Tax incentives for farmers

AN ACT Relating to tax incentives for farmers; adding a new 1
section to chapter 82.04 RCW; creating a new section; and providing 2
an expiration date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 82.04 5
RCW to read as follows: 6
(1) Beginning January 1, 2026, a credit is allowed against taxes 7
due under this chapter for 25 percent of expenditures made in the 8
previous year by a qualified farmer for the purchase of new 9
equipment, infrastructure, seed, seedlings, spores, animal feed, and 10
amendments. 11
(2) To qualify for a credit, a farmer must meet at least one of 12
the following criteria: 13
(a) Is a recipient of grant funds originating directly from the 14
Washington state conservation commission or indirectly receives grant 15
funds through a conservation district or other Washington public 16
entity; or 17
(b) Is a participant in a Washington state conservation 18
commission or conservation district conservation program.19
(3) The credit claimed may not exceed the tax that would 20
otherwise be due under this chapter. Any unused credit not used in 21
H-0052.1
HOUSE BILL 1019
State of Washington 69th Legislature 2025 Regular Session
By Representatives Shavers, Wylie, Kloba, Fosse, and Reeves
Prefiled 12/09/24. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1019
the current calendar year may be carried over and claimed against the 1
person's tax liability for the next succeeding calendar year. Any 2
credit remaining unused in the next succeeding calendar year may be 3
carried forward and claimed against the person's tax liability for 4
the second succeeding calendar year; but may not be carried over for 5
any calendar year thereafter. Refunds may not be granted in the place 6
of credits. 7
(4) An application is not required to claim the credit, but the 8
claimant must keep records necessary for the department to determine 9
eligibility for the credit under this section including documentation 10
of grant funds received and verification of program participation.11
(5) The department may adopt rules necessary to implement this 12
section. 13
(6) For the purposes of this section, "farmer" has the same 14
meaning as in RCW 82.04.213. 15
(7) This section expires January 1, 2036. 16
NEW SECTION. Sec. 2. This section is the tax preference 17
performance statement for the tax preference contained in section 1, 18
chapter . . ., Laws of 2025 (section 1 of this act). This performance 19
statement is only intended to be used for subsequent evaluation of 20
the tax preference. It is not intended to create a private right of 21
action by any party or be used to determine eligibility for 22
preferential tax treatment.23
(1) The legislature categorizes this tax preference as one 24
intended to induce certain designated behavior by taxpayers, as 25
indicated in RCW 82.32.808(2)(a). 26
(2) It is the legislature's specific public policy objective to 27
provide a tax incentive for farmers in order to attract more farmers 28
to participate in conservation programs in Washington.29
(3) If a review finds increased farmer participation in 30
conservation programs in Washington after the effective date of this 31
section, then the legislature intends to extend the expiration date 32
of the tax preference. 33
(4) In order to obtain the data necessary to perform the review 34
in subsection (3) of this section, the joint legislative audit and 35
review committee may refer to any data collected by the state.36
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p. 2 HB 1019