An Act providing credits against the corporation business tax and the gross income tax to persons leasing agricultural land to beginning farmers and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
This bill would provide corporation business tax and gross income tax credits to persons leasing agricultural land to beginning farmers. A “qualified beginning farmer” means a person with a low or moderate net worth that farms or wants to farm; is a resident; has sufficient education, training, or experience in farming; has access to working capital and production items; and is not responsible for managing or maintaining agricultural land that are greater than necessary to support a beginning farmer. For an agreement that includes a lease on a cash basis, the tax credit will be 7-8% of the gross amount paid to the taxpayer under the agreement. For an agreement that includes a lease on a commodity share basis, the tax credit will be 17-18% of the amount paid to the taxpayer from crops or animals sold under the agreement.