Budget & Taxes (Tax Incentives)

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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in committee · Michigan · House Apr 15, 2026

HB 5791: Use tax: other; requirements for enterprise data centers; modify. Amends sec. 4cc of 1937 PA 94 (MCL 205.94cc).

This bill modifies Michigan's use tax laws to provide tax exemptions for data center equipment used by qualified facilities. It requires these facilities to obtain a certificate from the Michigan Strategic Fund, which mandates that they create a specific number of jobs and meet green building standards within a six-year timeframe. To maintain the exemption, operators must annually report on employment, investments, and compliance with environmental criteria to the state. The legislation applies to existing data centers through 2050 and to new enterprise data centers through 2065, provided they meet the established performance requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for data centers to promote economic development and job creation, aligning with fiscal goals.85% confidence ✓ EnergySupports EnergyBill mandates green building standards for data centers and requires annual reporting on environmental compliance, directly supporting energy efficiency and sustainable infrastructure.85% confidence ✓ EnvironmentSupports EnvironmentBill mandates green building standards and requires annual reporting on environmental criteria for data centers.85% confidence ✓ TechnologySupports TechnologyBill provides tax exemptions for data center equipment to promote economic development and green building standards, directly supporting technology infrastructure.85% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Michigan · House May 21, 2026

HB 5996: Property tax: exemptions; partial exemption for qualified principal residence upon transfer of ownership; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 6005'26

This bill proposes a partial property tax exemption for homeowners in Michigan who sell their principal residence and purchase a new one within a specific timeframe. It would reduce the taxable value of the new home by 67% in the first year and 33% in the second year following the sale, but only if the new home's assessed value is more than 20% higher than the old home's value. The measure applies exclusively to properties that already qualify for school operating tax exemptions and requires the simultaneous passage of a companion bill to take effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief to homeowners, reducing taxable value and easing the financial burden on residents.95% confidence

Sub-Topics Property Tax Tax Incentives

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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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