Interest on agricultural loans

From the 2024 DOR Tax Exemption Study

82.04.4294 - Interest on agricultural loans Description Lending institutions can deduct from the measure of B&O tax interest from loans made to: - Farmers. - Ranchers. - Producers/harvesters of aquatic products. - Cooperatives of farmers, ranchers, and producers/harvesters of aquatic products. To qualify for the deduction, the lending institution must be: - Exclusively owned by its borrowers or members, and - Solely engaged in the business of making loans and providing finance-related services to: - Farmers. - Ranchers. - Producers/harvesters of aquatic products. - Cooperatives of farmers, ranchers, and producers/harvesters of aquatic products. - Rural residents for housing. - Businesses furnishing farm-related or aquatic-related services. Purpose To reduce the cost of loans supporting the agriculture industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4.050 $4.120 $4.120 $4.150 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.770 $4.120 $4.150 Local Taxes $0.000 $0.000 $0.00