HF1292

HF1292 (Legislative Session 94 (2025-2026))

Beginning farmer tax credits eligibility expanded.

Related bill: SF1428

AI Generated Summary

This bill, H.F. No. 1292, proposed in the Minnesota House of Representatives, seeks to expand eligibility for beginning farmer tax credits by amending Minnesota Statutes 2024, section 41B.0391, subdivision 1.

Key Changes and Provisions:

Definitions Update:
- Expands and clarifies definitions related to agricultural assets, beginning farmers, emerging farmers, family members, farm products, farming, and ownership of agricultural assets.
- Clarifies that a beginning farmer can be an individual or part of a limited liability company.
- Specifies eligibility requirements, including residence in Minnesota, farming experience, enrollment in financial management programs, and demonstrating profit potential.
- Adds a waiver provision for financial management program requirements for those with relevant degrees or experience.
New Terms and Conditions:
- Broadens eligibility for more new farmers to qualify for tax credits.
- Includes guidelines for disqualifications, such as becoming ineligible during the certification period.
- Refines the definition of an agricultural asset owner, making sure only active farm-related entities qualify.

The bill is currently under review by the Committee on Agriculture Finance and Policy. If passed, it would widen access to tax incentives for new and emerging farmers in Minnesota, supporting agricultural development and sustainability.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 19, 2025	House	Floor	Action	Introduction and first reading, referred to	Agriculture Finance and Policy
February 19, 2025	House	Floor	Action	Introduction and first reading, referred to	Agriculture Finance and Policy
March 19, 2025	House	Floor	Action	Committee report, to adopt and re-refer to	Taxes
March 19, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Added more detailed eligibility requirements for beginning farmers."
      ],
      "removed": [
        "Removed vague language that could lead to misinterpretation of beginning farmer qualifications."
      ],
      "summary": "This bill modifies eligibility and definitions for beginning farmer tax credits under section 41B.0391.",
      "modified": [
        "Adjusted the term 'farming' to ensure active use and management is specified."
      ]
    },
    "citation": "41B.0391",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This existing statute outlines net worth limitations for beginning farmers.",
      "modified": [
        ""
      ]
    },
    "citation": "41B.03",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Refers to authorization and definitions related to limited liability companies in farming.",
      "modified": [
        ""
      ]
    },
    "citation": "500.24",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Refers to the definition of an emerging farmer.",
      "modified": [
        ""
      ]
    },
    "citation": "17.055",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines livestock dealer in the context of owner of agricultural assets.",
      "modified": [
        ""
      ]
    },
    "citation": "17A.03",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Provides the definition of a resident.",
      "modified": [
        ""
      ]
    },
    "citation": "290.01",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines family member for tax purposes within the Internal Revenue Code section 267c4.",
      "modified": [
        ""
      ]
    },
    "citation": "Internal Revenue Code section 267",
    "subdivision": "c4"
  }
]