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Committee hears bill to create B&O tax credit for farmers participating in conservation programs
Summary
House Bill 1019 would create a business-and-occupation tax credit equal to 25% of eligible farming-input expenditures for farmers participating in state conservation grants or programs; staff estimated a modest statewide revenue impact and the sponsor urged the committee to support farmers and conservation participation.
House Bill 1019 was presented to the House Finance Committee in a staff briefing and by its prime sponsor, Representative Schaevers.
Christina King, staff to the committee, summarized the measure: beginning Jan. 1, 2026 a B&O tax credit equal to 25% of expenditures for farming inputs (including equipment, seed, feed and amendments) would be available to farmers who are recipients of a state conservation grant or participants in state conservation programs. King described the policy objective as encouraging more farmer participation in conservation programs and noted the measure includes a 10-year tax preference expiration and JLARC review.
Representative Schaevers told the committee the credit "allows them to ease that financial burden while also acknowledging their role in environmental conservation" and urged support for the bill. Staff presented a fiscal estimate provided in the materials: the Department of Revenue (DOR) estimate cited in committee materials indicated 1,250 landowners would be affected and that the credit would reduce state general fund revenues by about $1.2 million in FY26 (five months) and $3.2 million in FY27 (first full year), a total of $4.4 million for the 2025-27 biennium; an estimated $7 million reduction was projected for the 2027-29 biennium.
No public testimony was recorded in the transcript for this bill at the committee hearing; the sponsor answered no questions and the committee closed the hearing on HB 1019 for the record.
