                                 CODE OF VIRGINIA

TAX CREDIT FOR PURCHASE OF CONSERVATION TILLAGE AND PRECISION AGRICULTURAL
APPLICATION EQUIPMENT (§ 58.1-436)

A. 1. For taxable years beginning on or after January 1, 2021, but before
January 1, 2030, any corporation engaged in agricultural production for market
which 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 required tax return filing date of the corporation shall be allowed a
refundable credit against the tax imposed by § 58.1-400 in an amount equaling
25 percent of all expenditures made by such corporation for the purchase of
equipment certified by the Virginia Soil and Water Conservation Board as
reducing soil compaction such as a &#8220;no-till&#8221; 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. Virginia Polytechnic Institute and State University and Virginia State
   University shall provide at the request of the Virginia Soil and Water
   Conservation Board technical assistance in determining appropriate
   specifications for certified equipment which would provide for more precise
   pesticide and fertilizer application to reduce the potential for adverse
   environmental impacts. The equipment shall be divided into the following
   categories:
   				a. Sprayers for pesticides and liquid fertilizers;
   				b. Pneumatic fertilizer applicators;
   				c. Monitors, computer regulators, and height-adjustable booms for sprayers
   and liquid fertilizer applicators;
   				d. Manure applicators;
   				e. Tramline adapters; and
   				f. Starter fertilizer banding attachments for planters.

   3. The amount of such credit under this subsection shall not exceed $17,500 in
   the year of purchase. If the amount of the credit exceeds the taxpayer&#8217;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.

   4. For purposes of this subsection, the amount of any credit attributable to
   the purchase of equipment certified by the Virginia Soil and Water
   Conservation Board as reducing soil compaction or providing more precise
   pesticide and fertilizer application or injection 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.

B. 1. For taxable years beginning before January 1, 2021, any corporation
engaged in agricultural production for market which 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 corporation shall be allowed a credit
against the tax imposed by § 58.1-400 of an amount equaling 25 percent of all
expenditures made by such corporation for the purchase of equipment certified by
the Virginia Soil and Water Conservation Board as providing more precise
pesticide and fertilizer application. Virginia Polytechnic Institute and State
University and Virginia State University shall provide at the request of the
Virginia Soil and Water Conservation Board technical assistance in determining
appropriate specifications for certified equipment which would provide for more
precise pesticide and fertilizer application to reduce the potential for adverse
environmental impacts. The equipment shall be divided into the following
categories:
			a. Sprayers for pesticides and liquid fertilizers;
			b. Pneumatic fertilizer applicators;
			c. Monitors, computer regulators, and height adjustable booms for sprayers
and liquid fertilizer applicators;
			d. Manure applicators;
			e. Tramline adapters; and
			f. Starter fertilizer banding attachments for planters.

   2. The amount of such credit under subdivision 1 shall not exceed $3,750 or
   the total amount of the 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 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.

   3. For purposes of this subsection, the amount of any credit attributable to
   the purchase of equipment certified by the Virginia Soil and Water
   Conservation Board as providing more precise pesticide 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.

HISTORY: 1990, c. 416; 1996, c. 739; 2021, Sp. Sess. I, c. 272; 2024, cc. 212,
234.