S.F. No. 1674 Summary

• Increases the tax credit rate for sales of agricultural assets to beginning farmers from 5% to 10%, with the maximum credit doubling from $32,000 to $64,000.

• Allows sales to family members (defined as the beginning farmer, their spouse, or family of partners/members/shareholders/trustees) to qualify for the credit if the sales price equals or exceeds the assessed value or 80% of fair market value.

• Extends the sunset date of the beginning farmer management and agricultural assets credits program from December 31, 2023 to December 31, 2031.

• Maintains existing rental agreement provisions allowing 10% credit on cash rent income (up to $7,000 per year) and 15% on share rent income (up to $10,000 per year) for the first three years.

• Effective for taxable years beginning after December 31, 2022 for asset sale provisions and after December 31, 2023 for the sunset extension.