Bill Text: MI HB6438 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Individual income tax: credit; credit for owners of agricultural assets who sell or rent agricultural assets to beginning farmers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281. TIE BAR WITH: HB 6437'26
Sponsorship: Partisan Bill (Republican 14)
Status: (Introduced) 2026-10-28 - Bill Electronically Reproduced 10/21/2026 [HB6438 Detail]
Download: Michigan-2025-HB6438-Introduced.html
HOUSE BILL NO. 6438
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding section 281.
the people of the state of michigan enact:
Sec. 281. (1) Subject to the limitations under this section, for tax years that begin on and after January 1, 2027, a taxpayer that is an owner of agricultural assets may claim a credit against the tax imposed by this part for the sale of agricultural assets to a beginning farmer or the rental of agricultural assets pursuant to a qualified rental agreement or share rent agreement to a beginning farmer not to exceed the amount included on the tax credit certificate for that tax year issued by the department of agriculture and rural development under the beginning farmer tax credit program act.
(2) A taxpayer is not eligible for a credit under this section unless the department of agriculture and rural development has issued a tax credit certificate to the taxpayer as required under the beginning farmer tax credit program. To claim a credit under this section, the taxpayer shall attach both of the following to the annual return filed under this part on which a credit under this section is claimed:
(a) The tax credit certificate issued under section 7 of the beginning farmer tax credit program act.
(b) If the taxpayer is claiming a credit for a qualified rental agreement or share rent agreement of an agricultural asset, proof that the qualified rental agreement or share rent agreement was active during the tax year or portion of the tax year for which the credit was claimed. For purposes of this subdivision, an agreement is not active if the agreement is terminated or the beginning farmer no longer engages in farming.
(3) For a taxpayer who is a member of a flow-through entity that has received a tax credit certificate for a credit under this section, that taxpayer may claim a credit against the member's tax liability under this part based on the member's distributive share of business income reported from that flow-through entity or an alternative method approved by the department. If the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that excess shall not be refunded, but may be carried forward to offset tax liability in subsequent years for 5 years or until it is used up, whichever occurs first.
(4) As used in this section, "agricultural assets", "beginning farmer", "owner of agricultural assets", "qualified rental agreement", and "share rent agreement" mean those terms as defined under section 3 of the beginning farmer tax credit program act.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S06809'26) or House Bill No. 6437 (request no. H06809'26) of the 103rd Legislature is enacted into law.
