Bill > SB328

This bill establishes a new income tax credit for dairy farmers who convert their operations to hog farms, providing financial assistance for capital infrastructure costs. The credit allows taxpayers to deduct up to 50% of their qualifying infrastructure expenses from their state income tax liability, with the specific maximum dollar amount left blank in the bill. To be eligible, a taxpayer must incur capital expenditures related to converting a dairy farm to a "qualified farm", which is defined as a hog farm that is primarily engaged in animal husbandry. The tax credit can be carried forward for up to five years if it exceeds the taxpayer's current tax liability, and can be claimed by individual taxpayers, partnerships, S corporations, estates, and trusts. The Director of Taxation is authorized to create necessary forms, request additional information to validate claims, and adopt rules to implement the program. The bill specifies that capital infrastructure costs are defined according to the Internal Revenue Code's definition of capital expenditures, excluding any costs for which another tax credit has already been claimed. The tax credit will take effect on July 1, 3000, and apply to taxable years beginning after December 31, 2024.