Arizona State Representative Chris Lopez has introduced House Bill 2826, aimed at eliminating the state transaction privilege tax on prime contracting for concrete and other materials used in irrigation canal improvements. This bill seeks to lower costs for farmers by enhancing irrigation efficiency and conserving water. The legislation applies to all materials used to improve and maintain agricultural ditches, lines, and canals.
Concrete-lined canals are known to significantly reduce seepage losses compared to unlined earthen channels, where water infiltration can account for a substantial portion of total conveyed volume. By converting dirt canals to concrete-lined systems, hydraulic performance is enhanced, leading to increased flow velocity, reduced erosion and weed growth, and significant water savings.
Representative Lopez said, “The House Republican Majority Plan is focused on affordability, and that starts with food on the table and the cost of water to produce that food.” He emphasized that converting dirt canals saves thousands of gallons of water, reducing pumping costs and other expenses related to food production.
Canal lining projects awarded by the Water Infrastructure Finance Authority of Arizona (WIFA) are expected to save between 135,000 and 368,864 acre-feet over their lifetimes. With a cost of approximately $2 to $3 per acre-foot, canal lining is considered one of the most cost-effective methods for water conservation in Arizona. HB 2826 aims to extend WIFA’s impact by applying tax exemptions on materials used for improving irrigation infrastructure.
Chris Lopez represents Legislative District 16 in Arizona’s House of Representatives. He was elected in 2025 as a Republican member serving portions of Pinal and Pima Counties.
