By Blake Jackson
A Pennsylvania lawmaker is aiming to make it easier for aspiring farmers to get their start. Representative Paul Friel has introduced a bill to improve the state's Beginning Farmer Tax Credit.
Currently, only landowners selling to beginning farmers can claim the credit. Friel's bill proposes allowing both the seller and the beginning farmer to benefit from the tax break.
The credit offers 5% off the sale price or market value of agricultural assets. While intended to encourage land transfers, participation has been low. Less than 50 beginning farmers have used the program, leaving millions in annual funding untapped.
Friel's plan seeks to address this by:
- Allowing unused credits to be carried over for three years.
- Offering partial refunds for credits not used within three years.
- Eliminating tax credits for renting agricultural assets and increasing the purchase credit maximum from $32,000 to $50,000.
The bill also proposes moving the program to the Department of Agriculture and launching an awareness campaign to promote its benefits.
With Pennsylvania boasting the highest percentage of young farmers nationwide (under 35), access to land remains a significant hurdle. Friel's bill aims to address this challenge by making the tax credit more accessible and attractive to both beginning farmers and landowners.
The bill is currently being reviewed by the House Finance Committee.
Photo Credit: gettyimages-alexeyrumyantsev
Categories: Pennsylvania, Government & Policy