What is Ag2School Tax Credit?

• The Ag2School Tax Credit is an automatic 70% property tax credit for owners of agricultural land. (It does not include the house, garage, and one acre surrounding the agricultural homestead.)

• In 2017, Minnesota State Legislature conceived and passed the Ag2School tax credit program significantly reducing the tax burden on agricultural landowners.

• This tax credit reduces burden for agricultural property owners on existing and future school building bonds.

• This tax credit program is not a tax deduction – it is an automatic dollar-for-dollar credit.

• There is no application to receive the Ag2School credit. The credit is reduced automatically on the agricultural landowner’s property tax bill.

• Non-agricultural landowners (homeowners) will NOT see an increase in their taxes as a result of this tax credit – the burden for the credit is entirely paid by the State.

Who Can Participate?

The Ag2School tax program offers a 70% tax credit to all agricultural property owners including: 

• 2a (homestead and non-homestead, agricultural land)

• 2b (rural vacant land)

• 2c (managed forest land) property except for the dwelling value of the property

What is Dwelling Value?

The home, garage, and surrounding 1 acre of land is NOT eligible for the Ag2School Tax Credit and is taxed the same as a residential home.