{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.5.html"}],"law_id":66742,"edition_id":1,"section_id":66742,"structure_id":13153,"section_number":"58.1-439.5","catch_line":"Agricultural best management practices tax credit","history":"1996, c. 629; 2018, c. 556; 2021, Sp. Sess. I, cc. 39, 40; 2024, cc. 212, 233.","full_text":"A\n\n1. As used in this section, “agricultural best management practice” means a practice approved by the Virginia Soil and Water Conservation Board that will provide a significant improvement to water quality in the state’s streams and rivers and the Chesapeake Bay and is consistent with other state and federal programs that address agricultural, nonpoint source pollution management.\n\t\t\tA detailed list of the standards and criteria for agricultural best management practices eligible for credit shall be found in the most recently approved “Virginia Agricultural BMP Implementation Manual” published by the Department of Conservation and Recreation.2\n\nFor all taxable years beginning on and after January 1, 1998, but before January 1, 2030, any corporation engaged in agricultural production for market that has in place a soil conservation plan approved by the local Soil and Water Conservation District (SWCD) shall be allowed a refundable credit against the tax imposed by § 58.1-400 of an amount equaling 25 percent of the first $100,000 expended for agricultural best management practices by the corporation.3\n\nFor all taxable years beginning on and after January 1, 2021, but before January 1, 2030, any corporation that is engaged in agricultural production for market, or that has equines that create needs for agricultural best management practices to reduce nonpoint source pollutants, and has in place a resource management plan approved by the local SWCD, shall be allowed a refundable credit against the tax imposed by § 58.1-400 in an amount equaling 50 percent of the first $100,000 expended for agricultural best management practices implemented by the corporation on the acreage included in the resource management plan.B\n\n1. Any eligible practice approved by the local Soil and Water Conservation District Board shall be completed within the taxable year in which the credit is claimed. After the practice installation has been completed, the local SWCD Board shall certify the practice as approved and completed, and eligible for credit. The applicant shall forward the certification to the Department of Taxation on forms provided by the Department. The credit shall be allowed only for expenditures made by the taxpayer from funds of his own sources.2\n\nTo the extent that a taxpayer participates in the Virginia Agricultural Best Management Practices Cost-Share Program, the taxpayer may claim the credit under subdivision A 2 for any remaining liability after such cost-share, but may not claim the credit under subdivision A 3 for any such remaining liability, subject to the other provisions of this section. For purposes of this subdivision, “liability after such cost-share” means the limitation of the tax credits to the total costs incurred by the taxpayer for agricultural best management practices reduced by any funding received by participation in the Virginia Agricultural Best Management Practices Cost-Share Program.C\n\n1. The aggregate amount of such credit claimed under subdivisions A 2 and 3 shall not exceed $75,000 or the total amount of the tax imposed by this chapter, whichever is less, in the year the project was completed, as certified by the Board. Any taxpayer claiming a tax credit under this section shall not claim a credit under any similar Virginia law for costs related to the same eligible practices. A taxpayer may not claim credit for the same practice in the same management area under both subdivisions A 2 and A 3.2\n\nIf the amount of the credit exceeds the taxpayer’s liability for such taxable year, the excess shall be refunded by the Tax Commissioner. Tax credits shall be refunded by the Tax Commissioner on behalf of the Commonwealth for 100 percent of face value. Tax credits shall be refunded within 90 days after the filing date of the income tax return on which the taxpayer applies for the refund.D\n\nFor purposes of this section, the amount of any credit attributable to agricultural best management practices by a partnership or electing small business corporation (S Corporation) shall be allocated to the individual partners or shareholders in proportion to their ownership or interest in the partnership or S Corporation.","order_by":null,"text":{"0":{"id":242036,"text":"1. As used in this section, “agricultural best management practice” means a practice approved by the Virginia Soil and Water Conservation Board that will provide a significant improvement to water quality in the state’s streams and rivers and the Chesapeake Bay and is consistent with other state and federal programs that address agricultural, nonpoint source pollution management.\n\t\t\tA detailed list of the standards and criteria for agricultural best management practices eligible for credit shall be found in the most recently approved “Virginia Agricultural BMP Implementation Manual” published by the Department of Conservation and Recreation.