evidence: Your state may offer special tax credits for certain farming operations or behaviors. A common state tax credit is a "beginning farmer" credit. These credits are used by states like Minnesota and Iowa to incentivize the transfer of farm property or farm assets to new or beginning farmers. [...] Other states, like Virginia, offer tax credits for the purchase of equipment or investment in best management practices. Virginia’s list of farming-focused tax credits includes: Contact your state department of agriculture to learn more about local tax credits that you can take advantage of as a farm or ranch business and/or landowner.