A bill to amend 1967 PA 281, entitled “Income tax act of 1967,” (MCL 206.1 to 206.847) by adding section 279.
Senate Bill No. 11 proposes amendments to the Income Tax Act of 1967 by introducing section 279 to encourage the sale or rental of agricultural assets to beginning farmers through tax credits. Owners are eligible for up to $32,000 for sales, $7,000 annually for cash rentals, and $10,000 annually for share rent agreements, with conditions. Taxpayers must secure a certificate from the department, in collaboration with the department of agriculture and rural development, by December 31, 2026, to claim the credit, which remains valid post this date if obtained beforehand. The annual credit cap is $5,000,000, with provisions for carrying forward unused credits. Credits exceeding taxpayer liability can be carried forward for five years. The bill also requires annual effectiveness reports, targeting beginning farmers—defined as state residents who have started farming within the last 10 years, with a net worth under $800,000 (adjusted for inflation), and meeting specific farming experience and income criteria.
Introduced
by
Referred to the Committee on Finance, Insurance, and Consumer Protection
