Michigan Senate Bill SB0690

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; 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

Impact

The bill's provisions signify a shift in state law towards supporting agricultural communities and preserving open space. By broadening access to tax credits, it addresses the financial challenges faced by farmland owners bound by development restrictions. The amendments would allow individuals from various ownership structures, such as partnerships and corporations, to qualify for these credits, enhancing the financial viability of agricultural endeavors. Moreover, the initiative is anticipated to bolster efforts in conserving agricultural land and ensuring the sustainability of farming in Michigan.

Summary

Senate Bill 0690 aims to expand the eligibility for tax credits related to farmland and open space affected by development rights agreements and agricultural conservation easements. It proposes amendments to section 36109 of the 1994 PA 451, allowing individuals filing tax returns under the state income tax act to claim a credit against their state income tax liability. The key measure is that property taxes on land and structures utilized for farming, which fall under specific agreements, may exceed 3.5% of household income to qualify for these tax credits. Thus, the bill seeks to support landowners in maintaining agricultural operations while managing tax burdens.

Sentiment

The general sentiment surrounding SB 0690 appears positive among agricultural stakeholders who advocate for enhanced support for farmers facing increasing taxes on preserved agricultural lands. Proponents believe that the bill will aid in maintaining Michigan's agricultural heritage and effectively address the economic pressures on landowners. However, some concerns may arise from environmental groups regarding the implications of expanding development rights, highlighting the need for a careful balance between agricultural development and environmental preservation.

Contention

There may be points of contention regarding the qualifications for claiming tax credits under this bill. The stipulation requiring property taxes to exceed 3.5% of all household income poses a threshold that some agricultural businesses might find challenging to meet, especially those operating with lower profit margins. Additionally, opposition could focus on the administrative considerations of tracking and verifying the compliance of properties under development rights agreements, potentially complicating participation in the credit program.