SB1025,6,94 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
5(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r),
6(5rm), (6n), (8s), and (10) and not passed through by a partnership, limited liability
7company, or tax-option corporation that has added that amount to the partnership's,
8limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
971.34 (1k) (g).
SB1025,7 10Section 7 . 71.28 (8s) of the statutes is created to read:
SB1025,6,1211 71.28 (8s) Beginning farmer and farm asset owner tax credit. (a) Definitions.
12In this subsection:
SB1025,6,1413 1. “Agricultural assets" means agricultural land or machinery, equipment,
14facilities, or livestock that is used in farming.
SB1025,6,1515 2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
SB1025,6,1716 3. “Asset owner" means a person who meets the conditions specified in s. 93.521
17(3).
SB1025,6,1918 4. “Beginning farmer" means a person who meets the conditions specified in s.
1993.521 (2).
SB1025,6,2220 5. “Claimant" means a beginning farmer who files a claim under this subsection
21or an asset owner who files a claim under this subsection, except that, for a beginning
22farmer, “claimant” means the following:
SB1025,6,2423 a. For partnerships, except publicly traded partnerships treated as
24corporations under s. 71.22 (1k), “claimant" means each separate partner.
SB1025,6,2525 b. For tax-option corporations, “claimant" means each separate shareholder.
SB1025,7,2
1c. For limited liability companies, except limited liability companies treated as
2corporations under s. 71.22 (1k), “claimant" means each separate member.
SB1025,7,43 6. “Farming" has the meaning given in section 464 (e) of the Internal Revenue
4Code.
SB1025,7,85 7. “Lease amount" is the amount of the cash payment paid by a beginning
6farmer to an asset owner each year for leasing the asset owner's agricultural assets,
7including amounts paid under a lease agreement that results in the beginning
8farmer owning the agricultural assets.
SB1025,7,169 (b) Filing claims. 1. Subject to the limitations provided in this subsection, for
10taxable years beginning after December 31, 2025, a beginning farmer may claim as
11a credit against the tax imposed under s. 71.23 an amount equal to 5 percent of the
12lease amount or sales price paid by the beginning farmer to an asset owner for the
13lease or purchase of agricultural assets for the taxable year to which the claim
14relates. The beginning farmer may also claim an amount equal to 5 percent of the
15amount the beginning farmer paid in the taxable year for improvements to
16agricultural assets consisting of land and facilities.
SB1025,7,2117 2. Subject to the limitations provided in this subsection, for taxable years
18beginning after December 31, 2025, an asset owner may claim as a credit against the
19tax imposed under s. 71.23 an amount equal to 5 percent of the lease amount or sales
20price received by the asset owner from a beginning farmer for agricultural assets for
21the taxable year to which the claim relates.
SB1025,7,2422 (c) Limitations. 1. With regard to credit claimed on the basis of a lease amount,
23a claimant may only claim the credit under this subsection for the first 3 years of any
24lease of an asset owner's agricultural assets to a beginning farmer.
SB1025,8,2
12. No credit may be allowed under this subsection unless it is claimed within
2the time period under s. 71.75 (2).
SB1025,8,43 3. A claimant shall submit with the claimant's income tax return the certificate
4of eligibility provided under s. 93.521 (5) (b).
SB1025,8,65 4. No credit may be claimed under this subsection by a part-year resident or
6a nonresident of this state.
SB1025,8,87 5. The maximum credit that a claimant may claim under this subsection for any
8taxable year is $75,000.
SB1025,8,149 6. a. Partnerships, limited liability companies, and tax-option corporations
10may not claim the credit under this subsection, but the eligibility for, and the amount
11of, the credit are based on the amounts paid under par. (b). A partnership, limited
12liability company, or tax-option corporation shall compute the amount of credit that
13each of its partners, members, or shareholders may claim and shall provide that
14information to each of them.
SB1025,8,1815 b. In order to claim the credit computed under par. (b) 1., partners, members
16of limited liability companies, and shareholders of tax-option corporations shall
17meet the requirements under s. 93.521 (2) and claim the credit in proportion to their
18ownership interests.
SB1025,8,2119 (d) Administration. 1. Subsection (4) (e), (g), and (h), to the extent that it
20applies to the credit under that subsection, applies to the credit under this
21subsection.
SB1025,9,222 2. If the allowable amount of the claim under this subsection exceeds the
23income taxes otherwise due on the claimant's income, the amount of the claim not
24used as an offset against those taxes shall be certified by the department of revenue

1to the department of administration for payment to the claimant by check, share
2draft, or other draft from the appropriation under s. 20.835 (2) (dp).
SB1025,8 3Section 8. 71.30 (3) (f) of the statutes is amended to read:
SB1025,9,94 71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs
5credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics
6and information technology manufacturing zone credit under s. 71.28 (3wm),
7business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k)
81., beginning farmer and farm asset owner tax credit under s. 71.28 (8s), and
9estimated tax payments under s. 71.29.
SB1025,9 10Section 9. 71.34 (1k) (g) of the statutes is amended to read:
SB1025,9,1411 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
12corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
13(3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and passed
14through to shareholders.
