[Federal Register Volume 64, Number 6 (Monday, January 11, 1999)]
[Notices]
[Pages 1587-1588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-520]
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
Onondaga County Priority Watersheds Agricultural Environmental
Management Program; (AEMP) Determination of Primary Purpose of Program
payments for consideration as Excludable From Income Under Section 126
of the Internal Revenue Code of 1954
AGENCY: Office of the Secretary, USDA.
ACTION: Notice of determination.
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SUMMARY: The Secretary of Agriculture has determined that all County
cost share payments made to individuals as a part of an Agriculture
Environmental Management Plan are made primarily for the purpose of
conserving water and protecting or restoring the environment in the
priority watersheds of Onondaga County. This determination is made in
accordance with section 126 of the Internal Revenue Code of 1954, as
amended (26 U.S.C. 126). The determination permits recipients of these
cost-share payments to exclude them from gross income to the extent
allowed by the Internal Revenue Service.
FOR FURTHER INFORMATION CONTACT: Walter G. Neuhauser, Executive
Director of the Onondaga County Soil & Water Conservation District, 25.
Walter G. Neuhauser, Executive Director, Onondaga County SWCD, 2571 US
Rt. 11, Suite #1, Lafayette, NY 13084-9641
or
Director, Conservation Operations Division, USDA Natural Resources
Conservation Service, PO Box 2890, Washington, DC 20013
SUPPLEMENTAL INFORMATION: Section 126 of the Internal Revenue Code of
1954, as amended (26 U.S.C. 126), provides that certain payments made
to persons under state conservation programs may be excluded from the
recipient's gross income for Federal income tax purposes, if the
Secretary of Agriculture determines that payments are made ``primarily
for the purpose of conserving soil and water resources, protecting or
restoring the environment, improving forests, or providing a habitat
for wildlife.'' The Secretary of Agriculture evaluates these
conservation programs on the basis of criteria set forth in 7 CFR part
14, and makes a ``primary purpose'' determination for the payments made
under each program. Before there may be an exclusion, the Secretary of
the Treasury must determine that payments made under these conservation
programs do not substantially increase the annual income derived from
the property benefited by the payments.
Procedural Matters
The authorizing legislation, regulations and operating procedures
regarding the Onondaga County Priority Watersheds Agricultural
Environmental Management Program have been examined using the criteria
set forth in 7 CFR part 14. The U.S. Department of Agriculture has
concluded that the cost-share payments made for implementation of best
management practices under this program are made to provide financial
assistance to eligible persons primarily for the purpose of conserving
water resources and protecting or restoring the environment in the
priority watersheds of Onondaga County.
[[Page 1588]]
A ``Record of Decision, Onondaga County Priority Watersheds
Agricultural Environmental Management Program, Primary Purpose
Determination for Federal Tax Purposes'' has been prepared and is
available upon request from, Walter G. Neuhauser, Executive Director,
Onondaga County Soil and Water Conservation District, 2571 U.S. Rt. 11,
Suite #1, Lafayette, NY 13084-9641 or from the Director, Conservation
Operations Division, USDA Natural Resources Conservation Service, PO
Box 2890, Washington DC 20013.
Determination
As required by section 126(b) of the Internal Revenue Code of 1954,
as amended, I have examined the authorizing legislation, regulations
and operating procedures regarding the Onondaga County Priority
Watersheds Agricultural Environmental Management Program. In accordance
with the criteria set out in 7 CFR Part 14, I have determined that all
cost-share payments for implementation of best management practices
made under this program as part of an Agricultural Environmental
Management Plan are primarily for the purpose of conserving water
resources, and protecting or restoring the environment, in the priority
watersheds of Onondaga County. Subject to further determination by the
Secretary of the Treasury, this determination permits payment
recipients to exclude from gross income, for Federal income tax
purposes, all or part of such cost-share payments made under said
program.
Signed at Washington, DC, on December 8, 1998.
Dan Glickman,
Secretary, Department of Agriculture.
[FR Doc. 99-520 Filed 1-8-99; 8:45 am]
BILLING CODE 3410-16-U
