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 these assets to beginning farmers. Specifically, it removes the previous allocation limits for these credits, allowing for a more flexible application process. The bill also introduces a new provision that allows for a higher credit rate of twelve percent for sales to emerging farmers, compared to the standard eight percent for other sales. Additionally, it clarifies the process for claiming these credits, which now requires certification from the Rural Finance Authority without the previous limitations on the amount stated on the certificate.

The effective date for these changes is set for taxable years beginning after December 31, 2024. The bill aims to support beginning and emerging farmers by providing them with greater access to agricultural assets, thereby promoting agricultural growth and sustainability in Minnesota. Overall, the amendments are designed to streamline the process for obtaining tax credits and to enhance the financial incentives for owners of agricultural assets to engage with new farmers.

Statutes affected:
Introduction: 41B.0391, 290.06