How does IRS Revenue Ruling 94-27 relate to SIP?
Revenue Ruling 94-27 states that the Commissioner of the IRS has determined that SIP is substantially similar to the type of program described in Section 126(a)(1) through (8) of the Internal Revenue Code, so that Section 126 improvements made in connection with small watersheds and under the SIP are within the scope of Section 120(a)(9). This means that SIP payments are eligible for the same treatment as payments under PIP, ACP, and other conservation programs listed under Section 126(a) and the regulations thereto.
