Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1124 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1124
5	5	March 6, 2024 - Introduced by Representatives JACOBSON, CONSIDINE, TRANEL,
6	6	BARE, BEHNKE, C. ANDERSON, CONLEY, DRAKE, EMERSON, HONG, JOERS,
7	7	OHNSTAD, PALMERI, RATCLIFF, SHANKLAND, STUBBS, SUBECK and NOVAK,
8	8	cosponsored by Senators SPREITZER, AGARD, ROYS and SMITH. Referred to
9	9	Committee on Ways and Means.
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30
12	12	(3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); and to create 20.835 (2)
13	13	(dp), 71.07 (8s), 71.28 (8s), 71.47 (8s) and 93.521 of the statutes; relating to:
14	14	income tax credits for beginning farmers and owners of farm assets and making
15	15	an appropriation.
16	16	Analysis by the Legislative Reference Bureau
17	17	This bill creates an income tax credit for a beginning farmer who leases or
18	18	purchases agricultural assets from an asset owner and uses the assets for farming
19	19	and for a person whose assets are leased or sold to a beginning farmer. Under the
20	20	bill, a beginning farmer is a person who has a net worth of less than $200,000 and
21	21	who has farmed for fewer than 10 years. The bill defines “agricultural assets” as land
22	22	assessed for property tax purposes as agricultural land or machinery, equipment,
23	23	facilities, or livestock that is used in farming. The amount of the credit is equal to
24	24	5 percent of the lease amount or sales price paid by the beginning farmer to an asset
25	25	owner for agricultural assets for the taxable year and 5 percent of the lease amount
26	26	or sales price received by the asset owner from a beginning farmer for agricultural
27	27	assets for the taxable year. The beginning farmer may also claim a credit equal to
28	28	5 percent of the amount the farmer paid for improvements on agricultural assets
29	29	consisting of land and facilities. The maximum amount that a claimant may receive
30	30	in any taxable year is $75,000 and maximum amount of the credit for all claimants
31	31	in any taxable year is $5,000,000.
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38	38	ASSEMBLY BILL 1124
39	39	Under the bill, in order to claim the credit, both the beginning farmer and the
40	40	asset owner must submit an application to the Department of Agriculture, Trade and
41	41	Consumer Protection. The beginning farmer must submit a business plan with the
42	42	beginning farmer's application and provide a description of the beginning farmer's
43	43	education, training, and experience in the type of farming in which the beginning
44	44	farmer uses the leased or purchased agricultural assets.
45	45	For further information see the state fiscal estimate, which will be printed as
46	46	an appendix to this bill.
47	47	The people of the state of Wisconsin, represented in senate and assembly, do
48	48	enact as follows:
49	49	SECTION 1. 20.835 (2) (dp) of the statutes is created to read:
50	50	20.835 (2) (dp) Beginning farmer and farm asset owner tax credit. A sum
51	51	sufficient to pay the claims approved under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).
52	52	SECTION 2. 71.05 (6) (a) 15. of the statutes is amended to read:
53	53	71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
54	54	(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5i), (5j),
55	55	(5k), (5r), (5rm), (6n), (8s), and (10) and not passed through by a partnership, limited
56	56	liability company, or tax-option corporation that has added that amount to the
57	57	partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
58	58	71.34 (1k) (g).
59	59	SECTION 3. 71.07 (8s) of the statutes is created to read:
60	60	71.07 (8s) BEGINNING FARMER AND FARM ASSET OWNER TAX CREDIT. (a) Definitions.
61	61	In this subsection:
62	62	1. “Agricultural assets" means agricultural land or machinery, equipment,
63	63	facilities, or livestock that is used in farming.
64	64	2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
65	65	3. “Asset owner" means a person who meets the conditions specified in s. 93.521
66	66	(3).
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87	87	SECTION 3
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89	89	4. “Beginning farmer" means a person who meets the conditions specified in s.
90	90	93.521 (2).
91	91	5. “Claimant" means a beginning farmer who files a claim under this subsection
92	92	or an asset owner who files a claim under this subsection, except that, for a beginning
93	93	farmer, “claimant” means the following:
94	94	a. For partnerships, except publicly traded partnerships treated as
95	95	corporations under s. 71.22 (1k), “claimant" means each separate partner.
96	96	b. For tax-option corporations, “claimant" means each separate shareholder.
