NE and IA Beginning Farmer Tax Credits

For landowners that have qualified tenants, the benefits of the beginning farmer tax credit can be huge. Both Iowa and Nebraska have significant beginning farmer tax credits that can serve to offset your state income taxes.

The Iowa beginning farmer tax credit is calculated as 5% of cash rents or 15% of gross revenue from crop shares. A qualified beginning farmer is one that has net worth under $366,324 and has adequate education, training, or experience in their area of farming. For more information visit http://www.iada.state.ia.us/BFTC/.

The Nebraska beginning farmer tax credit is calculated as 10% of cash rents or 15% of gross revenue from crop shares.  A qualified beginning farmer has farmed or ranched for less than 10 of the last 15 years, has a net worth of less than $200,000, and will provide the majority of the daily physical labor and management for the farm. For more information visit http://www.nda.nebraska.gov/beg_farmer/taxcp.html.