Budget & Taxes

in committee · Michigan · Senate May 14, 2026

SB 965: Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c).

Senate Bill 965 updates Michigan's use tax laws to clarify registration requirements for businesses and strengthen rules for online marketplace facilitators. The bill mandates that foreign corporations must register for use tax before obtaining permission to do business in the state and requires aircraft lessors to pay use tax on lease receipts instead of sales tax on the full property cost. It also defines marketplace facilitators as entities that must collect and remit use tax on sales made by third-party sellers on their platforms, even if those sellers do not have a physical presence in Michigan. Additionally, the bill limits the ability to sue marketplace facilitators for overpaid taxes and protects them from liability if sellers fail to provide accurate information about their transactions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens use tax laws, closes loopholes for foreign corporations and marketplace facilitators, and ensures aircraft lessors pay appropriate taxes, promoting fiscal responsibility.90% confidence

Sub-Topics Sales Tax

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in committee · Michigan · Senate May 20, 2026

SB 995: Individual income tax: credit; work opportunity tax credit for qualified employees; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: SB 0994'26

SB 995 proposes to create a new state tax credit for Michigan employers starting in 2026, allowing them to reduce their income tax liability by 50% of the federal Work Opportunity Tax Credit they would have received. This credit is available only to businesses that hire Michigan residents who are certified by the state unemployment agency as members of specific targeted groups facing employment barriers. The bill specifies that any unused portion of the credit cannot be refunded if it exceeds the employer's tax bill, and it includes provisions for flow-through entities to claim credits based on their share of business income.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit for employers hiring individuals facing employment barriers, promoting job creation and fiscal incentives.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates a tax credit to incentivize employers to hire workers from groups facing employment barriers, directly supporting labor market access.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Unemployment

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in committee · Michigan · House Apr 15, 2026

HB 5787: Sales tax: exemptions; compliance with enterprise data center construction labor act; require. Amends sec. 4ee of 1933 PA 167 (MCL 205.54ee). TIE BAR WITH: HB 5785'26, HB 5786'26

This bill modifies Michigan's sales tax exemptions for data center equipment, requiring that these tax breaks continue only if specific job creation targets are met. For existing data centers, the exemption applies after 2022 only if at least 400 related jobs are created, and after 2026 only if at least 1,000 such jobs are established. For new enterprise data centers, the bill mandates that owners receive a certificate from the Michigan Strategic Fund confirming they plan to meet certain criteria within six years before they can claim the tax exemption. Additionally, the law requires these facilities to report annual data on employment and investments to the fund and achieve specific green building standards within three years of opening.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill ties sales tax exemptions to job creation targets, promoting fiscal responsibility and ensuring tax breaks benefit the economy through employment.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill ties sales tax exemptions for data centers to specific job creation targets, incentivizing employers to create jobs and strengthen employment standards.85% confidence ✓ TechnologySupports TechnologyBill provides tax exemptions for data center equipment contingent on job creation, directly supporting technology infrastructure development.85% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Michigan · Senate Apr 22, 2026

SB 917: Mental health: other; 988 crisis lifeline system fund and telecommunications fee; provide for. Amends 1974 PA 258 (MCL 330.1001 - 330.2106) by adding secs. 165a & 165b.

This bill creates a dedicated state fund to support Michigan's 988 crisis lifeline system, which provides suicide prevention and mental health crisis services. It establishes a new telecommunications fee of 25 cents per month on landline and mobile phone lines, as well as a 6% fee on prepaid phone purchases, to generate revenue for this fund. The collected fees must be used to improve the crisis hotline infrastructure, expand crisis services, and fund stabilization programs, while ensuring these funds supplement rather than replace existing state or federal grants. Additionally, the bill requires the state treasurer to adjust the monthly fee annually based on inflation and mandates regular audits to ensure phone companies collect and remit the fees correctly.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a dedicated state fund and increases revenue via telecom fees to support mental health crisis services.90% confidence ✓ HealthcareSupports HealthcareBill creates a dedicated fund to support the 988 crisis lifeline, expanding mental health crisis services and infrastructure.95% confidence

Sub-Topics Mental Health

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in committee · Michigan · House Apr 23, 2026

HB 5880: Taxation: excise taxes; excise tax on certain services; provide for. Creates new act. TIE BAR WITH: HB 5878'26, HB 5879'26, HB 5873'26, HB 5874'26, HB 5875'26, HB 5876'26, HB 5877'26

This Michigan bill proposes a new 6% excise tax on specific services purchased for use within the state, starting in January 2027. The tax applies to service providers with a physical or economic presence in Michigan, who must register with the Department of Treasury and collect the tax from customers, while out-of-state providers without such a presence would require the customer to pay the tax directly. Services already subject to existing sales or use taxes are exempt from this new fee, and the law establishes registration requirements, monthly filing deadlines, and penalties for non-compliance. Revenue generated from the tax will be distributed according to provisions outlined in the act, which also creates specific funds for administrative purposes.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill introduces a new 6% excise tax on services, increasing the tax burden on consumers and businesses.95% confidence

