The Kentucky Selling Farmer Tax Credit program encourages continued use of agricultural land for farming by granting tax credits to selling farmers who agree to sell agricultural land and assets to eligible buyers who will continue using the land for farming operations. Farmers wanting to sell agricultural land and assets may be eligible for a Kentucky income tax credit up to 5% of the sale price of qualifying agricultural assets, subject to annual and lifetime tax credit caps.
Selling farmers cannot have more than 50 full-time employees and must be the legal owner of agricultural land and assets sold to a buyer. Sales involving immediate family members do not qualify for tax credit consideration.
Prior to completing a sale of agricultural assets, applicants should review the Kentucky Selling Farmer Tax Credit Guidelines for more detailed program information and eligibility requirements. After completing a sale, both the buyer and seller must submit applications before tax credit eligibility can be determined.
While this program provides tax credits to selling farmers, other state agricultural programs, such as the Kentucky Agricultural Finance Corporation’s Beginning Farmer Loan Program, are available to assist beginning farmers.
The buyer and seller applications are linked below in Microsoft Excel format and Adobe Acrobat PDF format. The Excel version has some built-in prompts and automatic calculations to assist with application completion. The PDF version is best for those who prefer to print and manually complete the form. If you need assistance with the forms, please email cedsbsd@ky.gov or call (502) 564-7670.
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