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Massachusetts Farming and Fisheries Credit
Extracted from PDF file 2023-massachusetts-schedule-faf.pdf, last modified May 2023Farming and Fisheries Credit
Massachusetts Department of Revenue Schedule FAF Farming and Fisheries Credit 2023 Name as shown on Massachusetts tax return Social Security number(s) Address (do not enter PO box) City/Town State Zip Type of business. (Fill in one oval only. Complete a separate schedule for each type of business.) ● Agricultural/farming ● Commercial fishing If lessor or lessee, fill in applicable oval, skip Part 1 and complete Part 2. (If lessor, see instructions.) ● Lessor ● Lessee Description of property, or address if real property Part 1. Calculation of current year Farming and Fisheries Credit 1 Amount of qualifying property acquired, constructed or erected during 2023 (see instructions) . . . . . . . . . . . . . . . . . . . . . 1 2 Farming and fisheries credit available for 2023. Multiply line 1 by 0.03 (3%). Note: Be sure to complete Part 3. . . . . . . . . . . 2 Part 2. Calculation of current year Farming and Fisheries Credit for lessor or lessee 1 Adjusted basis of qualifying property acquired, constructed or erected during 2023 (see instructions). . . . . . . . . . . . . . . . 1 2 Multiply line 1 by 0.03 (3%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Number of days in the tax year during which the lessee leases the qualifying property. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Number of days in the useful life of property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Divide line 3 by line 4. Be sure to carry out division to six places. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Farming and fisheries credit available for 2023. Multiply line 2 by line 5. Note: Be sure to complete Part 3 . . . . . . . . . . . . 6 Part 3. Computation of Farming and Fisheries Credit allowable on return 1 Total farming and fisheries credit available for this year. Add Part 1, line 2 and Part 2, line 6 . . . . . . . . . . . . . . . . . . . . . . . 1 2 Unused credit from prior years (from 2022 Schedule FAF, line 7, col. c; see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Massachusetts farming and fisheries credit available this year. Add lines 1 and 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Total tax from return (from Form 1, line 28; Form 1-NR/PY, line 32; or Form 2, line 41) less limited income credit, and/or credit for taxes due to other jurisdictions, and/or certain other credits, if any. Not less than 0 (see instructions). . . . . . . . . 4 5 Massachusetts farming and fisheries credit allowable this year (smaller of lines 3 or 4). Enter here and on Schedule CMS. Note: You must enclose Schedule FAF with your return. Failure to do so will result in this credit being disallowed on your tax return and an adjustment to your reported tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Unused Massachusetts Farming and Fisheries Credit carryover 6 Complete only if Part 3, line 3 is more than Part 3, line 5, or if you have unused credits from prior years. Year 2021 2022 2023 7 Totals a. Unused credits from prior years and current year credit (2022 Sch. FAF, line 6, col. c) _______________ (2022 Sch. FAF, line 6, col. c) _______________ (2023 Sch. FAF, Part 3, line 1) _______________ b. Portion used this year ________________ ________________ ________________ c. Unused credit available Subtract col. b from col. a Amount For ________________ ________________ ________________ 2024 2024-2025 2024–2026 _______________ ________________ ________________ Schedule FAF Instructions General Information What is the farming and fisheries credit? The farming and fisheries credit is similar to the investment credit available to manufacturing, R&D corporations and corporations primarily engaged in agriculture or commercial fishing. The new credit applies to personal income taxpayers who are primarily engaged in agriculture, farming or commercial fishing. The amount of the credit is 3% of the cost or other basis for federal income tax purposes of qualifying property acquired, constructed or erected during the tax year. This credit is effective for tax years beginning on or after January 1, 2015. What is qualifying property? Qualifying property is defined as tangible personal property and other tangible property including buildings and structural components thereof which are located in Massachusetts, used solely in farming, agriculture or fishing, and are depreciable with a useful life of at least four years. What if I am a lessor or lessee? The law allows the same credit to lessees calculated as follows: 3% of a lessor’s adjusted basis in qualifying property for federal income tax purposes at the beginning of the lease term, multiplied by a fraction, the numerator of which is the number of days of the tax year during which the lessee leases the qualifying property and the denominator of which is the number of days in the useful life of the property. Where the lessee is eligible for the credit, the lessor is generally not eligible, with the exception of “equine-based businesses where care and boarding of horses is a function of the agricultural activity.” Is there a recapture provision? If the property on which a credit is taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and allowed for actual use must be added back as additional taxes due in the year of disposition, unless the property has been in qualified use for more than 12 years. What if my farming and fisheries creditis larger than my tax liability? If your farming and fisheries credit is greater than the amount you owe in personal income tax for the year, the balance of unused credit may be carried over into the next tax year. You may carry over an unused portion of the original credit, as reduced from year to year, for up to three subsequent tax years.
Schedule FAF
More about the Massachusetts Schedule FAF Individual Income Tax TY 2023
We last updated the Farming and Fisheries Credit in January 2024, so this is the latest version of Schedule FAF, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule FAF directly from TaxFormFinder. You can print other Massachusetts tax forms here.
Other Massachusetts Individual Income Tax Forms:
TaxFormFinder has an additional 126 Massachusetts income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form 1 | Resident Income Tax Return |
| Form 1-NR/PY | Nonresident or Part-Year Resident Income Tax Return |
| Form 1-ES Instructions | Estimated Income Tax Forms & Instructions |
| Form M-4868 | Application for Automatic Six-Month Extension of Time to File Massachusetts Income Tax Return |
| Form 1 Instructions | Individual Income Tax Instructions |
View all 127 Massachusetts Income Tax Forms
Form Sources:
Massachusetts usually releases forms for the current tax year between January and April. We last updated Massachusetts Schedule FAF from the Department of Revenue in January 2024.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Massachusetts Schedule FAF
We have a total of three past-year versions of Schedule FAF in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
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