HB 1003 Summary

• Creates income tax credits for beginning farmers and owners of agricultural assets who sell or rent agricultural assets to beginning farmers, effective for tax years beginning January 1, 2024.

• Establishes tax credit amounts: 5% of sale price for asset sales (claimed in year of sale), 10% of gross rental income for standard rental agreements (first 3 years), and 15% of cash equivalent gross rental income for share rent agreements (first 3 years).

• Allows beginning farmers to claim a tax credit for the cost of participating in a financial management program certified by the Department of Agriculture.

• Requires the Secretary of Agriculture to certify beginning farmers based on criteria including state residency, farming entry within the past 10 years, net worth under $800,000 (adjusted annually for inflation), adequate farming experience, and participation in a certified financial management program.

• Caps total state income tax credits awarded under this section at $10,000,000 per calendar year, distributed on a first-come, first-served basis by the Department of Finance and Administration.