Effective for taxable years beginning on or after January 1, 2010, the following statutory changes have been made to the farmland credits:
- The farmland tax relief credit is no longer available.
- Other than for claimants subject to a farmland preservation agreement entered into prior to July 1, 2009, the farmland preservation credit as it exists under current law is no longer available.
- A new farmland preservation credit is available. Although many of the provisions of the existing credit also apply to the new credit, there are significant differences.
As a result of the changes to the farmland preservation credit, a new schedule has been created.
Schedule FC-A will be used to claim the new farmland preservation credit.
Schedule FC will remain available to claim the existing credit. The table below summarizes the major differences between the 2010 Schedules FC and FC-A. Additional information concerning filing a 2010 farmland preservation credit claim is available in the instructions for Schedules
FC-A and
FC.
| Category | Schedule FC | Schedule FC-A |
|---|
|
Qualifications: | - Claimant must be subject to a farmland preservation agreement entered into prior to July 1, 2009
| - Claimant must have an ownership interest in a farm that is covered by a farmland preservation agreement entered into on or after July 1, 2009, or located in a farmland preservation zoning district
|
| | - The 2009 property taxes for the property on which the claim is based must have been paid in full
| - The claimant must have paid or be legally responsible for paying the 2010 property taxes levied against the qualifying acres to which the claim relates
|
| | - The claim must be based on at least 35 acres of farmland
| - No minimum acreage requirement
|
| | - Claimant must be in compliance with soil and water conservation plans and standards at the time the claim is filed
| - Claimant must be in compliance with soil and water conservation plans and standards as of the end of the taxable year to which the claim relates
|
|
Credit Computation: | - Credit is a percentage of a base amount determined using the claimant's household income and property taxes
| - Credit is a flat per-acre payment of $5, $7.50, or $10, based on the claimant's qualifying acres
|
| | - Maximum credit allowed is $4,200
| - No limitation on the amount of credit
|
The changes to the farmland credits are just one part of the Department of Agriculture, Trade and Consumer Protection's (DATCP) expansion and modernization of the Farmland Preservation Program. Information concerning the new program, the Wisconsin Working Lands Initiative, is available from
DATCP's website.
November 23, 2010