Dairy Farmer Tax Credit

Learn about a tax credit available to Massachusetts dairy farmers.

Updated: January 3, 2024

Overview

Massachusetts dairy farmers may be eligible for a tax credit against Massachusetts income tax or corporate excise liability.

The Massachusetts dairy farmer tax credit is intended to offset downturns in milk prices paid to dairy farmers. When the cost of milk drops below a price based on federal standards, a dairy farmer may be eligible for the tax credit against:

• The Massachusetts personal income tax or
• The corporate excise tax

The credit amount is based on the amount of milk the farm produces and sells anytime during the tax year.

Eligibility

With a certificate of registration as a Massachusetts dairy farmer from the Commissioner of the Massachusetts Department of Agricultural Resources (MDAR), a taxpayer may be eligible for a dairy farmer tax credit.

The credit amount is based on the amount of milk produced and sold by the farmer.

Visit Apply to the Dairy Farmer Tax Credit Program.

Refund and Cap

The dairy farmer credit is a refundable credit.  The total amount of credits granted through the program cannot exceed $8,000,000 in any year. The credit isn't transferable.

For more information, details on how amounts are calculated, and important definitions please see:

• Massachusetts General Laws Chapter 62, Section 6(o) (Personal income)
• Massachusetts General Laws Chapter 63, Section 38Z (Corporate excise)

• Code of Massachusetts Regulations 300-399 CMR 330 - Department of Agricultural Resources 330 CMR 29.00 - DAIRY FARMER TAX CREDIT PROGRAM