Encouragement of Capital Investments in Agriculture Law (Amendment – Equalizing the Benefits in Industry with the Benefits in Agriculture) Bill

What does the bill do?

The proposal amends the Encouragement of Capital Investments in Agriculture Law (5741) by expanding the law's goals to preserving natural and environmental resources, changing the structure of the agricultural administration, defining the setting of an annual development policy, and significantly changing tax rates and grants. Among the changes: reducing grant percentages from 25% to 20%, setting an annual budget of at least NIS 250 million, reducing tax rates on income from agriculture (9%-16% for companies, 23%-29% for individuals, compared with higher rates today), and adding an option for the government to define investment tracks and additional parameters with Knesset approval. The proposal applies to agricultural growers, agricultural service contractors and agricultural facilities in Israel.