Bill > SB0013

This bill creates a tax credit program to support beginning farmers in Michigan by providing financial incentives to agricultural asset owners who sell or rent their assets to qualifying new farmers. The credit can be claimed for tax years starting January 1, 2025, and includes up to 5% of the sale price (maximum $32,000) for selling agricultural assets, 10% of rental income for qualified rental agreements (maximum $7,000 per year), and 15% of rental income for share rent agreements (maximum $10,000 per year). To qualify, a "beginning farmer" must be a Michigan resident seeking entry into farming, have a net worth under $800,000, provide majority day-to-day farm labor and management, and demonstrate farming knowledge and profit potential. The total credits are capped at $5,000,000 per calendar year, with unused credits potentially carried forward. Taxpayers must obtain a certificate from the state departments of Treasury and Agriculture and Rural Development, and unused credits can be carried forward for up to 5 years. The bill also requires annual reporting on the program's effectiveness, including details about credit distribution, beginning farmer demographics, and geographic spread. The program is set to expire on December 31, 2029, though certificates issued before that date can still be used.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0013