Sub-Topics Sales Tax

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in committee · Michigan · Senate Apr 23, 2026

SB 923: Housing: housing development authority; eligibility for credits under the community development tax credit program; coordinate with Michigan strategic fund. Amends sec. 22 of 1966 PA 346 (MCL 125.1422) & adds sec. 22e. TIE BAR WITH: SB 0925'26

SB 923 amends the State Housing Development Authority Act to update the powers of the Michigan Housing Development Authority, specifically clarifying its ability to set standards for housing projects and manage fees related to loans and publications. The bill also adds new provisions to coordinate with the Michigan Strategic Fund and adjust eligibility criteria for credits under the Community Development Tax Credit Program. By modifying existing statutes, the legislation aims to streamline how the authority operates and interacts with other state financial programs to support housing initiatives.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax credit eligibility and coordinates with the Strategic Fund to streamline housing development, advancing fiscal management and public housing goals.85% confidence ✓ HousingSupports HousingBill strengthens Michigan Housing Development Authority powers and coordinates with tax credit programs to advance housing development.85% confidence

Sub-Topics Tax Credits Affordable Housing Community Development Housing Finance

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in committee · Michigan · Senate May 20, 2026

SB 994: Individual income tax: withholding requirements; work opportunity withholdings tax credit for certain tax exempt organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 714. TIE BAR WITH: SB 0995'26

This bill allows certain Michigan nonprofit organizations to claim a tax credit against state income tax withholdings for wages paid to qualified employees. The credit applies to tax years starting on or after January 1, 2026, and is limited to 50% of the amount the employer would have received under a federal work opportunity credit. To qualify, employees must be Michigan residents certified by the state unemployment agency as members of a targeted group, and the credit cannot be refunded if it exceeds the employer's withholding tax liability. The legislation also requires that any unused federal credits from previous years be excluded from the calculation. The bill will only take effect if a companion bill, SB 995, is also passed into law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit for nonprofits hiring targeted Michigan residents, promoting employment incentives and fiscal support for specific groups.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates a tax credit incentive for employers to hire members of targeted groups, expanding employment opportunities and supporting workforce development.85% confidence

Sub-Topics Income Tax Tax Credits Unemployment

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in committee · Michigan · Senate Jun 24, 2026

SB 988: Property tax: tax tribunal; number of days to appeal a claim for poverty exemption; modify. Amends sec. 53c of 1893 PA 206 (MCL 211.53c).

SB 988 modifies the deadline for property owners in Michigan to appeal a denial of a poverty-based tax exemption. Currently, individuals must file such an appeal within 30 days, but this bill extends that window to 35 days. The change applies specifically to claims rejected by the July or December board of review and allows appeals to be filed with the Michigan Tax Tribunal. The legislation also clarifies that appeals sent via the United States Postal Service are considered timely if they bear a postmark on or before the new deadline. This adjustment directly affects low-income property owners who seek relief from property taxes based on financial hardship.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill extends appeal window for poverty-based tax exemptions, aiding lower-income taxpayers and protecting their relief.85% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Apr 23, 2026

HB 5862: Economic development: other; HOPE zone exemption; provide for. Amends sec. 12 of 1984 PA 385 (MCL 207.712). TIE BAR WITH: HB 5852'26, HB 5856'26

This bill amends Michigan's Technology Park Development Act to exempt facilities located in HOPE zones from the technology park facilities tax. The exemption applies for the same duration and to the same extent as existing exemptions provided under the Helping Opportunity Prosper Everywhere (HOPE) Zone Act. The legislation is tied to companion bills that must also be enacted for this change to take effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax exemption for facilities in HOPE zones, reducing the technology park facilities tax and promoting economic development.90% confidence ✓ TechnologySupports TechnologyBill exempts technology park facilities from taxes in HOPE zones, promoting economic development and investment in technology infrastructure.85% confidence

Sub-Topics Tax Incentives Tags Economic Development

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in committee · Michigan · Senate Apr 23, 2026

SB 918: Economic development: tax increment financing; tax increment financing act; amend to include dam repairs and maintenance. Amends sec. 703 of 2018 PA 57 (MCL 125.4703).

This bill updates Michigan's tax increment financing laws to explicitly include dam repairs and maintenance as eligible projects for funding. By amending the definition of "water resource improvement," the legislation allows local authorities to use captured property tax growth to pay for fixing or maintaining dams within their districts. The change directly affects local governments and development authorities that manage waterways and seek to utilize tax increment financing for infrastructure work. No new taxes are created; instead, the bill clarifies which existing maintenance activities qualify for this specific financial tool.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax increment financing to fund dam repairs, directly increasing available funding for essential public infrastructure and water safety.90% confidence

Sub-Topics Property Tax Tax Incentives Tags Economic Development

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