This credit provides stability to farm operations. On your federal income tax return, you may be able to average some or all of the current year's farm income by spreading it out over the past three years. If you quality for the federal Farm Income Averaging Credit, you are eligible for the state tax credit.
Credit Amount: The credit amount is 24% of the federal Farm Income Averaging Credit.
Credit Limitation: You must be qualified for the federal Farm Income Averaging credit. This is a nonrefundable credit.
This credit is available to farmers who calculate Federal tax using Federal Schedule J.