SB 298 — Conservation tillage and precision agricultural application equipment; tax credit for purchase.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2024 SESSION CHAPTER E234 An Act to amend and reenact §§ 58.1-337 and 58.1-436 of the Code of Virginia, relating to tax credit for purchase of conservation tillage and precision agricultural application equipment;

sunseRsunset date.

O [S 298] Approved LMarch L28, 2024 Be it enacted by the General Assembly of Virginia:

E § 58.1-337.

Tax credit for purchase of conservation tillage and precision agriculture equipmDnt.equipment.

individualA. engaged in agricultural production for market who has in place a soil conservation plan any approved by the local soil and water conservation district and is implementing a nutrient management plan developed by a certified nutrient management planner in accordance with § 10.1-104.2 by the required tax return filing date of the individual shall be allowed a refundable credit against the tax imposed by § 58.1-320 of an amount equaling 25 percent of all expenditures made by such individual for the purchase of equipment certified by the Virginia Soil and Water Conservation Board as reducing soil compaction such as a "no-till" planter, drill, or other equipment or equipment that providBs more precise pesticide and fertilizer application or injection.

For1. purposes of this section, equipm9nt that designed to minimize the disturbance of soil in planting crops, including such planters, drillsE or othere equipment that may be attached to equipment already owned by the taxpayer.

RFor 2.taxable years beginning on or after January 1, 2021, but before January 1, 2026 2030, any individual engaged in agricultural production for market who has in place a soil conservation plan approved by the local soil and water conservation district and is implementing a nutrient management plan developed by a certified nutrient management planner in accordance with § 10.1-104.2 by the imposed by § 58.1-320 of an amount equaling 25 percent of all expenditures made by such individual tax for the purchase of equipment certified by the Virginia Soil and Water Conservation Board as reducing soil compaction such as a "no-till" planter, drill, or other equipment or equipment that provides more precise pesticide and fertilizer application or injection.

For purposes of this section, equipment that reduces soil compaction includes equipment utilizing guidance systems to control traffic patterns that are designed to minimize the disturbance of soil in planting crops, including such planters, drills, or other equipment that may be attached to equipment already owned by the taxpayer.

2.

b.

Pneumatic fertilizer applicators;

Tax credits shall be refunded by the Tax Commissioner on behalf the filing date of the incomeCommonwealth tax return on which the individual applies for the100 refund.90percent daysof afterface 4.value.

Tax credits shall be refunded within 90 days after the filing date of the income tax return on which the individual applies for the refund.

4.

For taxable years beginning before January 1, 2021, any individual engaged in agricultural production for market who has in place a nutrient management plan approved by the local soil and water conservation district by the required tax return filing date of the individual shall be allowed a credit against the tax imposed by § 58.1-320 of an amount equaling 25 percent of all expenditures madeamade by such individual for the purchase of equipment certified by the Virginia Soil and Water Conservation Board as providing more precise pesticide and fertilizer application.

b.

Pneumatic fertilizer applicators;

of 3 d.

and of 3 f.

of 3 c.

Monitors, computer regulators, and height adjustable booms for sprayers and liquid fertilizer appd.applicators;

d.

E e.

and N f.

R tax imposed by this chapter, whichever is less, in the year of purchase.3 2.

IfThe the amount of such creditecredit exceedsunder thesubdivision taxpayer's1 taxshall liabilitynot forexceed such$3,750 taxableor year, the total amount whichof exceeds the tax liabilityimposed mayby bethis carriedchapter, overwhichever foris creditless, againstin the incomeyear taxes of suchpurchase. corporation in the next five taxable years business corporation (S corporation) shall be passed through to the partners or shareholders, respectively.

If the amount of such credit exceeds the taxpayer's tax liability for such taxable year, the amount which exceeds the tax liability may be carried over for credit against the income taxes of such corporation in the next five taxable years until the total amount of the tax credit has been taken.

Credits granted to a partnership or electing small business corporation (S corporation) shall be passed through to the partners or shareholders, respectively.

For purposes of this subsection, the amount of any credit attributable to the purchase ofEequipmentof equipment certified by the Virginia Soil and Water Conservation Board as providing more precise pesticideDandpesticide and fertilizer application by a partnership or S corporation shall be allocated to the individual partners or shareholders in proportion to their ownership or interest in the partnership or S corporation.partnerscorporation. or B E R