[Federal Register Volume 63, Number 169 (Tuesday, September 1, 1998)]
[Notices]
[Page 46407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23520]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 63, No. 169 / Tuesday, September 1, 1998 /
Notices
[[Page 46407]]
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
Alaska Underground Storage Tank Financial Assistance Program,
Tank Cleanup Grant and Loan Program: Determination of Primary Purpose
of Program Payments for Consideration as Excludable from Income Under
Section 126 of the Internal Revenue Code of 1986
AGENCY: Office of the Secretary, U.S. Department of Agriculture.
ACTION: Notice of Determination.
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SUMMARY: The Secretary of Agriculture has determined that all grant
payments made under the Tank Cleanup Grant and Loan Program within the
Alaska Underground Storage Tank Financial Assistance Program are made
primarily for the purposes of conserving soil and water resources and
for protecting or restoring the environment. This determination is made
in accordance with section 126 of the Internal Revenue Code of 1986, as
amended (26 U.S.C. 126). This determination permits recipients of these
payments to exclude the payments from gross income to the extent
allowed by the Internal Revenue Service.
ADDITIONAL INFORMATION OR COMMENTS: Commissioner, Alaska Department of
Environmental Conservation, 410 Willoughby Avenue, Juneau, Alaska
99801, (907) 465-5050; or Director, Conservation Operations Division,
Natural Resources Conservation Service, USDA, P.O. Box 2890,
Washington, DC 20013, (202) 720-1845.
SUPPLEMENTARY INFORMATION: Section 126 of the Internal Revenue Code of
1986, as amended (26 U.S.C. 126), provides that certain payments made
to persons under State conservation programs may be excluded from the
recipient's gross income for Federal income tax purposes, if the
Secretary of Agriculture determines that the payments are made
``primarily for the purpose of soil and water conservation, protecting
or restoring the environment, improving forests, or providing a habitat
for wildlife.'' The Secretary of Agriculture evaluates these
conservation programs on the basis of criteria set forth in 7 CFR Part
14 and makes a ``primary purpose'' determination for the payments made
under each program. Before there may be an exclusion, the Secretary of
the Treasury must determine that payments made under these conservation
programs do not increase substantially the annual income derived from
the property benefitted by the payments.
The State of Alaska Department of Environmental Conservation (ADEC)
has a Tank Cleanup Grant and Loan Program within the Underground
Storage Tank Financial Assistance Program. This program was established
through an amendment to a portion of Alaska Statute 46.03, effective
September 5, 1990. The program is administered by ADEC in accordance
with Underground Storage Tank Regulations, 18 AAC 78. Funding for the
program comes from the Storage Tank Assistance Fund. The objectives of
the Tank Cleanup Grant and Loan Program are to clean up existing leaks
associated with underground petroleum storage tanks systems in order to
conserve soil and water, and to protect or restore the environment. The
objectives of this program are achieved by awarding grants to fund a
portion of project costs for cleanup activities at facilities that have
reported releases. Eligible project costs may include, but are not
limited to:
1. Tank removal and soil excavation;
2. Reports, designs, and plans;
3. Boring and monitoring well installation;
4. Soil and water testing;
5. Soil treatment and disposal;
6. Water treatment and disposal;
7. Force account charges;
8. Tank tightness testing;
9. Assessing a site for contamination from underground storage
tanks; and
10. Other costs (must be identified).
All costs funded by the Tank Cleanup Grant and Loan Program are for
activities described in a workplan or corrective action plan, which is
determined by the ADEC to protect adequately human health, safety, and
the environment.
Procedural Matters
The authorizing legislation, regulations, and operating procedures
for the Alaska Tank Cleanup Grant and Loan Program have been examined
using criteria set forth in 7 CFR Part 14. The U.S. Department of
Agriculture has concluded that the grant payments made under this
program are made to provide financial assistance to eligible persons
for the conservation of soil and water and to protect or restore the
environment. A ``Record of Decision, Alaska Tank Cleanup Grant and Loan
Program: Primary Purpose Determination for Federal Tax Purposes'' has
been prepared and is available upon request from the Director,
Conservation Operations Division, Natural Resources Conservation
Service, P.O. Box 2890, Washington, DC 20013, or from the Commissioner,
Alaska Department of Environmental Conservation, 410 Willoughby Street,
Juneau, Alaska 99801.
Determination
As required by section 126(b) of the Internal Revenue Code of 1986,
as amended, I have examined the authorizing legislation, regulations,
and operating procedures regarding the Alaska Tank Cleanup Grant and
Loan Program. In accordance with the criteria set out in 7 CFR Part 14,
I have determined that all grant payments for the cleanup of leaks
associated with underground petroleum storage tank systems made under
this program are primarily for the purposes of soil and water
conservation and for protecting or restoring the environment. Subject
to further determination from the Secretary of the Treasury, this
determination permits grant payment recipients to exclude from gross
income, for Federal income tax purposes, all or part of such payments
made under the Alaska Tank Cleanup Grant and Loan Program.
Signed at Washington, DC, on August 26, 1998.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 98-23520 Filed 8-31-98; 8:45 am]
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