CT HB07175

Creates a 20% tax credit for eligible farmers who purchase farm investment property (machinery, equipment, and buildings) acquired on or after January 1, 2026, with the property required to be held and used in Connecticut for agricultural production for at least five years

Defines "eligible farmer" as a taxpayer whose federal gross income from farming is at least two-thirds of their income above $30,000, with option to use a three-year average for eligibility

Requires 100% recapture of the credit if property is not held for three full years, and 50% recapture if not held for five full years

Increases the farm machinery property tax exemption from $100,000 to $250,000 in assessed value, effective October 1, 2025

Allows municipalities to approve an additional $250,000 property tax exemption for farm machinery and up to $500,000 exemption per eligible farm building