97	97	c. For limited liability companies, except limited liability companies treated as
98	98	corporations under s. 71.22 (1k), “claimant" means each separate member.
99	99	6. “Farming" has the meaning given in section 464 (e) of the Internal Revenue
100	100	Code.
101	101	7. “Lease amount" is the amount of the cash payment paid by a beginning
102	102	farmer to an asset owner each year for leasing the asset owner's agricultural assets,
103	103	including amounts paid under a lease agreement that results in the beginning
104	104	farmer owning the agricultural assets.
105	105	(b) Filing claims. 1. Subject to the limitations provided in this subsection, for
106	106	taxable years beginning after December 31, 2025, a beginning farmer may claim as
107	107	a credit against the tax imposed under s. 71.02 an amount equal to 5 percent of the
108	108	lease amount or sales price paid by the beginning farmer to an asset owner for the
109	109	lease or purchase of agricultural assets for the taxable year to which the claim
110	110	relates. The beginning farmer may also claim an amount equal to 5 percent of the
111	111	amount the beginning farmer paid in the taxable year for improvements to
112	112	agricultural assets consisting of land and facilities.
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138	138	SECTION 3 ASSEMBLY BILL 1124
139	139	2. Subject to the limitations provided in this subsection, for taxable years
140	140	beginning after December 31, 2025, an asset owner may claim as a credit against the
141	141	tax imposed under s. 71.02 an amount equal to 5 percent of the lease amount or sales
142	142	price received by the asset owner from a beginning farmer for agricultural assets for
143	143	the taxable year to which the claim relates.
144	144	(c) Limitations. 1. With regard to credit claimed on the basis of a lease amount,
145	145	a claimant may only claim the credit under this subsection for the first 3 years of any
146	146	lease of an asset owner's agricultural assets to a beginning farmer.
147	147	2. No credit may be allowed under this subsection unless it is claimed within
148	148	the time period under s. 71.75 (2).
149	149	3. A claimant shall submit with the claimant's income tax return the certificate
150	150	of eligibility provided under s. 93.521 (5) (b).
151	151	4. No credit may be claimed under this subsection by a part-year resident or
152	152	a nonresident of this state.
153	153	5. The maximum credit that a claimant may claim under this subsection for any
154	154	taxable year is $75,000.
155	155	6. a. Partnerships, limited liability companies, and tax-option corporations
156	156	may not claim the credit under this subsection, but the eligibility for, and the amount
157	157	of, the credit are based on the amounts paid under par. (b). A partnership, limited
158	158	liability company, or tax-option corporation shall compute the amount of credit that
159	159	each of its partners, members, or shareholders may claim and shall provide that
160	160	information to each of them.
161	161	b. In order to claim the credit computed under par. (b) 1., partners, members
162	162	of limited liability companies, and shareholders of tax-option corporations shall
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189	189	SECTION 3
190	190	ASSEMBLY BILL 1124
191	191	meet the requirements under s. 93.521 (2) and claim the credit in proportion to their
192	192	ownership interests.
193	193	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), to the extent that it
194	194	applies to the credit under that subsection, applies to the credit under this
195	195	subsection.
196	196	2. If the allowable amount of the claim under this subsection exceeds the
197	197	income taxes otherwise due on the claimant's income, the amount of the claim not
198	198	used as an offset against those taxes shall be certified by the department of revenue
199	199	to the department of administration for payment to the claimant by check, share
200	200	draft, or other draft from the appropriation under s. 20.835 (2) (dp).
201	201	SECTION 4. 71.10 (4) (i) of the statutes is amended to read:
202	202	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
203	203	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
204	204	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
205	205	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
206	206	71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
207	207	(6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information
208	208	technology manufacturing zone credit under s. 71.07 (3wm), beginning farmer and
209	209	farm asset owner tax credit under s. 71.07 (8s), earned income tax credit under s.
210	210	71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch.
211	211	X.
212	212	SECTION 5. 71.21 (4) (a) of the statutes is amended to read:
213	213	71.21 (4) (a) The amount of the credits computed by a partnership under s.
214	214	71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
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240	240	SECTION 5 ASSEMBLY BILL 1124
241	241	(5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and passed through to partners
242	242	shall be added to the partnership's income.
