m5t ( proce$s f sales1 leases1 or  
ex*anges "u subclauses 7,i7 & 7,,ii71   
except t any income receiv$ "u subclause
 7,i71 7,,ii71 or 7,,iii7 :i* is        
di/ribut$ or exp5d$ = exp5ses 7o!r ?an =
 op]ations1 ma9t5ance1 & capital        
improvem5ts7 ( ! mutual dit* or         
irrigation company or l organization    
%all be treat$ z nonmemb] income 9 ! ye>
 9 :i* x is di/ribut$ or exp5d$4 ,=     
purposes ( ! prec$+ s5t5ce1 exp5ses 7o!r
 ?an = op]ations1 ma9t5ance1 & capital  
improvem5ts7 include exp5ses = !        
con/ruction ( conveyances design$ to    
deliv] wat] outside ( ! mutual dit* or  
irrigation company or l organization    
sy/em4  7ii7 ,treatm5t ( organizational 
gov]nance ,9 ! case ( a mutual dit* or  
irrigation company or l organization1   
:]e ,/ate law provides t su* a company  

or organization may be organiz$ 9 a     
mann] t p]mits vot+ on a basis :i* is   
pro rata to %>e own]%ip on corporate    
gov]nance matt]s1 subp>agraph 7,a7 %all 
be appli$ )\t tak+ into acc\nt :e!r its 
memb] %>ehold]s h "o vote on corporate  
gov]nance matt]s p] %>e held 9 !        
corporation4 ,no?+ 9 ?is clause %all be 
con/ru$ to create any inf]5ce ab\t !    
requirem5ts ( ?is subsection = companies
 or organizations n includ$ 9 ?is       
clause4  4  7b7 ,effective date ,!      
am5dm5t made by subsection 7a7 %all     
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is ,act4