House passes Friel bill to expand Beginning Farmer Tax Credit Program
Rep. Paul Friel June 3, 2025 | 4:38 PM
HARRISBURG, June 3 – State Rep. Paul Friel’s bill (H.B. 242) to update and expand Pennsylvania’s Beginning Farmer Tax Credit Program passed the House this week.
The measure would help Pennsylvania attract and keep new farmers by allowing new farmers to share credits with the selling landowners. The program would also be updated to give holders the option to carry the credit over three years if it’s not fully used in the year it was awarded.
“This legislation significantly supports Pennsylvania’s retiring farmers, while also creating opportunities for the next generation of young and beginning farmers, especially on local family farms,” said Friel, D-Chester. “The Beginning Farmer Tax Credit Program sends a clear message: agriculture has a strong future in Pennsylvania.
“Farms are where Pennsylvania traditions and innovations are both passed on.”
Additionally, under the bill, the maximum allocation per farm or agricultural asset for the tax credit would be increased from $32,000 to $50,000.
The program was originally established to encourage farmers and landowners to work with beginning farmers to help them get a start. However, since its passage in 2020, fewer than 50 applicants have been certified as beginning farmers under the program.
“It’s clear that Pennsylvania must provide better on-ramps for beginning farmers, and that’s where this bill comes in,” Friel said. “As Pennsylvania’s farmers retire, they are looking to leave their land available for new farmers, often family members, and we can do more to encourage that handover.”
The bill is now with the state Senate for consideration.