Farming and Fisheries Tax Credit

Learn about the personal income tax credit for individuals engaged in agriculture, farming, or commercial fishing.

Overview

The Farming and Fisheries Tax Credit may be available to certain personal income taxpayers in Massachusetts.

Eligible taxpayers must be primarily engaged in agriculture, farming, or commercial fishing. Those terms are defined under Massachusetts law.

The amount of the credit is 3% of the cost during the tax year. The credit is for federal income tax purposes of qualifying property:

  • Acquired,
  • Constructed or,
  • Erected.

The qualifying properties must be:

  • Personal or other tangible properties, including:
    • Buildings
    • Structures
  • Located in Massachusetts
  • Used solely in farming, agriculture, or fishing
  • Depreciable with a useful life of at least 4 years.

Carryover and Recapture

Unused credits may be carried forward for the next 3 tax years.

The credit may be recaptured if the qualified property is:

  • Disposed of, or
  • Ceases to be before the end of its useful life.

Recapture of the credit isn’t necessary if the property has been in qualified use for more than 12 years.

Additional information

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

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