On Tuesday May 30th, Minnesota’s Governor Mark Dayton signed a bill authored by Rep. Nels Pierson (R-Rochester) and Sen. Mike Goggin (R-Redwing) that supports the transition of land to young and beginning farmers through a new tax credit inventive.
Through the bill, landowners receive a state income tax credit when they sell or rent land or agricultural assets to a beginning farmer. The credit equals five percent of the sale price or ten percent of the cash rent, or fifteen percent for a cash share agreement. In turn, the beginning farmer must take a farm management course to qualify for the tax incentive and would be eligible for a tax credit covering the full cost of training. The tax credit is effective in the 2018 tax year and is funded at 12 million dollars for the 2020-2021 biennium. The funds are available on a first-come-first-served basis. Finally, the sunset for the credit is 2023 with the Rural Finance Authority issuing a report on the effectiveness of the credit no later than Feb. 1, 2022.
To learn more about this tax credit and what it means to you, reach out to Christianson PLLP today!