CORPORATE INCOME TAXES

Current law authorizes an income tax deduction for a percentage of a taxpayer's business deduction from certain combined sources. This act adds the total combined profit as reported on an IRS Schedule F form and Form 4835. (Section 143.022)

This provision is identical to a provision in HCS/SS#3/SCS/SB 131 (2023), HS/HCS/SS/SB 138 (2023), SS/HB 202 (2023), HS/HCS/HB 356 (2023), and SCS/HCS#2/HB 713 (2023).

BEGINNING FARMER DEDUCTION

This act authorizes an income tax deduction for farm owners who sell, lease, or participate in a crop-share arrangement with a beginning farmer, as such terms are defined in the act.

The amount of the deduction shall be equal to 1) a portion of capital gains received from the sale of farmland to a beginning farmer, beginning with 100% of the first $2 million in capital gains, and decreasing with each successive million dollars, as described in the act; 2) the portion of cash rent income received from the lease or rental of farmland to a beginning farmer, not to exceed $25,000 in a tax year; and 3) the portion of income received from the crop-share arrangement with a beginning farmer, not to exceed $25,000 in a tax year. (Section 143.121)

This provision is identical to a provision in HS/HCS/SS/SB 138 (2023) and SS/HB 202 (2023), and is substantially similar to SB 588 (2023) and SB 618 (2023).

JOSH NORBERG