Minnesota SF 1419: Agricultural assets owners available credit cap elimination provision

Status: Author added Nelson (as of 2025-03-06)
State: Minnesota · Session: 2025-2026 · Bill: SF 1419
Subjects: Agriculture and Agriculture Department, Revenue Department, Taxation-Income
Sponsors: Putnam, Dornink, Hauschild, Nelson, Weber
Bill Text

1.1 A bill for an act
1.2 relating to taxation; individual income; eliminating the cap on the available amount
1.3 of the credit for owners of agricultural assets; amending Minnesota Statutes 2024,
1.4 sections 41B.0391, subdivisions 1, 2, 4, 6; 290.06, subdivision 37.
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 41B.0391, subdivision 1, is amended to read:
1.7 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
1.8 the meanings given.
1.9 (b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
1.10 machinery used for farming in Minnesota.
1.11 (c) "Beginning farmer" means an individual who:
1.12 (1) is a resident of Minnesota;
1.13 (2) is seeking entry, or has entered within the last ten years, into farming;
1.14 (3) intends to farm land located within the state borders of Minnesota;
1.15 (4) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a
1.16 family member of the owner of the agricultural assets from whom the beginning farmer is
1.17 seeking to purchase or rent agricultural assets;
1.18 (5) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a
1.19 family member of a partner, member, shareholder, or trustee of the owner of agricultural
1.20 assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
1.21 and
1Section 1.
S1419-1 1st EngrossmentSF1419 REVISOR EAP
SENATE
STATE OF MINNESOTA
S.F. No. 1419NINETY-FOURTH SESSION
(SENATE AUTHORS: PUTNAM, Weber, Hauschild, Dornink and Nelson)
OFFICIAL STATUSD-PGDATE
Introduction and first reading39802/17/2025
Referred to Taxes
Comm report: To pass as amended and re-refer to Agriculture, Veterans, Broadband, and Rural
Development
646a03/06/2025
Author added Nelson674
See HF2446

2.1 (6) meets the following eligibility requirements as determined by the authority:
2.2 (i) has a net worth that does not exceed the limit provided under section 41B.03,
2.3 subdivision 3, paragraph (a), clause (2);
2.4 (ii) provides the majority of the day-to-day physical labor and management of the farm;
2.5 (iii) has, by the judgment of the authority, adequate farming experience or demonstrates
2.6 knowledge in the type of farming for which the beginning farmer seeks assistance from the
2.7 authority;
2.8 (iv) demonstrates to the authority a profit potential by submitting projected earnings
2.9 statements;
2.10 (v) asserts to the satisfaction of the authority that farming will be a significant source
2.11 of income for the beginning farmer;
2.12 (vi) is enrolled in or has completed within ten years of their first year of farming a
2.13 financial management program approved by the authority or the commissioner of agriculture;
2.14 (vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility
2.15 requirements within the three-year certification period, in which case the beginning farmer
2.16 is no longer eligible for credits under this section; and
2.17 (viii) has other qualifications as specified by the authority.
2.18 The authority may waive the requirement in item (vi) if the participant requests a waiver
2.19 and has a four-year degree in an agricultural program or related field, reasonable agricultural
2.20 job-related experience, or certification as an adult farm management instructor.
2.21 (d) "Emerging farmer" means an emerging farmer within the meaning of section 17.055,
2.22 subdivision 1.
2.23 (e) (d) "Family member" means a family member within the meaning of the Internal
2.24 Revenue Code, section 267(c)(4).
2.25 (f) (e) "Farm product" means plants and animals useful to humans and includes, but is
2.26 not limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
2.27 poultry and poultry products, livestock, fruits, and vegetables.
2.28 (g) (f) "Farming" means the active use, management, and operation of real and personal
2.29 property for the production of a farm product.
2.30 (g) "Limited land access farmer" means a farmer experiencing limited land access as
2.31 defined in section 17.133, subdivision 1.
2Section 1.
S1419-1 1st EngrossmentSF1419 REVISOR EAP

3.1 (h) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
3.2 is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
3.3 of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
3.4 17A.03, subdivision 7, or comparable entity that is engaged in the business of selling
3.5 agricultural assets for profit and that is not engaged in farming as its primary business
3.6 activity. An owner of agricultural assets approved and certified by the authority under
3.7 subdivision 4 must notify the authority if the owner no longer meets the def
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