This bill amends Minnesota Statutes to eliminate the cap on the available amount of tax credits for owners of agricultural assets who sell or rent to beginning farmers. Key changes include the removal of the allocation limits previously imposed on the tax credits, allowing owners to claim a credit of eight percent of the sale price or fair market value of agricultural assets, with specific maximums for rental agreements. Additionally, the bill introduces a new category of "limited land access farmer" and modifies definitions related to agricultural assets and beginning farmers. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Furthermore, the bill mandates that the Rural Finance Authority provide a report to the legislature by February 1, 2024, detailing the impact of the beginning farmer tax credits issued from 2017 to 2024. This report will include various data points such as the number of credits issued, geographic distribution, and demographic information about beginning farmers. The bill also clarifies that the beginning farmer incentive credit can be carried over for up to 15 succeeding taxable years if it exceeds the taxpayer's liability for that year. Overall, the bill aims to enhance support for beginning farmers and promote agricultural development in Minnesota.

Statutes affected:
Introduction: 41B.0391, 290.06
1st Engrossment: 41B.0391, 290.06