[Federal Register Volume 61, Number 189 (Friday, September 27, 1996)]
[Notices]
[Pages 50800-50801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24757]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 61, No. 189 / Friday, September 27, 1996 /
Notices
[[Page 50800]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
New York State Agricultural Nonpoint Sources Abatement and
Control Matching Grant Program, 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 cost-
share payments awarded to individuals by the New York State Soil and
Water Conservation Committee through participating county soil and
water conservation districts under the State Agricultural Nonpoint
Source Abatement and Control Matching Grant Program have been made
primarily for the purpose of soil and water conservation, protecting or
restoring the environment, and improving the quality of water in
priority waterbodies of the State. 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: David Pendergast, Executive Director,
New York State Soil and Water Conservation Committee, 1 Winners Circle,
Capital Plaza, Albany NY 12235, 518-457-3738.
SUPPLEMENTARY INFORMATION: Section 126 of the Internal Revenue Code of
1954, as amended by the Revenue Act of 1978 and the Technical
Corrections Act of 1979, 26 U.S.C. 126, provides that certain payments
made to persons under State or local conservation programs may be
excluded from a recipient's gross income for Federal income tax
purposes, if the Secretary of Agriculture determines that payments are
made ``primarily for the purpose of soil and water conservation,
protecting or restoring the environment, improving forests, or
providing a habitat for wildlife.'' The Secretary of Agriculture
evaluates the conservation programs on the basis of criteria set forth
in 7 NYCRR Part 14, and makes a ``primary Purpose'' determination for
the payments made under these conservation programs do not
substantially increase the annual income derived from property
benefited by the payments.
Section 11-b of the New York Soil and Water Conservation Districts
Law establishes a matching grant program to fund the implementation of
agricultural nonpoint source abatement and control projects. The
section was added by Chapter 436 of the Laws of 1989. The New York
Environmental Protection Act of 1993 established an Environmental
Protection Fund which authorizes use of Fund monies for Section 11-b
projects. Eight hundred thousands dollars has been allocated for such
projects in 1994-95.
``Agricultural nonpoint source abatement and control program'' has
been defined in Section 3 of the Soil and Water Conservation Districts
Law as ``a program consisting of activities and projects for the
abatement and reduction of water pollution from agricultural nonpoint
sources through the installation, operation and maintenance of best
management practices.'' The program must include activities and
projects for controlling losses from the land, including nutrients,
particularly nitrogen and phosphorus, pathogens, toxic contamination of
surface waters and ground waters from heavy metals, pesticides of
siltation and eutrophication of streams, rivers, lakes and other water
bodies.
Projects must be located within a priority water body as identified
by the Commissioner of Environmental Conservation and must propose to
implement best management practices such as structural and
nonstructural controls and operation and maintenance procedures
designed to prevent or reduce the amount of pollutants generated by
nonpoint sources. Matching grants will be awarded up to a maximum of 50
percent of the eligible costs for any specific project. The maximum
shall be increased up to 75 percent of eligible costs depending on
contributions by the owner or operator of agricultural land upon which
the project is being conducted.
Procedural Matters
The authorizing legislation, guidance documents, and operating
procedures regarding the New York State Agricultural Nonpoint Source
Abatement and Control Matching Grant Program have been examined using
the criteria set forth in 7 CFR Part 14. The Department of Agriculture
has concluded that the cost-share payments made for installation of
capital improvements and implementation of best management practices
under this Program are made to provide financial assistance to eligible
persons primarily for the purpose of soil and water conservation, and
protecting or restoring the environment, by abating and controlling
agricultural nonpoint sources of pollution.
A ``Record of Decision, New York State Agricultural Nonpoint Source
Abatement and Control Matching Grant Program, Primary Purpose
Determination for Federal Tax ``Purpose'' has been prepared and is
available upon request from the Director, Conservation and Ecosystem
Assistance Division, Natural Resources Conservation Service, P.O. Box
2890, Washington, D.C. 20013, or the Executive Director of the New York
State Soil and Water Conservation Committee, 1 Winners Circle, Capital
Plaza, Albany, NY 12235.
Determination
As required by Section 126(b) of the Internal Revenue Code of 1954,
as amended, I have examined the authorizing legislation, guidance
documents, and operating procedures regarding the New York State
Agricultural Nonpoint Source Abatement and Control Program. In
accordance with the criteria set out in 7 CFR Part 14, I have
determined that all cost-share payments for purchase and installation
of capital improvements or implementation of best management practices
made under this Program are primarily for the purpose of soil and water
conservation, and protecting or restoring the environment, by abating
and controlling agricultural nonpoint sources of pollution. Subject to
further
[[Page 50801]]
determination by the Secretary of the Treasury, that payments made
under these conservation programs do not substantially increase the
annual income derived from the property benefitting by these payments,
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 August 21, 1996.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 96-24757 Filed 9-26-96; 8:45 am]
BILLING CODE 3410-01-M
