The Minnesota Department of Revenue is reminding beginning farmers and those who sold or rented to beginning farmers that the deadline to apply for two new tax credits is Nov. 1.

Legislation enacted in 2017 created the Beginning Farmer Management Credit and the Tax Credit for Owners of Agricultural Assets. The new tax credits start in tax year 2018.

You may qualify for one of these credits if either of the following are true:

• You are a beginning farmer in Minnesota.
• You own agricultural assets and sold or rented them to beginning farmers.

You may only claim these credits after approval and certification by the Rural Finance Authority.

The deadline to apply for these credits is Nov. 1.

Beginning Farmer Management Credit
Beginning in tax year 2018, you may qualify for a nonrefundable credit if you are a beginning farmer in Minnesota. To qualify, you must have participated in an RFA-approved financial management program. You may claim up to $1,500 for the amount you paid for participating in the program. You may carry forward unused portions of this credit for three years.

Tax Credit for Owners of Agricultural Assets
Beginning in tax year 2018, you may qualify for a nonrefundable credit if you are an agricultural asset owner. To qualify, you must have sold or rented assets to beginning farmers in Minnesota. You may carry forward unused portions of this credit for 15 years.

For information on applying, see the RFA's Beginning Farmer Tax Credit online page.

After you are approved, complete 2018 Schedule M1C, Other Nonrefundable Credits. You must include your certificate number received from the RFA, which will start with either BF or AO.

Include Schedule M1C with your 2018 Minnesota Individual Income Tax return (Form M1) when you file.

Questions? Contact the Minnesota Department of Agriculture at 651-2010-6004 or [email protected].

Source: Minnesota Department of Revenue