Creates Tax Credit for Farm Owners
Michigan · HB6438 · Introduced Oct 21, 2026
Why it matters
Farm owners who help beginning farmers get land or equipment could lower their state income tax bill. Beginning farmers may find it easier to start farming.
What it does
- Gives a tax credit to owners who sell or rent farm assets to beginning farmers
- Credit amount is set by the agriculture department's tax credit certificate
- Certificate must be attached to the annual state income tax return
- Unused credit can be carried forward for up to 5 years, but not refunded
- Owners in flow-through businesses can claim their share of the credit
Status
Latest action (2026-10-28): Bill Electronically Reproduced 10/21/2026
About this bill
Would create a state income tax credit for owners who sell or rent farm assets to beginning farmers starting in 2027. The credit is limited to the amount on a state-issued certificate.
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
Perspectives
💬 The case for
Farm groups would likely say the credit helps new farmers get started. It rewards owners who sell or rent land to them.
💬 The case against
Some tax groups would likely say the credit lowers state revenue. They may also question whether it is the best way to help new farmers.
Sponsored by
Sponsor details for this state bill are at the source link.
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