243	243	SECTION 6. 71.26 (2) (a) 4. of the statutes is amended to read:
244	244	71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
245	245	(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r),
246	246	(5rm), (6n), (8s), and (10) and not passed through by a partnership, limited liability
247	247	company, or tax-option corporation that has added that amount to the partnership's,
248	248	limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
249	249	71.34 (1k) (g).
250	250	SECTION 7. 71.28 (8s) of the statutes is created to read:
251	251	71.28 (8s) BEGINNING FARMER AND FARM ASSET OWNER TAX CREDIT. (a) Definitions.
252	252	In this subsection:
253	253	1. “Agricultural assets" means agricultural land or machinery, equipment,
254	254	facilities, or livestock that is used in farming.
255	255	2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
256	256	3. “Asset owner" means a person who meets the conditions specified in s. 93.521
257	257	(3).
258	258	4. “Beginning farmer" means a person who meets the conditions specified in s.
259	259	93.521 (2).
260	260	5. “Claimant" means a beginning farmer who files a claim under this subsection
261	261	or an asset owner who files a claim under this subsection, except that, for a beginning
262	262	farmer, “claimant” means the following:
263	263	a. For partnerships, except publicly traded partnerships treated as
264	264	corporations under s. 71.22 (1k), “claimant" means each separate partner.
265	265	b. For tax-option corporations, “claimant" means each separate shareholder.
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293	293	SECTION 7
294	294	ASSEMBLY BILL 1124
295	295	c. For limited liability companies, except limited liability companies treated as
296	296	corporations under s. 71.22 (1k), “claimant" means each separate member.
297	297	6. “Farming" has the meaning given in section 464 (e) of the Internal Revenue
298	298	Code.
299	299	7. “Lease amount" is the amount of the cash payment paid by a beginning
300	300	farmer to an asset owner each year for leasing the asset owner's agricultural assets,
301	301	including amounts paid under a lease agreement that results in the beginning
302	302	farmer owning the agricultural assets.
303	303	(b) Filing claims. 1. Subject to the limitations provided in this subsection, for
304	304	taxable years beginning after December 31, 2025, a beginning farmer may claim as
305	305	a credit against the tax imposed under s. 71.23 an amount equal to 5 percent of the
306	306	lease amount or sales price paid by the beginning farmer to an asset owner for the
307	307	lease or purchase of agricultural assets for the taxable year to which the claim
308	308	relates. The beginning farmer may also claim an amount equal to 5 percent of the
309	309	amount the beginning farmer paid in the taxable year for improvements to
310	310	agricultural assets consisting of land and facilities.
311	311	2. Subject to the limitations provided in this subsection, for taxable years
312	312	beginning after December 31, 2025, an asset owner may claim as a credit against the
313	313	tax imposed under s. 71.23 an amount equal to 5 percent of the lease amount or sales
314	314	price received by the asset owner from a beginning farmer for agricultural assets for
315	315	the taxable year to which the claim relates.
316	316	(c) Limitations. 1. With regard to credit claimed on the basis of a lease amount,
317	317	a claimant may only claim the credit under this subsection for the first 3 years of any
318	318	lease of an asset owner's agricultural assets to a beginning farmer.
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344	344	SECTION 7 ASSEMBLY BILL 1124
345	345	2. No credit may be allowed under this subsection unless it is claimed within
346	346	the time period under s. 71.75 (2).
347	347	3. A claimant shall submit with the claimant's income tax return the certificate
348	348	of eligibility provided under s. 93.521 (5) (b).
349	349	4. No credit may be claimed under this subsection by a part-year resident or
350	350	a nonresident of this state.
351	351	5. The maximum credit that a claimant may claim under this subsection for any
352	352	taxable year is $75,000.
353	353	6. a. Partnerships, limited liability companies, and tax-option corporations
354	354	may not claim the credit under this subsection, but the eligibility for, and the amount
355	355	of, the credit are based on the amounts paid under par. (b). A partnership, limited
356	356	liability company, or tax-option corporation shall compute the amount of credit that
357	357	each of its partners, members, or shareholders may claim and shall provide that
358	358	information to each of them.
359	359	b. In order to claim the credit computed under par. (b) 1., partners, members
360	360	of limited liability companies, and shareholders of tax-option corporations shall
361	361	meet the requirements under s. 93.521 (2) and claim the credit in proportion to their
362	362	ownership interests.
363	363	(d) Administration. 1. Subsection (4) (e), (g), and (h), to the extent that it
364	364	applies to the credit under that subsection, applies to the credit under this
365	365	subsection.
