A bill to amend the Internal Revenue Code of 1954 to provide an investment tax credit of up to 20 percent of certain expenditures by the taxpayer for soil or water conservation.

Amends the Internal Revenue Code to provide an additional ten percent investment tax credit (for a total of 20 percent) for expenditures for soil and water conservation property.

Defines 'soil and water conservation property' to mean irrigation property and that portion of the basis of qualified land which is attributable to conservation improvements made by the taxpayer. Requires that the qualified land be classified as highly erodible land. Provides that soil and water conservation property does not include that portion of the basis of property which is financed by any grant from the Government.

Specifies that the useful life of soil and water conservation property will be seven years. Provides that soil or water conservation property shall cease to qualify for the investment tax credit provided by this Act if the taxpayer discontinues the business of farming within five years after the date on which the property was placed in service.

Provides that the amount of the tax deduction allowed under the accelerated cost recovery system for irrigation property qualified under this Act shall be determined according to a straight line method of depreciation.