Budget & Taxes (Tax Incentives)

in committee · Michigan · House Apr 23, 2026

HB 5852: Economic development: other; helping opportunity prosper everywhere zone act; create. Creates new act.

This bill creates the Helping Opportunity Prosper Everywhere (HOPE) Zone Act to support economic development and neighborhood revitalization in impoverished areas of Michigan. It establishes a process for designating specific neighborhoods as HOPE zones based on income levels or poverty rates, which then qualify for tax deductions, credits, and exemptions for participating businesses. A key feature of the act is a "withholding tax capture" mechanism that allows businesses operating within these zones to contribute income tax withheld from employee wages to a dedicated fund, which is intended to support workforce development programs and local community initiatives. The legislation also defines the roles of various organizations, such as qualified neighborhood associations and workforce development groups, in managing these zones and distributing funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax incentives and credits for businesses in impoverished areas, directly advancing economic development and fiscal management goals.85% confidence

Sub-Topics Income Tax Tax Incentives Tags Economic Development

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in committee · Michigan · House Apr 23, 2026

HB 5857: Economic development: brownfield redevelopment authority; HOPE zone exemption; provide for. Amends sec. 13c of 1996 PA 381 (MCL 125.2663c). TIE BAR WITH: HB 5852'26

This bill updates Michigan's Brownfield Redevelopment Financing Act to create a new process for "transformational brownfield plans" that can include multiple related projects across different properties. It requires these plans to provide detailed financial estimates and outlines how various tax capture revenues, such as sales and income taxes, must be used exclusively to fund eligible redevelopment costs. The legislation also mandates specific approval steps involving the local governing body and the Michigan Strategic Fund, ensuring that tax revenues are legally binding and only collected until the project's costs are fully covered.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens brownfield redevelopment financing by mandating tax revenues fund eligible costs, promoting economic development and fiscal management.75% confidence

Sub-Topics Tax Incentives Tags Economic Development

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in committee · Michigan · House May 20, 2026

HB 5992: Taxation: administration; film credits; restore. Amends secs. 29, 29a, 29b & 29d of 1984 PA 270 (MCL 125.2029 et seq.) & repeals sec. 29h of 1984 PA 270 (MCL 125.2029h.). TIE BAR WITH: HB 5991'26

HB 5992 restores and updates the legal framework for the Michigan Film and Digital Media Office, which is responsible for promoting the state as a location for film, television, and digital media production. The bill redefines key terms to include various forms of media and outlines the office's duties, such as assisting producers with location scouting, providing technical support, and coordinating with local and federal agencies. Additionally, it removes a section related to film credits, aligning the legislation with current administrative practices.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill restores and updates tax credits for film/media production, promoting economic development and state revenue through industry incentives.75% confidence ✓ TechnologySupports TechnologyBill updates legal framework for digital media office, promoting digital media production and technical support.75% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · House Apr 23, 2026

HB 5861: Taxation: other; HOPE zone exemption; provide for. Amends sec. 1 of 1953 PA 189 (MCL 211.181). TIE BAR WITH: HB 5852'26, HB 5856'26

This bill amends Michigan's property tax laws to ensure that businesses leasing tax-exempt real property are taxed as if they owned the property. It directly affects private individuals, associations, and corporations using such property for profit by removing their ability to claim tax exemptions on the lease value. The legislation maintains existing exceptions for various uses, including public airports, county fairs, and specific economic zones like Renaissance and HOPE zones, while explicitly excluding casinos from these protections. Because the bill is tied to two other related bills, it will only take effect if all three are passed into law together.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes a tax loophole by ensuring businesses leasing tax-exempt property are taxed on lease value, promoting fiscal responsibility and protecting the tax base.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Apr 21, 2026

HB 5799: Economic development: Michigan strategic fund; community development tax credit program; establish and administer. Amends secs. 7 & 9 of 1984 PA 270 (MCL 125.2007 & 125.2009). TIE BAR WITH: HB 5798'26, HB 5809'26

This bill updates the Michigan Strategic Fund Act to expand the powers and duties of the Michigan Economic Development Corporation (MEDC). It allows the fund to establish and operate a job training program for workers and a brownfield historic investment program for specific capital projects. Additionally, the legislation clarifies the fund's authority to issue bonds for a special entity dedicated to settling a specific legal claim against the state. These changes aim to provide the MEDC with clearer legal tools to manage grants, loans, and investments while pursuing economic development goals.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands MEDC powers to fund job training and brownfield projects, advancing economic development and state budget utilization.85% confidence ✓ HousingSupports HousingBill explicitly includes 'housing development authority' as a subject and funds brownfield historic investment programs, which can facilitate housing development.65% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill expands MEDC powers to establish a job training program for workers, directly advancing workforce development and employment standards.75% confidence

