LANSING, Mich. — A bill sponsored by Sen. Roger Victory was approved by the Michigan Senate on Tuesday as part of a legislative package to clarify eligibility for the state’s Farmland and Open Space Preservation Program, commonly known as PA 116.
“This bipartisan effort is about preserving this vital program for hardworking family farmers throughout our state,” said Victory, R-Hudsonville. “Unfortunately, recent actions by state bureaucrats changed the rules and resulted in some farmers losing this important tax credit — at a time when many of them are still struggling with increased costs.
“I have heard from folks who are upset and worried about losing their family farms. These reforms would protect our local farmers, restore consistency in the program and ensure this credit is available for generations to come.”
A Michigan Department of Treasury review of tax credit eligibility resulted in tax returns of several landowners being withheld. The Michigan Department of Agriculture and Rural Development (MDARD) used consent agreements filed with local registers of deeds to waive the state’s interests for certain purchases of development rights under the PA 116 program, resulting in a loss of eligibility.
Senate Bills 685-690 and 699 would grandfather in existing agreements by specifically allowing landowners with both a conservation easement and either an agricultural conservation easement or a development rights agreement to claim a tax credit.
Victory’s bill, SB 690, would expand the tax credit for agricultural conservation easements and development rights agreements to conservation easements and to open space preservation programs. It would also require MDARD to maintain a record of each development rights agreement, agricultural conservation easement or purchase of development rights for which a tax credit was claimed. Under the bill, a landowner would be required to submit a recorded copy of a permanent conservation easement to MDARD by Nov. 1 annually to obtain the tax credit.
Among the groups supporting the bills in committee were the Michigan Farm Bureau, Michigan Environmental Council and multiple county preservation boards.
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