Eligibility for farmland preservation tax credits. (FE)
Impact
The bill directly impacts farmers and landowners involved in agriculture who are currently utilizing the farmland preservation tax credits. By disallowing the tax credit for land on which non-integral solar energy systems are located, it could influence land use decisions and the financial incentives for incorporating solar technologies on agricultural lands. The change is set to first apply to taxable years beginning after December 31, 2022, emphasizing the bill's retroactive implications for those already claiming credits.
Summary
Senate Bill 468, introduced in the 2023-2024 Legislative session, aims to amend the eligibility criteria for farmland preservation tax credits in Wisconsin. The bill stipulates that individuals will no longer be allowed to claim tax credits for any portion of their farmland where a photovoltaic solar energy system is installed, provided such systems are not considered an accessory use integral to agricultural operations. This legislative change is intended to clarify how solar energy developments interact with existing agricultural tax incentives.
Contention
Notable points of contention surrounding SB 468 include the tension between promoting renewable energy and preserving agricultural land for farming purposes. Proponents argue that preserving the integrity of farmland use is essential, while opponents may contend that restricting tax credits could hinder the adoption of solar energy in the agricultural sector, affecting farmers' ability to diversify income and contribute to sustainable energy practices. The discussions leading up to the bill's introduction highlight the ongoing debates over land use policy and sustainability in agriculture.