Bill > SB1025

Introduced Session

This bill creates an income tax credit for a beginning farmer who leases or purchases agricultural assets from an asset owner and uses the assets for farming and for a person whose assets are leased or sold to a beginning farmer. Under the bill, a beginning farmer is a person who has a net worth of less than $200,000 and who has farmed for fewer than 10 years. The bill defines “agricultural assets” as land assessed for property tax purposes as agricultural land or machinery, equipment, facilities, or livestock that is used in farming. The amount of the credit is equal to 5 percent of the lease amount or sales price paid by the beginning farmer to an asset owner for agricultural assets for the taxable year and 5 percent of the lease amount or sales price received by the asset owner from a beginning farmer for agricultural assets for the taxable year. The beginning farmer may also claim a credit equal to 5 percent of the amount the farmer paid for improvements on agricultural assets consisting of land and facilities. The maximum amount that a claimant may receive in any taxable year is $75,000 and maximum amount of the credit for all claimants in any taxable year is $5,000,000. LRB-5760/1 JK:amn 2023 - 2024 Legislature SENATE BILL 1025 Under the bill, in order to claim the credit, both the beginning farmer and the asset owner must submit an application to the Department of Agriculture, Trade and Consumer Protection. The beginning farmer must submit a business plan with the beginning farmer's application and provide a description of the beginning farmer's education, training, and experience in the type of farming in which the beginning farmer uses the leased or purchased agricultural assets. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

Committee Categories

Melissa Agard (D)*,  Kelda Roys (D)*,  Jeff Smith (D)*,  Mark Spreitzer (D)*,  Clint Anderson (D),  Mike Bare (D),  Elijah Behnke (R),  Sue Conley (D),  Dave Considine (D),  Dora Drake (D),  Jodene Emerson (D),  Francesca Hong (D),  Jenna Jacobson (D),  Alex Joers (D),  Tod Ohnstad (D),  Lori Palmeri (D),  Melissa Ratcliff (D),  Katrina Shankland (D),  Shelia Stubbs (D),  Lisa Subeck (D),  Travis Tranel (R), 

Failed to pass pursuant to Senate Joint Resolution 1 (on 04/15/2024)

Official Document