Apply by November 1 for Beginning Farmer Credits

Legislation enacted in 2017 created two new tax credits starting in tax year 2018: the Beginning Farmer Management Credit and the Tax Credit for Owners of Agricultural Assets. 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 (RFA). The deadline to apply for these credits is November 1, 2018.

Do I qualify for these credits?

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 3 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.

What do I need to do if I qualify?

1. Submit an application to the RFA for the 2018 Beginning Farmer credits by November 1, 2018. For information on applying, see the RFA’s Beginning Farmer Tax Credit page.
2. After you are approved, complete  the 2018 Schedule M1C, Other Nonrefundable Credits. You must include your certificate number received from the RFA, which will start with either BF or AO.
3. Include Schedule M1C with your 2018 Minnesota Individual Income Tax return (Form M1) when you file.