[Federal Register Volume 68, Number 107 (Wednesday, June 4, 2003)]
[Notices]
[Page 33444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13930]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary


Wisconsin Forest Landowner Grant 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 Wisconsin, Department 
of Natural Resources, Forest Landowner Grant Program (WFLGP) are made 
primarily for the purpose of conserving soil and water resources, 
improving forests, and protecting and restoring the environment. This 
determination permits recipients to exclude all or part of certain 
cost-share payments under WFLGP 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 Linda DePaul, Wisconsin 
Department of Natural Resources, Bureau of Forestry, PO Box 7921, 101 
Webster St., Madison, WI 53707-7921. A copy of the determination is 
available upon request.

FOR FURTHER INFORMATION CONTACT: Linda DePaul, Wisconsin Department of 
Natural Resources, Bureau of Forestry, (608) 266-2388.

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 
recipient's gross income for Federal income tax purposes under two 
conditions: (1) If the Secretary of Agriculture 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 wildlife habitat (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 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 
for the Wisconsin Forest Landowner Grant Program (WFLGP) and the 
planned operating procedures, the Secretary of Agriculture, according 
to the criteria set forth in 7 CFR part 14, has determined that the 
cost-share payments for implementing approved practices under WFLGP are 
made primarily for the purpose of conserving soil and water resources, 
improving forests, protecting and restoring the environment, and 
providing a habitat for wildlife.
    Subject to further determination by the Secretary of the Treasury 
that payments made under WFLGP 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 the program 
to the extent allowed by the Internal Revenue Service.

    Dated: May 22, 2003.
Ann M. Veneman,
Secretary of Agriculture.
[FR Doc. 03-13930 Filed 6-3-03; 8:45 am]
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