All Roll Calls
Yes: 174 • No: 4
MichiganSB 06902025-2026 Regular SessionSenateWALLET
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 0685'25Last Action: ASSIGNED PA 0073'25 WITH IMMEDIATE EFFECT
Sponsored By: Roger Victory (Republican)
Became Law
Land use: farmland and open space
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
Lower income tax on preserved farms
You can claim a Michigan income tax credit if your preserved farmland’s property taxes are more than 3.5% of your household income. The credit equals the amount above 3.5%. Household income for this test does not include a federal section 613 deduction if you took it. This lowers your state tax bill on land kept in farming by a qualifying restriction.
How the farm credit is paid and shared
If your credit is bigger than your tax bill, the state can pay you the extra. But your total credit cannot be more than the property tax due for that year. Unless you attach a tax‑payment receipt, the state issues a warrant to you and the county treasurer, and it pays any delinquent taxes, interest, penalties, and fees first. If several people or entities own the land, each claims a share; without a signed filing, the state splits taxes equally. Spouses count as one owner, and trust or estate beneficiaries get a share that matches their other distributions. Regular tax audit rules apply, and Treasury can ask for partnership, S‑corporation, or trust returns to verify your claim.
More preserved farms qualify, paperwork due Nov 1
More legal arrangements now qualify for the farmland credit, including development rights agreements, conservation easements, and purchases of development rights. To claim the credit for the year, you must send a recorded copy of the permanent conservation easement to the state agriculture department by November 1. The department will send you an acknowledgment with an ID number for your preserved land. If you applied for a development‑rights agreement in 2017 and the state approved it between 2023 and 2025, you can claim credits for 2017 and 2018 by December 31, 2026.
Business tax credit for preserved farms
If you claim the business tax route, you get a credit when property taxes on preserved farmland are over 3.5% of your business income tax base (including certain shareholder pay). Do not include any federal section 613 deduction in this test. To qualify, farm gross receipts must be more than 5 times the land’s property taxes in 3 of the last 5 years. Farms with a development‑rights agreement before January 1, 1978 do not need to meet that test. You may choose to compare the average of the most recent 3 years’ receipts to the property taxes in the first year of the current contract; that choice is binding later.
Sponsors & Cosponsors
Sponsor
Roger Victory
Republican • Senate
Cosponsors
Dan Lauwers
Republican • Senate
John Cherry
Democratic • Senate
Kevin Daley
Republican • Senate
Sam Singh
Democratic • Senate
Sue Shink
Democratic • Senate
Roll Call Votes
House vote • 12/18/2025
HOUSE AMENDMENT(S) CONCURRED IN
Yes: 35 • No: 0 • Other: 2
House vote • 12/16/2025
passed; given immediate effect
Yes: 102 • No: 4 • Other: 4
Senate vote • 12/2/2025
PASSED
Yes: 37 • No: 0
Actions Timeline
ASSIGNED PA 0073'25 WITH IMMEDIATE EFFECT
12/23/2025SenateFILED WITH SECRETARY OF STATE 12/23/2025 12:38 PM
12/23/2025SenateAPPROVED BY GOVERNOR 12/23/2025 11:08 AM
12/23/2025SenatePRESENTED TO GOVERNOR 12/19/2025 3:00 PM
12/23/2025SenateORDERED ENROLLED
12/18/2025SenateGIVEN IMMEDIATE EFFECT
12/18/2025SenateENROLLMENT VACATED
12/18/2025SenateORDERED ENROLLED
12/18/2025SenateFULL TITLE AGREED TO
12/18/2025SenateHOUSE AMENDMENT(S) CONCURRED IN ROLL CALL # 365 YEAS 35 NAYS 0 EXCUSED 2 NOT VOTING 0
12/18/2025HouseRULES SUSPENDED FOR IMMEDIATE CONSIDERATION
12/18/2025SenatePASSED BY HOUSE WITH AMENDMENT(S) WITH IMMEDIATE EFFECT
12/18/2025Housereturned to Senate
12/16/2025Houseinserted full title
12/16/2025Housepassed; given immediate effect Roll Call #333 Yeas 102 Nays 4 Excused 0 Not Voting 4
12/16/2025Houseread a third time
12/16/2025Houseplaced on immediate passage
12/16/2025Houseplaced on third reading
12/16/2025Houseamended
12/16/2025Houseread a second time
12/16/2025Housereferred to second reading
12/11/2025Housereported with recommendation without amendment
12/11/2025Housereferred to Committee on Agriculture
12/2/2025Houseread a first time
12/2/2025Housereceived on 12/02/2025
12/2/2025House
Bill Text
Public Act
12/23/2025
As Passed by the House
12/18/2025
Senate Concurred
12/18/2025
As Passed by the Senate
12/2/2025
Introduced
10/30/2025
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