SB 689 amends Michigan's farmland preservation law to expand when landowners can give up (relinquish) farmland from development rights agreements. It adds two new scenarios: 1) land with pre-existing structures (up to 5 acres), and 2) land for a farm operator's residence (up to 2 acres), both requiring approval from local government and the state land use agency. If relinquishment occurs, landowners must repay tax credits received under the agreement, plus interest, via a lien recorded against the property. This directly affects farmers with existing farmland preservation agreements who wish to develop or use portions of their land for specific purposes.
SB 685 amends Michigan's farmland tax credit law (MCL 324.101-324.90106) by adding Section 36109b. It expands eligibility for the farmland tax credit to properties with existing legal agreements (like easements or leases) that were in place before a specific date, even if those arrangements complicate ownership. This change directly affects farmers and landowners who hold farmland subject to multiple pre-existing agreements, allowing them to qualify for the tax credit they previously might have been excluded from. The bill passed unanimously in the Michigan Senate on December 2, 2025, after being referred to the Agriculture Committee.
SB 690 expands a state income tax credit for property taxes on farmland and open space protected by conservation agreements, such as agricultural easements or development rights agreements. Eligible farm owners - including those in partnerships, S corporations, life estates, trusts, and limited liability companies - can claim a credit for property taxes exceeding 3.5% of household income. The bill clarifies how the credit is calculated and shared among different ownership structures, requiring specific documentation like partnership agreements or trust terms to claim it. This change directly affects Michigan farmers who have conservation agreements on their land to preserve agricultural use.
SB 699 increases the annual cap on administrative spending from $1.4 million to $1.7 million for managing Michigan's Agriculture Preservation Fund. This fund supports farmland protection programs, directly affecting the Michigan Department of Agriculture and Rural Development (as fund administrator), local governments receiving grants, and farmers seeking land preservation. The bill specifies that after covering administrative costs ($1.7M max annually) and local government grants, any remaining funds over $5 million can be used to purchase farmland development rights or conservation easements. These changes clarify how fund money is allocated, ensuring resources directly support farmland preservation efforts under existing state policy.
SB 166 allocates funding for K-12 public schools in the state for the 2025-2026 fiscal year. It directly affects all public K-12 school districts by providing their state education budget. The bill establishes the specific financial amounts schools will receive during this fiscal period. It became law on October 7, 2025, with immediate effect (PA 0015'25).
SB 419 increases the annual disbursement rate from Michigan's Children's Trust Fund from 4.25% to 5% of the fund's 12-quarter rolling average (starting in 2018 if the fund meets a $23.5 million minimum), and raises it further to 8% beginning in 2026. The fund, which supports child abuse prevention and related programs using state tax revenues and other sources, uses a rolling average to smooth out annual fluctuations in value. This change directly affects the amount of money available for children's services each year. The bill does not alter the fund's funding sources or disbursement authorization process.
SB 435 adjusts Michigan's home heating credit for individual income tax by changing the inflation index used to calculate the credit amount. Instead of using the standard U.S. Consumer Price Index (CPI), the bill requires the Detroit Consumer Price Index (CPI) to determine annual credit adjustments. This change directly affects Michigan residents who claim the home heating credit, particularly those in Detroit or areas with cost-of-living patterns reflected in the Detroit CPI. The policy modifies how the credit amount is updated each year to better align with local heating cost trends, rather than national averages.
SB 132 creates a tax credit for Michigan taxpayers who donate to the endowment funds of qualifying community foundations. It directly affects individual income tax filers who make eligible contributions to these community foundations. The bill amends Michigan's tax code (MCL 206.1-206.847) by adding Section 261, allowing donors to reduce their state tax liability by a percentage of their donation. This is a concrete policy change that provides a financial incentive for charitable giving to community foundations.
This bill requires online marketplaces (like Amazon or Etsy) to collect and pay Michigan's sales tax on all sales they facilitate, regardless of whether the individual seller has a physical presence in the state. It shifts tax audit responsibility from sellers to the marketplace platform, and prohibits class-action lawsuits against platforms over tax overpayments. The bill also creates a new rule allowing delivery services (e.g., food or package delivery apps) to deduct tax they paid to sellers from their own tax bill under specific conditions. These changes apply to all marketplace transactions, including those involving delivery networks.
SB 208 creates the Michigan Veterans Coalition Grant Program, which provides state funding to veteran service organizations (VSOs) to support their operations. To qualify, VSOs must certify they provide accredited veteran service officer hours to help veterans access federal benefits like healthcare and financial aid. Grants come from the existing Michigan Veterans Coalition Fund and cover allowable costs directly tied to veteran service operations, such as staffing and outreach. The program requires approval from the Michigan Veterans Affairs Agency and depends on SB 207 becoming law. The bill passed the Senate on June 3, 2025, but remains pending legislative action.
