Contributes Materially
The phrase “contributes materially” means that during the
two taxable years preceding the taxable year in which displacement
occurs, or during such other period determined to be equitable,
a business or farm operation:
- had average annual gross receipts of at least $5,000; or
- had average annual net earnings of at least $1,000; or
- contributed at least 33 1/3 percent of the owner’s average annual gross income from all sources.
If application of the above criteria creates an inequity or
hardship in a given situation, the ROW Program Office may approve
use of other appropriate criteria.