SB 966 amends the State Housing Development Authority Act of 1966 to add new powers for the State Housing Development Authority in Michigan. The bill allows the authority to establish and collect fees for its publications, loans, and related services, and to use the resulting income for its corporate purposes. These funds are not considered interest and can be used to support the authority's housing initiatives, provided they are not pledged for bond repayment. The legislation directly affects the State Housing Development Authority by expanding its financial and operational capabilities to better serve housing needs across Michigan.
HB 5806 creates a new state tax credit for individuals and businesses that invest in affordable housing projects in Michigan starting in 2027. The bill allows these investors to reduce their income tax by a specific amount tied to their share of the project, provided they receive approval from the State Housing Development Authority. It also establishes rules for how investors must report the credit, handle situations where federal tax credits are lost, and carry forward any unused credit for up to 10 years.
This bill establishes the state budget for Michigan for the fiscal year 2026-2027, allocating funds to various state departments, agencies, the judicial branch, and the legislative branch. It consolidates and adjusts appropriations from previous bills to ensure all state operations have the necessary financial resources for the upcoming year. The legislation includes conditions on how certain funds must be spent and outlines the procedures for distributing and utilizing the allocated budget. This omnibus measure directly impacts state government operations by providing the financial framework needed to run public services and government functions.
SB 721 amends Michigan's Commercial Redevelopment Act to update property tax exemption rules for commercial facilities. It limits total exemption periods to 12 years (including extensions), requires local governments to document criteria for renewing exemptions, and extends the deadline for new exemptions from 2025 to 2035. The bill also allows the state treasurer to temporarily exclude up to half the education tax mills for qualifying facilities for up to 6 years to promote job growth, with a yearly cap of 45 such exclusions. Local governments must annually report on exemption impacts, including property values and job creation. This directly affects commercial businesses seeking tax benefits, local governments issuing exemptions, and state tax administration.
SB 423 ends specific programs that helped homeowners pay overdue property taxes and avoid foreclosure. It directly affects property owners with delinquent taxes who previously could use these reduced payment options. The bill modifies existing law by setting expiration dates ("sunsetting") for these programs, meaning they will no longer be available after the specified dates. This change removes temporary relief measures, requiring affected homeowners to pay full delinquent taxes or face standard foreclosure processes.
SB 967 amends Michigan's income tax law to establish a new state low-income housing tax credit effective for tax years beginning on or after January 1, 2027. This credit is designed for project owners and equity investors who have been allocated funds to support affordable housing developments, allowing them to reduce their state tax liability by the amount of the credit. The bill includes specific rules for claiming the credit, such as requiring the attachment of an allocation form to tax returns, and mandates that the credit be claimed after other tax credits. Additionally, the legislation requires the state department to recapture a portion of the credit from taxpayers if the related federal tax credit is later disallowed or recaptured. If the credit amount exceeds a taxpayer's tax liability for the year, the unused portion can be carried forward for up to 10 years to offset future taxes.
SB 968 amends Michigan's insurance code to allow insurers to claim a credit against a specific tax on foreign insurers that are subject to higher fees or taxes in their home states. This provision, effective for tax years starting on or after January 1, 2027, permits eligible insurers to offset the tax amount equal to the state low-income housing tax credit they would otherwise qualify for. The bill directly affects domestic insurance companies that operate in Michigan and are impacted by discriminatory or excessive tax burdens imposed by other states or countries. It is part of a series of related bills designed to promote interstate business for Michigan insurers while maintaining existing tax structures for those not meeting specific criteria.
SB 584 would change Michigan's tax law to make it optional for pension administrators to withhold income tax from pension or annuity payments. Currently, pension providers must withhold tax under Section 703 of the Income Tax Act, but this bill would allow them to choose whether to withhold. The change directly affects pension administrators (like retirement plan providers) and recipients of pension payments, as it removes a mandatory withholding requirement. The bill amends Section 703 of the 1967 Income Tax Act (MCL 206.703) without altering other withholding rules for employers, flow-through entities, or casinos.
SB 199 amends Michigan's tax increment financing law to modify funding limits for certain legacy obligations. It specifically restricts the amount of tax increment revenue (revenue from increased property taxes in redevelopment areas) that can be used to pay for ongoing management contracts and professional services established before 1993. The bill phases out these payments annually, starting with $3 million per year for taxes levied through 2009, decreasing to $0 for taxes levied after June 2015. This directly affects municipalities and tax increment authorities that issued or incurred these pre-1993 obligations or related contracts.
SB 235 creates a corporate income tax credit for businesses that use sustainable aviation fuel (SAF). It directly affects airlines and fuel producers in Michigan by reducing their state tax liability based on the volume of SAF they utilize. The bill amends Michigan's tax code (MCL 206.1-206.847) to add a specific provision allowing corporations to claim this credit. This provides a financial incentive for adopting SAF, aiming to support cleaner aviation fuel adoption without specifying environmental outcomes.