SB1025,10 15Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:
SB1025,9,2216 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
17computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i),
18(5j), (5k), (5r), (5rm), (6n), (8s), and (10) and not passed through by a partnership,
19limited liability company, or tax-option corporation that has added that amount to
20the partnership's, limited liability company's, or tax-option corporation's income
21under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
22(3), (3t), (4), (4m), and (5).
SB1025,11 23Section 11 . 71.47 (8s) of the statutes is created to read:
SB1025,9,2524 71.47 (8s) Beginning farmer and farm asset owner tax credit. (a) Definitions.
25In this subsection:
SB1025,10,2
11. “Agricultural assets" means agricultural land or machinery, equipment,
2facilities, or livestock that is used in farming.
SB1025,10,33 2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
SB1025,10,54 3. “Asset owner" means a person who meets the conditions specified in s. 93.521
5(3).
SB1025,10,76 4. “Beginning farmer" means a person who meets the conditions specified in s.
793.521 (2).
SB1025,10,108 5. “Claimant" means a beginning farmer who files a claim under this subsection
9or an asset owner who files a claim under this subsection, except that, for a beginning
10farmer, “claimant” means the following:
SB1025,10,1211 a. For partnerships, except publicly traded partnerships treated as
12corporations under s. 71.22 (1k), “claimant" means each separate partner.
SB1025,10,1313 b. For tax-option corporations, “claimant" means each separate shareholder.
SB1025,10,1514 c. For limited liability companies, except limited liability companies treated as
15corporations under s. 71.22 (1k), “claimant" means each separate member.
SB1025,10,1716 6. “Farming" has the meaning given in section 464 (e) of the Internal Revenue
17Code.
SB1025,10,2118 7. “Lease amount" is the amount of the cash payment paid by a beginning
19farmer to an asset owner each year for leasing the asset owner's agricultural assets,
20including amounts paid under a lease agreement that results in the beginning
21farmer owning the agricultural assets.
SB1025,11,422 (b) Filing claims. 1. Subject to the limitations provided in this subsection, for
23taxable years beginning after December 31, 2025, a beginning farmer may claim as
24a credit against the tax imposed under s. 71.43 an amount equal to 5 percent of the
25lease amount or sales price paid by the beginning farmer to an asset owner for the

1lease or purchase of agricultural assets for the taxable year to which the claim
2relates. The beginning farmer may also claim an amount equal to 5 percent of the
3amount the beginning farmer paid in the taxable year for improvements to
4agricultural assets consisting of land and facilities.
SB1025,11,95 2. Subject to the limitations provided in this subsection, for taxable years
6beginning after December 31, 2025, an asset owner may claim as a credit against the
7tax imposed under s. 71.43 an amount equal to 5 percent of the lease amount or sales
8price received by the asset owner from a beginning farmer for agricultural assets for
9the taxable year to which the claim relates.
SB1025,11,1210 (c) Limitations. 1. With regard to credit claimed on the basis of a lease amount,
11a claimant may only claim the credit under this subsection for the first 3 years of any
12lease of an asset owner's agricultural assets to a beginning farmer.
SB1025,11,1413 2. No credit may be allowed under this subsection unless it is claimed within
14the time period under s. 71.75 (2).
SB1025,11,1615 3. A claimant shall submit with the claimant's income tax return the certificate
16of eligibility provided under s. 93.521 (5) (b).
SB1025,11,1817 4. No credit may be claimed under this subsection by a part-year resident or
18a nonresident of this state.
SB1025,11,2019 5. The maximum credit that a claimant may claim under this subsection for any
20taxable year is $75,000.
SB1025,12,221 6. a. Partnerships, limited liability companies, and tax-option corporations
22may not claim the credit under this subsection, but the eligibility for, and the amount
23of, the credit are based on the amounts paid under par. (b). A partnership, limited
24liability company, or tax-option corporation shall compute the amount of credit that

1each of its partners, members, or shareholders may claim and shall provide that
2information to each of them.
SB1025,12,63 b. In order to claim the credit computed under par. (b) 1., partners, members
4of limited liability companies, and shareholders of tax-option corporations shall
5meet the requirements under s. 93.521 (2) and claim the credit in proportion to their
6ownership interests.
SB1025,12,97 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), to the extent that it
8applies to the credit under that subsection, applies to the credit under this
9subsection.
SB1025,12,1410 2. If the allowable amount of the claim under this subsection exceeds the
11income taxes otherwise due on the claimant's income, the amount of the claim not
12used as an offset against those taxes shall be certified by the department of revenue
13to the department of administration for payment to the claimant by check, share
14draft, or other draft from the appropriation under s. 20.835 (2) (dp).
SB1025,12 15Section 12. 71.49 (1) (f) of the statutes is amended to read:
SB1025,12,2016 71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs
17credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
18development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1.,
19beginning farmer and farm asset owner tax credit under s. 71.47 (8s), and estimated
20tax payments under s. 71.48.
SB1025,13 21Section 13 . 93.521 of the statutes is created to read:
SB1025,12,23 2293.521 Beginning farmer and farm asset owner tax credit eligibility.
23(1) Definitions. In this section:
SB1025,12,2524 (a) “Agricultural assets" means agricultural land or machinery, equipment,
25facilities, or livestock that is used in farming.
SB1025,13,1
1(b) “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
SB1025,13,22 (c) “Asset owner" means a person who meets the conditions specified in sub. (3).
SB1025,13,43 (d) “Beginning farmer" means a person who meets the conditions specified in
4sub. (2).
SB1025,13,65 (e) “Claimant” has the meaning given in ss. 71.07 (8s) (a) 5., 71.28 (8s) (a) 5.,
6and 71.47 (8s) (a) 5.
SB1025,13,87 (f) “Farming" has the meaning given in section 464 (e) of the Internal Revenue
8Code.
SB1025,13,11 9(2) Beginning farmer. A person is a beginning farmer for the purposes of s.
1071.07 (8s), 71.28 (8s), or 71.47 (8s) if, at the time that the person submits an
11application under sub. (4), all of the following apply:
SB1025,13,1212 (a) The person is not a part-year resident or a nonresident of this state.
SB1025,13,1313 (b) The person has a net worth of less than $200,000.
SB1025,13,1514 (c) The person has farmed for fewer than 10 years at the date on which the
15person submits an application under sub. (4).
SB1025,13,1916 (d) The person has entered into a lease or sales transaction with an asset owner,
17directly or indirectly through ownership interest in a partnership, limited liability
18company, or tax-option corporation, for the use or purchase of the asset owner's
19agricultural assets by the beginning farmer.
SB1025,13,2020 (e) The person uses the leased or purchased agricultural assets for farming.
SB1025,13,23 21(3) Asset owner. A person is an asset owner for the purposes of s. 71.07 (8s),
2271.28 (8s), or 71.47 (8s) if, at the time that the person submits an application under
23sub. (4), all of the following apply:
SB1025,13,2424 (a) The person owns agricultural assets.
SB1025,14,3
1(b) The person has entered into a lease or sales transaction with a beginning
2farmer for the use or purchase of the person's agricultural assets by the beginning
3farmer.
SB1025,14,7 4(4) Applications. (a) In order for an asset owner to claim the farm asset owner
5tax credit under s. 71.07 (8s) (b) 2., 71.28 (8s) (b) 2., or 71.47 (8s) (b) 2., the asset owner
6and the beginning farmer who is leasing or purchasing the agricultural assets from
7the asset owner shall each submit an application to the department.
SB1025,14,138 (b) An asset owner shall include in the application under this subsection the
9asset owner's name and address, information showing that the asset owner satisfies
10the conditions specified in sub. (3), a description of the leased or purchased
11agricultural assets and their location, a copy of the lease or sales transaction, the
12number of acres of agricultural land leased or sold to the beginning farmer, and any
13other information required by the department.
SB1025,14,1514 (c) A beginning farmer shall include all of the following in an application under
15this subsection:
SB1025,14,1616 1. The beginning farmer's name and address.
SB1025,14,1817 2. Information showing that the beginning farmer satisfies the conditions
18specified in sub. (2).
SB1025,14,2219 3. A business plan that includes a current balance sheet and projected balance
20sheets for the lease term or sales transaction, cash flow statements, and income
21statements along with a detailed description of all significant accounting
22assumptions used in developing the financial projections.
SB1025,14,2523 4. A description of the beginning farmer's education, training, and experience
24in the type of farming in which the beginning farmer uses the leased or purchased
25agricultural assets.
SB1025,15,2
15. A copy of the beginning farmer's completed federal profit or loss from farming
2form, schedule F, or other documentation approved by the department under sub. (6).
SB1025,15,33 6. Any other information required by the department.
SB1025,15,6 4(5) Evaluation and certification. (a) The department shall review
5applications submitted under sub. (4) (a), and make its certification determinations,
6in the order in which the applications are received.
SB1025,15,107 (b) The department shall provide the beginning farmer claimant and the asset
8owner with a certificate of eligibility for the tax credit under s. 71.07 (8s), 71.28 (8s),
9or 71.47 (8s), and allocate the amount of the credit for each such applicant, if all of
10the following apply:
SB1025,15,1111 1. The asset owner's application complies with sub. (4) (b).
SB1025,15,1212 2. The beginning farmer's application complies with sub. (4) (c).
SB1025,15,1713 3. The department determines that the business plan submitted under sub. (4)
14(c) 3. and the education, training, or experience described under sub. (4) (c) 4. show
15that the beginning farmer has sufficient resources and education, training, or
16experience for the type of farming in which the beginning farmer uses the leased or
17purchased agricultural assets.
SB1025,15,2018 4. The department verifies all expenses included with the asset owner's
19application under sub. (4) (b) and the beginning farmer's application under sub. (4)
20(c).
SB1025,15,2321 (c) The department shall certify a beginning farmer's eligibility for the tax
22credit under s. 71.07 (8s), 71.28 (8s), or 71.47 (8s) no later than January 1 of the year
23following the taxable year for which the claim relates.
SB1025,16,3
1(d) The maximum amount of the credits that the department may certify to all
2persons claiming the credits under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s) in a
3taxable year is $5,000,000.
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