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 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 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.
HB 4376 modifies Michigan's sales tax rules for trade-in values on vehicle purchases. It increases the annual adjustment for the maximum deductible trade-in value from $500 to $1,000, starting January 1, 2020. This change allows car buyers trading in vehicles to reduce the taxable sales price by more when purchasing new or used cars from dealers. The provision applies only when the trade-in value is separately stated on the sales invoice.
HB 4747 adds a new state income tax deduction for Michigan taxpayers who contribute to 529 education savings plans. It allows residents to subtract their 529 plan contributions from their taxable income when filing Michigan state taxes, directly benefiting families saving for education costs. The bill amends Michigan’s tax code to create this specific deduction, effective immediately after its passage on October 23, 2025. This change provides a direct financial incentive for contributing to qualified education savings accounts.
SB 565 amends Michigan's property tax reimbursement fund rules to require that unused funds from the local government reimbursement fund lapse (transfer) to the state's general fund at year-end, instead of remaining in the fund. It directly affects municipalities that receive state reimbursements for revenue lost due to small business property tax exemptions under the General Property Tax Act. The key change modifies Section 3a of the Michigan Trust Fund Act (2000 PA 489) to ensure unspent funds are returned to the state's general budget annually, rather than carrying over. This is a procedural adjustment to fund management, not a change to tax exemptions or reimbursement eligibility.
SB 166 allocates funding for K-12 public schools in the state for the 2025-2026 fiscal year. It directly affects all public K-12 school districts by providing their state education budget. The bill establishes the specific financial amounts schools will receive during this fiscal period. It became law on October 7, 2025, with immediate effect (PA 0015'25).
HB 4181 removes a sales tax exemption for certain motor fuel purchases by amending Michigan's 2004 tax code (MCL 205.173 & 205.175). The bill directly affects businesses and consumers purchasing motor fuel by eliminating an existing tax exemption, meaning these purchases will now be subject to sales tax. It streamlines the tax code by clarifying that motor fuel is no longer exempt from sales tax under the specified sections. The bill was enacted on October 7, 2025, and is now law as Public Act 18 of 2025.
SB 578 creates a new Neighborhood Roads Fund to support maintenance of local neighborhood streets and modifies the existing Movable Bridge Fund to improve bridge infrastructure funding. The bill changes how these funds are managed and allocated, directly affecting local governments responsible for road and bridge upkeep. Key provisions include establishing dedicated funding sources for neighborhood roads and adjusting eligibility rules for bridge repair projects. These changes clarify state funding streams for community infrastructure without altering tax rates or new construction policies.
