Budget & Taxes

in committee · Michigan · House Oct 28, 2025

HB 4088: Individual income tax: property tax credit; taxable value cap on homestead eligibility for credit; increase and modify adjustment factor. Amends sec. 520 of 1967 PA 281 (MCL 206.520).

HB 4088 adjusts the property tax credit for Michigan homeowners by raising the taxable value cap for homestead eligibility from $135,000 (through 2021) to $196,500 starting in 2026. It requires annual adjustments to this cap based on the U.S. Consumer Price Index (CPI), rounded to the nearest $100, to maintain its real value over time. The bill directly affects homeowners claiming the property tax credit who own homestead properties with taxable values exceeding the new cap. This change modifies the eligibility threshold under Section 520 of Michigan's Income Tax Act, ensuring the cap keeps pace with inflation.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax credit eligibility to more homeowners, providing tax relief by raising the taxable value cap and indexing it to CPI.95% confidence

Sub-Topics Property Tax

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passed both · Michigan · House Apr 15, 2025

HB 4185: Sales tax: distribution; distribution of revenue; modify. Amends sec. 25 of 1933 PA 167 (MCL 205.75). TIE BAR WITH: HB 4183'25, HB 4182'25, HB 4181'25, HB 4180'25, HB 4186'25, HB 4187'25, HB 4184'25

HB 4185 changes how Michigan's general sales tax revenue is distributed. It directs 15% of the 4% sales tax to cities, villages, and townships through the Glenn Steil Revenue Sharing Act. Sixty percent goes to the state school aid fund (including all 2% tax from aviation fuel sales), while 27.9% of 25% from vehicle/fuel sales funds the transportation system. Additionally, it requires $9-12 million annually from computer software sales to the Michigan health initiative fund.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirects 60% of sales tax to school aid, 27.9% to transportation, and $9-12M to health initiative, strengthening public service funding without tax increases.95% confidence ✓ EducationSupports EducationDirects 60% of sales tax revenue to state school aid fund, explicitly increasing K-12 funding allocation without restrictions.95% confidence ✓ TransportationSupports TransportationDirectly allocates 27.9% of vehicle/fuel sales tax revenue to fund Michigan's transportation system, meeting funding criteria for support.95% confidence

Sub-Topics Business Taxes Sales Tax State Budget School Funding Airports Transportation Funding

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passed both · Michigan · House Oct 30, 2025

HB 4124: Corporate income tax: credits; credit for advanced small modular reactors research and development expenses; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 677a & 717a. TIE BAR WITH: HB 4127'25, HB 4129'25, HB 4125'25, HB 4126'25, HB 4128'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate tax credit for SMR R&D, reducing tax liability for qualifying businesses, aligning with tax relief indicators for business investment.95% confidence ✓ EnergySupports EnergyCreates tax credit for R&D on advanced nuclear reactors (SMRs), directly funding clean energy infrastructure development in Michigan's energy sector.90% confidence ✓ TechnologySupports TechnologyBill provides tax credit for R&D in nuclear technology, incentivizing investment in emerging energy tech per its explicit purpose.95% confidence

Sub-Topics Business Taxes Nuclear

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passed both · Michigan · House Apr 15, 2025

HB 4184: Aeronautics: other; excise tax on aviation fuel; increase, and modify distribution. Amends secs. 34 & 203 of 1945 PA 327 (MCL 259.34 & 259.203). TIE BAR WITH: HB 4183'25, HB 4182'25, HB 4181'25, HB 4180'25, HB 4185'25, HB 4186'25, HB 4187'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases excise tax on aviation fuel to fund aeronautics and airport programs, directly allocating revenue to specific budget areas per bill's distribution requirements.95% confidence ✓ TransportationSupports TransportationIncreases aviation fuel tax revenue allocation (65% to airports, 35% to aeronautics fund), directly funding transportation infrastructure through tax distribution.95% confidence

Sub-Topics Revenue Airports Transportation Funding

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signed · Michigan · House Jul 29, 2026

HB 4187: Individual income tax: revenue distributions; distribution and use of renew Michigan fund and lapse of interest and earnings from the revitalization and placemaking fund to general fund; modify and provide for. Amends secs. 51, 51g & 696 of 1967 PA 281 (MCL 206.51 et seq.). TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, HB 4183'25, HB 4184'25, HB 4185'25, HB 4186'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies corporate tax base to close loopholes, directs $800M to taxpayer rebate fund for individual relief, strengthening tax system and funding relief.90% confidence

Sub-Topics Business Taxes Revenue

passed both · Michigan · House Apr 15, 2025

HB 4186: Michigan business tax: rate; rate increase and election to file under corporate income tax act; provide for, and allow for certain taxpayers. Amends secs. 201 & 500 of 2007 PA 36 (MCL 208.1201 & 208.1500). TIE BAR WITH: HB 4183'25, HB 4182'25, HB 4181'25, HB 4180'25, HB 4185'25, HB 4187'25, HB 4184'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases business tax rate from 4.95% to 30% for 2025, directly boosting state tax revenue and strengthening budget funding through higher taxation.95% confidence

Sub-Topics Business Taxes

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passed both · Michigan · House Apr 15, 2025

HB 4230: Taxation: other; neighborhood road fund; create and provide for the distribution of the fund. Amends 1951 PA 51 (MCL 247.651 - 247.675) by adding sec. 13c.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirectly allocates $100M annual income tax revenue to fund bridge repairs, strengthening infrastructure through dedicated budget allocation.95% confidence ✓ TransportationSupports TransportationCreates $100M annual fund specifically for repairing critical bridges and roads, directly funding transportation infrastructure maintenance as stated in bill summary and subjects.95% confidence

Sub-Topics Bridges Roads & Highways Transportation Funding

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in committee · Michigan · House Oct 29, 2025

HB 5140: Taxation: hotel-motel; authority to levy an accommodation tax; expand. Amends title & secs. 1, 2, 2a, 3, 4 & 7 of 1974 PA 263 (MCL 141.861 et seq.) & adds secs. 1a, 2b, 2c, 2d & 6a. TIE BAR WITH: HB 5139'25, HB 5138'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands local tax authority for hotel/motel accommodations, increasing potential revenue for local governments through higher tax rates and new collection mechanisms.95% confidence

Sub-Topics Business Taxes

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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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in committee · Michigan · Senate Oct 30, 2025

SB 679: Economic development: other; lawful sports betting act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 15a of 2019 PA 149 (MCL 432.415a). TIE BAR WITH: SB 0631'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects 90% of sports betting revenue to state general fund (core budget), eliminating Strategic Fund allocation. Strengthens general fund revenue without tax changes, aligning with fiscal management.95% confidence

Sub-Topics Revenue

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