[Federal Register Volume 66, Number 81 (Thursday, April 26, 2001)]
[Notices]
[Page 20965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10295]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 66, No. 81 / Thursday, April 26, 2001 / 
Notices  

[[Page 20965]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary


State of Wisconsin Department of Commerce Brownfields Initiative; 
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 State 
cost-share payments made to individuals as part of a Brownfields Grant 
are made primarily for the purpose of restoring the environment. This 
determination is made in accordance with section 126 of the Internal 
Revenue Code of 1954, as amended (2 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: Jason Scott, Development Consultant; 
Department of Commerce, Brownfields Grant Program, 201 West Washington 
Avenue, Madison, Wisconsin 53707-7970; or Mark W. Berkland, Director, 
Conservation Operations Division, USDA Natural Resources Conservation 
Service, Post Office Box 2890, Washington, DC 20013.

SUPPLEMENTARY 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 Wisconsin Department of Commerce's Brownfields Grant 
Program have been examined using the criteria set forth in 7 CFR Part 
14. The Secretary of Agriculture has concluded that the cost-share 
payments made for the implementation of best management practices under 
this program are made primarily for the purpose of restoring the 
environment.
    A ``Record of Decision, Wisconsin Department of Commerce's 
Brownfields Grant Program, Primary Purpose Determination for Federal 
Tax Purposes'' has been prepared and is available upon request from 
Jason Scott; Program Director; Wisconsin Department of Commerce, 
Brownfields Grant Program, 5th floor, 201 West Washington Avenue, Post 
Office Box 7970, Madison, Wisconsin 53707-7970; or from Mark W. 
Berkland, Director, Conservation Operations Division, USDA Natural 
Resources Conservation Service; Post Office 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 Wisconsin Department of 
Commerce's Brownfields Grant Program. In accordance with the criteria 
set out in 7 CFR Part 14, I have determined that all cost-share 
payments for the implementation of projects under the Brownfields Grant 
Program are primarily for the purpose of restoring the environment. 
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 in Washington, DC on April 9, 2001.
Ann M. Veneman,
Secretary, United States Department of Agriculture.
[FR Doc. 01-10295 Filed 4-25-01; 8:45 am]
BILLING CODE 3410-16-P