Amends TCA Title 43 and Title 67, Chapter 6.

Generally under present law, the sale at retail, lease, rental, use, consumption, distribution, repair, storage for use or consumption in this state of certain farm equipment and machinery is exempted from sales and use tax when sold to a qualified farmer or nurseryman. This bill adds the following to the present law list of tangible personal property that qualifies for the farm equipment and machinery sales tax exemption: (1) Any equipment and technology purchased for: soil testing; soil carbon sequestration; the implementation of regenerative farming practices, including, but not limited to, compost application, mulching, no-till, and conservation tillage and cover cropping; organic farming; conservation farming practices, including, but not limited to, direct seeding, field windbreaks, rotational grazing, perennial forage crops, reduced summer fallow, and proper straw management; or reforestation; and (2) Tree seedlings. The Tennessee Agricultural Enhancement Program (TAEP) provides cost share dollars to agricultural producers. To qualify for the program, there are certain minimum acreage requirements, depending on the type of producer. According to the department of agriculture's website, the minimum acreage requirement in regard to row crops is 100 acres of land in row crop production of corn, cotton, soybeans, and wheat only. This bill adds a statutory provision that minimum acreage requirements for eligibility for cost-share grants associated with the row crop solutions portion of the department's Tennessee agricultural enhancement program are as follows: (1) 100 acres of land in row crop production; or (2) 50 acres of land in row crop production if the applicant for the program's cost-share grant engages in: soil carbon sequestration; regenerative farming practices, including, but not limited to, compost application, mulching, no-till, or conservation tillage and cover cropping; organic farming; or other conservation farming practices.