Friel introduces bill to update Pennsylvania’s Beginning Farmer Tax Credit
Rep. Paul Friel June 13, 2024 | 11:52 AM
HARRISBURG, June 13 – State Rep. Paul Friel introduced a bill to update and expand Pennsylvania’s Beginning Farmer Tax Credit Program to attract and keep new farmers.
The update would allow retiring farmers and new farmers to each hold the tax credit and qualify more new farmers under the program.
The program was originally established to encourage farmers and landowners to work with beginning farmers to help them get a start. However, since its passage in 2020, fewer than 50 applicants have been certified as beginning farmers under the program.
“It’s clear that Pennsylvania must provide better on-ramps for beginning farmers, and that’s where this bill comes in,” said Friel, D-Chester. “As Pennsylvania’s farmers retire, they are looking to leave their land available for new farmers, often family members, and we can do more to encourage that handover.
“All farming is worth incentivizing, but especially on local family farms, where Pennsylvania traditions and innovations are both passed on.”
Friel’s bill, H.B. 2414, would update the program so that new farmers could share credits with the selling landowners. The credit would also be changed to give holders the option to carry the credit over three years if it’s not fully used in the year it was awarded. Holders could also apply for a limited refund of the remaining credit after those three years.
“I believe this legislation will greatly benefit both Pennsylvania farmers who are seeking retirement and young and new farmers who will become the next generation of Pennsylvania farmers,” Friel said. “The Beginning Farmer Tax Credit Program shows our agriculture community that Pennsylvania is open for business. This bill will take it ever further.”
Additionally, under the bill, the maximum allocation per farm or agricultural asset for the tax credit would be increased from $32,000 to $50,000.