Bill > SB0697

This bill provides a tax credit for owners of agricultural assets who sell or rent those assets to beginning farmers in Michigan. The credit is 5% of the sale price or fair market value of the asset, up to $32,000, or 10-15% of the rental income for the first three years of a rental agreement, up to $7,000-$10,000 per year. The total amount of credits is capped at $5 million per year, and the credit can be carried forward for up to five years if it exceeds the taxpayer's liability. The bill also defines a "beginning farmer" as an individual with certain requirements, such as being a state resident, seeking to enter farming, and having a net worth under $800,000. The Department of Treasury and Department of Agriculture and Rural Development are responsible for administering the credit and providing an annual report on its effectiveness.