SC H5180

Creates a state income tax deduction for farm owners who sell farmland held in a conservation easement to a beginning farmer, with a tiered deduction: 100% on the first $2 million of capital gains, decreasing to 20% on gains between $5-6 million

Allows farm owners who lease farmland to a beginning farmer under agreements of 10 years or less to deduct up to $25,000 annually in rental income from state taxable income

Provides the same $25,000 annual deduction for crop-share arrangement income between farm owners and beginning farmers under agreements not exceeding 10 years

Defines "beginning farmer" as someone who has filed 1-10 IRS Schedule F forms, qualifies for USDA beginning farmer loans, is certified by the SC Department of Agriculture as new to production agriculture, or is a qualified family member within the fourth degree of relation

Takes effect for sales, leases, and agreements made in tax years beginning after 2025