Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.
HB 5517 creates a $0.005 per returnable beverage container tax credit for distributors who charge a deposit on containers, effective for tax years beginning January 1, 2026. The credit adjusts annually based on the U.S. Consumer Price Index starting in 2027. Distributors must attach a specific report (per 1976 IL 1) with their tax return to claim the credit, and any excess credit is refunded. This directly affects beverage distributors handling returnable containers in Michigan.
Bill status
passed both
4 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Mar 2026
House Passage
Feb 2026
Senate Passage
Mar 2026
Governor
Introduced Feb 18, 2026
Last action Mar 4, 2026
Maddy AI version diff · 1 comparison
What changed between versions
House Introduced Bill
→
As Passed by the House
·
3 edits
·
Feb 26, 2026
MINOR
The bill was reformatted from a House Introduced version to an As Passed by the House version, with significant changes to the text layout and line breaks. The substantive policy content remains the same, establishing a $0.005 per container credit for distributors starting in 2026, with annual adjustments based on the Consumer Price Index beginning in 2027.
Scope change
No substantive change to the bill's scope or applicability; changes are primarily formatting and text layout adjustments.
TECHNICAL
Text formatting and line breaks were reorganized throughout the document, with some sections appearing in different orders or with different spacing.
Header information was removed, including the introduction date and committee referral details.
Page numbers and tracking codes (KAS, H06097'26) were removed from the document.
Floor votes · House Feb 26, 2026
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
14
Key actions
3
Committee
4
Mar 4, 2026
Committee
REFERRED TO COMMITTEE ON APPROPRIATIONS
upper
Mar 4, 2026
Upper · Passed
PASSED BY HOUSE WITH IMMEDIATE EFFECT
upper
Feb 26, 2026
Lower · Passed
passed; given immediate effect Roll Call #53 Yeas 94 Nays 12 Excused 0 Not Voting 4
lower
Feb 26, 2026
Committee
referred to second reading
lower
Feb 26, 2026
Lower · Passed
reported with recommendation without amendment
lower
Feb 18, 2026
Committee
referred to Committee on Regulatory Reform
lower
Feb 18, 2026
Introduced
introduced by Representative Rep. Joseph Aragona
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Joe Aragona
RRepublican
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