[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