Notice2022-24937
Determination of the Primary Purpose of the New York Suffolk County Septic Improvement Program (SIP)
Primary source
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Published
November 16, 2022
Issuing agencies
Agriculture DepartmentNatural Resources Conservation Service
Abstract
USDA is providing public notice that the Secretary of Agriculture has determined that cost share payments made by the New York Suffolk County SIP are primarily for the purpose of conserving soil and water resources or protecting and restoring the environment. The Natural Resources Conservation Service (NRCS) was assigned technical and administrative responsibility for reviewing the New York Suffolk County SIP and for making appropriate recommendations for the Secretary's determination of primary purpose. The Secretary's determination permits recipients of cost share payments to exclude such payments from gross income to the extent allowed by the Internal Revenue Service.
Full Text
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<title>Federal Register, Volume 87 Issue 220 (Wednesday, November 16, 2022)</title>
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[Federal Register Volume 87, Number 220 (Wednesday, November 16, 2022)]
[Notices]
[Pages 68669-68670]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24937]
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DEPARTMENT OF AGRICULTURE
Natural Resources Conservation Service
[Docket No. NRCS-2022-0014]
Determination of the Primary Purpose of the New York Suffolk
County Septic Improvement Program (SIP)
AGENCY: Natural Resources Conservation Service, USDA.
ACTION: Notice.
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SUMMARY: USDA is providing public notice that the Secretary of
Agriculture has determined that cost share payments made by the New
York Suffolk County SIP are primarily for the purpose of conserving
soil and water resources or protecting and restoring the environment.
The Natural Resources Conservation Service (NRCS) was assigned
technical and administrative responsibility for reviewing the New York
Suffolk County SIP and for making appropriate recommendations for the
Secretary's determination of primary purpose. The Secretary's
determination permits recipients of cost share payments to exclude such
payments from gross income to the extent allowed by the Internal
Revenue Service.
FOR FURTHER INFORMATION CONTACT: Ronnie Maurer; telephone (202) 720-
9733; or email: <a href="/cdn-cgi/l/email-protection#fdaf9293939498d3b09c888f988fbd888e999cd39a928b"><span class="__cf_email__" data-cfemail="60320f0e0e09054e2d011512051220151304014e070f16">[email protected]</span></a>. Persons with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone (TTY)) or
dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
Under Section 126(a)(8) of the Internal Revenue Code of 1954, as
amended (26 U.S.C. 126) gross income does not include the ``excludable
portion'' of payments received under any program of a State, or a
political subdivision of a State, under which payments are made to
individuals primarily for the purpose of protecting or restoring the
environment. In general, a cost share payment for selected conservation
practices is exempt from Federal taxation if it meets three tests:
(1) It was for a capital expense;
(2) It does not substantially increase the operator's annual income
from the property for which it is made; and
(3) The Secretary of Agriculture certified that the payment was
made primarily for conserving soil and water resources, protecting, or
restoring the environment, improving forests, or providing habitat for
wildlife.
The Secretary of Agriculture evaluates a conservation program on
the basis of criteria specified in 7 CFR part 14 and makes a ``primary
purpose'' determination for the payments made under the conservation
program. The objective of the determination made under part 14 is to
provide maximum conservation, environmental, forestry improvement, and
wildlife benefits to the general public from the operation of
applicable programs. Final determinations are made on the basis of
program, category of practices, or individual practices.
NRCS was assigned technical and administrative responsibility for
reviewing the New York Suffolk County SIP and for making appropriate
[[Page 68670]]
recommendations for the Secretary's determination of primary purpose.
Following a primary purpose determination by the Secretary of
Agriculture, the Secretary of the Treasury determines if the payments
made under the conservation program substantially increases the annual
income derived from the property benefited by the payments.
Environmental Review
From this Federal action, approving tax deferral will not result in
impacts to the environment, therefore, no further National
Environmental Policy Act (NEPA) documentation will be prepared.
Determination
As provided for by Section 126 of the Internal Revenue Code, the
Secretary examined the authorizing legislation, regulations, and
operating procedures regarding the New York Suffolk County SIP. In
accordance with the criteria specified in 7 CFR part 14, the Secretary
has determined the primary purpose of cost share payments made under
the New York Suffolk County SIP is conserving soil and water resources
or protecting and restoring the environment.
A current residential property owner residing in any area of
Suffolk County may apply for a SIP grant to design, purchase, or
install an Innovative and Alternative Onsite Wastewater Treatment
System (I/A OWTS). The I/A OWTS must be approved for use by the Suffolk
County Department of Health. All residential property owners are
eligible because nitrogen loading does not affect just the property on
which it occurs, but instead affects the entire regional area. However,
since there are properties in areas that are even more susceptible to
damage, the Suffolk County Commissioner of Health Services may
authorize preferential review of an application for a grant if the
grant application is for a residence in an area specified by Health
Services as environmentally sensitive.
Rules were developed that allow for a priority order on the
issuance of grants, based on the environmental sensitivity of the area
(for example, groundwater travel time to surface water in the home's
geographic area). Suffolk County executes a grant contract with the
property owner, which is recorded, but Suffolk County directly pays the
designer, installer, or manufacturer of the I/A OWTS from a list
established by the County. The amount of the grant award is based on
actual eligible costs, up to $20,000, with the property owner incurring
any additional expenses for the design, purchase, and installation
costs over the grant amount.
A ``Record of Decision'' for the New York Suffolk County SIP to
provide grants to homeowners to design, purchase, or install an I/A
OWTS has been prepared and is available upon request from the Acting
Director, Financial Assistance Programs Division, NRCS, 1400
Independence Avenue SW, Room 4529 South Building, Washington, DC 20250.
The Secretary's determination is in accordance with section 126 of
the Internal Revenue Code, and permits recipients of cost share
payments to exclude those payments from gross income to the extent
allowed by the Internal Revenue Service.
USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital
status, family or parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for
prior civil rights activity, in any program or activity conducted or
funded by USDA (not all bases apply to all programs). Remedies and
complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (for example, braille, large
print, audiotape, American Sign Language, etc.) should contact the
responsible Agency or USDA TARGET Center at (202) 720-2600 (voice and
text telephone (TTY) or dial 711 for Telecommunications Relay Service
(both voice and text telephone users can initiate this call from any
telephone). Additionally, program information may be made available in
languages other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at <a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</a> and
at any USDA office or write a letter addressed to USDA and provide in
the letter all the information requested in the form. To request a copy
of the complaint form, call (866) 632-9992. Submit your completed form
or letter to USDA by mail to: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Washington, DC 20250-9410 or email: <a href="/cdn-cgi/l/email-protection#024d434142777166632c656d74"><span class="__cf_email__" data-cfemail="0a454b494a7f796e6b246d657c">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Terry Cosby,
Chief, Natural Resources Conservation Service.
[FR Doc. 2022-24937 Filed 11-15-22; 8:45 am]
BILLING CODE 3410-16-P
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