Tax Laws and Regulations - Agriculture
Cost-share payments: Forest Land Enhancement Program (FLEP)
Rev.Rul. 2004-8 (PDF), I.R.B. 2004-10, 544 (March 8, 2004)
The IRS has ruled that the Forest Land Enhancement Program (FLEP) is substantially
similar to the type of programs described in Code Sec. 126(a)(1) through (8) within the meaning of Code Sec. 126(a)(9). Accordingly, all or a portion of cost-share payments received under the FLEP is eligible for exclusion from gross income to the extent permitted by Code Sec. 126. The IRS notes that Code Sec. 126(b)(1) and Reg. § 16A.126-1 can be used to determine what portion, if any, of the cost-share payments is excludable from gross income under Code Sec. 126.
Exclusions from income: Cost-sharing payments: Conservation Reserve Program
Rev.Rul. 2003-59 (PDF), I.R.B. 2003-24, 1014 (June 16, 2003)
The IRS has determined that all or a portion of cost-share payments received under the Conservation Reserve Program (CRP) is eligible for exclusion from gross income to the extent permitted by Code Sec. 126. The CRP is substantially similar to the type of programs described in Code Sec. 126(a)(1) through (8); thus, it falls within the scope of Code Sec. 126(a)(9). However, rental payments and incentive payments made to CRP participants do not qualify as cost-share payments and, therefore, are includible in gross income.
United States Tax Court
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United States Tax Code
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Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.