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Crop insurance proceeds now considered qualified receipts for the Wisconsin agriculture credit

Mar 09, 2020
By: Dustin Wiesner
Agribusiness

On March 3, 2020, Wisconsin governor Tony Evers signed a bill that modified the language in Wisconsin Act 167 that defined qualified receipts that are used in the calculation for the Wisconsin agriculture credit. The tax credit now includes crop insurance proceeds as qualified receipts in the computation.

The Bill is intended to ease the financial burden on farmers who were unable to plant or harvest due to weather conditions. Farmers who were unable to plant and harvest crops are allowed a credit against their tax liability.

Prior to this law being signed, crop insurance proceeds were specifically excluded from the definition of qualified receipts.

Do I need to amend my return?

The Bill applies to tax years beginning on or after January 1, 2019. For agribusinesses that filed their 2019 taxes by the March 1 deadline, the tax returns may need to be amended depending on the amount of crop insurance proceeds that were picked up in income on the 2019 tax return. 

If you have any questions about the Bill or its impact on you, please contact Dustin Wiesner or one of our other ag tax professionals.

Related reading:

7 tax changes to keep in mind this tax season

Income tax ramifications of easements

The tax incentives available to producers who export

Author(s)

Dustin Wiesner, CPA
Senior Manager
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