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AB721: Bill Text
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2025 - 2026 LEGISLATURE
LRB-4784/1
JK:cdc
2025 ASSEMBLY BILL 721
December 3, 2025 - Introduced by Representatives
J. Jacobson
,
Anderson
,
Brown
,
DeSanto
,
DeSmidt
,
Fitzgerald
,
Joers
,
Johnson
,
Miresse
,
Roe
,
Sinicki
,
Stroud
,
Stubbs
,
Subeck
and
Udell
, cosponsored by Senators
Spreitzer
,
Dassler-Alfheim
,
Pfaff
,
Ratcliff
,
Roys
and
Keyeski
. Referred to Committee on Ways and Means.
AB721,1,5
1
An Act
to amend
71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4.,
2
71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f);
to create
20.835
3
(2) (dp), 71.07 (8s), 71.28 (8s), 71.47 (8s) and 93.521 of the statutes;
relating
4
to:
income tax credits for beginning farmers and owners of farm assets and
5
making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates an income tax credit for a beginning farmer who leases or purchases agricultural assets from an asset owner and uses the assets for farming and for a person whose assets are leased or sold to a beginning farmer. Under the bill, a beginning farmer is a person who has a net worth of less than $200,000 and who has farmed for fewer than 10 years. The bill defines “agricultural assets” as land assessed for property tax purposes as agricultural land or machinery, equipment, facilities, or livestock that is used in farming. The amount of the credit is equal to 5 percent of the lease amount or sales price paid by the beginning farmer to an asset owner for agricultural assets for the taxable year and 5 percent of the lease amount or sales price received by the asset owner from a beginning farmer for agricultural assets for the taxable year. The beginning farmer may also claim a credit equal to 5 percent of the amount the farmer paid for improvements on agricultural assets consisting of land and facilities. The maximum amount that a claimant may receive in any taxable year is $75,000 and maximum amount of the credit for all claimants in any taxable year is $5,000,000.
Under the bill, in order to claim the credit, both the beginning farmer and the asset owner must submit an application to the Department of Agriculture, Trade and Consumer Protection. The beginning farmer must submit a business plan with the beginning farmer’s application and provide a description of the beginning farmer’s education, training, and experience in the type of farming in which the beginning farmer uses the leased or purchased agricultural assets.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB721,1
1
Section
1
.
20.835 (2) (dp) of the statutes is created to read:
AB721,2,3
2
20.835
(2)
(dp)
Beginning farmer and farm asset owner tax credit.
A sum
3
sufficient to pay the claims approved under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).
AB721,2
4
Section
2
.
71.05 (6) (a) 15. of the statutes, as affected by
2025 Wisconsin Act
5
15
, is amended to read:
AB721,2,11
6
71.05
(6)
(a) 15. The amount of the credits computed under s. 71.07 (2dm),
7
(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h),
8
(5i), (5j), (5k), (5r), (5rm), (6n),
(8s),
and (10) and not passed through by a
9
partnership, limited liability company, or tax-option corporation that has added
10
that amount to the partnership’s, company’s, or tax-option corporation’s income
11
under s. 71.21 (4) or 71.34 (1k) (g).
AB721,3
12
Section
3
.
71.07 (8s) of the statutes is created to read:
AB721,2,14
13
71.07
(8s)
Beginning farmer and farm asset owner tax credit.
(a)
14
Definitions.
In this subsection:
AB721,3,2
1
1. “Agricultural assets” means agricultural land or machinery, equipment,
2
facilities, or livestock that is used in farming.
AB721,3,3
3
2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
AB721,3,5
4
3. “Asset owner” means a person who meets the conditions specified in s.
5
93.521 (3).
AB721,3,7
6
4. “Beginning farmer” means a person who meets the conditions specified in s.
7
93.521 (2).
AB721,3,10
8
5. “Claimant” means a beginning farmer who files a claim under this
9
subsection or an asset owner who files a claim under this subsection, except that,
10
for a beginning farmer, “claimant” means the following:
AB721,3,12
11
a. For partnerships, except publicly traded partnerships treated as
12
corporations under s. 71.22 (1k), “claimant” means each separate partner.
AB721,3,13
13
b. For tax-option corporations, “claimant” means each separate shareholder.
AB721,3,15
14
c. For limited liability companies, except limited liability companies treated
15
as corporations under s. 71.22 (1k), “claimant” means each separate member.
AB721,3,17
16
6. “Farming” has the meaning given in section 464 (e) of the Internal Revenue
17
Code.
AB721,3,21
18
7. “Lease amount” is the amount of the cash payment paid by a beginning
19
farmer to an asset owner each year for leasing the asset owner’s agricultural assets,
20
including amounts paid under a lease agreement that results in the beginning
21
farmer owning the agricultural assets.
AB721,4,6
22
(b)
Filing claims.
1. Subject to the limitations provided in this subsection, for
23
taxable years beginning after December 31, 2026, a beginning farmer may claim as
1
a credit against the tax imposed under s. 71.02 an amount equal to 5 percent of the
2
lease amount or sales price paid by the beginning farmer to an asset owner for the
3
lease or purchase of agricultural assets for the taxable year to which the claim
4
relates. The beginning farmer may also claim an amount equal to 5 percent of the
5
amount the beginning farmer paid in the taxable year for improvements to
6
agricultural assets consisting of land and facilities.
