Minnesota Farmers Union confident Section 179 and Ag2School are safe from state budget cuts
The president of Minnesota Farmers Union is downplaying concerns that recent tax provisions welcomed by farmers could be on the chopping block.
Gary Wertish tells Brownfield the state is dealing with a budget deficit, which has led to speculation about funding for Section 179 conformity and the Ag2School Tax Credit.
“There was a lot of bipartisan support to get that passed, and there seems to be very solid support in not touching that and leaving as is. And I think Section 179 will be the same.”
Based on conversations with legislators and Governor Walz, Wertish says Minnesota would really have to be in dire straights for Section 179 or the school property tax credit to be pulled back.
“Nothing is ever secure always, so it’s definitely something to work on. And we have had that discussion to try and make sure the legislators know how valuable those were to agriculture.”
Governor Walz signed legislation last fall that raised the Section 179 expensing limit up to the federal cap of just over $1 million.
The Ag2School Credit was signed into law in 2017 and provides a 40 percent credit on property taxes levied on agricultural property for existing or future school district building debt.