AL SB168

Allows owners of agricultural assets to claim tax credits against income tax or business privilege tax for selling or renting assets to qualified beginning farmers.

Beginning farmers must be Alabama residents, entered farming within the last 10 years, have net worth not exceeding $800,000 (adjusted for inflation after 2019), provide majority of farm labor/management, and participate in an approved financial management program.

Credit amounts are 5% of gross rental income (up to $7,000/year for cash rent), 10% of cash equivalent gross rental income (up to $10,000/year for share rent agreements), or 15% of lesser of sale price or fair market value (up to $32,000 for sales).

Department of Agriculture and Industries must approve and certify both beginning farmers and agricultural asset owners; certifications are valid for three years and require recertification.

Act becomes effective for taxable years beginning after December 31, 2018; requires a report by February 1, 2023 on credit usage and impact on beginning farmer opportunities.