The bill H. 5180 proposes to amend the South Carolina Code of Laws by adding Section 12-6-1155, which introduces a tax deduction for farm owners who sell or lease farmland to beginning farmers or enter into crop-share agreements with them. Specifically, it allows a deduction from South Carolina taxable income equal to the capital gains received from the sale of farmland, with a tiered deduction structure based on the amount of capital gains. The bill also provides deductions for cash-rent income from leases and income from crop-share arrangements, both capped at $25,000, and only applicable to the extent that the income is included in federal adjusted gross income.

Additionally, the bill defines key terms such as "beginning farmer," "farm owner," and "qualified family member," establishing criteria for eligibility. The Department of Agriculture is tasked with assisting the Department of Revenue in determining eligibility and implementing the provisions of this section. The act will take effect upon approval by the Governor and will apply to sales, leases, and agreements made for tax years beginning after 2025.

Statutes affected:
02/12/2026: 12-6-1155
Latest Version: 12-6-1155