Water and Agriculture Tax Reform Act of 2023

This bill amends the tax code to exempt certain income from mutual ditch irrigation companies and similar water organizations from taxable income. It specifically excludes revenue from selling, leasing, or exchanging water rights, water delivery contracts, or company stock from taxation. The change aims to support water conservation by allowing these organizations to retain income from water transactions without tax liability, provided the funds are used for eligible expenses like new water conveyance systems. The provision applies to taxable years beginning after the bill's enactment.