BMP Tax Credit Program Updates

Equipment Tax Credit 

You may qualify to claim this credit if you are a producer who invests in certain equipment designed to reduce soil compaction and disturbance or provide for more precise pesticide and fertilizer application to reduce the potential for adverse environmental impacts. To claim this tax credit, you are required to have a soil conservation plan in place that your local soil and water conservation district has approved and be implementing a nutrient management plan developed by a certified nutrient management planner. The value of the tax credit is equal to 25% of expenditures on qualifying equipment up to $17,500 credit. You can claim this credit on your tax return, not to exceed your tax liability. If the amount of the credit exceeds the taxpayer’s liability for such taxable year, the excess will be refunded by the Tax Commissioner for 100 percent of face value within 90 days after the filing date of the income tax return. To claim this tax credit, producers will need to submit a formal application, Virginia Form AEC. (Available from the District.) All supporting documentation must be submitted 90 days before the return upon which the tax credit will be claimed is due. Many different types of equipment qualify for this tax credit. Please contact the Hanover-Caroline Soil and Water District for a complete list of qualifying equipment.  More information may also be found here.