Land use: farmland and open space; legal arrangements eligible for tax credits; expand. Amends sec. 36109 of 1994 PA 451 (MCL 324.36109). TIE BAR WITH: SB 0688'25, SB 0686'25, SB 0689'25, SB 0687'25, SB 0685'25
Take action
Record your position on this measure.
Create an account to take a stance, submit a written position, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill expands the eligibility for tax credits related to farmland and open space preservation. It allows landowners with development rights agreements, agricultural conservation easements, or purchases of development rights to claim a credit against their state income tax liability. The credit is based on the difference between property taxes paid on farmland and structures and a specified percentage of household income, with specific rules for partnerships, corporations, life estates, trusts, and limited liability companies. It also includes provisions for businesses that previously utilized the former single business tax act or Michigan business tax act to claim similar credits.
Key provisions
- Allows landowners with specific agricultural agreements (development rights, easements, purchases) to claim a state income tax credit.
- The credit is calculated based on the difference between property taxes paid and a percentage of household income.
- Specific rules apply for partnerships, corporations, life estates, trusts, and limited liability companies regarding credit eligibility.
- Provides a mechanism for shareholders of S corporations and life estate holders to claim the credit.
- Includes a provision for businesses that previously utilized the former single business tax act or Michigan business tax act to claim similar credits.
- Requires landowners to submit a recorded copy of a permanent conservation easement to the Department of Agriculture and Rural Development.
- Establishes a process for claiming credits for agreements approved between 2023 and 2025.
Bill text
Read the latest version inline or switch to a previous version.
Document of record
- Version
- Senate Concurred Bill
- Published
- Not published in the source record
This version is published only as a document. Open the viewer to read it here, or download the file.
Sponsors
Official sponsors from legislative records.
No sponsors are on record.
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours