Gov. Tom Wolf signed Senate Bill 478, sponsored by Sen. Elder Vogel (R- New Sewickley Township), into law last week.
The “farming legacy” bill provides a personal income tax credit for landowners who lease or sell their land, buildings, and equipment to new farmers. It is a one-time tax credit. All leases must be enforced through written agreements, and property sold must be at fair market value to qualify for the tax credit.
“The facts clearly show the ‘graying’ of Pennsylvania’s farming industry,” Vogel said. “That is an issue that we need to quickly address as a state. I have heard throughout the state that the top hurdle facing new farmers is finding affordable farmland. The tax credits provided under this new law will reward landowners who help new farmers get started. None of our neighboring states offer a similar tax credit program, so this is a great way to show the agriculture community that Pennsylvania is open for business.”
Annually, the agriculture industry generates more than $7.5 billion in cash receipts in the state, and there are 7.7 million acres of farmland. There are four farmers over the age of 65 for every farmer under the age of 35.