This bill modifies the eligibility criteria for the beginning farmer tax credit related to the sale of agricultural assets in Minnesota. Key changes include increasing the maximum credit amount from $32,000 to $50,000 for the sale of an agricultural asset, and from five to eight agricultural assets eligible for the credit. Additionally, the bill introduces new provisions that allow sales to family members to qualify for the credit, provided the sales price meets certain valuation criteria. For sales to socially disadvantaged farmers or ranchers, the credit rate is increased to twelve percent. The bill also mandates a report to the legislature on the effectiveness of the tax credits, extending the reporting deadline to February 1, 2024, and repeals the sunset provision that would have ended the program after 2023.

Furthermore, the bill amends the duties of the Rural Finance Authority, ensuring that it allocates $6,000,000 in credits each taxable year on a first-come, first-served basis, while prioritizing recertifications. The authority is also required to provide necessary assistance to beginning farmers and share information with the commissioner of revenue for effective program administration. The repeal of the sunset provision allows the tax credit program to continue beyond 2023, supporting ongoing efforts to assist beginning farmers in Minnesota.

Statutes affected:
Introduction: 41B.0391
1st Engrossment: 41B.0391
1st Engrossment: 41B.0391