SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2021 SESSION
21102051DBe it enacted by the General Assembly of Virginia:
1. That §§ 58.1-334, 58.1-337, 58.1-432, and 58.1-436 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-334. Tax credit for purchase of conservation tillage equipment.
A. Any For taxable
years beginning before January
1, 2021, any individual shall be allowed a credit against
the tax imposed by § 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 "conservation tillage equipment" means a planter,
drill, or other equipment used to reduce soil compaction commonly known as a
"no-till" 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'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.
§ 58.1-337. Tax credit for purchase of conservation tillage and precision agriculture equipment.
A. 1. For taxable years beginning on or after January 1, 2021, any individual engaged in agricultural production for market who 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 individual shall be allowed a refundable credit against the tax imposed by § 58.1-320 of an amount equaling 25 percent of all expenditures made by such individual for the purchase of equipment certified by the Virginia Soil and Water Conservation Board as reducing soil compaction such as a "no-till" 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's liability for such taxable year, the excess may 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 individual 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 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.
Any B. 1. For taxable years beginning
before January 1, 2021, any individual engaged in
agricultural production for market who has in place a nutrient management plan
approved by the local Soil and Water Conservation
District soil and water conservation
district by the required tax return filing date of the
individual shall be allowed a credit against the tax imposed by § 58.1-320 of
an amount equaling twenty-five 25 percent of all expenditures
made by such individual 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:
1. a. Sprayers
for pesticides and liquid fertilizers;
2. b. Pneumatic
fertilizer applicators;
3. c. Monitors,
computer regulators, and height adjustable height-adjustable booms for
sprayers and liquid fertilizer applicators;
4. d. Manure
applicators;
5. e. Tramline
adapters; and
6. f. Starter
fertilizer banding attachments for planters.
B. 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'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 individual in the next
five taxable years until the total amount of the tax credit has been taken.
C. 3. For purposes of this section 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 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.
§ 58.1-432. Tax credit for purchase of conservation tillage equipment.
A. Any For taxable
years beginning before January
1, 2021, any corporation shall be
allowed a credit against the tax imposed by § 58.1-400 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 "conservation tillage
equipment" means a planter, drill, or other equipment used to reduce soil
compaction commonly known as a "no-till" 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 used 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's tax liability for such tax year, the amount which exceeds such tax liability may be carried over for credit against income taxes 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.
§ 58.1-436. Tax credit for purchase of conservation tillage and precision agricultural application equipment.
A. 1. For taxable years beginning on or after January 1, 2021, 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 "no-till" 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'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.
Any 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 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 twenty-five 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:
1. a. Sprayers
for pesticides and liquid fertilizers;
2. b. Pneumatic
fertilizer applicators;
3. c. Monitors,
computer regulators, and height adjustable booms for sprayers and liquid
fertilizer applicators;
4. d. Manure
applicators;
5. e. Tramline
adapters; and
6. f. Starter fertilizer banding
attachments for planters.
B. 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'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.
C. 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.
2. That the provisions of this act shall become effective only for taxable years beginning on and after January 1, 2021.