How and when can I claim a new agreement?

New farmland development rights agreements (FDRA) must be approved by your local government by November 1st to be eligible to be claimed for that tax year.  The new agreement is not valid until you receive a copy from the Michigan Department of Agriculture and Rural Development (MDARD) which has been recorded at the Register of Deeds.   If you do not receive your recorded copy before the filing deadline, file your return without claiming credit for the new agreement.  Once you receive the recorded agreement, file a MI-1040-CR5 with a new MI-1040 and write “amended” at the top of the form in blue or black ink for quickest processing.  Do not file an Amended Michigan Income Tax Return (MI-1040X-12).  If the property was purchased in the tax year, you must prorate the property taxes for the period you owned the land and claim your credit based only on those taxes.