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Read. Follow. Verify.Missouri adds definition of taxpayer to farmland-sale and lease income tax deductions for farmers
Original title: Modifies provisions relating to an income tax deduction for certain farmers
Last action · February 12, 2026: SCS Voted Do Pass S Agriculture, Food Production and Outdoor Resources Committee (4319S.02C)Sponsor: Brad Hudson
Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law
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What This Bill Would Do
Senate Bill 1291 amends Missouri adjusted gross income calculations by adding a formal definition of "taxpayer" to existing income tax deductions for farm owners who sell, lease, or enter s with s.
Why it matters
Clarifies which business structures and entities qualify for state income tax deductions on farmland transactions with s, affecting individuals, trusts, partnerships, and corporations subject to Missouri income tax.
Background
- State income tax deductions for selling or leasing farmland to beginning farmers are designed to encourage generational turnover and assist new entrants into agriculture. 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
Farm owners
Farm owners selling, leasing, or entering crop-share agreements with beginning farmers are subject to explicit taxpayer definitions and deduction caps.
Directly affected
Beginning farmers
Individuals participating in beginning farmer loan or production programs are verified by the Department of Agriculture to enable farm owners to claim tax deductions.
Directly affected
Missouri Department of Revenue
The department must review tax deductions and compile an annual report for legislative committees.
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
Who is included in the new definition of a taxpayer for these deductions?
The definition includes any individual, trust, firm, partner in a firm, corporation, partnership, shareholder in an S corporation, or member of a limited liability company subject to state income tax.
Is there a limit on cash rent income deductions when leasing to a beginning farmer?
Yes, no taxpayer shall subtract more than twenty-five thousand dollars per tax year in total cash rent income received from the lease or rental of farmland.
Who verifies whether someone qualifies as a beginning farmer?
The Missouri Department of Agriculture shall, by rule, establish a process to verify that a taxpayer is a and provide verification of qualification.
What else do you want to know?
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
5 actions- Feb 12, 2026SenateCommitteeSCS Voted Do Pass S Agriculture, Food Production and Outdoor Resources Committee (4319S.02C)
- Feb 5, 2026SenateHearing Conducted S Agriculture, Food Production and Outdoor Resources Committee
- Jan 27, 2026SenateFloorSecond Read and Referred S Agriculture, Food Production and Outdoor Resources Committee
- Jan 7, 2026SenateIntroducedS First Read
- Dec 1, 2025SenatePrefiled
Version history & redline
2 versions on fileComparing 4319S.01I - Introduced → Senate Committee Substitute - Committee Version
removed addedOfficial text
removed: EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
added: 4319S.02C
1
SENATE added: COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1291
removed: 103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HUDSON.
4319S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 143.121, RSMo, and to enact in lieu thereof one new section relating to an income
tax deduction for certain
[…]
liability under any other federal law that provides direct economic impact payments to taxpayers to mitigate financial challenges related to the COVID-19 pandemic, and added: 2
deducted from Missouri adjusted gross income under section 143.171; (2) Interest on certain governmental obligations excluded from federal gross income by 26 U.S.C. Section
[…]
1986, as amended, for a net operating loss the taxpayer claims in the tax year in which the net operating loss occurred or carries added: 3
forward for a period of more than twenty years and carries backward for more than two years. Any amount of net operating loss taken
[…]
3. There shall be subtracted from the taxpayer's federal adjusted gross income the following amounts to the extent included in federal adjusted gross income: added: 4
(1) Interest received on deposits held at a federal reserve bank or interest or dividends on obligations of the United States and its territories
[…]
acquired the right to receive the income or gain, or to a trust or estate from which the taxpayer received the income or gain; added: 5
(4) Accumulation distributions received by a taxpayer as a beneficiary of a trust to the extent that the same are included in federal adjusted
[…]
on or before the date designated by the President by Executive Order as the date of the termination of combatant activities in such zone; added: 6
(9) For all tax years ending on or after July 1, 2002, with respect to qualified property that is sold or otherwise disposed of
[…]
would have been allowable under 26 U.S.C. Section 163, as amended, if the limitation under 26 U.S.C. Section 163(j), as amended, did not exist; added: 7
(12) One hundred percent of any retirement benefits received by any taxpayer as a result of the taxpayer's service in the Armed Forces of
[…]
be added to or subtracted from the taxpayer's federal adjusted gross income the taxpayer's share of the Missouri fiduciary adjustment provided in section 143.351. added: 8
5. There shall be added to or subtracted from the taxpayer's federal adjusted gross income the modifications provided in section 143.411. 6. In addition
[…]
be subtracted from the taxpayer's federal adjusted gross income to the extent the amount paid for any such activity is included in federal taxable added: 9
income. The taxpayer shall provide the department of revenue with a summary of any recommendations made in a qualified home energy audit, the name
[…]
section shall expire on December 31, 2020. 10. (1) As used in this subsection, the following terms mean: (a) "Beginning farmer", a taxpayer who: added: 10
a. Has filed at least one but not more than ten Internal Revenue Service Schedule F (Form 1040) Profit or Loss From Farming forms
[…]
as follows: a. A sale to a beginning farmer; b. A lease or rental agreement not exceeding ten years with a beginning farmer; or removed: SB 1291 1 c. A crop-share arrangement not exceeding ten removed: years30 added: years
with a beginning removed: farmer;30 added: farmer;
(c) "Qualified family member", an individual who removed: is30 added: is
related to a farm owner within the fourth degree by removed: blood,30 added: blood,
marriage, or adoption and who is purchasing or leasing or removed: is30 added: is
in a crop-share arrangement for land from all or a removed: portion30 added: portion
of such farm owner's farming removed: operation;30 added: operation;
(d) "Taxpayer", any individual, added: trust, firm, partner in removed: a30 added: a firm, corporation, partnership, shareholder in an removed: S3 added: S
corporation, or member of a limited liability removed: company3 added: company
subject to the income tax imposed under this removed: chapter,3 added: chapter,
excluding withholding tax imposed under sections 143.191 removed: to3 143.265.3 added: to
143.265.
