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[Federal Register: September 29, 2009 (Volume 74, Number 187)]
[Notices]               
[Page 49850]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29se09-32]                         

[[Page 49850]]

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DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service

 
The Secretary of Agriculture's Determination of the Primary 
Purpose of the State of Florida's Agricultural Best Management 
Practices Program

AGENCY: Natural Resources Conservation Service, United States 
Department of Agriculture.

ACTION: Notice of Determination.

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SUMMARY: The Natural Resources Conservation Service (NRCS) is providing 
public notice that the Secretary of Agriculture has determined that 
cost-share payments made under the State of Florida's Agricultural Best 
Management Practices Program are primarily for the purpose of 
conserving soil and water resources or protecting and restoring the 
environment. NRCS was assigned technical and administrative 
responsibility for reviewing the State of Florida's Agricultural Best 
Management Practices Program and making appropriate recommendations for 
the Secretary's determination of primary purpose. The Secretary made 
the determination for certain specific programs that are part of the 
State of Florida's Agricultural Best Management Practices Program (71 
FR 76965).
    This supplants the earlier determination and covers all cost-share 
components of the State of Florida's Agricultural Best Management 
Practices Program. This determination is in accordance with Section 126 
of the Internal Revenue Code of 1954, as amended (26 U.S.C. 126), and 
permits recipients of cost-share payments to exclude such payments from 
gross income to the extent allowed by the Internal Revenue Service.

FOR FURTHER INFORMATION CONTACT: Charles H. Bronson, Commissioner of 
Agriculture, Florida Department of Agriculture and Consumer Services, 
The Capitol, Tallahassee, Florida 32399; or Gregory K. Johnson, 
Director, Financial Assistance Programs Division, Department of 
Agriculture, Natural Resources Conservation Service, 1400 Independence 
Avenue, SW., Room 5241 South Building, Washington, DC 20250.

SUPPLEMENTARY INFORMATION: Under Section 126(a)(10) of the Internal 
Revenue Code, gross income does not include the ``excludable portion'' 
of payments received under any program of a State under which payments 
are made to individuals primarily for the purpose of protecting or 
restoring the environment. In general, a cost-share payment for 
selected conservation practices is exempt from Federal taxation if it 
meets the following three tests: (1) It was for a capital expense, (2) 
it does not substantially increase the operator's annual income from 
the property for which it is made, and (3) the Secretary of Agriculture 
certified that the payment was made primarily for conserving soil and 
water resources, protecting or restoring the environment, improving 
forests, or providing habitat for wildlife.
    The Secretary of Agriculture evaluates a conservation program on 
the basis of criteria set forth in 7 CFR part 14, and makes a ``primary 
purpose'' determination for the payments made under the program. The 
objective of the determinations made under part 14 is to provide 
maximum conservation, environmental, forestry improvement, and wildlife 
benefits to the general public from the operation of applicable 
programs. Final determinations are made on the basis of program, 
category of practices, or individual practices. Following a primary 
purpose determination by the Secretary of Agriculture, the Secretary of 
the Treasury determines if the payments made under the conservation 
program substantially increases the annual income derived from the 
property benefited by the payments.

Determination

    As provided for by Section 126 of the Internal Revenue Code, the 
Secretary examined the authorizing legislation, regulations, and 
operating procedures regarding State of Florida's Agricultural Best 
Management Practices Program. In accordance with the criteria set out 
in 7 CFR part 14, the Secretary has determined the primary purpose of 
cost-share payments made under the State of Florida's Agricultural Best 
Management Practices Program is conserving soil and water resources, or 
protecting and restoring the environment.
    The State of Florida uses the Agricultural Best Management 
Practices Program to provide overall water resources benefits and to 
protect the environment. The Florida Department of Agriculture and 
Consumer Services provides cost-share reimbursement for select Best 
Management Practices that have potential water conservation, sediment 
control, and water quality benefits. The objectives of the program are 
met through cost-shared construction of specific engineered structures, 
land treatment, management practices, and acquisition of specific 
equipment to meet environmental needs on private farmland.
    A ``Record of Decision'' for the State of Florida's Agricultural 
Best Management Practices Program has been prepared and is available 
upon request from Gregory K. Johnson, Director, Financial Assistance 
Programs Division, Department of Agriculture, Natural Resources 
Conservation Service, 1400 Independence Avenue, SW., Room 5241 South 
Building, Washington, DC 20250.

    Signed this 23rd day of September 2009, in Washington, DC.
Dave White,
Chief, Natural Resources Conservation Service.
[FR Doc. E9-23448 Filed 9-28-09; 8:45 am]

BILLING CODE 3410-16-P

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