Schedule FAF: Farming and Fisheries Credit (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule FAF calculates the 2024 Farming and Fisheries Credit for personal income taxpayers primarily engaged in agriculture, farming or commercial fishing. It reports the credit for qualifying property, the amount allowable on the return and any unused credit carry
Who files this form
Use Schedule FAF to claim the 2024 Massachusetts Farming and Fisheries Credit if you are a personal income taxpayer primarily engaged in agriculture, farming or commercial fishing and have qualifying property.
Lessees may also qualify. When a lessee is eligible, the lessor generally is not, except for equine-based businesses where care and boarding of horses is part of the agricultural activity.
Complete a separate schedule for each type of business.
What you'll need
Have these items and details ready to complete the schedule:
- Your name as shown on your Massachusetts return, Social Security number(s) and street address. Do not enter a PO box.
- A description of the qualifying property, or its address if it is real property.
- The cost or other federal income tax basis of qualifying property acquired, constructed or erected during 2024.
- For leased property, the lessor’s adjusted basis at the start of the lease, the number of days leased during the tax year and the property’s useful life in days.
- Your 2023 Schedule FAF if you have unused credits from prior years.
- Tax and credit amounts from your Massachusetts Form 1, Form 1-NR/PY or Form 2, and Schedule CMS to report the allowable credit.
How to file
- Enter your identifying information, select one business type and describe the property.
- Complete Part 1 for qualifying property acquired, constructed or erected during 2024. If you are a lessor or lessee, select the applicable oval, skip Part 1 and complete Part 2 instead.
- Complete Part 3 to calculate the credit allowed on your return. Enter the smaller of lines 3 and 4 on line 5 and on Schedule CMS.
- Complete the carryover table if Part 3, line 3 exceeds line 5, or if you have unused credits from prior years.
- Enclose Schedule FAF with your Massachusetts tax return.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out Schedule FAF. You must enclose it with your return. Otherwise, the credit will be disallowed and your reported tax adjusted.
- Skipping Part 3. Both Part 1 and Part 2 remind you to complete it.
- Rounding the lease fraction too early. Carry the division in Part 2, line 5 to six decimal places.
- Selecting multiple business types on one schedule. Fill in only one business-type oval and use a separate schedule for each type.
- Entering a PO box. The address field specifically says not to use one.
Questions people ask
How much is the credit?
The credit is 3% of the cost or other federal income tax basis of qualifying property acquired, constructed or erected during the tax year. Leased property uses a separate calculation based on the lessor’s adjusted basis, days leased and useful life.
What property qualifies?
Qualifying property includes tangible personal property and other tangible property, including buildings and structural components. It must be located in Massachusetts, used solely in farming, agriculture or fishing, and depreciable with a useful life of at least four years.
What happens if my credit is larger than my tax liability?
Unused credit may be carried forward for up to three subsequent tax years. The amount available is reduced as you use it.
What if I dispose of the property or stop using it for a qualifying purpose?
If this happens before the end of the property’s useful life, the difference between the credit taken and the credit allowed for actual use must be added back as additional tax in the year of disposition. This does not apply if the property has been in qualified use for more than 12 years.