SECTION 1. Farms, as defined under MGL Chapter 128 Section 1A, shall be eligible for a rebate of fuel taxes paid for the operation of farm equipment. Farm equipment means all machines and tools that are used in the production, harvesting, and care of agricultural or horticultural products and processes, and includes trailers that are used to transport agricultural produce or agricultural production materials between a local place of storage or supply and the farm and to the end markets, agricultural tractors, Trucks, ATVs, threshing machinery, hay-baling machinery, corn shellers, hammermills, and machinery used in the production of horticultural, agricultural, and vegetable products.

SECTION 2. The Commissioner shall publish a list of equipment eligible for a fuel tax rebate and shall prescribe the process by which a farm as defined herein shall file for a rebate. No rebate shall be processed until the farm owner or operator shall furnish evidence, on such forms as shall be prescribed by the commissioner, that any tax due under the provisions of this chapter 64 has been paid. The farm owner or operator will be required to keep and submit receipts as proof that said taxes were paid. In no case shall the reimbursement to farms under this section take longer than three months. No interest will be paid on rebates.

SECTION 3. The Commissioner shall report on the impact of this rebate program including the revenue cost, the economic impact on Massachusetts farms and mechanics of a rebate program. The report shall be sent to the Committees on Ways and Means, the Joint Committee on Revenue and the Joint Committee on the environment, Natural Resources and Agriculture. The report shall be sent no later than two years from the date the rebate program goes into effect.

SECTION 4. This rebate program shall expire 4 years from the date of effect unless reauthorized by the legislature.