Income tax credits for beginning farmers and owners of farm assets and making an appropriation. (FE)
Impact
The bill is expected to have a substantial impact on the state's agricultural laws by amending existing tax codes to accommodate the new credit. It defines a 'beginning farmer' as someone with a net worth of less than $200,000 who has less than a decade of farming experience, thus encouraging young entrepreneurs to enter into the agriculture field. To qualify, both the beginning farmer and the asset owner must apply through the Department of Agriculture, Trade and Consumer Protection, reinforcing oversight and accountability. This process aims to ensure that the recipients are genuinely utilizing the assets for farming.
Summary
Assembly Bill 1124 introduces a tax credit targeted towards beginning farmers in Wisconsin who lease or purchase agricultural assets. The bill allows for a 5% tax credit on any lease or sales price of agricultural assets utilized for farming, with the intention of supporting farmers who are starting their operations. The limits set for this credit include a maximum claim of $75,000 per taxable year, and a cap of $5 million for total credits available state-wide in a given year. This provision aims to ease financial constraints for those entering the agricultural sector and to stimulate local food production.
Contention
Despite its benefits, AB1124 may foster contention among various stakeholders. Critics might argue about the potential loopholes that could allow more affluent individuals to exploit these credits rather than genuinely support low-income or novice farmers. Additionally, there could be discussions on whether these credits adequately address the significant investments needed to start a viable farming operation. The criteria set for qualifying as a 'beginning farmer' could also face scrutiny, positioning it against existing agricultural policies and funding mechanisms designed for larger, more established farms.
In tax credits relating to beginning farmers, further providing for scope of article, for definitions, for beginning farmer management tax credit and for approval of tax credit.
In tax credits relating to beginning farmers, further providing for scope of article, for definitions, for beginning farmer management tax credit and for approval of tax credit.
Taxation: farmland and open space; certain references in the farmland and open space preservation statute; make gender neutral. Amends sec. 36109 of 1994 PA 451 (MCL 324.36109). TIE BAR WITH: HJR F'23
Taxation: farmland and open space; certain references in the farmland and open space preservation statute; make gender neutral. Amends sec. 36109 of 1994 PA 451 (MCL 324.36109). TIE BAR WITH: HJR F'25