Senate Bill 723 proposes the establishment of an income tax credit aimed at supporting beginning farmers and owners of agricultural assets in Wisconsin. The bill defines a "beginning farmer" as an individual with a net worth of less than $200,000 who has been farming for fewer than ten years. The tax credit will be available to both beginning farmers who lease or purchase agricultural assets and asset owners who lease or sell these assets to beginning farmers. Specifically, the credit amounts to 5% of the lease or sales price paid by the beginning farmer, as well as 5% of the lease or sales price received by the asset owner. Additionally, beginning farmers can claim a credit for 5% of the costs incurred for improvements on agricultural assets. The maximum credit per claimant is set at $75,000, with an overall cap of $5 million for all claimants in a taxable year.

To claim the credit, both parties must submit an application to the Department of Agriculture, Trade and Consumer Protection, including a business plan and a description of the beginning farmer's relevant education and experience. The bill also includes several amendments to existing statutes to incorporate the new tax credit provisions, such as adding the new credit under sections 71.05, 71.10, 71.21, 71.26, and 71.28, and creating new sections 20.835 (2) (dp), 71.07 (8s), 71.28 (8s), and 71.47 (8s). These changes aim to streamline the process for claiming the credit and ensure that it is effectively administered.