§ 175.
Soil and water conservation expenditures; endangered species recovery expenditures
(c)
Definitions
For purposes of subsection (a)—
(1)
The term “expenditures which are paid or incurred by him during the taxable year for the purpose of soil or water conservation in respect of land used in farming, or for the prevention of erosion of land used in farming, or for endangered species recovery” means expenditures paid or incurred for the treatment or moving of earth, including (but not limited to) leveling, grading and terracing, contour furrowing, the construction, control, and protection of diversion channels, drainage ditches, earthen dams, watercourses, outlets, and ponds, the eradication of brush, and the planting of windbreaks. Such term shall include expenditures paid or incurred for the purpose of achieving site-specific management actions recommended in recovery plans approved pursuant to the Endangered Species Act of 1973. Such term does not include—
(A)
the purchase, construction, installation, or improvement of structures, appliances, or facilities which are of a character which is subject to the allowance for depreciation provided in section 167, or
(B)
any amount paid or incurred which is allowable as a deduction without regard to this section.
Notwithstanding the preceding sentences, such term also includes any amount, not otherwise allowable as a deduction, paid or incurred to satisfy any part of an assessment levied by a soil or water conservation or drainage district to defray expenditures made by such district (i) which, if paid or incurred by the taxpayer, would without regard to this sentence constitute expenditures deductible under this section, or (ii) for property of a character subject to the allowance for depreciation provided in section 167 and used in the soil or water conservation or drainage district’s business as such (to the extent that the taxpayer’s share of the assessment levied on the members of the district for such property does not exceed 10 percent of such assessment).
(2)
The term “land used in farming” means land used (before or simultaneously with the expenditures described in paragraph (1)) by the taxpayer or his tenant for the production of crops, fruits, or other agricultural products or for the sustenance of livestock.
(3)
Additional limitations.—
(A)
Expenditures must be consistent with soil conservation plan or endangered species recovery plan.—
Notwithstanding any other provision of this section, subsection (a) shall not apply to any expenditures unless such expenditures are consistent with—
(i)
the plan (if any) approved by the Soil Conservation Service of the Department of Agriculture or the recovery plan approved pursuant to the Endangered Species Act of 1973 for the area in which the land is located, or
(ii)
if there is no plan described in clause (i), any soil conservation plan of a comparable State agency.
(B)
Certain wetland, etc., activities not qualified.—
Subsection (a) shall not apply to any expenditures in connection with the draining or filling of wetlands or land preparation for center pivot irrigation systems.
(f)
Rules applicable to assessments for depreciable property
(1)
Amounts treated as paid or incurred over 9-year period
(2)
Disposition of land during 9-year period
(3)
Disposition by reason of death
([Aug. 16, 1954, ch. 736], [68A Stat. 67]; [Pub. L. 90–630, § 5(a)], (b), Oct. 22, 1968, [82 Stat. 1329]; [Pub. L. 94–455, title XIX], §§ 1901(a)(30), 1906(b)(13)(A), Oct. 4, 1976, [90 Stat. 1769], 1834; [Pub. L. 99–514, title IV, § 401(a)], Oct. 22, 1986, [100 Stat. 2221]; [Pub. L. 110–234, title XV, § 15303(a)(1)]–(2)(B), (b), May 22, 2008, [122 Stat. 1501], 1502; [Pub. L. 110–246, § 4(a)], title XV, § 15303(a)(1)–(2)(B), (b), June 18, 2008, [122 Stat. 1664], 2263, 2264; [Pub. L. 113–295, div. A, title II, § 221(a)(33)], Dec. 19, 2014, [128 Stat. 4042].)