Potential Tax Credits on the Way for Retiring Indiana Farmers

In his first State of the State Address last week, Governor Mike Braun discussed the needs of farmers and agriculture.

“Let’s address our aging ag workforce with a tax credit for retiring farmers passing their farms onto the next generation,” Braun stated. “They need that help.”

Legislation to do just that was introduced early this session in the Indiana House by District 16 Representative and Jasper County farmer Kendell Culp in HB 1191. This bill allows a total tax credit of $67,000 off your Indiana income tax if you were to max it out by partnering with a young and beginning farmer. Culp says that is defined in the bill.

“It’s a farmer that has farmed for less than 10 years or has filed a Schedule F for less than 10 years. And there are limitations on how old that farmer can be, and the retiring farmer has to be at least 60 years old to be able to take advantage of that.”

Culp says his bill might lose its individual identity, which he’s fine with, because Gov. Braun has included this language and the funding for it in his budget. So, if the budget bill passes, then so does this.

He provides more details from the bill.

“So, if you sell or lease your farm to a young, beginning farmer, you’re eligible for this tax credit. If it’s a cash rent arrangement, you get so many dollars or a percentage of the cash rent as the credit. If it’s a grain share, or crop share, then you get a percentage of the price of that crop to go toward that. If it’s strictly a livestock operation, then you get so many dollars per head of, if it’s swine for example, swine produced. It all counts towards that $67,000 maximum.”

Culp joined me on the Indiana Ag Policy Podcast to discuss this bill and many of the other 14 agriculture-related bills he’s helped author this session. Find it now below or in the free HAT mobile app.