SPUWCD Offers Valuable Program

December 19, 2017

Landowners in the Southern High Plains of Texas who use groundwater from the Ogallala Aquifer for irrigation farming may claim a cost in water depletion allowance on their federal income tax return.  The District has offered this service since 1999.   In order to participate, the District must follow the strict guidelines of the Internal Revenue Service.

The program benefits irrigated landowners affected by declining water levels.  The tax benefit an irrigated landowner receives from this decline is based on two factors: 1) the saturated thickness of the aquifer underlying their property at the time of acquisition, and 2) the cost of the land attributable to water. 

Each December, the District creates a water table decline map.  The District also contracts the services of a certified land appraiser who collects land sales data.  The sales data helps establish the cost of water for each year. 

The economic benefits of this program may be especially helpful to landowners affected by both declining water levels and low commodity prices. When qualified landowners receive this tax benefit, they are also reminded of the ever present need for continued conservation.

If you have any questions, or would like to participate in this program, call or come by the District office.  You can find out more information on the District’s website: 


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Category: Agriculture