Budget & Taxes (Tax Incentives)

in committee · Michigan · House Jun 18, 2026

HB 5169: 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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesProvides targeted sales tax exemption for large agribusinesses ($100M+ projects), creating tax break primarily for corporations rather than middle/lower income or public services.85% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · Senate Sep 18, 2025

SB 557: Corporate income tax: credits; research and development credit for certain businesses located in an aerospace defense zone; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.

SB 557 creates tax credits for businesses in Michigan's designated aerospace defense zones. It offers a 30% credit on qualifying research and development expenses (capped at $10 million per business annually) and a 20% credit on storage/maintenance costs for finished goods inventory (capped at $1 million per business annually). To qualify, businesses must be designated by the Michigan Strategic Fund as defense contractors, aerospace manufacturers, or tiered suppliers with under $5 million in annual revenue. The credits require certification from the Strategic Fund, have annual spending limits ($100 million for R&D credits, $25 million for inventory credits), and cannot be claimed on the same expenses as other credits. This bill directly affects small-to-midsize aerospace and defense businesses operating within designated zones in Michigan.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax credits for businesses, reducing state tax revenue and weakening the tax base.90% confidence

Sub-Topics Business Taxes Tax Incentives

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signed · Michigan · House Oct 8, 2025

HB 4182: Use tax: exemptions; motor fuel sales; exempt. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & adds sec. 4gg. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4183'25, SB 0578'25

This bill (HB 4182) amends Michigan's use tax law to add a new exemption for motor fuel sales. It specifically creates a new section (4gg) in the law to exempt certain motor fuel transactions from use tax. The bill directly affects businesses selling motor fuel, potentially reducing their tax burden on qualifying sales. However, the provided context does not specify the exact scope of the exemption or who qualifies for it, so the summary cannot detail the precise mechanisms or affected parties beyond the general tax exemption for motor fuel.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax exemption for motor fuel sales, reducing state tax revenue. Directly limits tax collection efforts, aligning with 'oppose' stance on fiscal management.95% confidence

Sub-Topics Sales Tax Tax Incentives

signed · Michigan · House Oct 8, 2025

HB 4180: Sales tax: exemptions; motor fuel sales; exempt. Amends secs. 6a & 25 of 1933 PA 167 (MCL 205.56a & 205.75) & adds sec. 4gg. TIE BAR WITH: HB 4181'25, HB 4182'25, HB 4183'25, SB 0578'25

HB 4180 removes the sales tax requirement for motor fuel sales in Michigan by amending the state tax code. It directly affects gas stations and fuel retailers by exempting motor fuel transactions from the standard sales tax. The bill creates a new tax exemption provision (Section 4gg) in the tax code, specifically excluding motor fuel sales from taxable transactions. This change became effective immediately upon the Governor's approval on October 7, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRemoves sales tax on motor fuel, reducing state tax revenue and weakening tax collection under Budget & Taxes.95% confidence ✗ TransportationOpposes TransportationBill exempts motor fuel sales from sales tax, removing a key revenue source for transportation infrastructure funding (e.g., road maintenance), directly weakening transportation funding mechanisms.85% confidence

Sub-Topics Sales Tax Tax Incentives Transportation Funding

in committee · Michigan · Senate May 13, 2025

SB 292: Property tax: exemptions; property tax exemption for principal residence of certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy.

Senate Bill 292 proposes a new property tax exemption for certain senior citizens in Michigan, effective for taxes levied after December 31, 2025. It would exempt the principal residence of individuals aged 70 or older from property taxes. To qualify, an individual must own and occupy the property as their primary home and file a claim with their local assessing unit. Once granted, the exemption remains in effect as long as the individual continuously owns and occupies the property. The bill also states the legislature's intent to annually appropriate state funds to compensate local governments for any resulting lost revenue.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates property tax exemption for seniors, reducing government revenue from property taxes, directly limiting tax collection and weakening fiscal revenue streams.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · Senate Jul 29, 2025

