Personal Income Tax Law: Corporation Tax Law: tax credits: farming.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates tax credits for agricultural businesses operating on at least 50 acres of land in California. These credits, available from 2027 to 2032, can be up to 25% of qualified expenditures, potentially increasing to 30% under certain conditions like purchasing low-emission equipment or operating in high-fire hazard zones. The credits are capped at $1 million per taxpayer and $250 million total annually, requiring a reservation process with the Department of Food and Agriculture. The bill also includes provisions for data sharing and prohibits reimbursement to local agencies due to the creation of a new crime.
Key provisions
- Allows a tax credit of up to 25% (increasing to 30%) on qualified agricultural expenditures.
- Credits are available to businesses operating 50 acres or more of land.
- Increased credit amounts for purchasing low-emission equipment or operating in high-fire hazard zones.
- Credit limits of $1 million per taxpayer and $250 million annually.
- Requires a credit reservation process with the Department of Food and Agriculture.
- Mandates data sharing between the Department of Food and Agriculture and the Franchise Tax Board.
- Prohibits reimbursement to local agencies.
- The credits are temporary, expiring on December 1, 2032.
Who is affected
- Farmers and agricultural businesses
- Taxpayers
- The Franchise Tax Board
- The Department of Food and Agriculture
- California residents
Bill text
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Sponsors
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12 on record
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Cosponsors
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