SF1428

SF1428 (Legislative Session 94 (2025-2026))

Beginning farmer tax credits eligibility expansion provision

Related bill: HF1292

AI Generated Summary

This legislative bill, known as S.F. No. 1428, proposes to expand the eligibility for beginning farmer tax credits in Minnesota. The main changes include:

Definition of Eligibility: The bill clarifies who qualifies as a beginning farmer. To be eligible, individuals or entities must:
- Be residents of Minnesota.
- Have entered farming within the last ten years or are planning to start.
- Intend to farm land within Minnesota.
- Not be family members of the farm asset's owner from whom they intend to purchase or rent.
- Meet additional criteria such as having a net worth below a specified limit, providing primary labor and management on the farm, possessing adequate farming experience or knowledge, and demonstrating profit potential.
Requirements for Assistance: Beginning farmers must show that farming will be a significant source of their income. They are also required to enroll in a financial management program unless they already have certain educations or experience in agriculture that may allow for a waiver.
Certification and Compliance: Farmers need to notify the authority if they no longer meet the eligibility requirements during the three-year certification period. If requirements are not met, they lose eligibility for the tax credits.
Tax Credits: The bill aims to assist new farmers by providing them with tax credits to help offset the costs of acquiring agricultural assets like land, livestock, and equipment.

Overall, S.F. No. 1428 seeks to support and encourage new and emerging farmers in Minnesota by making it easier for them to receive financial benefits through tax credits, designed to aid in the establishment and sustainability of their farming operations.

Bill text versions

Introduction PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 16, 2025	Senate	Floor	Action	Introduction and first reading
February 16, 2025	Senate	Floor	Action	Referred to	Agriculture, Veterans, Broadband, and Rural Development
March 23, 2025	Senate	Floor	Action	Comm report: To pass as amended and re-refer to	Taxes
March 23, 2025	House	Floor	Action	Comm report: To pass as amended and re-refer to	Taxes
March 23, 2025	Senate	Floor	Action	Comm report: To pass as amended and re-refer to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Expands the eligibility criteria for beginning farmers under section 41B.0391."
      ],
      "removed": [
        "No specific removals within the cited section."
      ],
      "summary": "This bill amends the definitions related to the beginning farmer tax credits under section 41B.0391.",
      "modified": [
        "Adjusted definitions and eligibility requirements for ownership and operation of agricultural assets."
      ]
    },
    "citation": "41B.0391"
  },
  {
    "analysis": {
      "added": [
        "No additions within the cited section itself as it is only referenced for net worth limits."
      ],
      "removed": [
        "No removals within this reference."
      ],
      "summary": "The bill references the net worth limit provided under section 41B.03 subdivision 3, paragraph (a), clause (2) in determining eligibility for beginning farmer tax credits.",
      "modified": [
        "Referenced to verify compliance with existing net worth requirements."
      ]
    },
    "citation": "41B.03"
  },
  {
    "analysis": {
      "added": [
        "Provides clarification on the term 'emerging farmer' by referencing existing statutory definitions."
      ],
      "removed": [
        "No removals within the cited section."
      ],
      "summary": "References the definition of emerging farmer as specified in section 17.055, subdivision 1.",
      "modified": [
        "Clarifies the use of the term 'emerging farmer' in relation to tax credit eligibility."
      ]
    },
    "citation": "17.055"
  },
  {
    "analysis": {
      "added": [
        "References existing definitions for authorized farm limited liability companies."
      ],
      "removed": [
        "No specific removals within the cited section."
      ],
      "summary": "Cites sections and subdivisions within 500.24 regarding the definition and authorization of limited liability companies in the context of farming and agricultural land handling.",
      "modified": [
        "Alters context on handling agricultural assets and ownership eligibility for tax credits."
      ]
    },
    "citation": "500.24"
  },
  {
    "analysis": {
      "added": [
        "Clarifies residency requirement for eligibility purposes."
      ],
      "removed": [
        "No removals within the cited section."
      ],
      "summary": "Defines the term 'resident' with reference to section 290.01, subdivision 7.",
      "modified": [
        "Provides statutory backing for defining residency in eligibility criteria."
      ]
    },
    "citation": "290.01"
  },
  {
    "analysis": {
      "added": [
        "Clarifies exclusions relating to ownership of agricultural assets for dealer entities."
      ],
      "removed": [
        "No specific removals within the cited section."
      ],
      "summary": "References the definition of livestock dealers under section 17A.03, subdivision 7.",
      "modified": [
        "Uses existing statutory definitions to inform eligibility criteria."
      ]
    },
    "citation": "17A.03"
  }
]