HF 4323

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/09/2024 12:16pm

A bill for an act
relating to agriculture; modifying provisions related to the Minnesota Rural Finance
Authority; amending Minnesota Statutes 2023 Supplement, section 41B.0391,
subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 4, is
amended to read:

Subd. 4.

Authority duties.

(a) The authority shall:

(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;

(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);

(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;

(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and

(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.

(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.

(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than deleted text begin $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, and deleted text end $4,000,000 deleted text begin for deleted text end new text begin each new text end taxable deleted text begin years beginning after
December 31, 2023 deleted text end new text begin year new text end . The authority must allocate credits on a first-come, first-served
basis beginning on January 1 of each year, except that recertifications for the second and
third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), have first
priority. deleted text begin Any amount authorized but not allocated for taxable years ending before January
1, 2023, is canceled and is not allocated for future taxable years. For taxable years beginning
after December 31, 2022, deleted text end Any amount authorized but not allocated in any taxable year does
not cancel and is added to the allocation for the next taxable year. For each taxable year,
50 percent of newly allocated credits must be allocated to emerging farmers. Any portion
of a taxable year's newly allocated credits that is reserved for emerging farmers that is not
allocated by deleted text begin September 30 deleted text end new text begin May 31 new text end of the taxable year is available for allocation to other
credit allocations beginning on deleted text begin October deleted text end new text begin June new text end 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end