Virginia Agricultural BMP Tax Credit Program Updated:01/2015

The BMP Tax Credit Program

The Virginia Agricultural BMP Tax Credit Program, which began with the 1998 tax year. The program supports voluntary installation of BMPs that will address Virginia's nonpoint source pollution water quality objectives.

Agricultural producers with an approved conservation plan can take a credit against state income tax of 25 percent of the first $70,000 spent on agricultural BMPs. The amount of the tax credit can't exceed $17,500 or the total state income tax obligation. Starting with tax year 2011, any unusable tax credit - i.e., exceeding the state tax obligation - will be refunded to the taxpayer by the Virginia Department of Taxation.

Agricultural operators' BMPs, if approved, will be inspected by the district after they're installed. Soon after this certification, the operators will receive cost-share payments or a tax credit approval letter from their local SWCD.

Other tax credits

There are also tax credits to encourage farmers to use conservation equipment. A tax credit for the purchase of precision agricultural equipment is available for:

  • Sprayers for pesticides and liquid fertilizers.
  • Pneumatic fertilizer applicators.
  • Monitors, computer regulators and height-adjustable booms for sprayers and liquid fertilizer.
  • Manure applicators.
  • Tramline adapters.
  • Starter fertilizer banding attachments for planters.

This equipment qualifies for a tax credit equaling the lesser of 25 percent of the equipment purchase or $3,750. The equipment must meet state-established criteria, and the farmer must have a nutrient management plan approved by the local SWCD.

A tax credit for purchasing conservation tillage equipment also is available. It is for up to 25 percent, not to exceed $4,000. Eligible equipment includes that which is used to reduce soil compaction. It includes equipment such as "no-till" planters and drills, and guidance systems that control traffic patterns and minimize soil disturbance when planting. Soil compaction-reducing implements to be attached to existing equipment also are eligible.

Contact Virginia Agricultural BMP Tax Credit Program


Contact Virginia Agricultural BMP Tax Credit Program

Virginia Department of Conservation and Recreation
Soil and Water
600 E. Main St.
24th Floor
Richmond, VA  23219
Phone: (804) 225-3653

Service Area

Statewide Program in:
  • Virginia