Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB242

Introduced
1/17/25  
Refer
1/17/25  
Refer
5/14/25  
Report Pass
6/2/25  
Engrossed
6/2/25  

Caption

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.

Impact

The bill updates various sections of the Tax Reform Code of 1971, particularly concerning the definitions and scope of management tax credits for beginning farmers. It sets parameters for tax credits based on the sale or rental value of the agricultural assets up to a maximum of $50,000. Additionally, the legislation outlines procedures for applying, certifying, and utilizing these tax credits, as well as provisions for public awareness campaigns to ensure that eligible participants are informed about these opportunities.

Summary

House Bill 242, introduced in the Pennsylvania General Assembly in January 2025, amends the existing tax reform laws focusing on providing tax credits specifically tailored for beginning farmers. This legislation expands the scope of tax credits to include owners of agricultural assets who sell or rent these assets to newly established farmers. It aims to incentivize the transfer of agricultural properties to new entrants in farming by providing financial relief through tax credits that can substantially reduce the costs associated with starting a farming operation.

Sentiment

The sentiment around HB 242 has been largely positive, especially among agricultural advocacy groups and stakeholders who view the bill as a supportive measure for fostering new agricultural enterprises. It addresses a critical gap in existing tax laws by promoting the establishment of new farms and encouraging young agricultural leaders. However, some skepticism may exist regarding the actual implementation and effectiveness of the proposed tax credits in achieving their intended goals.

Contention

Notable points of contention include concerns regarding the adequacy of funding for the tax credits and the ability of the state's Department of Agriculture to manage and certify the credits effectively. Lawmakers and agricultural experts alike are watching closely to see how this legislation will be received by the agricultural community and its economic impact on Pennsylvania's agricultural sector. As with any tax incentive program, there is also anxiety about whether these credits will genuinely attract and sustain new farmers in the long term.

Companion Bills

No companion bills found.

Previously Filed As

PA HB2414

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.

PA HB653

In tax credit and tax benefit administration, further providing for definitions; and providing for tax credits for rehabilitation and reconstruction of certain factory and mill buildings and for a business tax credit.

PA HB2402

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, further providing for definitions and for application and approval of tax credit, providing for sustainable aviation fuel and further providing for definitions.

PA SB334

In research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB2565

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and for Pennsylvania Milk Processing; in Regional Clean Hydrogen Hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA SB1259

In historic preservation incentive tax credit, further providing for definitions and for tax credit certificates.

PA SB810

In tax credit and tax benefit administration, further providing for definitions; and providing for Working Family Income Tax Credit.

PA HB1034

In tax credit and tax benefit administration, further providing for definitions; and providing for Working Family Income Tax Credit.

PA HB2063

In educational tax credits, further providing for definitions and for qualification and application by organizations.

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