HB 5359 creates tax credits for Michigan retail dealers selling specific ethanol-blended fuels. It provides a $0.05 per gallon credit for E15 fuel (10-15% ethanol) and $0.085 per gallon for E85 fuel (50-83% ethanol) sold through metered pumps at their retail sites. The credit applies to tax years 2026-2030 and can be refunded if it exceeds the dealer's tax liability. This directly affects motor fuel retailers who sell these ethanol blends to the public, with eligibility defined under Michigan's motor fuel tax act.
SB 731 creates a new program to coordinate customer-owned energy resources like rooftop solar, home batteries, and electric vehicles to provide grid services. It directly affects homeowners with these systems, energy aggregators (companies that bundle customer resources), and electric utilities. The bill requires utilities to work with third-party aggregators during specific "program events" to manage distributed energy resources (such as solar panels or batteries) and demand response (like adjusting appliance use) to support grid reliability. Key mechanisms include defining terms like "aggregator" and establishing communication systems between utilities and these third parties. The program aims to integrate small-scale energy resources into grid operations without changing utility rates or renewable energy targets.
SB 141 requires oil and gas well operators in Michigan to reduce fugitive methane and volatile organic compound (VOC) emissions by at least 95% through methods like capturing gas for sale, on-site fuel use, or reinjection. It directly affects operators of oil/gas wells (excluding simple wellheads), with specific exemptions for wells exceeding 40 tons/year of emissions if technical infeasibility is certified by an engineer. The bill mandates operators to implement capture systems, report compliance, and maintain equipment, with enforcement including $100,000 fines or permit revocation for violations (excluding prompt repairs of malfunctions). Rules to implement these requirements must be finalized within 180 days of the bill’s effective date.
House Bill 4425 creates the Sustainable Aviation Fuel Incentive Program in Michigan. This program aims to encourage companies to produce or blend sustainable aviation fuel (SAF) within the state by offering corporate income tax credits. The Department of Environment, Great Lakes, and Energy (EGLE) will administer the program, certifying SAF that meets specific criteria, including source materials, technical standards, and a minimum 50% reduction in life-cycle greenhouse gas emissions compared to traditional jet fuel. The bill sets an annual cap on the total amount of tax credits approved, starting at $4.5 million for the 2025-2026 fiscal year and increasing to $9 million annually thereafter.
HB 5056 requires Michigan's state construction code to adopt specific international codes, including the International Residential Code and International Energy Conservation Code, as the baseline for building safety and energy standards. It eliminates the current advisory committee and creates a new 19-member advisory committee with representatives from architects, contractors, fire services, building officials, energy efficiency specialists, disability advocates, and low-income housing groups. The committee must review updates to these international codes, evaluate proposed changes based on public health, safety, economic impact, and technical feasibility, and submit recommendations to the state director within 45 days. This bill directly affects construction professionals, building inspectors, and developers who must comply with the updated code requirements. The new process ensures public input through accessible meetings and transparent voting on code revisions.
SB 236 creates a tax credit program in Michigan to incentivize the production of sustainable aviation fuel (SAF). It directly affects fuel producers who meet specific environmental standards, requiring SAF to achieve at least a 50% reduction in life-cycle greenhouse gas emissions compared to petroleum fuel and comply with ASTM aviation fuel standards. Producers must apply to the Department of Environment, Great Lakes, and Energy for certification of their tax credit, providing evidence of domestic production, emissions reduction, and proof that the fuel was used in aircraft departing Michigan airports. The program administers tax credits through a state-certified process, aiming to boost local SAF production while meeting federal environmental benchmarks.
SB 632 amends Michigan's Renaissance Zone Act to modify tax exemption periods for businesses in designated economic development zones and add new qualifying business categories. It directly affects businesses operating in Renaissance zones, particularly those involved in border trade, multimodal shipping (via air, road, rail, or water), manufacturing, and renewable energy. Key provisions include extending exemption durations, creating "qualified eligible Next Michigan businesses" for specific logistics and manufacturing operations, and clarifying definitions for border crossing facilities and forest products processing. The bill aims to streamline economic development incentives while expanding eligibility for tax benefits under the Renaissance Zone program.
HB 4111 exempts certain hydrogen fuel pumps from Michigan property taxes after December 31, 2025. It directly affects businesses installing qualifying hydrogen fueling infrastructure, such as stations filling vehicles with hydrogen. The bill defines a "qualified hydrogen fuel pump" as equipment meeting H35 (35 MPa) or H70 (70 MPa) pressure standards for dispensing hydrogen into motor vehicles. This exemption applies to the pumps themselves (classified as personal property), not the land or buildings they occupy, and is added to Michigan’s property tax law under Section 9q. The change aims to support development of hydrogen fueling infrastructure by reducing operational costs for businesses.
SB 324 requires the Public Service Commission to establish a "shared savings mechanism" for electric utilities in Michigan. This mechanism aims to incentivize electric utilities to invest in programs that reduce energy waste, conserve energy, and manage demand. Utilities can earn financial incentives based on the annual electric energy savings they achieve. The incentive is calculated as a percentage of the net benefits from these programs, with higher savings leading to a greater percentage of shared savings, up to a specified cap related to program expenditures.
House Bill 4424 proposes a new corporate income tax credit for businesses that produce or blend sustainable aviation fuel (SAF) within Michigan. Qualified taxpayers can claim a credit of $1.50 per gallon for SAF produced or blended in the state and sold for use in aircraft departing from Michigan airports. This credit can increase up to $2.00 per gallon based on the SAF's life-cycle greenhouse gas emission reductions. If the credit amount exceeds a company's tax liability, the difference will be refunded.
