HB 4128 creates a new corporate income tax credit for businesses generating power from advanced small modular reactors (SMRs) in Michigan. It directly affects utility companies and energy developers investing in SMR technology by providing a financial incentive to offset project costs. The key provision adds Section 678 to Michigan's tax code, allowing qualifying entities to claim a credit against their state corporate income tax liability for SMR-generated electricity. This policy change aims to support clean energy development without specifying expected outcomes or endorsing particular technologies. The bill passed the House on October 28, 2025, and is now pending final approval in the Senate.
HB 4127 adds a specific definition for "advanced nuclear reactor technologies" to Michigan's energy law. The bill defines these as nuclear reactors with significant safety improvements over pre-2016 U.S. models, including federally defined advanced reactors and existing Michigan nuclear facilities that completed life cycle management. This definition will directly affect the Michigan Public Service Commission and electric utilities when evaluating nuclear energy projects and regulatory approvals. It creates a clear standard for identifying qualifying nuclear technologies under state law, ensuring consistent application of energy regulations.
HB 4126 creates a dedicated fund in the Michigan state treasury to provide grants to colleges and universities that establish or expand educational programs leading to degrees or credentials in the nuclear and hydrogen energy sectors. The fund, administered by the state Department of Education, will support institutions developing training programs aligned with these industries' workforce needs. Money in the fund does not expire annually and must be used solely for awarding these grants through state appropriations. This bill directly affects Michigan higher education institutions seeking to build or expand programs in nuclear and hydrogen energy fields.
HB 4125 creates the "nuclear and hydrogen education grant program" to fund colleges and universities in Michigan that establish or expand educational programs leading to degrees or credentials in nuclear or hydrogen energy fields. The program requires participating schools to offer scholarships or tax credits to students who commit to working for at least three years at a nuclear or hydrogen energy facility in the state after graduation. Grants are awarded competitively by the Department of Labor and Economic Opportunity, targeting programs that directly support workforce development for these industries. This bill directly affects postsecondary institutions, students in qualifying programs, and the nuclear/hydrogen energy sector by creating a pipeline for trained workers.
SB 667 updates Michigan's Motor Fuels Quality Act by removing references to the Michigan Strategic Fund from Section 5a of the law. The bill directly affects the state treasurer and the Department of Environment, Great Lakes, and Energy, which manage the Renewable Fuels Fund. It simplifies administrative language without changing the fund's core purpose: promoting alternative fuels like biodiesel and E85 through grants, incentives for retailers, and supporting renewable fuel standards. The change is technical, updating outdated references while preserving existing funding mechanisms for renewable fuel development.
SB 666 amends Michigan's 2008 law on alternative fuel facilities to update information procedures and remove references to the defunct Michigan Strategic Fund. It requires the Department of Environment, Great Lakes, and Energy to compile and publish clear, publicly accessible guidance on application processes for building biodiesel, ethanol, and other alternative fuel production facilities. The bill directs the department to coordinate with agencies like the Michigan Economic Development Corporation and review regulations that might hinder alternative fuel development. This affects businesses seeking to establish such facilities by clarifying state requirements and pathways. The bill is tied to SB 631, which must also pass for it to take effect.
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Economic Development
SB 562 would increase the minimum percentage of federal Low-Income Home Energy Assistance Program (LiHEAP) funds that must be spent on weatherization services for low-income households. It directly affects eligible households receiving energy assistance by expanding access to home weatherization improvements like insulation and efficient heating systems. The bill amends Michigan’s existing law (MCL 206.527a) to raise the required allocation of LiHEAP funds for weatherization assistance. This policy change modifies how state funds are distributed under federal energy assistance programs.
This resolution urges the federal government not to extend two Department of Energy emergency orders (202-25-3 and 202-25-7) that are preventing the planned closure of Michigan's J.H. Campbell Power Plant. The orders, issued to address an alleged energy emergency, conflict with MISO's approval for the plant's suspension by 2028 and have already cost Consumers Energy ratepayers $29 million in 38 days. The resolution highlights that continuing operations imposes financial burdens, worsens air/water pollution (releasing millions of pounds of pollutants annually), and causes estimated $389-879 million in annual health impacts. It directly affects Michigan ratepayers, public health, and environmental quality in the plant's local area.
