Soil and Water Conservation Incentives Act of 1982

Soil and Water Conservation Incentives Act of 1982 - States that it is the policy of Congress that the Federal Government should encourage private conservation through tax incentives.

Amends the Internal Revenue Code to allow a taxpayer engaged in the business of farming an investment tax credit for soil and water conservation expenditures not treated as deductible expenses.

Allows farmers a tax credit of a certain amount per acre of land on which conservation tillage practices are used. Reduces the credit for nontaxable government grants used by the taxpayer in carrying out such practices.

Excludes from gross income interest received on loans used to construct soil conservation terrace systems. Provides that such tax exclusion shall not apply to: (1) persons engaged in the lending business; (2) corporations; and (3) certain types of loans.

Includes soil conservation tillage equipment and equipment used in terrace systems as "three-year property" for purposes of the accelerated cost recovery system.

Allows an income tax deduction for farmland conservation plans based on a certain allowance per cultivated acre, up to $10,000 a year.

Provides that persons receiving cash rent for farmland are eligible for the tax deduction for soil and water conservation expenditures.