Reconciliation tax bill signed into law with provisions supporting irrigation industry

President Trump has signed into law a sweeping tax bill that includes several provisions supported by the irrigation industry. The legislation began in the House as the “One Big Beautiful Bill Act,” passed earlier this summer. After being amended and approved by the Senate, the revised bill returned to the House and was narrowly approved on July 3 by a vote of 218–214. It was signed into law on July 4 following weeks of negotiation and intra-party debate.

Among the bill’s tax-focused provisions are several with direct implications for irrigation professionals, manufacturers and small businesses across the sector: 

• 529 Plan Expansion for Industry Credentials – The bill expands qualified uses of 529 savings plans to include industry-recognized certifications, helping reduce the cost of entering and advancing in the irrigation workforce. 

• Restoration of R&D Expensing – Businesses will once again be allowed to fully expense research and development costs in the year they are incurred, enabling greater flexibility for manufacturers and innovators to reinvest in new technologies and system improvements. 

• Full Equipment Deductibility – The bill makes permanent both 100% bonus depreciation and expanded Section 179 expensing rules, incentivizing continued investment in irrigation equipment and systems. 

• Fair Interest Deductibility – A more favorable EBITDA-based limit on business interest expense deductions has been reinstated, reversing a more restrictive formula adopted in recent years. 

• 199A Deduction Enhancement – The bill permanently extends the qualified business income deduction for pass-through entities, which includes many irrigation businesses operating as S-corporations or sole proprietorships. 

In addition to these tax-related measures, the bill includes funding for agriculture-related programs often addressed in the Farm Bill. These include the Environmental Quality Incentives Program and several farm safety net programs used by producers nationwide. 

The Irrigation Association previously communicated its support for the bill’s industry-relevant provisions and noted that they align with policy priorities advocated for by members during the 2025 IA Advocacy Summit. The association’s Government and Public Affairs team continues to monitor implementation and related guidance as the provisions take effect. 

For additional details on the bill and its impact on the irrigation industry, visit the IA’s Economy Issues webpage.