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 modifies the tax credit structure by removing the previous allocation limits and allowing owners to claim a credit based on a percentage of the sale price or rental income without a specified maximum amount. The bill also introduces a new provision that allows for a higher credit rate for sales to emerging farmers, increasing the credit from eight percent to twelve percent for these transactions.

Additionally, the bill outlines the responsibilities of the Rural Finance Authority in certifying both beginning farmers and owners of agricultural assets for eligibility in the program. It establishes that the certification is valid for three years and mandates that the authority must provide necessary support to beginning farmers. The effective date for these changes is set for taxable years beginning after December 31, 2024. Overall, the bill aims to enhance support for beginning farmers and promote agricultural asset transactions by providing more substantial tax incentives.

Statutes affected:
Introduction: 41B.0391, 290.06