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Bill > SB723

WI SB723

WI SB723
Income tax credits for beginning farmers and owners of farm assets and making an appropriation. (FE)

summary

Introduced
12/02/2025
In Committee
12/02/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 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 LRB-4462/1 JK:cdc 2025 - 2026 Legislature SENATE BILL 723 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 a tax credit program designed to support beginning farmers and farm asset owners in Wisconsin. Specifically, for taxable years beginning after December 31, 2026, both beginning farmers and asset owners can claim a tax credit equal to 5 percent of lease or sales amounts related to agricultural assets. A "beginning farmer" is defined as someone with a net worth under $200,000 who has farmed for fewer than 10 years, while an "asset owner" is someone who owns agricultural assets and leases or sells them to a beginning farmer. The bill includes several key limitations: credits can only be claimed for the first 3 years of a lease, no single claimant can receive more than $75,000 in credits per year, and the total credits statewide are capped at $5,000,000 annually. To qualify, both the beginning farmer and asset owner must submit detailed applications to the Department of Agriculture, Trade and Consumer Protection, including a business plan, financial projections, and documentation of the farmer's education and experience. The credits can be used against various state income taxes and, if the credit amount exceeds tax liability, the remaining amount can be paid out by check from a state appropriation.

Committee Categories

Budget and Finance

Sponsors (22)

Last Action

Fiscal estimate received (on 12/22/2025)
(1 Companion Bills)

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