SB 1025

This bill creates an income tax credit for a beginning farmer who leases or

purchases agricultural assets from an asset owner and uses the assets for farming

and for a person whose assets are leased or sold to a beginning farmer. Under the

bill, a beginning farmer is a person who has a net worth of less than $200,000 and

who has farmed for fewer than 10 years. The bill defines “agricultural assets” as land

assessed for property tax purposes as agricultural land or machinery, equipment,

facilities, or livestock that is used in farming. The amount of the credit is equal to

5 percent of the lease amount or sales price paid by the beginning farmer to an asset

owner for agricultural assets for the taxable year and 5 percent of the lease amount

or sales price received by the asset owner from a beginning farmer for agricultural

assets for the taxable year. The beginning farmer may also claim a credit equal to

5 percent of the amount the farmer paid for improvements on agricultural assets

consisting of land and facilities. The maximum amount that a claimant may receive

in any taxable year is $75,000 and maximum amount of the credit for all claimants

in any taxable year is $5,000,000.

Under the bill, in order to claim the credit, both the beginning farmer and the

asset owner must submit an application to the Department of Agriculture, Trade and

Consumer Protection. The beginning farmer must submit a business plan with the

beginning farmer's application and provide a description of the beginning farmer's

education, training, and experience in the type of farming in which the beginning

farmer uses the leased or purchased agricultural assets.