Owners of Agricultural Assets Credit
If you are an agricultural asset owner who sells or rents assets to beginning farmers in Minnesota, you may be eligible for a nonrefundable credit.
You may claim the credit if certified by the Rural Finance Authority (RFA). For details about this 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
To 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
The credit amount 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. You may carry over unused portions of the credit for 15 years.
| If you | Then you may qualify for a credit of | Your maximum credit is |
|---|---|---|
| Sold assets to a beginning farmer | 8%* of the lesser of the sale price or the fair market value of the asset *12% if the sale is to an emerging farmer | $50,000 |
| 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 |