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":242037,"text":"For all taxable years beginning on and after January 1, 1998, but before January 1, 2030, any corporation engaged in agricultural production for market that has in place a soil conservation plan approved by the local Soil and Water Conservation District (SWCD) shall be allowed a refundable credit against the tax imposed by § 58.1-400 of an amount equaling 25 percent of the first $100,000 expended for agricultural best management practices by the corporation.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"A3"},"2":{"id":242038,"text":"For all taxable years beginning on and after January 1, 2021, but before January 1, 2030, any corporation that is engaged in agricultural production for market, or that has equines that create needs for agricultural best management practices to reduce nonpoint source pollutants, and has in place a resource management plan approved by the local SWCD, shall be allowed a refundable credit against the tax imposed by § 58.1-400 in an amount equaling 50 percent of the first $100,000 expended for agricultural best management practices implemented by the corporation on the acreage included in the resource management plan.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"3":{"id":242039,"text":"1. Any eligible practice approved by the local Soil and Water Conservation District Board shall be completed within the taxable year in which the credit is claimed. After the practice installation has been completed, the local SWCD Board shall certify the practice as approved and completed, and eligible for credit. The applicant shall forward the certification to the Department of Taxation on forms provided by the Department. The credit shall be allowed only for expenditures made by the taxpayer from funds of his own sources.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B2"},"4":{"id":242040,"text":"To the extent that a taxpayer participates in the Virginia Agricultural Best Management Practices Cost-Share Program, the taxpayer may claim the credit under subdivision A 2 for any remaining liability after such cost-share, but may not claim the credit under subdivision A 3 for any such remaining liability, subject to the other provisions of this section. For purposes of this subdivision, “liability after such cost-share” means the limitation of the tax credits to the total costs incurred by the taxpayer for agricultural best management practices reduced by any funding received by participation in the Virginia Agricultural Best Management Practices Cost-Share Program.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"5":{"id":242041,"text":"1. The aggregate amount of such credit claimed under subdivisions A 2 and 3 shall not exceed $75,000 or the total amount of the tax imposed by this chapter, whichever is less, in the year the project was completed, as certified by the Board. Any taxpayer claiming a tax credit under this section shall not claim a credit under any similar Virginia law for costs related to the same eligible practices. A taxpayer may not claim credit for the same practice in the same management area under both subdivisions A 2 and A 3.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"C2"},"6":{"id":242042,"text":"If the amount of the credit exceeds the taxpayer’s liability for such taxable year, the excess shall be refunded by the Tax Commissioner. Tax credits shall be refunded by the Tax Commissioner on behalf of the Commonwealth for 100 percent of face value. Tax credits shall be refunded within 90 days after the filing date of the income tax return on which the taxpayer applies for the refund.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"D"},"7":{"id":242043,"text":"For purposes of this section, the amount of any credit attributable to agricultural best management practices by a partnership or electing small business corporation (S Corporation) shall be allocated to the individual partners or shareholders in proportion to their ownership or interest in the partnership or S Corporation.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2"}},"ancestry":[{"id":13153,"edition_id":1,"name":"Tax Credits for Corporations","identifier":"13","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253497,"object_type":"structure","relational_id":13153,"identifier":"13","token":"58.1\/I\/3\/13","url":"\/58.1\/I\/3\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":59349,"structure_id":13153,"section_number":"58.1-430","catch_line":"Repealed","url":"\/58.1-430\/","token":"58.1\/I\/3\/13\/58.1-430","metadata":false},{"id":79747,"structure_id":13153,"section_number":"58.1-431","catch_line":"Repealed","url":"\/58.1-431\/","token":"58.1\/I\/3\/13\/58.1-431","metadata":false},{"id":87213,"structure_id":13153,"section_number":"58.1-432","catch_line":"Tax credit for purchase of conservation tillage equipment","url":"\/58.1-432\/","token":"58.1\/I\/3\/13\/58.1-432","metadata":false},{"id":78377,"structure_id":13153,"section_number":"58.1-433","catch_line":"Expired","url":"\/58.1-433\/","token":"58.1\/I\/3\/13\/58.1-433","metadata":false},{"id":84600,"structure_id":13153,"section_number":"58.1-433.1","catch_line":"Virginia Coal Employment and Production Incentive Tax Credit","url":"\/58.1-433.1\/","token":"58.1\/I\/3\/13\/58.1-433.1","metadata":false},{"id":72145,"structure_id":13153,"section_number":"58.1-434","catch_line":"Repealed","url":"\/58.1-434\/","token":"58.1\/I\/3\/13\/58.1-434","metadata":false},{"id":62315,"structure_id":13153,"section_number":"58.1-436","catch_line":"Tax credit for purchase of conservation tillage and precision agricultural application 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This law was first created in 1996. The record of its establishment is cataloged in chapter 629<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2018, chapter 556<\/a>; in 2024, chapters 212<\/a> and 233<\/a>.