This bill aims to increase carbon sequestration in soils and associated co-benefits of increased yields, soil health, improved water quality and reductions in greenhouse gases. It does so by incentivising farmers through income tax credits to engage in farming practices that sequester atmospheric carbon.
HB 2640 would establish an income tax credit for carbon farming. It would require the Secretary of Agriculture to create the parameters of the program, including certification process, rule making, as well as educational materials. The Secretary of Agriculture in consultation with the Secretary of Revenue would annually calculate and certify the amount of credit based on the economic value of carbon farming performed by the taxpayer.