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Subcommittee hears bill to exempt state taxes on federal bridge payments to farmers
Summary
House Bill 1159 would allow state income-tax deductions for payments received under the federal Farmer Bridge Assistance program, mirroring last year’s treatment of certain federal disaster payments. Sponsors said the change ensures federal relief reaches farmers intact.
A first hearing on House Bill 1159 described it as a narrow measure to exempt state taxation on federal bridge payments made to farmers through the Farmer Bridge Assistance (FBA) program.
The presenter said the U.S. Department of Agriculture had announced $12,000,000,000 in one-time bridge payments to farmers, and that up to $11,000,000,000 would be used for the Farmer Bridge Assistance Program for row-crop farmers. HB 1159 would allow a state income-tax deduction equal to amounts received through that federal program so recipients can use the funds for their intended agricultural purposes.
Sponsors compared the bill to last year’s Hurricane-related relief measure (Senate Bill 203), which exempted certain federal disaster relief from state income tax. Calvin Sorby, the governor’s policy advisor on the measure, attended the hearing and the sponsor said the bill will be reworked as needed but they expected it to return for further consideration.
No committee vote was taken on the measure at the first hearing.
