SB 1163

Abstract

Tax credits of agricultural equipment. Establishes for taxable years 2021 through 2024 a refundable individual and corporate income tax credit for 25 percent of expenditures, up to a maximum of $17,500, made for the purchase of conservation tillage and precision agriculture equipment certified by the Virginia Soil and Water Conservation Board as reducing soil compaction or improving precision of pesticide and fertilizer application or injection. The bill expires the existing individual and corporate income tax credits for conservation tillage equipment and purchase of advanced technology pesticide and fertilizer application equipment after taxable year 2020. Under current law, an individual or corporate taxpayer is allowed nonrefundable credits of up to $4,000 for conservation tillage equipment purchases and up to $3,750 for advanced technology pesticide and fertilizer application equipment purchases, which credits may be carried over for five years.

Tax credits of agricultural equipment. Establishesa refundable individual and corporate income tax credit for 25 percentof expenditures, up to a maximum of $17,500, made for the purchaseof conservation tillage and precision agriculture equipment certifiedby the Virginia Soil and Water Conservation Board as reducing soilcompaction or improving precision of pesticide and fertilizer applicationor injection, beginning in taxable year 2021. The bill expires the existing individual and corporate income tax credits for conservationtillage equipment and purchase of advanced technology pesticide andfertilizer application equipment after taxable year 2020. Under currentlaw, an individual or corporate taxpayer is allowed nonrefundablecredits of up to $4,000 for conservation tillage equipment purchasesand up to $3,750 for advanced technology pesticide and fertilizerapplication equipment purchases, which credits may be carried overfor five years.