366	366	2. If the allowable amount of the claim under this subsection exceeds the
367	367	income taxes otherwise due on the claimant's income, the amount of the claim not
368	368	used as an offset against those taxes shall be certified by the department of revenue
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395	395	SECTION 7
396	396	ASSEMBLY BILL 1124
397	397	to the department of administration for payment to the claimant by check, share
398	398	draft, or other draft from the appropriation under s. 20.835 (2) (dp).
399	399	SECTION 8. 71.30 (3) (f) of the statutes is amended to read:
400	400	71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs
401	401	credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics
402	402	and information technology manufacturing zone credit under s. 71.28 (3wm),
403	403	business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k)
404	404	1., beginning farmer and farm asset owner tax credit under s. 71.28 (8s), and
405	405	estimated tax payments under s. 71.29.
406	406	SECTION 9. 71.34 (1k) (g) of the statutes is amended to read:
407	407	71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
408	408	corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
409	409	(3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and passed
410	410	through to shareholders.
411	411	SECTION 10. 71.45 (2) (a) 10. of the statutes is amended to read:
412	412	71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
413	413	computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i),
414	414	(5j), (5k), (5r), (5rm), (6n), (8s), and (10) and not passed through by a partnership,
415	415	limited liability company, or tax-option corporation that has added that amount to
416	416	the partnership's, limited liability company's, or tax-option corporation's income
417	417	under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
418	418	(3), (3t), (4), (4m), and (5).
419	419	SECTION 11. 71.47 (8s) of the statutes is created to read:
420	420	71.47 (8s) BEGINNING FARMER AND FARM ASSET OWNER TAX CREDIT. (a) Definitions.
421	421	In this subsection:
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448	448	SECTION 11 ASSEMBLY BILL 1124
449	449	1. “Agricultural assets" means agricultural land or machinery, equipment,
450	450	facilities, or livestock that is used in farming.
451	451	2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
452	452	3. “Asset owner" means a person who meets the conditions specified in s. 93.521
453	453	(3).
454	454	4. “Beginning farmer" means a person who meets the conditions specified in s.
455	455	93.521 (2).
456	456	5. “Claimant" means a beginning farmer who files a claim under this subsection
457	457	or an asset owner who files a claim under this subsection, except that, for a beginning
458	458	farmer, “claimant” means the following:
459	459	a. For partnerships, except publicly traded partnerships treated as
460	460	corporations under s. 71.22 (1k), “claimant" means each separate partner.
461	461	b. For tax-option corporations, “claimant" means each separate shareholder.
462	462	c. For limited liability companies, except limited liability companies treated as
463	463	corporations under s. 71.22 (1k), “claimant" means each separate member.
464	464	6. “Farming" has the meaning given in section 464 (e) of the Internal Revenue
465	465	Code.
466	466	7. “Lease amount" is the amount of the cash payment paid by a beginning
467	467	farmer to an asset owner each year for leasing the asset owner's agricultural assets,
468	468	including amounts paid under a lease agreement that results in the beginning
469	469	farmer owning the agricultural assets.
470	470	(b) Filing claims. 1. Subject to the limitations provided in this subsection, for
471	471	taxable years beginning after December 31, 2025, a beginning farmer may claim as
472	472	a credit against the tax imposed under s. 71.43 an amount equal to 5 percent of the
473	473	lease amount or sales price paid by the beginning farmer to an asset owner for the
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501	501	SECTION 11
502	502	ASSEMBLY BILL 1124
503	503	lease or purchase of agricultural assets for the taxable year to which the claim
504	504	relates. The beginning farmer may also claim an amount equal to 5 percent of the
505	505	amount the beginning farmer paid in the taxable year for improvements to
506	506	agricultural assets consisting of land and facilities.
507	507	2. Subject to the limitations provided in this subsection, for taxable years
508	508	beginning after December 31, 2025, an asset owner may claim as a credit against the
509	509	tax imposed under s. 71.43 an amount equal to 5 percent of the lease amount or sales
510	510	price received by the asset owner from a beginning farmer for agricultural assets for
511	511	the taxable year to which the claim relates.
512	512	(c) Limitations. 1. With regard to credit claimed on the basis of a lease amount,
513	513	a claimant may only claim the credit under this subsection for the first 3 years of any
514	514	lease of an asset owner's agricultural assets to a beginning farmer.
