HB 4124 creates a tax credit for Michigan corporations that spend money on research and development for advanced small modular nuclear reactors (SMRs). It directly affects companies developing this specific type of nuclear technology within the state. The bill adds new sections to Michigan's tax code, allowing businesses to claim a credit against their corporate income tax for qualifying R&D expenses related to SMRs. This policy change aims to incentivize investment in emerging nuclear energy technology within Michigan. The bill passed the House on October 28, 2025, with 78 yeas and 26 nays.
HB 4184 increases Michigan's excise tax on aviation fuel from 3.10 cents to 4.00 cents per gallon. It directly affects fuel sellers, airlines, and airport operators by changing how this tax revenue is distributed. The bill modifies Section 203 of the Aeronautics Code to require 35% of the tax revenue to fund the state aeronautics fund and 65% to fund qualified airports. It also retains the 1.5-cent refund for airlines operating interstate flights and the exemption for fuel used in leaded racing fuel production.
HB 4187 modifies Michigan's corporate income tax law by adjusting how the tax base is calculated and clarifying revenue distribution. It requires corporations to add back certain taxes and expenses previously deducted for federal purposes (like state taxes or related-party royalties) and eliminates deductions for oil/gas and mineral-related income and expenses. For the 2021-2022 fiscal year, the bill directs $800 million of corporate tax revenue to the Michigan taxpayer rebate fund, while other years’ revenue flows to the general fund. This directly affects corporations operating in Michigan and the state’s budget allocation process.
HB 4186 increases Michigan's business income tax rate from 4.95% to 30% for all business activity occurring on or after January 1, 2025. This rate change directly affects businesses operating within Michigan that are subject to the state's business tax, including those previously filing under the corporate income tax act. The bill amends sections 201 and 500 of the Michigan Business Tax Act (2007 PA 36) to implement this rate increase and adjust the tax base calculations for businesses. The change represents a significant policy shift in how Michigan taxes business income, effective in 2025.
HB 4230 creates a new "neighborhood road fund" in Michigan's state treasury, funded by $100 million annually from income tax revenues (specifically from Section 695 of the 1967 Income Tax Act). This fund directly affects county road commissions, city and village road agencies, and the local bridge advisory board. Key provisions require $100 million yearly to be reserved exclusively for repairing closed, restricted, and critical bridges (managed by the advisory board), while the remaining funds are distributed to road agencies based on their road mileage - $100,000 per county commission plus a mileage-based share for all counties, and similarly for cities/villages. The bill specifies these funds must cover road preservation, maintenance, and preventative work without requiring local matching funds.
HB 5140 expands local governments' authority to impose hotel and short-term rental taxes. It allows cities in counties with 600,000-775,000 residents to levy up to 3% on accommodations (previously capped at 2%), while counties under 600,000 residents can tax up to 8% but require voter approval for rates above 5%. The bill directly affects hotels, vacation rentals, and online booking platforms that collect these taxes. Local governments must follow specific voter approval processes and administration rules under the amended law.
SB 679 amends Michigan's Lawful Sports Betting Act to change how 10% of certain sports betting revenue is allocated. It directs 90% of payments under Section 7(1)(f) to the state general fund, and 10% to the Michigan Strategic Fund Bureau (as defined in the Michigan Strategic Fund Act). This change is conditional, requiring the separate passage of Senate Bill 631 to take effect. The bill directly affects state revenue distribution from sports betting, updating the allocation mechanism without altering the underlying sports betting law.
SB 692 modifies how regional transit authorities in Michigan can raise funds for public transportation. It requires voter approval for local transit taxes through a November election, with ballot measures clearly stating the tax rate, duration, purpose, and whether it's a renewal or new tax. The bill mandates that at least 85% of funds collected from local taxes or vehicle registration fees must be spent on transit services within the community where the money was raised. It also adds new reporting requirements for transit authorities starting January 1, 2027, including annual cost/revenue reports and asset management plans.
HB 4816 creates a new individual income tax credit for Michigan residents who invest in certain Michigan businesses. It directly affects Michigan taxpayers who make qualifying investments in eligible local companies. The bill adds a specific provision to Michigan's tax code allowing these investors to claim a credit against their state income tax. This credit aims to incentivize personal investment in Michigan-based businesses through a direct tax benefit.
HB 4087 establishes a "strategic bitcoin reserve" by adding Section 351a to Michigan's budget act, allowing the state treasurer to invest up to 10% of funds from the general fund or the countercyclical budget fund into cryptocurrency. The bill requires that any cryptocurrency held must be secured through specific custody methods (like secure custody solutions or qualified custodians) and prohibits loans that increase financial risk. It also mandates that crypto payments received by the state be converted to cash and deposited into the general fund, with designated funds reimbursed from that fund. This bill directly affects how the state treasurer manages state funds and handles cryptocurrency transactions, with no impact on individual citizens or businesses.
