Virginia Agricultural Best Management Parctices Tax Credit Program
Conservation Incentive Program Fact Sheet

• Program Name: Virginia Agricultural Best Management Parctices Tax Credit Program
• Abbreviation: BMP Tax Credit Program
• Primary Goal:
  • Provide an incentive to voluntarily install agricultural best management practices (BMPs) in accordance with an approved conservation plan.
  • To reduce the amount of nonpoint source (NPS) pollution entering the state's streams, rivers and estuaries.
• Contact Agency: Soil and Water Conservation Districts.
• Where Applicable: Statewide.
• Other Sources of Information:
  • Fact Sheet
  • Virginia Agricultural BMP Manual (1998 Edition and Later)
  • Virginia Department of Conservation and Recreation (DCR)

Prepared by Virginia State Technical Advisory Committee.

Program Description and Requirements

For all taxable years beginning on and after January 2, 1998, any individual or corporation engaged in agricultural production for market who has in place a soil conservation plan approved by the local SWCD shall be allowed a credit against the tax imposed by Section 58.1-320 of an amount equaling 25% of the first $70,000 expended for agricultural best management practices by the individual. “Agricultural best management practices” are approved measures that will provide a significant improvement to water quality in the state’s streams and rivers and the Chesapeake Bay, and is consistent with other state and federal programs that address agricultural, nonpoint source pollution management.

Any practice approved by the local SWCD Board shall be completed within the taxable year in which the credit is claimed. The credit shall be allowed only for expenditures made by the taxpayer from funds of his/her own sources.

The amount of such credit shall not exceed $17,500 or the total amount of the tax imposed by this chapter, whichever is less, in the year the project was completed, as certified by the Board. If the amount of the credit exceeds the taxpayer’s liability for such taxable year, the excess 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.

All programs, activities, and services of the conservation partnership are available to people on a nondiscriminatory basis regardless of race, color, national origin, religion, sex, age, physical ability, political affiliation, and marital or familial status. We are all equal opportunity employers.

Last modified 2007-07-12