|Senate Counsel & Research||State of Minnesota|
|S.F. No. 3437 - Beginning Farmer Credit|
|Author:||Senator Gary Kubly|
|Prepared by:||Michelle Allen, Senate Counsel (651/296-0558)|
|Date:||April 6, 2006|
Subdivision 1. Definitions. This subdivision provides the qualifying definitions for agricultural assets, farm, farm products, farming or livestock production, owner of agricultural assets, beginning farmer or livestock producer, and share rent agreement.
Subdivision 2. Credit for owner of agricultural assets. This subdivision provides an income tax credit for owners of agricultural assets who sell or rent agricultural assets to beginning farmers. The credit is equal to either: (1) five percent of the sale price up to a maximum of $30,000; (2) 10 percent of the gross rental income in each of the first, second, or third years of a rental agreement; or (3) 15 percent of the cash equivalent of the gross rental income in each of the first, second, or third years of a share rent agreement. The credit can be claimed only after approval and certification by the Rural Finance Authority. This section also provides that the credit may be carried over when the credit exceeds the liability for tax.
Subdivision 3. Beginning farmer management tax credit. This subdivision provides a credit, not to exceed $500, to beginning farmers and livestock producers for the costs of participating in a financial management program approved by the Rural Finance Authority. The nonrefundable credit is available for up to three years and can be carried over for up to 15 succeeding taxable years.
Subdivision 4. Duties of the Rural Finance Authority. This subdivision vests the Rural Finance Authority with the following duties: approval and certification of beginning farmers and livestock producers and owners of agricultural assets as eligible for the credits; provide assistance and support to beginning farmers and livestock producers for qualification and participation in financial management programs approved by the Rural Finance Authority; and, refer beginning farmers and livestock producers to agencies and organizations that may provide additional assistance.
Section 2 Beginning farmer incentive credit. This section provides for the nonrefundable credit (presumably) to the owner of agricultural assets who sell or rent agricultural assets to a beginning farmer or livestock producer as referenced in subdivision 2 of section 1.
Section 3 Beginning farmer management credit. This section provides for the nonrefundable credit to beginning farmers for the costs of participation in a financial management program as referenced in subdivision 2 of section 1.
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