Wisconsin Senate Bill SB134

Wisconsin 2023-2024 Regular Session

• Introduced: 3/23/23
• Refer: 3/23/23
• Report Pass: 5/8/23
• Engrossed: 9/14/23
• Refer: 11/8/23
• Failed: 4/15/24

Caption

Farmland preservation agreements and tax credits. (FE)

Impact

The revisions to tax credits outlined in SB134 include increasing the credit for qualifying acres located in farmland preservation zoning districts and those not subject to an agreement. The credit for these acres is boosted from $7.50 to $10, and for those under agreement but outside of a zoning district, the credit rises from $5 to $10. These financial incentives are designed to promote farmland preservation and make it financially viable for farmers to engage in practices that support environmental sustainability. Furthermore, the bill introduces a new category for tax credits specifically for farmland covered by agricultural conservation easements.

Summary

Senate Bill 134 introduces significant amendments to the regulations surrounding farmland preservation agreements and tax credits in Wisconsin. One of the key changes is the reduction of the minimum required duration for a farmland preservation agreement with the Department of Agriculture, Trade and Consumer Protection from 15 years to 10 years. This adjustment aims to make it easier for landowners to enter into preservation agreements, thereby encouraging the conservation of farmland within the state. Additionally, the bill increases the financial incentives for landowners, raising the amount that can be claimed per qualifying acre under several categories of farmland preservation tax credits.

Contention

While the adjustments aim to support the agricultural community, there may be contention surrounding the implications of these incentives and controls. Critics could raise concerns that relaxing the requirements on farmland preservation agreements may lead to a decrease in the long-term commitment to conservation efforts. Additionally, the financial aspects could be scrutinized, particularly regarding the effectiveness of tax credits and whether they sufficiently address the challenges faced by farmers in maintaining their land's productivity and sustainability.

Notable_points

The bill not only enhances the economic benefit associated with farmland preservation but also includes provisions for inflation indexing on tax credits, ensuring that the financial incentives remain relevant over time. This feature reflects an understanding of economic fluctuations and aims to protect the interests of landowners participating in the program. By mandating reviews of tax credit levels and requiring periodic reporting on the effectiveness of the farmland preservation program, the bill seeks to establish accountability and transparency in its implementation.