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HF1292 (Legislative Session 94 (2025-2026))

Beginning farmer tax credits eligibility expanded.

Related bill: SF1428

AI Generated Summary

This bill, H.F. No. 1292, introduced in the Minnesota House of Representatives, seeks to expand eligibility for beginning farmer tax credits by amending Minnesota Statutes 2024, section 41B.0391, subdivision 1.

Key changes and definitions in the bill include:

  1. Expanding the Definition of a Beginning Farmer:

    • Must be a resident of Minnesota.
    • Must have entered or be seeking entry into farming within the last ten years.
    • Must intend to farm within Minnesota.
    • New flexibility regarding family ownership: Previously, beginning farmers could not purchase or rent land from family members. The bill introduces exceptions under subdivision 2, paragraph (f) (not detailed in this excerpt).
    • Must meet eligibility requirements such as having a net worth below a certain limit, providing the majority of labor and management, demonstrating profit potential, and completing a financial management program (with possible waivers for relevant education or experience).

  2. Expanding the Definition of Agricultural Assets:

    • Includes land, livestock, facilities, buildings, and machinery used in farming in Minnesota.

  3. Adding Definitions for Emerging Farmers and Other Terms:

    • Defines “emerging farmer” as per Minnesota Statutes 17.055.
    • Clarifies “family member” according to the Internal Revenue Code.
    • Defines “farm product” to cover various plant and animal-based agricultural products.
    • Outlines farm operation definitions, including “farming”, “limited liability companies”, and “owners of agricultural assets” who qualify for the tax credit.

  4. Changes to Owner of Agricultural Assets Definition:

    • Specifies that equipment and livestock dealers primarily engaged in selling assets for profit do not qualify as agricultural asset owners for the purposes of this tax credit.
    • Requires owners of agricultural assets to notify the authority if their status changes, impacting their tax credit eligibility.

Overall Purpose:

The proposed changes aim to make more beginning farmers eligible for tax credits by modifying ownership restrictions and adjusting qualifications, thereby helping new and emerging farmers enter or sustain farming in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025HouseFloorActionIntroduction and first reading, referred toAgriculture Finance and Policy
March 19, 2025HouseFloorActionCommittee report, to adopt and re-refer toTaxes
March 19, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Definitions for family member and emerging farmer were added, referencing the Internal Revenue Code and section 17.055."
      ],
      "removed": [
        "Clarifications were made in the language regarding owner and use of agricultural assets, potentially simplifying previous requirements."
      ],
      "summary": "This bill amends section 41B.0391 to expand the definitions and eligibility criteria for beginning farmer tax credits.",
      "modified": [
        "Eligibility requirements are modified to be more inclusive, such as waiving the financial management program requirement under certain conditions."
      ]
    },
    "citation": "41B.0391"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References limits established under section 41B.03 for net worth eligibility.",
      "modified": [
        "Specifies net worth limitations for beginning farmers seeking tax credits."
      ]
    },
    "citation": "41B.03"
  },
  {
    "analysis": {
      "added": [
        "Aligns the bill’s definition of 'emerging farmer' with existing definitions in section 17.055."
      ],
      "removed": [],
      "summary": "Incorporates the definition of emerging farmer from section 17.055.",
      "modified": []
    },
    "citation": "17.055"
  },
  {
    "analysis": {
      "added": [
        "Includes criteria for limited liability companies to qualify as family farm or authorized farm entities."
      ],
      "removed": [],
      "summary": "References to section 500.24 clarify types of limited liability companies that qualify.",
      "modified": [
        "Clarifies qualifications for limited liability companies in farming and land ownership."
      ]
    },
    "citation": "500.24"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Establishes the meaning of resident as given in section 290.01.",
      "modified": [
        "Defines 'resident' for the purposes of this bill in line with section 290.01 definitions."
      ]
    },
    "citation": "290.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to section 17A.03 defines livestock dealer exclusions.",
      "modified": [
        "Clarifies exclusions from the definition of owner of agricultural assets."
      ]
    },
    "citation": "17A.03"
  }
]

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