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Last Updated: 1/8/2019

Tax Credit for Owners of Agricultural Assets

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Beginning in tax year 2018, you may be eligible for a nonrefundable credit if you own agricultural assets and sell or rent them to beginning farmers in Minnesota. You can carry over unused portions of this credit for 15 years. 

Do I qualify for this credit?

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
 
 

How much is the credit?

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 approval by the Rural Finance Authority (RFA).
 
​ 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

How do I claim the credit?

 
Enter your certificate number received from the RFA, and include this schedule when you file your Minnesota income tax return.