[Federal Register Volume 87, Number 213 (Friday, November 4, 2022)]
[Notices]
[Pages 66640-66641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24017]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service

[Docket No. NRCS-2022-0008]


Determination of the Primary Purpose of Florida's Save Our Indian 
River Lagoon (SOIRL) Program

AGENCY: Natural Resources Conservation Service (NRCS), U.S. Department 
of Agriculture (USDA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: USDA is providing public notice that the Secretary of 
Agriculture has determined that cost share payments made by the 
Florida's SOIRL Program are primarily for the purpose of conserving 
soil and water resources or protecting and restoring the environment. 
NRCS was assigned technical and administrative responsibility for 
reviewing Florida's SOIRL Program and for making appropriate 
recommendations for the Secretary's determination of primary purpose. 
The Secretary's determination permits recipients of cost share payments 
to exclude such payments from gross income to the extent allowed by the 
Internal Revenue Service.

FOR FURTHER INFORMATION CONTACT: Ronnie Mauer; telephone: (202) 720-
9733; or email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Under Section 126(a)(8) of the Internal Revenue Code, gross income 
does not include the ``excludable portion'' of payments received under 
any program of a State, or a political subdivision of a State, under 
which payments are made to individuals primarily for the purpose of 
protecting or restoring the environment. In general, a cost share 
payment for selected conservation practices is exempt from Federal 
taxation if it meets three tests:
    (1) It was for a capital expense;
    (2) It 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 specified in 7 CFR part 14 and makes a ``primary 
purpose'' determination for the payments made under the conservation 
program. The objective of the determination made under part 14 is to 
provide maximum conservation, environmental, 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.
    NRCS was assigned technical and administrative responsibility for 
reviewing Florida's SOIRL Program and for making appropriate 
recommendations for the Secretary's determination of primary purpose.
    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 increases the annual 
income derived from the property benefited by the payments.

Environmental Review

    From this Federal action, approving tax deferral will not result in 
impacts to the environment, therefore, no further National 
Environmental Policy Act (NEPA) documentation will be prepared.

Determination

    As provided for by section 126 of the Internal Revenue Code, the 
Secretary examined the authorizing legislation, regulations, and 
operating procedures regarding the Brevard County, Florida SOIRL 
Program. In accordance with the criteria specified in 7 CFR part 14, 
the Secretary has determined the primary purpose of cost share payments 
made under the Florida SOIRL Program is conserving soil and water 
resources or protecting and restoring the environment. The Indian River 
Lagoon is considered a public recreational facility pursuant to the 
Florida statues, sections 163.3164(38), 163.3221(13), and 189.012(5).

[[Page 66641]]

    In accordance with section 212.055(2), Florida statutes, pertaining 
to discretionary sales surtaxes for improvements to public facilities, 
the SOIRL Program Project Plan and the half cent sales surtax was 
adopted by the Brevard County Board of County Commissioners in 
Ordinance 2016-15, as amended by Ordinance 2016-24, and enacted by 
voter referendum on November 8, 2016, to restore water resources and 
estuarine wildlife habitats of the Indian River Lagoon. The sales 
surtax is collected and distributed pursuant to section 212.055, 
interlocal agreements with municipalities, and applicable State laws. 
All projects authorized by the SOIRL Program Project Plan are 
permitted, constructed, and implemented in accordance with State and 
Federal requirements, where applicable.
    A ``Record of Decision'' for the Brevard County, Florida SOIRL 
Program to review claims regarding reimbursement to abandon septic and 
connect to sewer lines, upgrade existing septic systems to advanced 
septic systems, repair leaking sewer laterals, connect package plants 
to central sewer or upgrade the treatment level at private package 
plants has been prepared and is available upon request from the Acting 
Director, Financial Assistance Programs Division, Natural Resources 
Conservation, 1400 Independence Avenue SW, Room 4529 South Building, 
Washington, DC 20250.
    The Secretary's 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 those payments 
from gross income to the extent allowed by the Internal Revenue 
Service.

Louis Aspey,
Associate Chief, Natural Resources Conservation Service.
[FR Doc. 2022-24017 Filed 11-3-22; 8:45 am]
BILLING CODE 3410-16-P