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Bill > AB1124

WI AB1124

WI AB1124
Income tax credits for beginning farmers and owners of farm assets and making an appropriation. (FE)

summary

Introduced
03/06/2024
In Committee
03/06/2024
Crossed Over
Passed
Dead
04/15/2024

Introduced Session

2023-2024 Regular Session

Bill Summary

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. 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

This bill creates an income tax credit for a beginning farmer who leases or purchases agricultural assets from an asset owner and for an asset owner whose assets are leased or sold to a beginning farmer. A beginning farmer is defined as a person with a net worth of less than $200,000 who has farmed for fewer than 10 years. The credit is equal to 5% of the lease amount or sales price paid by the beginning farmer or received by the asset owner. The maximum credit that can be claimed by a claimant in any taxable year is $75,000, and the maximum total amount of credits that can be certified in a taxable year is $5,000,000. Both the beginning farmer and the asset owner must apply to the Department of Agriculture, Trade and Consumer Protection to claim the credit.

Committee Categories

Budget and Finance

Sponsors (22)

Last Action

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

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