HARRISBURG, PA — The Pennsylvania House advanced legislation this week aimed at revitalizing the state’s agricultural industry by expanding the Beginning Farmer Tax Credit Program. House Bill 242, introduced by State Representative Paul Friel (D-Chester), received broad support and now moves to the state Senate for consideration.
The bill seeks to address challenges faced by retiring farmers and new entrants in agriculture by introducing key updates to the program, originally established in 2020. Under the proposed changes, beginning farmers would be allowed to share tax credits with landowners selling their agricultural property. Additionally, the measure would enable unused credits to be carried forward for up to three years.
“This legislation significantly supports Pennsylvania’s retiring farmers, while also creating opportunities for the next generation of young and beginning farmers, especially on local family farms,” said Friel. “The Beginning Farmer Tax Credit Program sends a clear message: agriculture has a strong future in Pennsylvania.”
The bill also proposes raising the maximum allocation per farm or agricultural asset from $32,000 to $50,000, aiming to strengthen incentives for participation in the program. Despite its potential, fewer than 50 individuals have qualified as beginning farmers since the tax credit initiative was introduced.
“It’s clear that Pennsylvania must provide better on-ramps for beginning farmers, and that’s where this bill comes in,” Friel noted. “As Pennsylvania’s farmers retire, they are looking to leave their land available for new farmers, often family members, and we can do more to encourage that handover.”
If enacted, H.B. 242 could play a critical role in ensuring a sustainable future for Pennsylvania’s agricultural sector, which remains a vital component of the state’s economy and heritage.
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