AB721,4,11
7
2. Subject to the limitations provided in this subsection, for taxable years
8
beginning after December 31, 2026, an asset owner may claim as a credit against
9
the tax imposed under s. 71.02 an amount equal to 5 percent of the lease amount or
10
sales price received by the asset owner from a beginning farmer for agricultural
11
assets for the taxable year to which the claim relates.
AB721,4,14
12
(c)
Limitations.
1. With regard to credit claimed on the basis of a lease
13
amount, a claimant may only claim the credit under this subsection for the first 3
14
years of any lease of an asset owner’s agricultural assets to a beginning farmer.
AB721,4,16
15
2. No credit may be allowed under this subsection unless it is claimed within
16
the time period under s. 71.75 (2).
AB721,4,18
17
3. A claimant shall submit with the claimant’s income tax return the
18
certificate of eligibility provided under s. 93.521 (5) (b).
AB721,4,20
19
4. No credit may be claimed under this subsection by a part-year resident or a
20
nonresident of this state.
AB721,4,22
21
5. The maximum credit that a claimant may claim under this subsection for
22
any taxable year is $75,000.
AB721,5,5
23
6. a. Partnerships, limited liability companies, and tax-option corporations
1
may not claim the credit under this subsection, but the eligibility for, and the
2
amount of, the credit are based on the amounts paid under par. (b). A partnership,
3
limited liability company, or tax-option corporation shall compute the amount of
4
credit that each of its partners, members, or shareholders may claim and shall
5
provide that information to each of them.
AB721,5,9
6
b. In order to claim the credit computed under par. (b) 1., partners, members
7
of limited liability companies, and shareholders of tax-option corporations shall
8
meet the requirements under s. 93.521 (2) and claim the credit in proportion to
9
their ownership interests.
AB721,5,12
10
(d)
Administration.
1. Section 71.28 (4) (e), (g), and (h), to the extent that it
11
applies to the credit under that subsection, applies to the credit under this
12
subsection.
AB721,5,17
13
2. If the allowable amount of the claim under this subsection exceeds the
14
income taxes otherwise due on the claimant’s income, the amount of the claim not
15
used as an offset against those taxes shall be certified by the department of revenue
16
to the department of administration for payment to the claimant by check, share
17
draft, or other draft from the appropriation under s. 20.835 (2) (dp).
AB721,4
18
Section
4
.
71.10 (4) (i) of the statutes, as affected by
2025 Wisconsin Act 15
,
19
is amended to read:
AB721,6,5
20
71.10
(4)
(i) The total of claim of right credit under s. 71.07 (1), farmland
21
preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
22
beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
23
71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
24
71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f) (b) 2., veterans
1
and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs
2
credit under s. 71.07 (3w), electronics and information technology manufacturing
3
zone credit under s. 71.07 (3wm),
beginning farmer and farm asset owner tax credit
4
under s. 71.07 (8s),
earned income tax credit under s. 71.07 (9e), estimated tax
5
payments under s. 71.09, and taxes withheld under subch. X.
AB721,5
6
Section
5
.
71.21 (4) (a) of the statutes, as affected by
2025 Wisconsin Act 15
,
7
is amended to read:
AB721,6,11
8
71.21
(4)
(a) The amount of the credits computed by a partnership under s.
9
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
10
(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8s),
and (10) and passed through to
11
partners shall be added to the partnership’s income.
AB721,6
12
Section
6
.
71.26 (2) (a) 4. of the statutes, as affected by
2025 Wisconsin Act
13
15
, is amended to read:
AB721,6,19
14
71.26
(2)
(a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
15
(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k),
16
(5r), (5rm), (6n),
(8s),
and (10) and not passed through by a partnership, limited
17
liability company, or tax-option corporation that has added that amount to the
18
partnership’s, limited liability company’s, or tax-option corporation’s income under
19
s. 71.21 (4) or 71.34 (1k) (g).
AB721,7
20
Section
7
.
71.28 (8s) of the statutes is created to read:
AB721,6,22
21
71.28
(8s)
Beginning farmer and farm asset owner tax credit.
(a)
22
Definitions.
In this subsection:
AB721,6,24
23
1. “Agricultural assets” means agricultural land or machinery, equipment,
24
facilities, or livestock that is used in farming.
AB721,7,1
1
2. “Agricultural land” has the meaning given in s. 70.32 (2) (c) 1g.
AB721,7,3
2
3. “Asset owner” means a person who meets the conditions specified in s.
3
93.521 (3).
AB721,7,5
4
4. “Beginning farmer” means a person who meets the conditions specified in s.
5
93.521 (2).
AB721,7,8
6
5. “Claimant” means a beginning farmer who files a claim under this
7
subsection or an asset owner who files a claim under this subsection, except that,
8
for a beginning farmer, “claimant” means the following:
AB721,7,10
9
a. For partnerships, except publicly traded partnerships treated as
10
corporations under s. 71.22 (1k), “claimant” means each separate partner.
AB721,7,11
11
b. For tax-option corporations, “claimant” means each separate shareholder.
AB721,7,13
12
c. For limited liability companies, except limited liability companies treated
13
as corporations under s. 71.22 (1k), “claimant” means each separate member.
AB721,7,15
14
6. “Farming” has the meaning given in section 464 (e) of the Internal Revenue
15
Code.
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