515	515	2. No credit may be allowed under this subsection unless it is claimed within
516	516	the time period under s. 71.75 (2).
517	517	3. A claimant shall submit with the claimant's income tax return the certificate
518	518	of eligibility provided under s. 93.521 (5) (b).
519	519	4. No credit may be claimed under this subsection by a part-year resident or
520	520	a nonresident of this state.
521	521	5. The maximum credit that a claimant may claim under this subsection for any
522	522	taxable year is $75,000.
523	523	6. a. Partnerships, limited liability companies, and tax-option corporations
524	524	may not claim the credit under this subsection, but the eligibility for, and the amount
525	525	of, the credit are based on the amounts paid under par. (b). A partnership, limited
526	526	liability company, or tax-option corporation shall compute the amount of credit that
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552	552	SECTION 11 ASSEMBLY BILL 1124
553	553	each of its partners, members, or shareholders may claim and shall provide that
554	554	information to each of them.
555	555	b. In order to claim the credit computed under par. (b) 1., partners, members
556	556	of limited liability companies, and shareholders of tax-option corporations shall
557	557	meet the requirements under s. 93.521 (2) and claim the credit in proportion to their
558	558	ownership interests.
559	559	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), to the extent that it
560	560	applies to the credit under that subsection, applies to the credit under this
561	561	subsection.
562	562	2. If the allowable amount of the claim under this subsection exceeds the
563	563	income taxes otherwise due on the claimant's income, the amount of the claim not
564	564	used as an offset against those taxes shall be certified by the department of revenue
565	565	to the department of administration for payment to the claimant by check, share
566	566	draft, or other draft from the appropriation under s. 20.835 (2) (dp).
567	567	SECTION 12. 71.49 (1) (f) of the statutes is amended to read:
568	568	71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs
569	569	credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
570	570	development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1.,
571	571	beginning farmer and farm asset owner tax credit under s. 71.47 (8s), and estimated
572	572	tax payments under s. 71.48.
573	573	SECTION 13. 93.521 of the statutes is created to read:
574	574	93.521 Beginning farmer and farm asset owner tax credit eligibility.
575	575	(1) DEFINITIONS. In this section:
576	576	(a) “Agricultural assets" means agricultural land or machinery, equipment,
577	577	facilities, or livestock that is used in farming.
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605	605	SECTION 13
606	606	ASSEMBLY BILL 1124
607	607	(b) “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
608	608	(c) “Asset owner" means a person who meets the conditions specified in sub. (3).
609	609	(d) “Beginning farmer" means a person who meets the conditions specified in
610	610	sub. (2).
611	611	(e) “Claimant” has the meaning given in ss. 71.07 (8s) (a) 5., 71.28 (8s) (a) 5.,
612	612	and 71.47 (8s) (a) 5.
613	613	(f) “Farming" has the meaning given in section 464 (e) of the Internal Revenue
614	614	Code.
615	615	(2) BEGINNING FARMER. A person is a beginning farmer for the purposes of s.
616	616	71.07 (8s), 71.28 (8s), or 71.47 (8s) if, at the time that the person submits an
617	617	application under sub. (4), all of the following apply:
618	618	(a) The person is not a part-year resident or a nonresident of this state.
619	619	(b) The person has a net worth of less than $200,000.
620	620	(c) The person has farmed for fewer than 10 years at the date on which the
621	621	person submits an application under sub. (4).
622	622	(d) The person has entered into a lease or sales transaction with an asset owner,
623	623	directly or indirectly through ownership interest in a partnership, limited liability
624	624	company, or tax-option corporation, for the use or purchase of the asset owner's
625	625	agricultural assets by the beginning farmer.
626	626	(e) The person uses the leased or purchased agricultural assets for farming.
627	627	(3) ASSET OWNER. A person is an asset owner for the purposes of s. 71.07 (8s),
628	628	71.28 (8s), or 71.47 (8s) if, at the time that the person submits an application under
629	629	sub. (4), all of the following apply:
630	630	(a) The person owns agricultural assets.
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656	656	SECTION 13 ASSEMBLY BILL 1124
657	657	(b) The person has entered into a lease or sales transaction with a beginning
658	658	farmer for the use or purchase of the person's agricultural assets by the beginning
659	659	farmer.
