Farmland Preservation Wisconsin income tax credit program
The Farmland Preservation (FP) state income tax credit is for landowners whose entire farm is meeting the conservation standards set by the State of Wisconsin. Many farms already meet most of the requirements. Call us to determine what you need to do (608-754-6617 ext. 4758).
For the tax year claimed, claimants must meet the requirements for Wisconsin residency, gross farm revenue, Wisconsin conservation standards and the land must be in a Farmland Preservation district or subject to a Farmland Preservation agreement.
Enrollment starts by applying to the Rock County Land Conservation Department. Upon successful enrollment, fees to Rock County Land Conservation are $15 + $0.50/acre per farm per year.
For claims on land in Rock County, most filers use Schedule FC-A with their Wisconsin income tax (consult your tax advisor if you have land in FP in another county). Claimants must have a valid Certificate of Compliance issued by Rock County Land Conservation Department. Tax credits are applied against tax liability. There is no cap on credits. The gross farm revenue requirement (excluding rent) is at least $6,000 in the past year or $18,000 over the past three years.
Wisconsin conservation standards [pdf]. The goals of the standards are to keep soil and nutrients where they can be used by crops and out of streams, lakes, and groundwater. Call us to find to what applies to your farm operation. Technical and financial assistance are available for many practices. Briefly, the standards cover:
- Soil erosion - reduce gullies, sheet, and rill erosion.
- Nutrient management plan best crop use of manure and fertilizers. Basics (2-pg brochure) and more information (DATCP website) .
- Manure storage - new, altered, or abandoned facilities and stacking areas.
- Manure management - when, where, and how much to apply for best crop use and reduce impact on environment.
NOTE: New credit rates effective after December 31, 2022. Claimants must be enrolled and in conservation compliance for the year claimed.
- $10.00/acre for land zoned for farmland preservation. The certified zoning allows landowners to participate through no-contract annual renewal and not have to sign a separate agreement.
- $12.50/acre for land zoned for farmland preservation AND in an Agricultural Enterprise Area AND the landowner has a farmland preservation agreement signed after July 1, 2009.
- $10.00/acre for agreement only signed after July 1, 2009 and located in an Agricultural Enterprise Area with no FP zoning. (Note: there are no pre-2009 agreements in Rock County.)
- Certain permanent easements that preserve working agricultural land may now be eligible for the Wisconsin Farmland Preservation income tax credit. Contact Rock County Land Conservation Department.
Credit rates up to December 31, 2022 are:
- $7.50/acre for land zoned for farmland preservation. (In these areas, the certified zoning allows landowners to participate and not have to sign a separate agreement).
- $10.00/acre for land zoned for farmland preservation AND in an Agricultural Enterprise Area AND the landowner has a farmland preservation agreement signed after July 1, 2009.
- $5.00/acre for agreement only signed after July 1, 2009 and located in an Agricultural Enterprise Area with no FP zoning. (Note: there are no pre-2009 agreements in Rock County.)