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.
SB1025,16,5 4(6) Department authority. (a) The department may approve alternative
5documentation for the purposes of sub. (4) (c) 5.
SB1025,16,96 (b) The department may assist beginning farmers to develop business plans for
7the purposes of sub. (4) (c) 3. and may assist in the negotiation of leases or purchases
8of farm assets that may enable persons to qualify for tax credits under s. 71.07 (8s),
971.28 (8s), or 71.47 (8s).
SB1025,16,1310 (c) The department may, at the request of the beginning farmer, review any
11proposal by a beginning farmer to make improvements to agricultural assets
12consisting of land or facilities for purposes of claiming the additional credit under s.
1371.07 (8s), 71.28 (8s), or 71.47 (8s).
SB1025,16,18 14(7) Reports. Annually, beginning in 2027, the department shall submit a
15report to the legislature, as provided under s. 13.172 (2), specifying the number of the
16persons submitting applications under this section, the type of farming the
17applicants are engaged in, the number of certificates of eligibility issued to the
18applicants, and the amount of the credits awarded to each applicant.
SB1025,16,1919 (End)
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