SB575,1,6 An Act to amend 20.115 (7) (dm), 20.115 (7) (tm), 71.613 (2) (intro.), 71.613 (2) (a), 71.613 (2) (b), 71.613 (2) (c), 91.04 (intro.) and 91.62 (1) (a); and to create 71.613 (1) (h) 4., 71.613 (2) (am), 71.613 (2) (bm), 71.613 (2) (cm), 71.613 (2) (d), 71.613 (2e), 91.04 (2) (bm) and 91.10 (7) of the statutes; relating to: farmland preservation implementation grants, agreements, and tax credits and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill makes the following changes involving farmland preservation implementation grants and agreements and farmland preservation tax credits:

1. Decreases the minimum required length of a farmland preservation agreement between the Department of Agriculture, Trade and Consumer Protection and a farmland owner to 10 years from 15 years. Under current law, farmland owners who enter into a farmland preservation agreement with DATCP may be eligible to receive farmland preservation tax credits for their qualifying acres of farmland.

2. Requires DATCP to include in a report submitted to the Board of Agriculture, Trade and Consumer Protection, the Joint Committee on Finance, the standing committees of the legislature with jurisdiction over agriculture, the Department of Revenue, and the Department of Administration a review of the tax credit amounts for qualifying acres for the farmland preservation tax credit and recommendations for the tax credit levels for qualifying acres of farmland. Current law requires DATCP to submit a report about farmland and the farmland preservation program once every two years to the board, DOR, and DOA.

3. Under the farmland preservation tax credit, increases from $7.50 to $10.00 the amount that may be claimed, per qualifying acre, for qualifying acres that are located in a farmland preservation zoning district but are not subject to a farmland preservation agreement.

4. Under the farmland preservation tax credit, increases from $5.00 to $10.00 the amount that may be claimed, per qualifying acre, for qualifying acres that are subject to a farmland preservation agreement but not located in a farmland preservation zoning district.

5. Under the farmland preservation tax credit, increases from $10.00 to $12.50 the amount that may be claimed, per qualifying acre, for qualifying acres that are located in a farmland preservation zoning district and are subject to a farmland preservation agreement.

6. Adds a new category of farmland that qualifies for the farmland preservation tax credit. A credit of $10 per acre may be claimed for farmland that is located in a farmland preservation area, but only to the extent that the acres are covered by an agriculture conservation easement.

7. Authorizes DATCP to award grants to cities, villages, towns, counties, regional planning commissions, and tribal governments for various purposes related to implementing a county's certified farmland preservation plan. Under the bill, DATCP must enter into a contract with a grant recipient before distributing grant funds, and the contract must identify costs eligible for reimbursement through the grant for the following activities: 1) certifying a farmland preservation zoning ordinance for the first time; 2) enrolling land in farmland preservation agreements; 3) designating an agricultural enterprise area or facilitating agricultural preservation and development; 4) monitoring compliance with land and water conservation standards; and 5) farmland preservation program outreach.

The bill also indexes the farmland preservation tax credit dollar amounts described above for inflation.

For further information see the state and local 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:

SB575,1 Section 1 . 20.115 (7) (dm) of the statutes is amended to read:

SB575,2,4 20.115 (7) (dm) Farmland preservation planning and implementation grants. The amounts in the schedule for farmland preservation planning grants under s. 91.10 (6) and for farmland preservation implementation grants under s. 91.10 (7).

SB575,2 Section 2. 20.115 (7) (tm) of the statutes is amended to read:

SB575,3,5 20.115 (7) (tm) Farmland preservation planning and implementation grants, working lands fund. From the working lands fund, the amounts in the schedule for farmland preservation planning grants under s. 91.10 (6) and for farmland preservation implementation grants under s. 91.10 (7).

SB575,3 Section 3 . 71.613 (1) (h) 4. of the statutes is created to read:

SB575,3,12 71.613 (1) (h) 4. The farm is wholly or partially covered by an agricultural conservation easement purchased under s. 93.73, except that if the farm is only partially covered, the qualifying acres calculation includes only those acres that are covered by the agricultural conservation easement and located in a farmland preservation area, as defined in s. 91.01 (16), at the end of the taxable year to which the claim relates.

SB575,4 Section 4 . 71.613 (2) (intro.) of the statutes is amended to read:

SB575,3,23 71.613 (2) Filing claims. (intro.) Subject to sub. (2e) and to the limitations and conditions provided in sub. (3), a claimant may claim as a credit against the tax imposed under s. 71.02, 71.23, or 71.43, an amount calculated by multiplying the claimant's qualifying acres by one of the following amounts, and if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income or if there are no Wisconsin income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (do):

SB575,5 Section 5 . 71.613 (2) (a) of the statutes is amended to read:

SB575,4,3 71.613 (2) (a) Ten dollars Except as provided in par. (am), $10, if the qualifying acres are located in a farmland preservation zoning district and are also subject to a farmland preservation agreement that is entered into after July 1, 2009.

SB575,6 Section 6 . 71.613 (2) (am) of the statutes is created to read:

SB575,4,6 71.613 (2) (am) For taxable years beginning after December 31, 2019, the amount that may be claimed per qualifying acre under par. (a) shall be $12.50.

SB575,7 Section 7. 71.613 (2) (b) of the statutes is amended to read: