The proposed bill aims to establish income tax credits for beginning farmers and owners of agricultural assets in Arkansas, referred to as "AR Next Gen." It mandates the Secretary of the Department of Agriculture to certify beginning farmers and financial management programs that qualify for these tax credits. The bill outlines specific definitions for terms such as "agricultural asset," "beginning farmer," and "owner of agricultural assets," and it details the criteria for certification as a beginning farmer, including residency, farming experience, and financial management program participation.

Additionally, the bill specifies the tax credit amounts available to both owners of agricultural assets who sell or rent to beginning farmers and to beginning farmers themselves. The credits are structured to incentivize the rental and sale of agricultural assets at prevailing community rates and to support participation in certified financial management programs. The total amount of tax credits awarded is capped at $10 million per calendar year, and the bill includes provisions for the carry-forward of unused credits. The effective date for the implementation of these tax credits is set for tax years beginning on or after January 1, 2024.

Statutes affected:
Old version HB1003 Original - 11-17-2022 12:57 PM: 25-38-202(b)
Old version HB1003 V2 - 3-13-2023 09:43 AM: 25-38-202(b)
HB 1003: 25-38-202(b)