Bill > SF1419

This bill eliminates the cap on available tax credits for owners of agricultural assets who sell or rent their land, livestock, facilities, buildings, and machinery to beginning farmers in Minnesota. The bill modifies existing law to remove previous annual allocation limits of $6,500,000 and $4,000,000 for these credits, which were previously distributed on a first-come, first-served basis. The tax credit amounts remain unchanged: owners can still claim 8% of a sale price (up to $50,000), 10% of gross rental income for the first three years (up to $7,000 per year), or 15% of share rental income for the first three years (up to $10,000 per year). The bill also replaces the term "emerging farmer" with "limited land access farmer" and adjusts the credit rate for sales to limited land access farmers from 8% to 12%. Farmers must still apply for certification and meet specific eligibility requirements, such as having adequate farming experience, demonstrating profit potential, and providing majority physical labor and management on the farm. The changes are set to take effect for taxable years beginning after December 31, 2024, and aim to support beginning farmers by making agricultural asset transfer credits more accessible.

Agriculture and Natural Resources, Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1419&ssn=0&y=2025