A: According to the Notice of Hunan Provincial Department of Finance, Hunan Provincial State Taxation Bureau and Hunan Provincial Local Taxation Bureau on Printing and Distributing (Xiangcaizong [2011] No.45), Article 10 Water conservancy construction funds can be exempted under the following circumstances: (1) Production and business units and individual industrial and commercial households that have not reached the threshold of value-added tax and business tax; (2) Income from production and operation exempted from value-added tax and business tax as stipulated by the state; (three) the income from the sale of military products by Hunan military enterprises (excluding the military-to-civilian enterprises that have issued industrial and commercial business licenses); (four) national defense projects, flood control projects (excluding commercial and service facilities), orphanages, homes for the elderly construction land; (5) Other exemptions stipulated by the state.