(2) (a) In addition to all other removed: subtractions3 added: subtractions
authorized in this section, a taxpayer who is a farm removed: owner3 added: owner
11
who sells all or a portion of such farmland to a removed: beginning3 added: beginning
farmer may subtract from such taxpayer's Missouri removed: adjusted3 added: adjusted
gross income an amount to the extent included in removed: federal3 added: federal
adjusted gross income as provided in this removed: subdivision.3 added: subdivision.
(b) Subject to the limitations in paragraph (c) removed: of3 added: of
this subdivision, the amount that may be subtracted shall removed: be3 added: be
equal to the portion of capital gains received from the removed: sale3 added: sale
of such farmland that such taxpayer receives in the tax removed: year3 added: year
for which such taxpayer subtracts such capital removed: gain.3 added: gain.
(c) A taxpayer may subtract the following amounts removed: and3 added: and
percentages per tax year in total capital gains removed: received3 added: received
from the sale of such farmland under this removed: subdivision:3 added: subdivision:
a. For the first two million dollars received, removed: one3 added: one
hundred removed: percent;3 added: percent;
b. For the next one million dollars received, removed: eighty3 percent;3 added: eighty
percent;
c. For the next one million dollars received, removed: sixty3 percent;3 added: sixty
percent;
d. For the next one million dollars received, removed: forty3 added: forty
percent; removed: and3 added: and
e. For the next one million dollars received, removed: twenty3 percent.3 added: twenty
percent.
(d) The department of revenue shall prepare an removed: annual3 added: annual
report reviewing the costs and benefits and removed: containing3 added: containing
statistical information regarding the subtraction of removed: capital3 added: capital
gains authorized under this subdivision for the previous removed: tax3 added: tax
year including, but not limited to, the total amount of removed: all3 added: all
capital gains subtracted and the number of removed: taxpayers3 added: taxpayers
subtracting such capital gains. Such report shall removed: be3 added: be
submitted before February first of each year to removed: the3 added: the
committee on agriculture policy of the Missouri house removed: of3 added: of
representatives and the committee on agriculture, removed: food3 added: food
12
production and outdoor resources of the Missouri senate, removed: or3 added: or
the successor removed: committees.3 added: committees.
(3) (a) In addition to all other removed: subtractions3 added: subtractions
authorized in this section, a taxpayer who is a farm removed: owner3 added: owner
who enters a lease or rental agreement for all or a removed: portion3 added: portion
of such farmland with a beginning farmer may subtract removed: from3 added: from
such taxpayer's Missouri adjusted gross income an amount removed: to3 added: to
the extent included in federal adjusted gross income removed: as3 added: as
provided in this removed: subdivision.3 added: subdivision.
(b) Subject to the limitation in paragraph (c) of removed: this3 added: this
subdivision, the amount that may be subtracted shall removed: be3 added: be
equal to the portion of cash rent income received from removed: the3 added: the
lease or rental of such farmland that such taxpayer removed: receives3 added: receives
in the tax year for which such taxpayer subtracts removed: such3 income.3 added: such
income.
(c) No taxpayer shall subtract more than removed: twenty-five3 added: twenty-five
thousand dollars per tax year in total cash rent removed: income3 added: income
received from the lease or rental of such farmland removed: under3 added: under
this removed: subdivision.3 added: subdivision.
(4) (a) In addition to all other removed: subtractions3 added: subtractions
authorized in this section, a taxpayer who is a farm removed: owner3 added: owner
who enters a crop-share arrangement on all or a portion removed: of3 added: of
such farmland with a beginning farmer may subtract from removed: such3 added: such
taxpayer's Missouri adjusted gross income an amount to removed: the3 added: the
extent included in federal adjusted gross income as removed: provided3 added: provided
in this removed: subdivision.3 added: subdivision.
(b) Subject to the limitation in paragraph (c) of removed: this3 added: this
subdivision, the amount that may be subtracted shall removed: be3 added: be
equal to the portion of income received from the removed: crop-share3 added: crop-share
arrangement on such farmland that such taxpayer receives removed: in3 added: in
the tax year for which such taxpayer subtracts such removed: income.3 added: income.
13
(c) No taxpayer shall subtract more than removed: twenty-five3 added: twenty-five
thousand dollars per tax year in total income received removed: from3 added: from
the lease or rental of such farmland under this removed: subdivision.3 added: subdivision.
(5) The department of agriculture shall, by removed: rule,3 added: rule,
establish a process to verify that a taxpayer is a removed: beginning3 added: beginning
farmer for purposes of this section and shall removed: provide3 added: provide
verification to the beginning farmer and farm seller of removed: such3 added: such
farmer's and seller's certification and qualification removed: for3 added: for
the exemption provided in this removed: subsection.3added: subsection.
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.
Sponsors
Connected Entities
OrganizationUSDA Farm Service Agency“Operates the Beginning Farmer direct or guaranteed loan program”Map →
OrganizationMissouri Department of Agriculture“Establishes a process to verify beginning farmers and provides certification for”Map →
OrganizationMissouri Department of Revenue“Receives proof of tax deductions and prepares annual reports reviewing capital g”Map →
Sources
Open source document
www.senate.mo.gov
Analysis Score
0–100- Significance50How much this matters to a regular citizen
- Controversy10Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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