Sub-Topics Tax Credits Tax Incentives Community Development Property Development Workforce Development Tags Economic Development

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in committee · Michigan · House Apr 23, 2026

HB 5856: Property tax: exemptions; HOPE zone exemption; provide for. Amends sec. 7ff of 1893 PA 206 (MCL 211.7ff). TIE BAR WITH: HB 5852'26

HB 5856 amends Michigan's property tax laws to establish tax exemptions for properties located in designated Renaissance and HOPE zones, aiming to encourage economic development in those areas. The bill allows real and personal property in these zones to be exempt from general property taxes, though it explicitly excludes special assessments, debt-related taxes, school taxes, and properties associated with casinos from these exemptions. Additionally, the legislation includes specific requirements for residential rental properties to be in compliance with local building and zoning codes to qualify for the tax break, while also creating a new exemption category for eligible data center properties in Renaissance zones approved in 2016.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes property tax exemptions for Renaissance and HOPE zones to encourage economic development, providing fiscal relief and stimulating local investment.85% confidence

Sub-Topics Property Tax Tax Incentives Tags Economic Development

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in committee · Michigan · House Apr 23, 2026

HB 5867: Economic development: tax increment financing; HOPE zone exemption; provide for. Amends secs. 201, 301, 402, 523, 602, 702 & 802 of 2018 PA 57 (MCL 125.4201 et seq.). TIE BAR WITH: HB 5852'26

This bill amends Michigan's Tax Increment Financing (TIF) Act to update definitions and clarify how property values are calculated for downtown development projects. It specifically changes the definition of "captured assessed value" to exclude properties within HOPE zones that are already exempt from property taxes, ensuring these areas are not double-counted in financial projections. Additionally, the legislation refines the definition of "catalyst development project" to require a minimum of $300 million in capital investment for projects in municipalities with populations over 600,000. These changes directly affect local governments, development authorities, and private entities involved in financing and managing urban redevelopment initiatives.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies TIF definitions to prevent double-counting of tax-exempt properties, improving fiscal accuracy and protecting public funds for downtown development.75% confidence

Sub-Topics Property Tax Tax Incentives Tags Economic Development

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in committee · Michigan · Senate Apr 23, 2026

SB 924: Individual income tax: credit; community development tax credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 678. TIE BAR WITH: SB 0923'26, SB 0925'26

This bill creates a new state tax credit program to encourage private investment in community development projects across Michigan. It allows taxpayers who invest in eligible properties, such as historic sites, rural areas, or low-income census tracts, to receive a credit equal to 25% to 50% of their investment costs. To qualify, applicants must demonstrate local support, show the project is financially sound, and prove it will revitalize blighted or vacant areas. The program includes strict timelines for securing financing and completing construction, with a total annual funding cap of $200 million that must be at least 30% allocated to housing projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits to encourage private investment in community development, promoting economic growth and revitalizing blighted areas.85% confidence ✓ HousingSupports HousingBill creates tax credits to encourage private investment in community development, including low-income areas and blighted properties, which can fund affordable housing projects.75% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Community Development Property Development Tags Economic Development

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signed · Michigan · House Jul 29, 2026

HB 5806: Individual income tax: credit; housing opportunity tax credits; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 281 & 678. TIE BAR WITH: HB 5805'26, HB 5807'26

HB 5806 creates a new state tax credit for individuals and businesses that invest in affordable housing projects in Michigan starting in 2027. The bill allows these investors to reduce their income tax by a specific amount tied to their share of the project, provided they receive approval from the State Housing Development Authority. It also establishes rules for how investors must report the credit, handle situations where federal tax credits are lost, and carry forward any unused credit for up to 10 years.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit to encourage affordable housing investment, providing tax relief and funding essential housing programs.90% confidence ✓ HousingSupports HousingBill creates a tax credit to incentivize investment in affordable housing projects, directly funding and expanding housing development.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Affordable Housing Historic Preservation Housing Finance

in committee · Michigan · House Apr 15, 2026

HB 5775: Individual income tax: exemptions; exemption for post-graduation scholarship grants; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

HB 5775 amends Michigan's individual income tax law to create a new tax exemption for post-graduation scholarship grants. This change directly affects individuals who receive these specific scholarship awards, allowing them to exclude that income from their state taxable income. The bill modifies Section 30 of the Income Tax Act by adding a new provision that treats post-graduation scholarship grants similarly to other educational benefits currently exempt from taxation. By removing these grants from taxable income, the legislation reduces the amount of state tax residents must pay on this specific source of funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax exemption for scholarship grants, providing tax relief to students and supporting higher education financial aid.85% confidence ✓ EducationSupports EducationBill creates a tax exemption for post-graduation scholarship grants, effectively increasing financial resources for higher education students and reducing their tax burden.85% confidence

Sub-Topics Income Tax Tax Incentives Student Financial Aid

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