[Federal Register Volume 73, Number 141 (Tuesday, July 22, 2008)]
[Notices]
[Pages 42543-42544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16748]


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DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service


The Secretary of Agriculture's Determination of the Primary 
Purpose of Pennsylvania's Upper Makefield Township Riparian Restoration 
and Preservation Grant Program

AGENCY: Natural Resources Conservation Service (NRCS), USDA.

ACTION: Notice of Determination.

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SUMMARY: NRCS is providing public notice that the Secretary of 
Agriculture has determined the payments made under Pennsylvania's Upper 
Makefield Township Riparian Restoration and Preservation Grant Program 
are primarily for the purpose of protecting or restoring the 
environment. NRCS was assigned technical and administrative 
responsibility for reviewing the Upper Makefield Township Riparian 
Restoration and Preservation Grant Program and making appropriate 
recommendations for the Secretary's determination of primary purpose. 
This determination is in accordance with section 126 of the Internal 
Revenue Code of 1954, as amended (26 U.S.C. 126), and permits 
recipients of cost-share payments to exclude from gross income to the 
extent allowed by the Internal Revenue Service.

FOR FURTHER INFORMATION CONTACT: Township Solicitor, Upper Makefield 
Township, 1076 Eagle Road, Newtown, Pennsylvania 18940; or NRCS, 
Financial Assistance Programs Division, Post Office Box 2890, 
Washington, DC 20013.

SUPPLEMENTARY INFORMATION: Under Section 126(a)(10) of the Internal 
Revenue Code, gross income does not include the ``excludable portion'' 
of payments received under any program of a State under which payments 
are made to individuals primarily for the purpose of protecting or 
restoring the environment. In general, a payment for selected 
conservation practices is exempt from Federal taxation, if it meets 
three tests: (1) Was for a capital expense; (2) does not substantially 
increase the operator's annual income from the property for which it is 
made; and (3) the Secretary of Agriculture certified that the payment 
was made primarily for conserving soil and water resources, protecting 
or restoring the environment, improving forests, or providing habitat 
for wildlife. The Secretary of Agriculture evaluates a conservation 
program on the basis of criteria set forth in 7 CFR part 14, and makes 
a ``primary purpose'' determination for the payments made under the 
program. The

[[Page 42544]]

objective of the determinations made under part 14 is to provide 
maximum conservation, environmental protection or restoration, forestry 
improvement, and wildlife benefits to the general public from the 
operation of applicable programs. Final determinations are made on the 
basis of program, category of practices, or individual practices. 
Following a primary purpose determination by the Secretary of 
Agriculture, the Secretary of the Treasury determines if the payments 
made under the conservation program substantially increase the annual 
income derived from the property benefited by the payments.

Determination

    The Upper Makefield Township Riparian Restoration and Preservation 
Grant Program will use grant funds to work with landowners in the 
Houghs Creek watershed to implement practices in an established 
riparian buffer zone that is 200 feet either side of the creek stream 
channel. The riparian zone goals are to reduce the amount of nutrients, 
sediment, organic matter, pesticides, and other harmful substances from 
reaching the water; provide shade along the creek's watercourses to 
moderate stream temperature and protect fish habitat; provide 
streambank stability to control sediment and erosion; and conserve 
existing natural features important for the protection of headwater 
areas, floodplains, springs, streams, woodlands, and prime wildlife 
habitats.
    By promoting the establishment of tree plantings, restorative 
vegetation, and streambank repair in the riparian buffer zone, the 
Riparian Restoration and Preservation Grant Program will provide 
payments to landowner participants that are primarily for the purpose 
of conserving soil and water resources, protecting or restoring the 
environment, improving forests, or providing habitat for wildlife.
    A ``Record of Decision'' has been prepared and is available upon 
request from NRCS, Financial Assistance Programs Division, Post Office 
Box 2890, Washington, DC 20013.

    Signed in Washington, DC, on July 1, 2008.
Arlen L. Lancaster,
Chief, Natural Resources Conservation Service.
 [FR Doc. E8-16748 Filed 7-21-08; 8:45 am]
BILLING CODE 3410-16-P