A bill introduced in the Maryland Legislature would allow the state ag secretary to expand an income tax deduction for farmers via agricultural equipment.
Under current law, farmers can deduct from their taxable income the full cost of buying and installing certain ag equipment. House Bill 278 would allow the secretary of agriculture to add items to the list of eligible equipment by regulation.
Del. Christopher Bouchat, R-Carroll, said in Jan. 23 testimony before the House Ways and Means Committee that the bill is designed to support farmers and promote sustainability.
“With changing agricultural technology, it’s important for our farmers to stay compliant and up to date,” Bouchat said. “This bill aligns with the governor’s plan for economic growth, ensuring our agricultural sector remains competitive and forward thinking.”
The bill received supporting testimony from Katie Stevens, director of Frederick County Office of Agriculture.
“Frederick County’s agriculture community thrives on forward-thinking policies like House Bill 278,” Stevens said. “By supporting this bill we empower farmers to embrace sustainable practices and remain competitive.”
Lindsay Thompson, executive director of the Maryland Grain Producers Association, also spoke in support. New equipment is coming online faster than can be put into law, she said.
As an example, she mentioned an artificial intelligence sensor that reads the biomass and color of crops in the field to determine which parts of the field have potential for higher yield and could use more nutrients.
Another bill before the committee would give more options to inheritors of property in paying inheritance tax.
House Bill 245 would allow for a payment plan for inheritors who are not exempt from inheritance tax and are of limited means.
“It’s not a reduction. You can kind of make a payment plan to pay it over time,” Del. Jon Cardin, D-Baltimore, said in testimony. “So yes, the state doesn’t get the money upfront, but eventually the state gets the money.”
Only those who agree to use the inherited property as their primary residence or maintain agricultural land on the site are eligible for the payment plan. The beneficiary must have an annual gross income under $125,000 individually or under $250,000 with a joint tax return.
Del. April Miller, R-Frederick, asked if there was a stipulation on how long the beneficiary must maintain it as a primary residence. Cardin said last year’s version of the bill included a requirement, and it could be added to this year’s bill if need be.
