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Bill > AB721

WI AB721

WI AB721
Income tax credits for beginning farmers and owners of farm assets and making an appropriation. (FE)

summary

Introduced
12/03/2025
In Committee
12/03/2025
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 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. The credit applies to taxable years beginning after December 31, 2026, and allows both beginning farmers and asset owners to claim a 5 percent credit on lease or sales amounts of 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 "agricultural assets" include land, machinery, equipment, facilities, and livestock used in farming. The bill limits individual claimants to a maximum credit of $75,000 per year, with a total statewide credit cap of $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 farming experience. The credit can be claimed for the first three years of a lease and is available for both income and franchise tax purposes. If the credit exceeds the taxpayer's tax liability, the excess can be refunded by the state. The bill aims to support agricultural succession and help new farmers enter the farming profession by providing financial incentives for asset transfers between experienced farmers and newcomers.

Committee Categories

Budget and Finance

Sponsors (21)

Last Action

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

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