Budget & Taxes

Michigan House Bill 6270 creates a temporary sales tax exemption for the purchase of building materials used to construct new single-family homes or small multi-family dwellings with up to four units. This two-year benefit applies to both homeowners and construction companies, provided that a valid building permit is in place at the time of the material sale. The bill requires state officials to submit annual reports to the legislature detailing how many new homes were built, jobs created, and the impact on state tax revenue due to this exemption.

Michigan Senate Bill 1136 amends state law to cap the amount public employers can spend on employee health insurance, introducing new fixed dollar limits for single, couple, and family coverage starting in 2027. The bill also reverses a previous provision that allowed employers to pay no more than 80% of total medical costs, instead mandating that they pay at least 80% of those expenses beginning in the same year. These new financial caps are adjusted annually based on changes in Michigan health insurance rates or a minimum 3% increase, whichever is higher. Existing collective bargaining agreements that conflict with these limits are exempt until their current terms expire or are renegotiated.

Michigan House Bill 6295 creates a state grant program to help medical, nursing, and other health professions schools promote primary care careers to middle school and high school students. The Department of Health and Human Services would administer the program by awarding grants to eligible educational institutions that agree to conduct outreach activities targeting these younger student groups. A dedicated fund within the state treasury would support the grants, with money carried over from year to year rather than expiring. The department is also required to publish an annual public report detailing the program's cost-effectiveness, successes, challenges, and recommendations for future changes.

Michigan employers licensed to sell alcohol, such as bars and restaurants, can claim a $250 tax credit for each employee who completes required training on preventing positional asphyxiation. This training is specifically designed for staff members, including bouncers, whose job duties involve the potential restraint of other individuals. The bill mandates that employers cover the costs of this instruction to qualify for the credit against their state income tax withholdings. These provisions are set to take effect for tax years beginning on or after January 1, 2027, provided two related bills from the current legislative session are also enacted into law.

SB 1140 amends the Brownfield Redevelopment Financing Act to exempt museum authorities, specifically those created under the art institute and history museum acts, from having their property taxes captured by brownfield redevelopment plans. This change prevents local governments from diverting tax revenues that would otherwise go directly to these cultural institutions when nearby properties are redeveloped as brownfields. The bill takes effect only if companion bills SB 1139 and SB 1141 are also enacted, ensuring a coordinated update to the state's economic development financing framework.

Michigan House Bill 6225 permanently reduces the state individual income tax rate to 3.9% starting in 2028, eliminating a previous automatic mechanism that could have lowered the rate further based on general fund revenue growth. The bill establishes a phased reduction schedule, lowering the tax from 4.15% in 2026 to 4.0% in 2027 before reaching the final rate. It also mandates specific annual deposits from income tax collections into the state school aid fund and the renew Michigan infrastructure fund, with the latter receiving $69 million per year beginning in fiscal year 2030.

Michigan House Bill 6271 creates a new individual income tax credit for taxpayers who pay local building permit fees to construct a new single-family home. Starting with the 2027 tax year, eligible individuals can claim a credit equal to their actual permit costs, up to a maximum of $2,500 per year. The bill requires taxpayers to provide reasonable proof of these expenses to the state department if requested. If the total credit amount is greater than the taxpayer's annual income tax liability, the excess portion must be refunded to the taxpayer rather than being lost.

Michigan House Bill 6298 is a supplemental appropriations act that reallocates funds within the Department of Health and Human Services for the fiscal year ending September 30, 2026. The bill directs $150 million to the newly established Youth and Family Justice Bureau while reducing allocations for other child welfare functions, including foster care payments and local office staff compliance. These funding shifts are intended to support the specific powers and duties of the bureau as defined in the state probate code, effectively consolidating resources under this new agency structure.

HB 6228 amends the Michigan Tax Increment Financing Act to exclude property taxes levied for history museum authorities from the pool of tax increment revenues that local development authorities can capture. This change directly affects downtown development, local development finance, and other TIF authorities by preventing them from using captured property value growth to fund projects in areas where a history museum authority has already established its own tax base. The bill applies this exclusion across multiple sections of the act governing different types of development zones, ensuring that these specific museum-related taxes are not diverted to other municipal economic development efforts.

Michigan House Bill 6224 repeals the Comprehensive Road Funding Tax Act, which was enacted as Public Act 23 of 2025. This legislation removes specific state tax provisions that were previously established to generate revenue for road infrastructure projects. By eliminating these statutes, the bill directly affects taxpayers and state agencies responsible for collecting and managing those funds.