In addition to cost share programs, tax credits may be available through Three Rivers SWCD. Under the Code of Virginia, “Any In addition to cost-share programs, eligible agricultural producers may qualify for Virginia tax credits for implementing agricultural best management practices or purchasing qualifying conservation tillage and precision agriculture equipment.
Agricultural Best Management Practices Tax Credit
Virginia offers tax credits for eligible agricultural best management practices (BMPs) that help protect water quality.
Individuals who implement eligible BMPs under an approved soil conservation plan may qualify for a refundable tax credit equal to 25% of the first $100,000 in eligible expenditures. Individuals who implement eligible practices under an approved resource management plan may qualify for a refundable tax credit equal to 50% of the first $100,000 in eligible expenditures, subject to program requirements.
The agricultural BMP tax credit has been extended through December 31, 2029, for taxable years beginning before January 1, 2030.
For more information, visit the Code of Virginia, § 58.1-339.3.
Conservation Tillage and Precision Agriculture Equipment Tax Credit
Virginia offers a refundable tax credit equal to 25% of the purchase price of qualifying conservation tillage and precision agriculture equipment, subject to state eligibility requirements.
Eligible equipment may include:
- Sprayers for pesticides and liquid fertilizers
- Pneumatic fertilizer applicators
- Monitors, computer regulators, and height-adjustable booms for sprayers and liquid fertilizer applicators
- Manure applicators
- Tramline adapters
- Starter fertilizer banding attachments for planters
To qualify, producers must meet applicable requirements, which may include having an approved soil conservation plan and implementing a nutrient management plan developed by a certified nutrient management planner.
The tax credit for qualifying conservation tillage and precision agriculture equipment has also been extended through December 31, 2029, for taxable years beginning before January 1, 2030.
For more information, visit the Code of Virginia, § 58.1-337.