Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 8802-H. Definitions

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Agricultural assets.”  Agricultural land, livestock, facilities, buildings and machinery used for farming.

“Agricultural production.”  As defined in section 3 of the act of June 30, 1981 (P.L. 128, No. 43),  1 known as the Agricultural Area Security Law.

“Beginning farmer.”  A person who:

(1) Has demonstrated experience in the agriculture industry or related field or has transferable skills as determined by the department.

(2) Has not received Federal gross income from agricultural production for more than the 10 most recent taxable years.

(3) Intends to engage in agricultural production within the borders of this Commonwealth and to provide the majority of the labor and management involved in that agricultural production.

(4) Has obtained written certification from the department confirming beginning farmer status.

(5) Is not, and whose spouse is not, a partner, member, shareholder or trustee of the owner of agricultural assets from whom the person seeks to purchase or rent agricultural assets.

“Department.”  The Department of Community and Economic Development of the Commonwealth.

“Farm.”  Real property on which farming occurs.

“Farming.”  The active use, management and operation of real and personal property for agricultural production.

“Lease.”  A written agreement between parties for the lease of real property on which farming occurs.

“Owner of agricultural assets.”  An individual, trust or pass-through entity that is the owner in fee of agricultural land or has legal title to any other agricultural asset.  The term does not include an equipment dealer, livestock dealer or comparable entity that is engaged in the business of selling agricultural assets for profit and that is not engaged in farming as its primary business activity.

“Tax credit.”  A tax credit established by this article.