SB 486: Economic development: other; SOAR fund; eliminate. Amends sec. 2 of 2000 PA 489 (MCL 12.252) & repeals sec. 4 of 2000 PA 489 (MCL 12.254). TIE BAR WITH: SB 488'25

SB 486 eliminates the Strategic Outreach and Attraction Reserve (SOAR) fund, a dedicated revenue source for economic development programs under Michigan's trust fund law. The bill repeals Section 4 of the 2000 Michigan Trust Fund Act (MCL 12.254), which established the SOAR fund for attracting businesses and supporting community outreach initiatives. This change directly affects state funding mechanisms for economic development efforts, removing a specific allocation channel. The repeal is contingent on Senate Bill 488 also becoming law.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals dedicated SOAR fund, eliminating specific revenue allocation for economic development programs, reducing dedicated budget funding.90% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · House Oct 21, 2025

HB 4787: Property tax: exemptions; property tax exemption for certain utility personal property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 4788'25

HB 4787 would exempt utility companies' replacement electric distribution infrastructure from general property taxes after December 31, 2025, if the infrastructure replaces older systems. To qualify, owners must apply annually by March 1 to local assessors and submit detailed reports by March 31 each year, including location, description of the replaced infrastructure, and safety/reliability improvements. The exemption depends on another bill (HB 4788) being enacted first. This directly affects electric utilities upgrading their aging infrastructure.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts utility infrastructure from property taxes, reducing state/local tax revenue. Directly weakens government fiscal resources through corporate tax break, aligning with 'oppose' indicators.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · Senate Oct 30, 2025

SB 633: Individual income tax: credit; state historic preservation tax credit; eliminate. Amends secs. 266a & 676 of 1967 PA 281 (MCL 206.266a & 206.676). TIE BAR WITH: SB 0631'25

SB 633 eliminates Michigan's state historic preservation tax credit program, which previously allowed property owners to claim a 25% tax credit for qualified rehabilitation expenses on historic buildings. The bill directly affects developers and property owners who relied on this credit for restoring historic resources, removing their eligibility for tax benefits under this program. Key provisions include repealing sections of the Income Tax Act that governed the credit's application process, annual funding limits ($5 million total), and requirements for certification of historic rehabilitation projects. This change would end the state's financial incentive for historic preservation projects that currently qualify under this credit.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates historic preservation tax credit, removing tax benefits for property owners under individual income tax provisions.95% confidence ✗ HousingOpposes HousingEliminates historic preservation tax credit (25% rehab credit) that supported housing development on historic properties, directly reducing financial incentives for housing rehabilitation projects.92% confidence

Sub-Topics Income Tax Tax Incentives Historic Preservation Property Taxes

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passed · Michigan · Senate Nov 13, 2025

SB 199: Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts TIF funds for pre-1993 management contracts, phasing out $3M/year payments for taxes through 2009, reducing fiscal allocation to legacy obligations.95% confidence

Sub-Topics Debt & Bonds Tax Incentives Tags Economic Development

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in committee · Michigan · House Dec 2, 2025

HB 5292: Corporate income tax: credits; ability to claim certain certificated credits against corporate income tax liability; provide for, and repeal Michigan business tax act. Amends secs. 605 & 680 of 1967 PA 281 (MCL 206.605 & 206.680); adds sec. 670 & repeals 2007 PA 36 (MCL 208.1101 - 208.1519). TIE BAR WITH: HB 5293'25

HB 5292 allows corporations with pre-2012 approved tax credits (for job creation or investment) to claim the remaining unused portion against their corporate income tax liability starting in 2026, spread equally over 10 years. To qualify, businesses must maintain at least 95% of their full-time jobs (35+ hours weekly with payroll taxes withheld) as of September 30, 2025, each tax year. The bill also repeals Michigan’s Business Tax Act (2007 PA 36) for tax years beginning after December 31, 2025, ending that separate tax system. This directly affects corporations holding unused credits from older economic development programs.

Topics ✗ Budget & TaxesOpposes Budget & TaxesAllows corporations to claim unused tax credits and repeals Business Tax Act, reducing state tax revenue and weakening tax system.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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