On May 30, 2017, Governor Mark Dayton signed into law a Tax Credit for Minnesota beginning farmers. 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 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 Rural Finance Authority is in the process of creating a Beginning Farmer Tax Credit application. Please check back soon for that information.
For more information call the RFA at 651-201-6556