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Conservation Tax Credit

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In an effort to encourage voluntary installation of BMPs that address Virginia’s non-point source pollution water quality objectives, the Virginia General Assembly modified the Code of Virginia’s tax section to provide for an Agricultural BMP Tax Credit. The Code allows any agricultural producer to take a 25% state tax credit for BMPs installed to improve water quality. The General Assembly has also authorized tax credits to encourage the purchase and use  of certain agricultural equipment such as:

  • Sprayers for pesticides and liquid fertilizers
  • pneumatic fertilizer applicators
  • manure applicators
  • tramline adapters
  • starter fertilizer banding attachments for planters

These pieces of conservation equipment qualify for a tax credit equaling the lesser of 25% of the equipment purchase or $3,750. Additionally, conservation tillage equipment is eligible for a 25% tax credit not to exceed $2,500. The equipment must meet state-established criteria and the farmer must have a nutrient management plan on file with Piedmont SWCD.

The tax credit program operates following the guidelines of the agricultural BMP program except as otherwise expressly stated. To visit Virginia DCR’s Tax Credit Program page, click here.

To receive further information about tax credit, please contact the Piedmont SWCD office. Other agencies that offer assistance include the USDA Farm Service Agency and Natural Resources Conservation Service, Virginia Cooperative Extension, Virginia Department of Game and Inland Fisheries, and the Virginia Department of Forestry.