Tax Credits

Beginning Farmer and Farm Asset Owner Tax Credit Program

The Beginning Farmer and Farm Asset Owner Tax Credit provides a refundable income tax credit for established farmers based on 15% of the annual cash lease payments of depreciable agriculture assets. The established farmer may receive the credit for the first three years of the lease agreement.

For the beginning farmer, there is a $500 refundable educational credit, applicable towards the tuition costs of Farm Financial Management courses taken during the calendar year for which the credit is being claimed.

Key Points

• To be eligible for the program the Established Farmer must have been engaged in farming for 10 years or more and must own depreciable assets.
• To be eligible for the program the Beginning Farmer must have a net worth of less than $200,000 and may not have been in farming for more than 10 of the last 15 years.
• Only the portion of a farm lease that includes payments for depreciable agricultural assets used in production is eligible for the tax credit.
• Rent for assets such as land or a farm house is not included in calculating the amount of the income tax credit.
• Lease payments or course work in Farm Financial Management need to have occurred in the calendar year for which the tax credit is being claimed.

Application Materials

Mailing the Application

To: WI DATCP
Wisconsin Farm Center
PO Box 8911
Madison, WI 53708-8911

Note: Before you mail your application, please review the “Required Attachments to This Application” section of the application document, and be sure you have included copies of all necessary documents.

If you have questions, call the Farm Center at 800-942-2474 or read the Frequently Asked Questions above.