Hi,
I have a contract to perform fuel reduction on 12.8 acres on my 39-acre property. The Grantor is CalFire, not USDA. Does Section § 126(b) (viz., Any program of a State, possession of the United States, a political subdivision of any of the foregoing, or the District of Columbia under which payments are made to individuals primarily for the purpose of conserving soil, protecting or restoring the environment, improving forests, or providing a habitat for wildlife.
Under § 126(b), the excludable portion of a payment is limited to the portion that (1) is determined by the Secretary of Agriculture to be made primarily for the purpose of conserving soil and water resources, protecting or restoring the environment, improving forests, or providing a habitat for wildlife, (2) does not increase substantially the annual income derived from the property, and (3) is not properly associated with a deductible expense.
It would seem that this ruling would apply to a State of California CalFire grant as well as a USDA grant. Would this be your interpretation? Would we need to get a ruling from the Secretary of Agriculture?
Thank you.
Francois Christen
