MI SB0697

Establishes a tax credit for owners of agricultural assets who sell or rent assets to beginning farmers for tax years 2022-2026, with credit amounts of 5% of sale price (max $32,000), 10% of rental income (max $7,000/year), or 15% of share rent income (max $10,000/year).

Requires the Department of Treasury, in consultation with the Department of Agriculture and Rural Development, to certify eligible taxpayers and issue certificates that must be attached to tax returns claiming the credit.

Caps total annual credits at $5,000,000, with unused amounts up to $1,000,000 potentially carried forward one year if annual approvals fall below the cap.

Defines "beginning farmer" as a Michigan resident who entered farming within the last 10 years, has a net worth not exceeding $800,000 (adjusted annually for inflation), provides majority farm management and labor, and demonstrates adequate farming experience and profit potential.

Requires annual reports beginning February 2024 through 2028 to legislative committees detailing credit numbers, amounts, geographic distribution, types of assets, and beginning farmer data to evaluate program effectiveness.