AR HB1778

Creates income tax credits for beginning farmers and owners of agricultural assets who sell or rent assets to beginning farmers, effective for tax years beginning January 1, 2022.

Owners of agricultural assets receive 5% credit on sale price or 10-15% credit on gross rental income for the first three years of rental/share rent agreements.

Beginning farmers receive a credit equal to the cost of participating in a financial management program certified by the Department of Agriculture.

Beginning farmers must meet requirements including Arkansas residency, entry into farming within 10 years, total net worth under $800,000 (adjusted annually for inflation), participation in a certified financial management program, and adequate farming experience.

Requires the Secretary of the Department of Agriculture to certify financial management programs and beginning farmers, with unused credits allowed to carry forward for 15 years (owners) or 3 years (farmers).