660	660	(4) APPLICATIONS. (a) In order for an asset owner to claim the farm asset owner
661	661	tax credit under s. 71.07 (8s) (b) 2., 71.28 (8s) (b) 2., or 71.47 (8s) (b) 2., the asset owner
662	662	and the beginning farmer who is leasing or purchasing the agricultural assets from
663	663	the asset owner shall each submit an application to the department.
664	664	(b) An asset owner shall include in the application under this subsection the
665	665	asset owner's name and address, information showing that the asset owner satisfies
666	666	the conditions specified in sub. (3), a description of the leased or purchased
667	667	agricultural assets and their location, a copy of the lease or sales transaction, the
668	668	number of acres of agricultural land leased or sold to the beginning farmer, and any
669	669	other information required by the department.
670	670	(c) A beginning farmer shall include all of the following in an application under
671	671	this subsection:
672	672	1. The beginning farmer's name and address.
673	673	2. Information showing that the beginning farmer satisfies the conditions
674	674	specified in sub. (2).
675	675	3. A business plan that includes a current balance sheet and projected balance
676	676	sheets for the lease term or sales transaction, cash flow statements, and income
677	677	statements along with a detailed description of all significant accounting
678	678	assumptions used in developing the financial projections.
679	679	4. A description of the beginning farmer's education, training, and experience
680	680	in the type of farming in which the beginning farmer uses the leased or purchased
681	681	agricultural assets.
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709	709	SECTION 13
710	710	ASSEMBLY BILL 1124
711	711	5. A copy of the beginning farmer's completed federal profit or loss from farming
712	712	form, schedule F, or other documentation approved by the department under sub. (6).
713	713	6. Any other information required by the department.
714	714	(5) EVALUATION AND CERTIFICATION. (a) The department shall review
715	715	applications submitted under sub. (4) (a), and make its certification determinations,
716	716	in the order in which the applications are received.
717	717	(b) The department shall provide the beginning farmer claimant and the asset
718	718	owner with a certificate of eligibility for the tax credit under s. 71.07 (8s), 71.28 (8s),
719	719	or 71.47 (8s), and allocate the amount of the credit for each such applicant, if all of
720	720	the following apply:
721	721	1. The asset owner's application complies with sub. (4) (b).
722	722	2. The beginning farmer's application complies with sub. (4) (c).
723	723	3. The department determines that the business plan submitted under sub. (4)
724	724	(c) 3. and the education, training, or experience described under sub. (4) (c) 4. show
725	725	that the beginning farmer has sufficient resources and education, training, or
726	726	experience for the type of farming in which the beginning farmer uses the leased or
727	727	purchased agricultural assets.
728	728	4. The department verifies all expenses included with the asset owner's
729	729	application under sub. (4) (b) and the beginning farmer's application under sub. (4)
730	730	(c).
731	731	(c) The department shall certify a beginning farmer's eligibility for the tax
732	732	credit under s. 71.07 (8s), 71.28 (8s), or 71.47 (8s) no later than January 1 of the year
733	733	following the taxable year for which the claim relates.
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758	758	SECTION 13 ASSEMBLY BILL 1124
759	759	(d) The maximum amount of the credits that the department may certify to all
760	760	persons claiming the credits under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s) in a
761	761	taxable year is $5,000,000.
762	762	(6) DEPARTMENT AUTHORITY. (a) The department may approve alternative
763	763	documentation for the purposes of sub. (4) (c) 5.
764	764	(b) The department may assist beginning farmers to develop business plans for
765	765	the purposes of sub. (4) (c) 3. and may assist in the negotiation of leases or purchases
766	766	of farm assets that may enable persons to qualify for tax credits under s. 71.07 (8s),
767	767	71.28 (8s), or 71.47 (8s).
768	768	(c) The department may, at the request of the beginning farmer, review any
769	769	proposal by a beginning farmer to make improvements to agricultural assets
770	770	consisting of land or facilities for purposes of claiming the additional credit under s.
771	771	71.07 (8s), 71.28 (8s), or 71.47 (8s).
772	772	(7) REPORTS. Annually, beginning in 2027, the department shall submit a
773	773	report to the legislature, as provided under s. 13.172 (2), specifying the number of the
774	774	persons submitting applications under this section, the type of farming the
775	775	applicants are engaged in, the number of certificates of eligibility issued to the
776	776	applicants, and the amount of the credits awarded to each applicant.
777	777	(END)
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