Assembly Bill 721 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 amount to 5% of the lease or sales price paid by the beginning farmer for agricultural assets, as well as 5% of the amount received by the asset owner from the beginning farmer. Additionally, beginning farmers can claim a credit for 5% of the costs incurred for improvements on agricultural assets. The maximum credit available to any claimant in a taxable year is capped at $75,000, with an overall limit of $5 million for all claimants combined.

To qualify for the credit, both the beginning farmer and the asset owner must submit an application to the Department of Agriculture, Trade and Consumer Protection, including a business plan and details about the farmer's education and experience. The bill also includes various amendments to existing statutes to incorporate the new tax credit provisions, such as adding the beginning farmer and farm asset owner tax credit to the list of credits under sections 71.05, 71.10, 71.21, 71.26, and 71.28. The bill aims to encourage agricultural growth and support new entrants into farming by providing financial incentives for leasing or purchasing agricultural assets.