Selling Farmers Tax Credit Program AnnouncedPosted on Nov 27, 2019
Selling Farmers Tax Credit Program Announced
Last week Kentucky launched a new program offering farmers incentives for selling their property to beginning farmers, an effort to further sustain one of the state’s most important industries. The Kentucky Cabinet for Economic Development announced the Kentucky Selling Farmer Tax Credit (KSFTC) program, which will begin accepting applications Monday, December 16. This new program is a result of legislation passed during the 2019 session of the Kentucky General Assembly and was strongly supported by Kentucky Farm Bureau. Eligible selling farmers could receive tax credits up to 5% of the purchase price of qualifying assets, with a $25,000 cap per calendar year and a $100,000 lifetime cap.
Both the selling and acquiring parties must meet the following criteria for beginning and selling farmers:
- A beginning farmer cannot have previously owned any agricultural land for a period exceeding 10 years. In addition, beginning farmers must commit to managing and operating a for-profit farming business a minimum of five years after purchasing eligible agricultural land.
- Selling farmers cannot have more than 50 full-time employees and must be the legal owner of agricultural land and assets sold to a beginning farmer. Sales involving immediate family members do not qualify for tax credit consideration.
Before completing a sale of agricultural assets, applicants should review the Kentucky Selling Farmer Tax Credit Guidelines for more detailed program information and eligibility requirements. After completing a sale, both the beginning farmer and selling farmer must submit applications to determine tax credit eligibility.
Additional program information, including Beginning Farmer and Selling Farmer application forms, can be found online at www.thinkkentucky.com/KSFTC.