                                 CODE OF VIRGINIA

TAX CREDIT FOR PURCHASE OF CONSERVATION TILLAGE EQUIPMENT (§ 58.1-334)

A. For taxable years beginning before January 1, 2021, any individual shall be
allowed a credit against the tax imposed by &#xA7; 58.1-320 of an amount
equaling 25 percent of all expenditures made for the purchase and installation
of conservation tillage equipment used in agricultural production by the
purchaser. As used in this section the term &#8220;conservation tillage
equipment&#8221; means a planter, drill, or other equipment used to reduce soil
compaction commonly known as a &#8220;no-till&#8221; planter, drill, or other
equipment used to reduce soil compaction including guidance systems to control
traffic patterns that are designed to minimize disturbance of the soil in
planting crops, including such planters, drills, or other equipment designed to
reduce soil compaction which may be attached to equipment already owned by the
taxpayer.

B. The amount of such credit shall not exceed $4,000 or the total amount of tax
imposed by this chapter, whichever is less, in the year of purchase. If the
amount of such credit exceeds the taxpayer&#8217;s tax liability for such tax
year, the amount which exceeds the tax liability may be carried over for credit
against the income taxes of such individual in the next five taxable years until
the total amount of the tax credit has been taken.

C. For purposes of this section, the amount of any credit attributable to the
purchase and installation of conservation tillage equipment 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.

HISTORY: 1985, c. 560; 1990, c. 416; 2005, c. 58; 2021, Sp. Sess. I, c. 272.