Source: https://www.tax.virginia.gov/agriculture-and-farming-credits
Timestamp: 2019-06-18 14:43:33
Document Index: 284652629

Matched Legal Cases: ['§ 58', '§ 58', '§ 58', '§ 4', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58']

Agriculture and Farming Credits | Virginia Tax
Agriculture and Farming Credits
Agricultural Best Management Practices Credit (Refundable)
You’re a farmer, grower, rancher, or someone else engaged in agricultural production for market; and
You have a soil conservation plan in place that your local soil and water conservation district has approved.
An income tax credit equal to 25% of the first $70,000 spent for approved agricultural best management programs. The amount of the tax credit may not exceed $17,500.
The credit is refundable to both individuals and corporations. If you’re claiming this credit, you can’t claim another credit for costs related to the same eligible practices.
What are eligible agricultural best management practices?
For the purpose of this credit, ones that will provide significant improvement to water quality in Virginia’s streams, rivers and bays. For more details, please visit the Department of Conservation and Recreation’s (DCR) website.
To claim the credit, complete the following and attach it to your return, along with your certificate from your local soil and water conservation district:
For more information, see Va. Code § 58.1-339.3 and Va. Code § 58.1-439.5
You’re a farmer who invests in certain equipment designed to reduce soil compaction and disturbance.
An income tax credit equal to 25% of what you spent on qualifying equipment. You can claim a credit of up to $4,000 on your return, not to exceed your tax liability. Carry forward any unused credits for 5 years.
“no till” planters and drills, including those attached to equipment you already own;
guidance systems to control traffic patterns designed to reduce soil disturbance
Using this credit
To claim the credit, complete the appropriate credit schedule below and attach to your return. Also, attach a statement showing the purchase date, description of the equipment purchased, and how you computed the credit.
For more information, see Va.Code § 58.1 - 334.
You’re starting a new farm winery or vineyard, or improving an existing one.
A Virginia vineyard is agricultural land with at least 1 acre dedicated to growing grapes that a Virginia farm winery will use to make wine. A Virginia farm winery is one licensed according to Va. Code § 4.1-207.
An income tax credit equal to 25% of what you spent on qualified capital expenditures related to starting or improving the farm winery or vineyard.
The credit cannot be greater than your tax liability. Carry forward any excess credit for 10 years. You can’t claim a credit for any expenses you deducted as a Section 179 expense on your federal income tax return.
What are “qualified capital expenditures?”
What you spent to purchase and install:
Yes. We can’t issue more than $250,000 in Farm Wineries and Vineyards tax credits per year. If applications for this credit exceed $250,000, we’ll prorate the credit amounts among eligible taxpayers.
Complete Form FWV, and send it to us by April 1. Late applications will be disqualified.
We will send you a letter certifying the credit by June 30.
For more information, see Va. Code § 58.1-339.12.
You purchase equipment designed to more precisely apply fertilizers and pesticides. The equipment must meet standards set by the Virginia Soil and Water Conservation Board; and
You have a nutrient management plan in place that your local soil and water conservation district has approved
An income tax credit equal to 25% of the cost of the equipment, or $3,750, whichever is less. You can’t claim a credit greater than your tax liability. Carry forward any unused credits for 5 years.
To claim the credit, complete the appropriate credit schedule below and attach to your return.
For additional information, please see Va. Code § 58.1-337 and Va. Code § 58.1-436
Yes. We can’t issue more than $250,000 in food crop donation tax credits per fiscal year.
Complete Form FCD-1, and send it to us by February 1. Late applications will not be eligible.
We will send you a letter certifying the credit by April 1.
For more information, see Va. Code § 58.1-439.12:12.
You own land along a Virginia river, stream or the Chesapeake Bay that you harvest timber from, and leave the trees near the waterway standing (a “riparian buffer.”) A Stewardship Management Plan, certified by the State Forester, must cover your land.
The Virginia Department of Forestry (VDOF) administers this credit. You’ll find more information about this credit on their website.
An income tax credit equal to 25% of the value of the timber in the buffer, if the timber were harvested. The maximum amount of the credit is $17,500, or your total tax liability, whichever is less. Carry forward any unused credits for 5 years.
What is a Stewardship Management Plan?
It’s a collection of information about your land and your stewardship plans for it. See the VDOF website for more information, including how to get one for your land.
If you break the terms of your stewardship plan, you’ll have to pay back any credit that you’ve received.
Are there any specific requirements for the buffer?
The buffer must be at least 35 feet wide, but no more than 300 feet wide. It needs to remain in place for at least 15 years. Once you’ve claimed the credit, you won’t be able to claim it again for this piece of land for another 15 years.
For more information about qualifying for the credit, please visit the VDOF website.
VDOF administers this credit. Please visit their website, and follow their application procedure.
To claim the credit, complete the following and attach it to your return, with the certification from VDOF:
For more information, see Va. Code § 58.1 - 339.10.