House Bill 660 Alabama 2026 Session

Summary

Primary Sponsor

Jeremy GrayRepresentative

Democrat

Session

2026 Regular Session

Title

Beginning Farmer and Succession Continuity Act established; income tax credit, fund, and loan guarantee program created.

Summary

HB660 would create the Beginning Farmer and Succession Continuity Act to help transfer farmland to new farmers through tax credits, a state fund, and loan guarantees.

What This Bill Does

Owner sellers or long-term land leasers can claim a refundable income tax credit for selling or leasing land to a qualified beginning farmer, equal to 10% of the sale price or annual lease price, up to $200,000 per transaction, with an annual aggregate cap of $2 million. The credit can be claimed from 2027 through 2031 and may be carried forward up to five years, but a taxpayer can claim it in no more than three tax years. The act also creates the Beginning Farmer Assistance Fund to run the program; the Department of Agriculture and Industries can guarantee up to 75% of loan principal for qualifying beginning farmers and maintain an online registry to match retiring farmers with beginners, plus require annual reporting and allow audits and penalties for noncompliance. It defines a beginning farmer and requires transferred land to stay in agricultural use for five years, and it allows contracting with extension services or nonprofits for planning.

Who It Affects

• Landowners who sell or long-term lease land to a beginning farmer and can claim a tax credit
• Beginning farmers (less than 10 years farming, net worth under $1 million) who may benefit from land transfers, financing, and planning support
• The Department of Agriculture and Industries, lenders, and registry participants involved in program administration, loan guarantees, and matching
• State taxpayers and the government, via program funding, credits, and required reporting

Key Provisions

• Refundable income tax credit for landowners selling or leasing land to a beginning farmer; 10% of price or lease, up to $200,000 per transfer; annual aggregate cap of $2,000,000
• Credit available 2027-2031; carryforward up to five years; not more than three tax years claimed; nontransferable
• Creation of Beginning Farmer Assistance Fund in the State Treasury to administer the program; funds disbursed by Comptroller on approved vouchers; annual reporting
• Department may guarantee up to 75% of the principal of loans to qualifying beginning farmers; rules for applications and documentation; potential contracts with extension services and nonprofits for planning assistance
• Voluntary online registry to match retiring farmers with beginning farmers; program audits and penalties for noncompliance; annual program reporting to state leaders; and Definition of beginning farmer and five-year agricultural use requirement for transferred land

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 31, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development