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Panel hears small fix to farm eligibility that would let some family LLCs qualify for agricultural credits
Summary
Senate File 1428 would allow limited liability companies that are family-owned (individuals, spouses or up to two family members) to qualify under an existing agriculture-related credit or program. Sponsors described the change as narrowly tailored to reflect modern farm ownership structures. The bill was laid over.
Senate File 1428, a targeted technical change to an agriculture eligibility definition, was heard and laid over by the Minnesota Senate Tax Committee on April 3. The proposal would permit limited liability companies owned by an individual or by up to two family members (spouses or family) to qualify for the named farm credit or program.
Senator Weber, who sponsored the bill, told the committee the change is intended to reflect modern family farm ownership, noting that beginning farmers increasingly use LLCs for liability protection and succession planning. A Farm Bureau representative, Hunter Peterson, testified in support and described succession planning and personal-asset protection as common reasons families use LLC structures.
Fiscal staff provided a revenue estimate that showed a negligible fiscal impact for the current year. After clarifying an earlier amendment in the companion agriculture committee that broadened eligibility to spouses or two family members, the committee laid Senate File 1428 over without further action.
Action and next steps: Senate File 1428 was laid over by the committee for further consideration; no roll-call vote was recorded in the transcript.
