Owners of Agricultural Assets Credit
Agricultural asset owners who sell or rent their assets to beginning farmers in Minnesota may be eligible for a nonrefundable credit. Unused portions of this credit can be carried over for 15 years.
Who Qualifies
You may claim the credit if certified by the Rural Finance Authority (RFA). To learn more about the process, see the Beginning Farmer Tax Credit page and the RFA’s webpage on the Minnesota Department of Agriculture website, or contact them:
Mail: Minnesota Department of Agriculture
625 Robert Street North
St. Paul, MN 55155-2538
Phone: 651-201-6004
Email: mda.bftc@state.mn.us
Claim the Credit
Complete Schedule M1C, Other Nonrefundable Credits.
Enter your certificate number received from the RFA and include this schedule when you file your Minnesota income tax return.
Credit Amount
It depends on the type of sale or rental agreement and the price or fair market value of the assets. The final amount is subject to the RFA’s approval.
| If you | Then you may qualify for a credit of | Your maximum credit is |
|---|---|---|
| Sold assets to a beginning farmer | 5% of the lesser of the sale price or the fair market value of the asset | $32,000 |
| Rented assets to a beginning farmer | 10% of the gross rental income | $7,000 per year in the first, second, and third years |
| Rented assets to a beginning farmer in a shared rental agreement | 15% of the cash equivalent of the gross rental income | $10,000 per year in the first, second, and third years |