Wisconsin Assembly Bill AB1124

Wisconsin 2023-2024 Regular Session

• Introduced: 3/6/24
• Refer: 3/6/24
• Failed: 4/15/24

Caption

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.