Income Tax Deduction For Leasing Out Agricultural Asset
Concerning a temporary income tax deduction for a portion of lease payments received by a qualified taxpayer for leasing the taxpayer's agricultural asset to an eligible beginning farmer or rancher.
2016 Regular Session
Fiscal Policy & Taxes
The act allows an income tax deduction for specified income tax years if a qualified taxpayer enters into a qualified lease with an eligible beginning farmer or rancher, in an amount specified in a deduction certificate issued by the Colorado agricultural development authority that is equal to 20% of the lease payments received from the eligible beginning farmer or rancher as specified in the qualified lease, not to exceed a specified amount per income tax year, for a maximum of 3 income tax years. The act also specifies that the Colorado agricultural development authority may not issue more than 100 deduction certificates in an income tax year and that the authority must require that a copy of the schedule F that the eligible beginning farmer or rancher filed with the eligible beginning farmer's or rancher's federal income tax return be included as part of the application for a deduction certificate.
(Note: This summary applies to this bill as enacted.)