,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #hjg  ,,in ,,the ,,house ,,of   
,,representatives  ,january #bh1        
#bjai,mr4 ,buck 7for himself1 ,mr4      
,bishop of ,utah1 ,mr4 ,tipton1 ,mr4    
,gosar1 ,mr4 ,curtis1 ,mr4 ,schweikert1 
,mr4 ,crow1 ,mr4 ,neguse1 and ,mr4      
,perlmutter7 introduced the following   
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to facilitate water     
leasing and water transfers to promote  
conservation and efficiency4  #a4 ,short
 title ,this ,act may be cited as the   
,water and ,agriculture ,tax ,reform    
,act of #bjai4  #b4 ,facilitate water   
leasing and water transfers to promote  
conservation and efficiency  7a7 ,in    
general ,paragraph 7#ab7 of section     
#eja7;c7 of the ,internal ,revenue ,code
 of #aihf is amended by adding at the   
end the following new subparagraph3     
7,j7 ,treatment of mutual ditch         
irrigation companies  7i7 ,in general   

,in the case of a mutual ditch or       
irrigation company or of a like         
organization to a mutual ditch or       
irrigation company1 subparagraph 7,a7   
shall be applied without taking into    
account--  7,i7 any income received or  
accrued from the sale1 lease1 or        
exchange of fee or other interests in   
real and personal property1 including   
interests in water 7other than income   
derived from the sale1 lease1 or        
transfer of water to nonmembers outside 
the river basin or basins within which  
the mutual ditch or irrigation company  
operates71  7,,ii7 any income received  
or accrued from the sale or exchange of 
stock in a mutual ditch or irrigation   
company 7or in a like organization to a 
mutual ditch or irrigation company7 or  
contract rights for the delivery or use 
of water1 or  7,,iii7 any income        
received or accrued from the investment 
of income described in subclause 7,i7 or
 7,,ii71  except that any income        
described in subclause 7,i71 7,,ii71 or 

7,,iii7 which is distributed or expended
 for expenses 7other than for           
operations1 maintenance1 and capital    
improvements7 of the mutual ditch or    
irrigation company or of the like       
organization to a mutual ditch or       
irrigation company 7as the case may be7 
shall be treated as nonmember income in 
the year in which it is distributed or  
expended4 ,for purposes of the preceding
 sentence1 expenses 7other than for     
operations1 maintenance1 and capital    
improvements7 include expenses for the  
construction of conveyances designed to 
deliver water outside of the system of  
the mutual ditch or irrigation company  
or of the like organization4  7ii7      
,treatment of organizational governance 
,in the case of a mutual ditch or       
irrigation company or of a like         
organization to a mutual ditch or       
irrigation company1 where ,state law    
provides that such a company or         
organization may be organized in a      
manner that permits voting on a basis   

which is pro rata to share ownership on 
corporate governance matters1           
subparagraph 7,a7 shall be applied      
without taking into account whether its 
member shareholders have one vote on    
corporate governance matters per share  
held in the corporation4 ,nothing in    
this clause shall be construed to create
 any inference about the requirements of
 this subsection for companies or       
organizations not included in this      
clause4  4  7b7 ,effective date ,the    
amendment made by subsection 7a7 shall  
apply to taxable years beginning after  
the date of the enactment of this ,act4