HB 5169 Michigan House · 2025-2026 Regular Session

Sales tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4mm.

HB 5169 creates a sales tax exemption in Michigan for materials and equipment used in qualifying large agricultural processing projects. It directly affects businesses investing $100 million or more in constructing, expanding, or retooling agricultural facilities that process livestock, crops, or plant products (excluding forest products). The exemption applies only to tangible property that becomes a permanent, structural part of the facility or its infrastructure. This change modifies Michigan's General Sales Tax Act to reduce costs for significant agricultural development projects meeting specific investment and scope criteria.

Issues: ✗ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Oct 2025

Committee Review

Floor Vote

Governor

Introduced Oct 30, 2025 Last action Jun 18, 2026

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What changed between versions

House Introduced Bill → Substitute (H-2) · 2 edits

MINOR

The bill was amended to expand the list of exempt items to include services related to construction and improvement of agricultural facilities. Additionally, the minimum capital investment threshold required for a project to qualify for this tax exemption was lowered from $100 million to $50 million, making the incentive accessible to a wider range of projects.

Scope change

The bill's scope was expanded to cover both tangible personal property and specific construction services, and the financial threshold for eligibility was reduced.

ELIGIBILITY

Added an exemption for services involving the construction, alteration, repair, or improvement of real estate for others connected to large agricultural processing facility projects.

REQUIREMENT

Reduced the minimum capital investment requirement for a project to qualify for the tax exemption from $100,000,000 to $50,000,000.

Floor votes

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No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 18, 2026

Committee

referred to Committee on Rules

lower

Jan 22, 2026

Committee

referred to second reading

lower

Jan 22, 2026

Lower · Passed

reported with recommendation with substitute (H-2)

lower

Oct 30, 2025

Committee

referred to Committee on Economic Competitiveness

lower

Oct 30, 2025

Introduced

introduced by Representative Rep. Luke Meerman

lower

1 primary · 13 co-sponsors