Attention new or beginning farmers: A new income tax credit program has recently been introduced in Ohio through House Bill 95. The Beginning Farmer Tax Credit Program is an initiative that will provide an income tax credit opportunity to qualified new or beginning farmers who participate in a financial management program and a separate income tax credit opportunity to those selling or renting agricultural assets to qualified new or beginning farmers. This program was set up to encourage growth in the community of farming newcomers in Ohio by offering a financial incentive/relief to young farmers looking to rent or buy land, which helps mitigate a common barrier to entry in agricultural markets. The credits were eligible to be applied starting January 1, 2023, and are still applicable once a few basic requirements are met.
To qualify as a beginning farmer, applicants must be a resident of Ohio that farms or intends to farm in Ohio and have less than 10 years’ experience as a farm owner/operator. Applicants must also possess adequate knowledge/experience in the type of farming you are pursuing. The most important requirement is participation in an ODA approved financial management program. The credit received will be for the cost of the financial management program after the course is completed and the credit is approved by the ODA.
To qualify as an asset owner, applicants must sell or rent agricultural assets to a qualifying beginning farmer. Agricultural assets include land, livestock, facilities, and machinery used in farming. The credit equals 3.99% of either the sale price of a sale, gross rent income received during the first three years of a rent agreement, or the gross rent income received during the first three years of the share-rent agreement.
For further information regarding the Beginning Famer Tax Credit Program, please visit any of these great websites!