Bill > HB1191

This bill establishes a tax credit program for retiring farmers who sell or lease farmland or sell livestock to qualified beginning farmers. The bill defines key terms such as "agricultural production," "qualified beginning farmer" (someone with agricultural experience who has not earned agricultural income for more than 10 years and intends to actively farm in Indiana), and "qualified retired farmer" (a farmland owner at least 60 years old or retired due to disability). The tax credit allows retiring farmers to claim up to 5% of the farmland sale price (maximum $48,000), 15% of first-year rental income, or 10% of livestock fair market value, with a combined total credit limit of $65,000. To qualify, the beginning farmer must agree to lease or own the farmland for at least three years, and if they terminate the agreement early, the retiring farmer will be required to repay the credit. The program is limited to $1,000,000 in total tax credits per state fiscal year and will expire on January 1, 2032. Farmers must apply to the Indiana State Department of Agriculture (ISDA) for approval and certification, and the credit can be carried forward for up to three years but cannot be sold or transferred.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1191/details