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HB 242PENNSYLVANIASession 2025-2026State Billpassed chamber

Passed

Pennsylvania House Bill 242 Overhauls Beginning Farmer Tax Credits and Ends Rental Credit Program

Original title: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credits relating to beginning farmers, further providing for scope of article, for definitions, for beginning farmer management tax credit and for approval of tax credit.

Last action · June 6, 2025: Referred to FINANCE, June 6, 2025Sponsors: Paul Friel and 15 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Would Do

Pennsylvania House Bill 242 modifies the state's by eliminating rental tax credits for beginning farmers, raising the sale tax credit to 5% of the asset's sale price up to $50,000, and transferring administrative oversight to the Department of Agriculture. The measure takes effect in 60 days.

Why it matters

Agricultural asset owners and new farmers face entirely new tax credit limits on property sales while losing the ability to claim credits on lease agreements, shifting state support exclusively toward land purchases.

Background

The Tax Reform Code of 1971 is Pennsylvania's primary statute governing state taxation, administration, and various specialized tax credit programs. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

owners of agricultural assets

Property owners selling agricultural assets are eligible for an increased maximum tax credit of $50,000 but lose eligibility for rental income tax credits.

Directly affected

beginning farmers

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Can I still claim tax credits for renting farmland to a beginning farmer?

No. House Bill 242 completely eliminates the rental tax credit program for agricultural assets.

What is the maximum tax credit an owner can receive for selling agricultural assets?

The credit is equal to 5% of the lesser of the sale price or the fair market value of the agricultural asset, up to a maximum of $50,000 per farm or asset.

Which state agency now oversees the beginning farmer tax credit program?

The Department of Agriculture administers the program, replacing previous shared oversight with the Department of Community and Economic Development.

What else do you want to know?

News Coverage

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Where This Stands

Currently passed chamber. The next step in the legislative lifecycle is Law.

Procedural history

11 actions

Jun 6, 2025SenateCommittee
Referred to FINANCE, June 6, 2025
Jun 6, 2025Senate
In the Senate
Jun 2, 2025HouseFloor
Third consideration and final passage, June 2, 2025 (200-3)
Jun 2, 2025HouseCommittee
Re-reported as committed, June 2, 2025
May 14, 2025House
Re-committed to APPROPRIATIONS, May 14, 2025
May 14, 2025HouseFloor
Second consideration, with amendments, May 14, 2025

Show 5 earlier actions

May 13, 2025House
Removed from table, May 13, 2025
Apr 24, 2025House
Laid on the table, April 24, 2025
Apr 24, 2025HouseIntroduced
First consideration, April 24, 2025
Apr 24, 2025House
Reported as amended, April 24, 2025
Jan 17, 2025HouseCommittee
Referred to FINANCE, Jan. 17, 2025

Version history & redline

3 versions on file

Comparing Printer's No. 1485 → Printer's No. 1720

removed addedOfficial text

PRIOR PRINTER'S NO. 161 NOS. 161, 1485 PRINTER'S NO. 1485 1720 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No. 242 Session of 2025 INTRODUCED BY FRIEL, KHAN, McNEILL, GIRAL, BARGER, HOWARD, HADDOCK, PASHINSKI, SANCHEZ, HILL-EVANS, PIELLI, FREEMAN, ZIMMERMAN ZIMMERMAN, GREEN AND GREEN, WEBSTER, JANUARY 17, 2025 AS REPORTED FROM COMMITTEE AMENDED ON FINANCE, SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 24, MAY 14, 2025 AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying […]

Redline computed from the official version text (record lane).View this version →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Related Legislation

State Bill

Pennsylvania House Bill 22 exempts National Guard pay from state personal income tax

Pennsylvania House Bill 22 excludes all salary earned by National Guard members for active and nonactive duty from state personal income tax. The chan

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Shift from Rental to Purchase Incentives

The legislation entirely repeals tax credits for renting agricultural assets while raising the cap on purchase-related tax credits, reflecting a policy pivot toward asset ownership.

Department of Agriculture

Connected Entities

Article III, Department of Revenue, Department of Community and Economic Development and 1 more

otherArticle III“Tax article against which beginning farmer tax credits are applied.”Map →

OrganizationDepartment of Revenue“Commonwealth department responsible for reviewing and approving tax credit refun”Map →

OrganizationDepartment of Community and Economic Development“Previously shared administrative duties, replaced solely by the Department of Ag”Map →

OrganizationDepartment of Agriculture“Commonwealth department tasked with administering the beginning farmer tax credi”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy25
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz20
Current news / social attention level

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