[Federal Register Volume 66, Number 225 (Wednesday, November 21, 2001)]
[Notices]
[Page 58430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29017]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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 delegations of authority, filing of petitions and applications and agency 
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  Federal Register / Vol. 66, No. 225 / Wednesday, November 21, 2001 / 
Notices  

[[Page 58430]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary


State of Wisconsin Department of Agriculture, Trade and Consumer 
Protection Soil and Water Resource Management 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, as Amended

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 under the Soil and Water 
Resource Management Grant Program are made primarily for the purpose of 
conserving soil and water resources. 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 from gross income to the extent allowed 
by the Internal Revenue Service.

FOR FURTHER INFORMATION CONTACT: Dave Jelinski, Director, Land and 
Water Resources Bureau, Wisconsin Department of Agriculture, Trade and 
Consumer Protection, Post Office Box 8911, Madison, Wisconsin 53708-
8911 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 Agriculture, 
Trade and Consumer Protection's Soil and Water Resource Management 
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 implementation of projects under the Soil and Water 
Resources Management Grant Program are primarily for the purpose of 
conserving soil and water resources. A ``Record of Decision, Wisconsin 
Department of Agriculture, Trade and Consumer Protection Soil and Water 
Resource Management Grant Program, Primary Purpose Determination for 
Federal Tax Purposes'' has been prepared and is available upon request 
from Dave Jelinski, Director, Land and Water Resources Bureau, 
Wisconsin Department of Agriculture, Trade and Consumer Protection, 
2811 Agriculture Drive, Second Floor, Post Office Box 8911, Madison, 
Wisconsin 53708-8911 or 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, we have examined the authorizing 
legislation, regulations, and operating procedures regarding the 
Wisconsin Department of Agriculture, Trade and Consumer Protection Soil 
and Water Resource Management Grant Program. In accordance with the 
criteria set out in the CFR part 14, we have determined that all cost-
share payments for implementing projects under the Soil and Water 
Resource Management Grant Program are primarily for the purpose of 
conserving soil and water resources. 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 November 15, 2001.
Ann M. Veneman,
Secretary of Agriculture.
[FR Doc. 01-29017 Filed 11-20-01; 8:45 am]
BILLING CODE 3410-16-M