Michigan Senate Bill SB0685

Michigan 2025-2026 Regular Session

• Introduced: 10/30/25
• Refer: 10/30/25
• Report Pass: 11/12/25
• Refer: 11/12/25
• Report Pass: 12/2/25
• Engrossed: 12/2/25
• Refer: 12/2/25
• Report Pass: 12/11/25
• Enrolled: 12/18/25
• Chaptered: 12/23/25
• Passed: 12/23/25

Caption

Land use: farmland and open space; eligibility for tax credit; grandfather farmland subject to multiple legal arrangements before certain date. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding sec. 36109b. TIE BAR WITH: SB 0688'25, SB 0690'25, SB 0686'25, SB 0689'25, SB 0687'25, SB 0699'25

Summary

SB 685 amends Michigan’s Natural Resources and Environmental Protection Act to create a new section allowing certain owners of farmland and related buildings to claim an existing tax credit under section 36109. The credit is available only when the land is already subject to one of several specified conservation or development-restriction arrangements, including a conservation easement under section 2141, a development rights agreement under section 36104, a purchase of development rights or agricultural conservation easement under section 36111b, or an agricultural conservation easement under section 36206. The bill applies only to arrangements executed before January 1, 2025, effectively grandfathering older easements and agreements into credit eligibility. It is part of a tie-barred package of related bills and was given immediate effect, meaning it took effect upon enactment rather than waiting for the usual effective date delay.

Impact

The bill adds section 36109b to 1994 PA 451, expanding or clarifying eligibility for an existing farmland tax credit for owners whose property is encumbered by qualifying conservation or development-rights instruments executed before January 1, 2025. Its practical effect is to preserve tax-credit access for certain landowners with preexisting easements or agreements, while not extending the same treatment to newer arrangements. The bill affects farmland owners, conservation easement holders, and state tax administration under the environmental code.

Sentiment

The bill appears to have been broadly supported and noncontroversial in the legislative process. It was reported favorably in committee and passed the Senate unanimously, then passed the House with overwhelming support and only a small number of dissenting votes. The immediate-effect vote also indicates strong legislative agreement that the measure should take effect without delay.

Contention

There is little evidence of substantive opposition in the available record. The main policy feature that could draw attention is the grandfathering cutoff date of January 1, 2025, which distinguishes between older and newer conservation arrangements and may be viewed as favoring existing landowners over future participants. The bill is also tied to several companion bills, so its enactment depends on the broader package rather than standing alone.