HB2750 Summary

• Establishes an income tax credit for owners of agricultural assets who sell or rent to beginning farmers, effective for taxable years beginning January 1, 2022.

• Credit equals either 5% of the lesser of sale price or fair market value (maximum $32,000) for sales, or 10% of gross rental income for each of the first three years of a rental agreement (maximum $7,000 per year).

• Requires asset owners to apply with the Department of Agriculture, which cannot approve more than $5,000,000 in credits per taxable year.

• Defines "beginning farmer" as someone with agriculture experience or transferable skills, who has not received agricultural income for more than 10 years, intends to provide majority labor and management, and is certified by the Department of Agriculture.

• Unused credits may be carried forward for up to 5 subsequent taxable years; beginning farmer cannot be a partner, shareholder, trustee, or relative of the asset owner.