<\/p>","references":false,"refers_to":[{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":253619,"object_type":"law","relational_id":66742,"identifier":"58.1-439.5","token":"58.1\/I\/3\/13\/58.1-439.5","url":"\/58.1-439.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.5\/","token":"58.1\/I\/3\/13\/58.1-439.5","dublin_core":{"Title":"Agricultural best management practices tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. As used in this section, “agricultural best management practice<\/span>” means a practice approved by the Virginia Soil and Water Conservation Board that will provide a significant improvement to water quality in the state’s streams and rivers and the Chesapeake Bay and is consistent with other state and federal programs that address agricultural, nonpoint source pollution management.\n\t\t\tA detailed list of the standards and criteria for agricultural best management practices<\/span> eligible for credit shall be found in the most recently approved “Virginia Agricultural BMP Implementation Manual” published by the Department<\/span> of Conservation and Recreation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For all taxable years beginning on and after January 1, 1998, but before January 1, 2030, any corporation<\/span> engaged in agricultural production for market that has in place a soil conservation plan approved by the local Soil and Water Conservation District (SWCD) shall be allowed a refundable credit against the tax imposed by § 58.1-400<\/a> of an amount equaling 25 percent of the first $100,000 expended for agricultural best management practices<\/span> by the corporation<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For all taxable years beginning on and after January 1, 2021, but before January 1, 2030, any corporation<\/span> that is engaged in agricultural production for market, or that has equines that create needs for agricultural best management practices<\/span> to reduce nonpoint source pollutants, and has in place a resource management plan approved by the local SWCD, shall be allowed a refundable credit against the tax imposed by § 58.1-400<\/a> in an amount equaling 50 percent of the first $100,000 expended for agricultural best management practices<\/span> implemented by the corporation<\/span> on the acreage included in the resource management plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. Any eligible practice approved by the local Soil and Water Conservation District Board shall be completed within the taxable year in which the credit is claimed. After the practice installation has been completed, the local SWCD Board shall certify the practice as approved and completed, and eligible for credit. The applicant shall forward the certification to the Department<\/span> of Taxation on forms provided by the Department<\/span>. The credit shall be allowed only for expenditures made by the taxpayer<\/span> from funds of his own sources. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To the extent that a taxpayer<\/span> participates in the Virginia Agricultural Best Management Practices<\/span> Cost-Share Program, the taxpayer<\/span> may claim the credit under subdivision A 2 for any remaining liability after such cost-share<\/span>, but may not claim the credit under subdivision A 3 for any such remaining liability, subject to the other provisions of this section. For purposes of this subdivision, “liability after such cost-share<\/span>” means the limitation of the tax credits to the total costs incurred by the taxpayer<\/span> for agricultural best management practices<\/span> reduced by any funding received by participation in the Virginia Agricultural Best Management Practices<\/span> Cost-Share Program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. The aggregate amount of such credit claimed under subdivisions A 2 and 3 shall not exceed $75,000 or the total amount of the tax imposed by this chapter, whichever is less, in the year the project was completed, as certified by the Board. Any taxpayer<\/span> claiming a tax credit under this section shall not claim a credit under any similar Virginia law<\/span> for costs related to the same eligible practices. A taxpayer<\/span> may not claim credit for the same practice in the same management area under both subdivisions A 2 and A 3. