The bill modifies the eligibility criteria for the beginning farmer tax credit related to the sale of agricultural assets, increasing the maximum credit amount from $32,000 to $50,000 and changing the number of agricultural assets eligible for the credit from five to eight. It also introduces new provisions that allow sales to family members to qualify for the credit, provided the sales price meets certain valuation criteria. Additionally, the credit rate for sales to socially disadvantaged farmers or ranchers is set at twelve percent instead of eight percent. The bill also appropriates $300,000 annually from the general fund to the Rural Finance Authority for the development of an online application system and the administration of the credits.

Furthermore, the bill repeals the sunset provision that would have expired the program after December 31, 2023, ensuring its continuation. The authority responsible for administering the program is tasked with certifying beginning farmers and owners of agricultural assets, while also managing the allocation of credits on a first-come, first-served basis. The changes are effective for taxable years beginning after December 31, 2022, and the repeal of the sunset provision takes effect immediately following the final enactment of the bill.

Statutes affected:
Introduction: 41B.0391