Virginia Agricultural BMP Tax Credit Program on the Land Conservation Assistance Network

Virginia Agricultural BMP Tax Credit Program
Create an Account
last updated: May 2019

The Virginia Agricultural BMP Tax Credit Program began in 1998. It supports the voluntary installation of BMPs that support Virginia's nonpoint source pollution water quality objectives.

Agricultural producers with a conservation plan approved by their Soil and Water Conservation District (SWCD) may take a credit against state income tax of 25 percent of the first $70,000 spent on agricultural BMPs. The amount of the tax credit may not exceed $17,500 or the total state income tax obligation. Starting with tax year 2011, any unusable tax credit - i.e., exceeding the state tax obligation - will be refunded to the taxpayer by the Virginia Department of Taxation.

Agricultural operators' BMPs, if approved, will be inspected by the SWCD after they're installed. Soon after this certification, operators will receive cost-share payments or a tax credit approval letter from their local SWCD.

Other tax credits

There are also tax credits to encourage farmers to use conservation equipment. A tax credit for the purchase of precision agricultural equipment is available for:

Sprayers for pesticides and liquid fertilizers.
Pneumatic fertilizer applicators.
Monitors, computer regulators and height-adjustable booms for sprayers and liquid fertilizer.
Manure applicators.
Tramline adapters.
Starter fertilizer banding attachments for planters.

This equipment qualifies for a tax credit equaling the lesser of 25 percent of the equipment purchase or $3,750. The equipment must meet state-established criteria, and the farmer must have a nutrient management plan approved by the local SWCD.

A tax credit for purchasing conservation tillage equipment also is available. It is for up to 25 percent, not to exceed $4,000. Eligible equipment includes that which is used to reduce soil compaction. It includes equipment such as "no-till" planters and drills, and guidance systems that control traffic patterns and minimize soil disturbance when planting. Soil compaction-reducing implements to be attached to existing equipment also are eligible.

Contact Virginia Agricultural BMP Tax Credit Program

REMINDER: This listing is a free service of LandCAN.
Virginia Agricultural BMP Tax Credit Program is not employed by or affiliated with the Land Conservation Assistance Network, and the Network does not certify or guarantee their services. The reader must perform their own due diligence and use their own judgment in the selection of any professional.