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Farmland Preservation Tax Credits

Upcoming! Farmland Preservation Tax Credit Update for Tax Professionals

Join the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) and the Wisconsin Department of Revenue (DOR) on November 17, 2021 at 1:30 p.m. for a virtual presentation covering the farmland preservation tax credit. Presentation topics will include:

Basics of the farmland preservation tax credit
Review of Wisconsin tax schedules FC and FC-A
Documentation required to claim the credit and what must be attached to a taxpayer's return
How landowners can participate in the program

The session is open to anyone interested in learning more about the farmland preservation tax credit and farmland preservation program. In order to attend the meeting, you must register in advance here.

Eligible landowners may claim farmland preservation tax credits. The amount of the tax credit depends upon how a landowner participates in the program.

What are the eligibility requirements for claiming the credit?

The following requirements must be met to claim the farmland preservation tax credit under FC or FC-A:

The landowner must have been the owner of the farmland for the year in which the credit is claimed. The landowner need not be the farm operator and may rent the land to a farmer.
The landowner must have been a resident of Wisconsin for the entire taxable year.
The landowner may not have claimed homestead credit or veterans and surviving spouses property tax credit for that year.
The farm must meet applicable state soil and water conservation standards. For exact requirements, contact the county land conservation department in which the land is located.
The land produced $6,000 in gross farm revenue in the preceding year or $18,000 in gross farm revenue during the preceding three years. If a landowner rents the farmland, the landowner may claim on that land provided the renter meets the gross farm revenue requirement.

WI Land + Water County Directory

What level of tax credit may I claim?

Most landowners should claim the farmland preservation tax credit using schedule FC-A.

Income tax credits available to landowners under FC-A are tiered based on the landowner's type of participation in the farmland preservation program. Tax credits are equal to:

$5.00/Acre for landowners with a farmland preservation agreement signed after July 1, 2009 and located in an agricultural enterprise area, or for landowners who have modified an agreement initially signed before July 1,2009
$7.50/Acre for landowners in an area zoned for farmland preservation
$10.00/Acre for landowners in an area zoned for farmland preservation and in an agricultural enterprise area with a farmland preservation agreement signed after July 1, 2009, or in an area zoned for farmland preservation and with a farmland preservation agreement modified after July 1, 2009

Landowners claiming the credit under a Pre-July 1, 2009 or 2009 WI Act 374 Farmland Preservation Agreement should use schedule FC.

Which tax schedule should I use?

Claiming Under A Pre-July 1, 2009 Or 2009 WI Act 374 Farmland Preservation Agreement

In limited circumstances, landowners will claim the tax credit by filing Schedule FC. This credit is calculated with consideration of household income and property taxes. Only landowners with land covered by a farmland preservation agreement that was signed before July 1, 2009 or under 2009 WI Act 374 will claim using Schedule FC.

Landowners with an effective farmland preservation agreement signed before July 1, 2009 or subject to 2009 WI Act 374 may modify their agreement to become eligible for the per acre farmland preservation credit.

Sample of Pre-2009 Farmland Preservation Agreement

Sample of Agreement signed under 2009 WI Act 374

Information for Tax Preparers