Conservation Equipment Tax Break
Conservation Equipment Tax Break supports Maryland farmers with tax relief for conservation equipment purchases that control soil erosion, improve nutrient management, and protect local water quality.
Funder: Maryland Department of Agriculture
Due Dates: Certification requires equipment purchased within the last five years
Funding Amounts: Maryland taxable-income subtraction of 100% of eligible costs (50% for vertical tillage), with up to five years of carryover
Summary: Tax relief helps Maryland farmers purchase conservation equipment that controls erosion, manages nutrients, and protects water quality.
Key Information: Equipment must remain owned for at least three years after the tax year of the subtraction.
Description
The Conservation Equipment Tax Break, formally the Maryland Income Tax Subtraction Modification for Conservation Equipment, is administered by the Maryland Department of Agriculture (MDA) through its Ecosystem Incentives Program. It helps farmers offset purchases of equipment used to control soil erosion, manage nutrients, and protect local water quality. The broader program promotes clean water, healthy soil, and climate solutions.
This benefit is a subtraction from Maryland taxable income, not a direct cash grant. Qualifying purchases include no-till planting equipment, manure injection and spreading equipment, deep no-till rippers, precision nutrient-management systems, and vertical tillage equipment. A local soil conservation district verifies equipment eligibility before MDA gives final approval, allowing the certified expense to be claimed on a Maryland individual or corporate tax return.
