​​Conservation Tillage & Precision Ag Equipment

Tax Credit Program:

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For tax years beginning on or after January 1, 2021, but before January 1, 2026, a refundable tax credit is available for purchases of certain types of conservation tillage equipment.  The tax credit equals 25% of all expenditures for the purchase of equipment

certified by the VA Soil & Water Conservation Board as reducing soil compaction such as a "no-till" planter, drill, or other equipment that provides more precise pesticide and fertilizer application or injection. The credit amount cannot exceed $17,500 in the year of purchase.  If the amount of allowable credit exceeds the taxpayer's liability for the taxable year, the excess will be refunded at 100% of face value within 90 days after the filing date of the income tax return applying for the refund.

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• Statement showing the purchase date and expenditures for eligible equipment

• Copy of the certified statement signed by the producer, as well as the individual who prepared the nutrient management plan, stating that the nutrient management plan is being implemented.

• Letter from the District providing proof that the producer has an approved soil conservation plan.

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