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HB 7175 Connecticut House · 2025 Regular Session

AN ACT ESTABLISHING A FARM INVESTMENT TAX CREDIT AND INCREASING THE FARM MACHINERY PROPERTY TAX EXEMPTION AMOUNT.

HB 7175 creates a 20% tax credit for eligible farmers who purchase or build qualifying farm machinery, equipment, and buildings after January 1, 2026. To qualify, farmers must earn at least two-thirds of their total income from farming above $30,000, and the property must be used for farming in the state for at least five years. The credit applies to machinery and equipment bought after 2026, as well as qualifying buildings constructed or placed in service after that date, provided they are not leased or acquired from related parties. Farmers, or owners of pass-through entities like S corporations, can claim the credit against state income tax, with unused portions refunded by the state.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates 20% tax credit for farmers on qualifying equipment/buildings, reducing taxable liability for agricultural investments per tax relief indicators.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 6, 2025 Last action May 12, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → FIN Joint Favorable Substitute · 5 edits
MODERATE
The bill was renumbered from a 'Raised Bill' to a 'Substitute Bill' after committee review, and the title was slightly updated to 'Farm Investment Tax Credit' instead of 'Farm Investment Property Tax Credit'. The substantive policy changes include expanding the definition of farm investment property to include buildings and structural components, adding a recapture provision requiring taxpayers to pay back the full credit if the property is not used for agricultural production for three years, and clarifying the timeline for when property must be acquired or placed in service (on or after January 1, 2026).
Scope change
The bill's scope was slightly expanded to include buildings and structural components as eligible farm investment property, in addition to machinery and equipment.
TITLE

Title changed from 'Farm Investment Property Tax Credit' to 'Farm Investment Tax Credit'

DEFINITION

Definition of farm investment property expanded to include buildings and structural components in addition to machinery and equipment

REQUIREMENT

Added recapture provision requiring 100% repayment of credit if property is not used for agricultural production for three full years

TIMELINE

Clarified that eligible property must be acquired or placed in service on or after January 1, 2026

TECHNICAL

Bill renumbered from Raised Bill to Substitute Bill after committee review

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
9
Key actions
1
Committee
2
Apr 24, 2025
Lower · Passed
Joint Favorable Substitute
lower
Mar 6, 2025
Committee
REF. TO JOINT COMM. ON Finance, Revenue and Bonding
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.