Farm asset owners could claim credits if companion legislation becomes law

Owners would be allowed to claim income tax credits for eligible sales or rentals of farm assets to beginning farmers. Eligible owners, farmers, assets, and rental agreements would follow definitions in the companion program law. Owners would need a state agriculture department certificate and must attach it to their tax return. Rental claims would also require proof the agreement was active; it would stop qualifying if it ended or the beginning farmer stopped farming. The bill would take effect only if HB 6437 or the specified Senate companion becomes law. The credit would apply to tax years beginning on or after January 1, 2027.

Owners could apply unused credits against income taxes in later years. The rules would cover individual taxpayers, including members of businesses whose income passes through to members' tax returns. Annual claims could not exceed the amount on the tax credit certificate. Business members would receive shares based on their reported business income or another method approved by the tax department. These rules would apply only if the companion-law requirement is met. Unused credits could carry forward for five years or until used up, whichever comes first.