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Last Updated: 8/24/2018

Tax Credit for Owners of Agricultural Assets

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Individual Income Tax

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Beginning in tax year 2018, 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. 

How much is the credit?

The credit amount is subject to approval by the Rural Finance Authority. The amount will depend on the type of sale or rental agreement and the price or fair market value of the assets.
​ 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

​ 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

​ 15% of the cash equivalent of the 
 gross rental income

​ $10,000 per year in the first, 
 second, and third years

Do I qualify for this credit?

You may claim the credit only after approval and certification by the Rural Finance Authority (RFA). To learn more about the certification process, see the Beginning Farmer Tax Credit page on the Minnesota Department of Agriculture website.
For more information, visit the RFA’s webpage or contact them directly:
Mail: Minnesota Department of Agriculture
         625 Robert Street North
         St. Paul, MN 55155-2538
Phone: 651-201-6004

How do I claim the credit?

We will have forms to claim the credit available in January 2019.