The act establishes a refundable state income tax credit for active qualified stewardship practices on a farm or ranch for income tax years beginning on or after January 1, 2026, but before January 1, 2031. A qualified taxpayer may earn a state income tax credit equal to: At least $5 and no more than $75 per acre of land covered by one qualified stewardship practice, up to a maximum credit of $150,000 in one income tax year. At least $10 and no more than $100 per acre of land covered by 2 qualified stewardship practices, up to a maximum credit of $200,000 in one income tax year. At least $15 and no more than $150 per acre of land covered by at least 3 qualified stewardship practices, up to a maximum of $300,000 per income tax year. The department of agriculture may issue rules to implement the tax credit, including specifying requirements for implementing and demonstrating qualified stewardship practices. Before issuing any rules, the commissioner of the department of agriculture shall initiate a public stakeholder process to advise the commissioner about the requirements for implementing and demonstrating qualified stewardship practices. To claim the credit, a qualified taxpayer must apply to the department of agriculture for a tax credit certificate. The department of agriculture will evaluate the application and issue the certificate if the taxpayer qualifies for the tax credit. If a tax credit certificate is issued, the qualified taxpayer must attach it to the taxpayer's income tax return and submit it to the department of revenue. The aggregate amount of tax credits issued in one calendar year cannot exceed $3 million. After certificates have been issued for credits that exceed an aggregate of $3 million for all qualified taxpayers during a calendar year, any claims that exceed the amount allowed are placed on a wait list and a certificate is issued for use of the credit in the next income tax year. No more than $2 million in claims shall be placed on the wait list in any given calendar year. Only one tax credit certificate may be issued per qualified taxpayer in an income tax year, and the qualified taxpayer claiming the credit may only receive the tax credit for up to 3 income tax years. No credit may be earned if the qualified taxpayer has received another tax credit, a tax deduction, or a grant related to agricultural land health from any source during the income tax year for which the tax credit is sought. The act appropriates $17,117 to the department of agriculture from the general fund for the 2024-25 state fiscal year for use by the agricultural services division (division) to implement the act. APPROVED by Governor May 24, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)