Minnesota Senate Proposes Tax Bill to Boost Agriculture and Support Rural Growth

Minnesota Senate Proposes Tax Bill to Boost Agriculture and Support Rural Growth

In a notable move towards revamping tax policy for agriculture, the Minnesota Senate unveiled a tax bill aimed at underpinning the state's farming sector and enhancing opportunities for rural areas. The bill, orchestrated by Senate Taxes Committee Chair Ann Rest and bearing contributions from both sides of the aisle, is set to ease the passage of family farms across generations and invigorate new farming enterprises.

The legislation, outlined Wednesday and swiftly taking center stage in committee discussions, is expected to be brought before the full Senate. In a statement obtained by Senate DFL, Senator Aric Putnam conveyed, "This tax bill is good for agriculture." Not to be left out, Majority Leader Erin Murphy has emphasized the coalescence of rural community upliftment with agricultural success as a cornerstone of the proposed tax revisions.

Among the highlights of the bill is a sustainable aviation fuel (SAF) tax credit, poised to establish Minnesota as a hub for SAF production. Equipping the state with $15 million over four years, the tax incentive promises to engender new jobs and markets for local farm products. Additionally, the bill proposes to wholly eliminate the cap on Beginning Farmer Tax Credits to further buttress the entry of nascent agriculturalists into the industry.

A gamut of other provisions is included to ensure agriculture's sustainability and resilience. From property tax modifications favoring small-scale market farmers to the incorporation of floriculture into the agricultural property tax framework, the intent is clear—to continually to expand the promotional reach of farming pursuits. Moreover, a pilot Ag Water Quality Tax Credit is set to valorize environmentally considerate farming practices in designated Minnesota counties.

Endorsements for the bill from agriculture sector heavyweights signal its wider appeal. Dan Glessing, President of the Minnesota Farm Bureau Federation, and Gary Wertish, President of the Minnesota Farmers Union, echoed their support for the bill's family farm preservation efforts and its stride towards sustainability, according to Senate DFL statements. The proposed legislation shows a unified effort to elevate the standard of living and work for those anchored in Minnesota's soil.

SOURCE: hoodline