[Federal Register Volume 68, Number 107 (Wednesday, June 4, 2003)]
[Notices]
[Pages 33443-33444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13929]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary


Texas Oak Wilt Suppression Program; Determination of Primary 
Purpose of Certain Payments for Federal Tax Purposes

AGENCY: Office of the Secretary, USDA.

ACTION: Notice of determination.

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SUMMARY: The Secretary of Agriculture has determined that cost-share 
payments made to individuals under the State of Texas, Forest Service, 
Oak Wilt Suppression Program, are made primarily for the purpose of 
protecting and restoring the environment and improving forests. This 
determination permits recipients to exclude all or part of certain 
cost-share payments under this program from gross income for Federal 
income tax purposes to the extent allowed by the Internal Revenue 
Service.

DATES: The Secretary's determination was signed on May 22, 2003.

ADDRESSES: Questions may be addressed to Dr. Linda Wang, Texas Forest 
Service, John B. Connally Bldg., 301 Tarrow, Suite 364, College 
Station, TX 77840-78796. A copy of the determination is available upon 
request.

FOR FURTHER INFORMATION CONTACT: Dr. Linda Wang, Texas Forest Service, 
(979) 458-6650.

SUPPLEMENTARY INFORMATION: Section 126 of the Internal Revenue Code (26 
U.S.C. 126, as amended) provides that all or part of certain payments 
made to persons under State programs may be excluded from the 
receipient's gross income for Federal income tax purposes under two 
conditions: (1) If the Secretary of Agriculure determines that the 
payments are made primarily for the purpose of conserving soil and 
water resources, protecting or restoring the environment, improving 
forests, or providing habitat for wildlife (the criteria for making 
such a determination are set forth in 7 CFR part 14, Determining the 
Primary Purpose of Certain Payments for Federal Tax Purposes), and (2) 
If the payments are determined by the Secretary of the Treasury as not 
increasing substantially the annual income derived from the property.
    To make such a determination, the Secretary of Agriculture 
evaluates a

[[Page 33444]]

cost-share conservation program based on the criteria set forth in 7 
CFR part 14. Following a primary purpose determination by the Secretary 
of Agriculture, the Secretary of the Treasury must determine that 
payments made under the conservation program do not substantially 
increase the annual income derived from the property benefited by the 
payments.
    Therefore, having carefully examined the authorizing legislation, 
regulations, and operating procedures regarding the Texas Oak Wilt 
Suppression Program, the Secretary of Agriculture, according to the 
criteria set forth in 7 CFR part 14, has determined that the cost-share 
payments made for planning and implementation of projects under the 
Texas Oak Wilt Suppression Program are made primarily for the purpose 
of conserving soil and water resources, improving forests, and 
protecting and restoring the environment.
    Subject to further determination by the Secretary of the Treasury 
that payments made under the Texas Oak Wilt Suppression Program do not 
substantially increase the annual income derived from the property 
benefited by these payments, this determination by the Secretary of 
Agriculture permits payment recipients to exclude from gross income for 
Federal income tax purposes all or part of the cost-share payments made 
under this program to the extent allowed by the Internal Revenue 
Service.

    Dated: May 22, 2003.
Ann M. Veneman,
Secretary of Agriculture.
[FR Doc. 03-13929 Filed 6-3-03; 8:45 am]
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