A bill to amend the Internal Revenue Code of 1954 to allow an additional 10 percent investment tax credit for new, more efficient irrigation equipment.

Amends the Internal Revenue Code to allow an additional ten percent investment tax credit for new irrigation equipment. Terminates such additional percentage after December 31, 1989.

Requires a reduction in the amount of such credit where such equipment is financed by nontaxable grants. Limits the amount of such credit to 25 percent of the taxpayer's gross income derived from farming.