On January 1, 2018, the new Minnesota Beginning Farmer Tax Credit went into effect. The new law will provide tax credits for the rent or sale of farm land or a variety of farm assets to beginning farmers. While similar to tax credits in Iowa or Nebraska, Minnesota will become the first state to provide incentives for the sale of farm land.
The beginning farmer will need to participate in an approved financial management program. Costs of financial management programs up to a maximum of $1,500 per year (for up to 3 years) may also be eligible for a tax credit. The financial management credit need not be tied to any agricultural asset sale or rental.
The agricultural asset owner can claim credits in one of the above categories in a given tax year on a per-owner basis up to the maximums stated.
The RFA will administer the tax credits by:
The asset owner may be an individual, trust, a qualified pass-through entity. The Owner of agricultural assets cannot be an equipment dealer, livestock dealer, or comparable entity engaged in the business of selling agricultural assets for profit.
For more information email or call the RFA at firstname.lastname@example.org 651-201-6004