HF 3999

as introduced - 89th Legislature (2015 - 2016) Posted on 05/24/2016 08:23am

A bill for an act
relating to agriculture; establishing an apprentice farmer assistance program;
authorizing income tax credits for participating established farmers; requiring
rulemaking; amending Minnesota Statutes 2014, section 290.06, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 17.

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

Section 1.

new text begin [17.111] APPRENTICE FARMER ASSISTANCE PROGRAM; TAX
CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Agricultural assets" means agricultural land; livestock, poultry, or crop
production, processing, or storage facilities; and machinery used to farm in Minnesota.
new text end

new text begin (c) "Apprentice farmer" means a resident of Minnesota who:
new text end

new text begin (1) is seeking entry or has entered within the last ten years into farming;
new text end

new text begin (2) intends to farm land located in Minnesota; and
new text end

new text begin (3) possesses other qualifications required by the commissioner.
new text end

new text begin (d) "Established farmer" means a person authorized to own or operate agricultural
land under section 500.24 who regularly participates in the physical labor or management
of farming and is required by federal law to file a Schedule F with United States Internal
Revenue Service Form 1040 or indicates farming as the primary business activity under
Schedule C, K, or S, or any other applicable report to the United States Internal Revenue
Service.
new text end

new text begin Subd. 2. new text end

new text begin Tax credit for eligible established farmers. new text end

new text begin (a) As authorized by the
commissioner, an established farmer may take a credit against the tax due under chapter
290 for sharing agricultural assets with an apprentice farmer, transferring agricultural
assets to an apprentice farmer, or providing farming-related investment capital to an
apprentice farmer.
new text end

new text begin (b) By rule, the commissioner, in consultation with the commissioner of revenue,
must establish eligibility criteria, application and reporting requirements, and the size of
the tax credits in a manner that most effectively and efficiently encourages established
farmers to mentor and financially assist apprentice farmers.
new text end

new text begin (c) The credit is limited to the liability for tax as computed under chapter 290 for
the taxable year. If the amount of the credit determined by the commissioner for any
taxable year exceeds this limitation, the excess is a credit carryover under section 290.06,
subdivision 37.
new text end

new text begin (d) If the apprentice farmer is related by blood or marriage to the established farmer
or to a partner, member, shareholder, or trustee of the established farmer, the established
farmer may receive a tax credit under this section no more than once every five calendar
years.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking required. new text end

new text begin The commissioner must adopt rules to implement
this section.
new text end

Sec. 2.

Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Apprentice farmer assistance credit. new text end

new text begin (a) An apprentice farmer
assistance credit is allowed against the tax due under this chapter if expressly authorized
by the commissioner of agriculture under section 17.111.
new text end

new text begin (b) The credit is limited to the liability for tax, as computed under this chapter, for
the taxable year. If the amount of the credit determined by the commissioner of agriculture
for any taxable year exceeds this limitation, the excess is a credit carryover to each of the
15 succeeding taxable years. The entire amount of the excess unused credit for the taxable
year is carried first to the earliest of the taxable years to which the credit may be carried
and then to each successive year to which the credit may be carried. The amount of the
unused credit which may be added under this paragraph must not exceed the taxpayer's
liability for tax, less the apprentice farmer assistance credit for the taxable year.
new text end