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the amount of the credit exceeds the taxpayer<\/span>’s liability for such taxable year, the excess shall be refunded by the Tax Commissioner<\/span>. Tax credits shall be refunded by the Tax Commissioner<\/span> on behalf of the Commonwealth for 100 percent of face value. Tax credits shall be refunded within 90 days after the filing date of the income tax return on which the taxpayer<\/span> applies for the refund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> For purposes of this section, the amount of any credit attributable to agricultural best management practices<\/span> by a partnership or electing small business corporation<\/span> (S Corporation<\/span>) shall be allocated to the individual<\/span> partners or shareholders in proportion to their ownership or interest in the partnership or S Corporation<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAGRICULTURAL BEST MANAGEMENT PRACTICES TAX CREDIT (\u00a7 58.1-439.5)\n\nA. 1. As used in this section, “agricultural best management\npractice” means a practice approved by the Virginia Soil and Water\nConservation Board that will provide a significant improvement to water quality\nin the state’s streams and rivers and the Chesapeake Bay and is consistent\nwith other state and federal programs that address agricultural, nonpoint source\npollution management.\n\t\t\tA detailed list of the standards and criteria for agricultural best\nmanagement practices eligible for credit shall be found in the most recently\napproved “Virginia Agricultural BMP Implementation Manual” published\nby the Department of Conservation and Recreation.\n\n 2. For all taxable years beginning on and after January 1, 1998, but before\n January 1, 2030, any corporation engaged in agricultural production for market\n that has in place a soil conservation plan approved by the local Soil and\n Water Conservation District (SWCD) shall be allowed a refundable credit\n against the tax imposed by § 58.1-400 of an amount equaling 25 percent of\n the first $100,000 expended for agricultural best management practices by the\n corporation.\n\n 3. For all taxable years beginning on and after January 1, 2021, but before\n January 1, 2030, any corporation that is engaged in agricultural production\n for market, or that has equines that create needs for agricultural best\n management practices to reduce nonpoint source pollutants, and has in place a\n resource management plan approved by the local SWCD, shall be allowed a\n refundable credit against the tax imposed by § 58.1-400 in an amount\n equaling 50 percent of the first $100,000 expended for agricultural best\n management practices implemented by the corporation on the acreage included in\n the resource management plan.\n\nB. 1. Any eligible practice approved by the local Soil and Water Conservation\nDistrict Board shall be completed within the taxable year in which the credit is\nclaimed. After the practice installation has been completed, the local SWCD\nBoard shall certify the practice as approved and completed, and eligible for\ncredit. The applicant shall forward the certification to the Department of\nTaxation on forms provided by the Department. The credit shall be allowed only\nfor expenditures made by the taxpayer from funds of his own sources.\n\n 2. To the extent that a taxpayer participates in the Virginia Agricultural\n Best Management Practices Cost-Share Program, the taxpayer may claim the\n credit under subdivision A 2 for any remaining liability after such\n cost-share, but may not claim the credit under subdivision A 3 for any such\n remaining liability, subject to the other provisions of this section. For\n purposes of this subdivision, “liability after such cost-share”\n means the limitation of the tax credits to the total costs incurred by the\n taxpayer for agricultural best management practices reduced by any funding\n received by participation in the Virginia Agricultural Best Management\n Practices Cost-Share Program.\n\nC. 1. The aggregate amount of such credit claimed under subdivisions A 2 and 3\nshall not exceed $75,000 or the total amount of the tax imposed by this chapter,\nwhichever is less, in the year the project was completed, as certified by the\nBoard. Any taxpayer claiming a tax credit under this section shall not claim a\ncredit under any similar Virginia law for costs related to the same eligible\npractices. A taxpayer may not claim credit for the same practice in the same\nmanagement area under both subdivisions A 2 and A 3.\n\n 2. If the amount of the credit exceeds the taxpayer’s liability for such\n taxable year, the excess shall be refunded by the Tax Commissioner. Tax\n credits shall be refunded by the Tax Commissioner on behalf of the\n Commonwealth for 100 percent of face value. Tax credits shall be refunded\n within 90 days after the filing date of the income tax return on which the\n taxpayer applies for the refund.\n\nD. For purposes of this section, the amount of any credit attributable to\nagricultural best management practices by a partnership or electing small\nbusiness corporation (S Corporation) shall be allocated to the individual\npartners or shareholders in proportion to their ownership or interest in the\npartnership or S Corporation.\n\nHISTORY: 1996, c. 629; 2018, c. 556; 2021, Sp. Sess. I, cc. 39, 40; 2024, cc.\n212, 233.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}