WHAT IS THE TERM OF THE TAX CREDIT?
Top The lease term must be a minimum of two years and a maximum of five years. A tax credit certificate will be issued for each year of the lease. Upon expiration of the lease, the asset owner and beginning farmer may re-apply for continuance of the tax credit. An eligible beginning farmer will continue to be considered an eligible beginning farmer for the term of the lease even if the eligible beginning farmer’s net worth exceeds $300,000 during the term of the lease. The tax credit is a non-refundable credit, therefore any credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following five years or until depleted, whichever is earlier.
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