4594: Farmland Preservation Tax Credit (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4594 calculates the 2025 Farmland Preservation Tax Credit for corporate farm owners, estates, and trusts. It reports gross receipts qualification, property taxes on land under agreements, and the resulting credit. This form can only be filed with a Michigan Business
Who files this form
The 2025 Michigan Form 4594 is for corporate farm owners, estates or trusts claiming the Farmland Preservation Tax Credit. It can only be filed with a Michigan Business Tax return.
If you have agreements entered into on or after January 1, 1978, use the qualification formula in Part 1, line 13 or line 18. Once you choose a formula, you must use it for all future claims. If all contracts were entered into before January 1, 1978, skip Part 1 and go to Part 2.
What you'll need
- Property tax statements: Attach copies for all land under agreements. Put the corresponding agreement number on each statement.
- Agreement information: Have each agreement's county code, expiration date, contract number, agreement date and total property tax amount available.
- Gross receipts and property tax figures: If completing Part 1, have agricultural gross receipts and enrolled-land property taxes for the five years before the claim year. The averaging formula also uses property taxes from the first year under contract.
- Tax return figures: Part 3 asks for the amount from Form 4567, line 47, the depletion allowance claimed on your federal income tax return, and compensation of shareholders.
- Taxpayer information: Provide your FEIN or TR number, organization type, NAICS code, principal business activity and business start date.
How to file
File Form 4594 only with a Michigan Business Tax return. The supplied form does not provide a mailing address or e-filing directions.
- Type or print in blue or black ink. Complete the taxpayer and tax-year information.
- Complete Part 1 if required for your agreements.
- In Part 2, complete columns A through D and lines 21 through 29. If you have more than one agreement, also complete columns E and F to allocate the credit.
- Attach the required property tax statements, with the corresponding agreement number on each. Enter amounts in whole dollars, without cents.
- Calculate the credit on line 29 and enter that amount on Form 4574, line 15.
Common mistakes
- Filing the form separately: Form 4594 can only be filed with a Michigan Business Tax return.
- Changing qualification formulas: Once you elect a formula, all future claims must use that formula.
- Missing statements or agreement numbers: Attach property tax statements for all land under agreements and include the corresponding agreement number on each statement.
- Including cents: Part 2 requires whole-dollar amounts only.
- Leaving allocation columns blank when they apply: Complete columns E and F if you have more than one agreement.
Questions people ask
What are the two gross receipts qualification options?
Under line 13, agricultural gross receipts must be greater than five times the property taxes on enrolled land in at least three of the five years before the claim year. Under line 18, the average agricultural gross receipts from columns A, B and C must be greater than five times the property taxes on enrolled land in the first year under contract. Check the box for the qualifying formula you elect.
Do I need to complete Part 1 if all my contracts predate January 1, 1978?
No. The form directs you to go to Part 2 if all contracts were entered into before January 1, 1978.
How do I allocate the credit among multiple agreements?
Divide each agreement's tax amount in column D by the total on line 20, column D. Enter that percentage in column E, then multiply the line 29 credit by that percentage to complete column F.
What if the taxes that cannot be claimed exceed the qualifying taxes?
If line 28 is greater than line 23, enter zero as the credit on line 29.