[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] ======================================================================== 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. ======================================================================== 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. ----------------------------------------------------------------------- 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