Budget & Taxes (Economic Development)

in committee · Michigan · Senate May 27, 2026

SB 783: Economic development: other; eligibility for stock buybacks during the period of award if awarded an economic incentive; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.

SB 783 prohibits publicly traded companies receiving Michigan state economic incentives (like grants, tax breaks, or loans) from buying back their own company shares during the incentive period. It requires the Michigan Strategic Fund to include this restriction in all new incentive agreements, with a 10% penalty plus repayment of incentives if violated. The bill directly affects publicly traded businesses that seek state economic development assistance under Michigan's Strategic Fund Act. This policy change aims to ensure state incentives support broader economic activity rather than shareholder returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestricts misuse of state economic incentives (fiscal management tool) to ensure funds support development, promoting fiscal responsibility by closing a loophole for shareholder buybacks.90% confidence

Sub-Topics Tax Incentives Tags Economic Development

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passed · Michigan · Senate Jul 3, 2026

SB 793: Economic development: plant rehabilitation; industrial facility tax; modify. Amends secs. 3, 6, 7 & 9 of 1974 PA 198 (MCL 207.553 et seq.).

SB 793 amends Michigan's industrial facility tax law to clarify key definitions for tax exemption eligibility. It updates terms like "restoration" (major renovations to industrial properties, including structural improvements) and "speculative building" (new structures built without a specific tenant) to better align with current development practices. These changes directly affect local governments, economic development organizations, and businesses seeking tax benefits for industrial property improvements. The bill focuses on making the program's rules clearer without altering the core tax exemption structure.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends industrial facility tax law to clarify exemptions, enabling more businesses to qualify for tax relief under economic development programs, directly supporting tax incentive policies.90% confidence

Sub-Topics Business Taxes Tax Incentives Tags Economic Development

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in committee · Michigan · House Feb 4, 2026

HR 240: A resolution to urge a temporary pause on discretionary state-level incentives for data center construction, request a comprehensive review of the fiscal, utility, environmental, and local governance impacts of data center development in Michigan, and direct House committees to review these issues.

HR 240 is a resolution urging Michigan to pause state tax breaks and subsidies for new data center construction for one year. It directs state agencies to review the fiscal costs, electricity grid impacts, water use, environmental effects, and local governance concerns related to data center development, requiring reports within 12 months. The resolution also tasks specific House committees with examining local zoning, community input, and worker hiring practices for these projects. This applies directly to data center developers seeking state incentives and state agencies managing economic development programs.

Topics ✗ Budget & TaxesOpposes Budget & TaxesPauses state tax incentives for data centers, restricting fiscal support for corporate development per bill's explicit 'temporary pause' on discretionary tax breaks.95% confidence ✗ TechnologyOpposes TechnologyPauses state tax incentives for data centers, restricting development and requiring impact reviews instead of advancing tech infrastructure.95% confidence

Tags Economic Development

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passed · Michigan · Senate Jul 3, 2026

SB 792: Economic development: obsolete property and rehabilitation; obsolete property rehabilitation act; modify. Amends secs. 2, 6, 7, 14, 16 & 17 of 2000 PA 146 (MCL 125.2782 et seq.).

SB 792 amends Michigan's "Obsolete Property Rehabilitation Act" to clarify definitions and update eligibility for tax exemptions on rehabilitation projects. The bill specifies that "obsolete property" includes blighted, functionally obsolete, or brownfield sites (e.g., industrial buildings converted to residential use), and defines "rehabilitation" to require major improvements (exceeding 10% of property value), excluding minor repairs. It refines criteria for local governments to establish rehabilitation districts, limiting eligibility to areas with economic hardship indicators like low median income or proximity to large cities. This affects property owners and local governments in designated districts by ensuring only substantial rehabilitation projects qualify for tax relief under the updated rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax exemption criteria for property rehabilitation, promoting economic development through targeted fiscal incentives for blighted sites and brownfield redevelopment.90% confidence ✓ HousingSupports HousingAmends tax exemptions for rehabilitating obsolete properties (e.g., industrial-to-residential conversions), promoting housing development through clearer eligibility and major improvement requirements.90% confidence

Sub-Topics Tax Incentives Community Development Property Development Property Taxes Tags Economic Development

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in committee · Michigan · House Dec 23, 2025

HB 5415: State: interstate compacts and agreements; certain economic incentives; prohibit this state from providing if doing so would violate the corporate welfare prohibition compact act. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 15. TIE BAR WITH: HB 5413'25

HB 5415 prevents Michigan's Strategic Fund from providing financial support (like loans or grants) for projects that would violate the "corporate welfare prohibition compact act" starting October 1, 2027. This bill directly affects the Strategic Fund's ability to fund economic development projects, requiring it to comply with an existing agreement between states that restricts certain business subsidies. The bill adds Section 15 to the Michigan Strategic Fund Act and depends on another bill (HB 5413) being enacted first. It does not change existing state funding rules but adds a new compliance requirement tied to an interstate agreement.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts Strategic Fund spending on projects violating interstate compact, limiting fiscal disbursement for economic incentives.95% confidence

Tags Economic Development

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signed · Michigan · Senate Jul 29, 2026

SB 721: Economic development: commercial redevelopment; commercial redevelopment act; modify. Amends secs. 9, 12a, 16 & 18 of 1978 PA 255 (MCL 207.659 et seq.).

SB 721 amends Michigan's Commercial Redevelopment Act to update property tax exemption rules for commercial facilities. It limits total exemption periods to 12 years (including extensions), requires local governments to document criteria for renewing exemptions, and extends the deadline for new exemptions from 2025 to 2035. The bill also allows the state treasurer to temporarily exclude up to half the education tax mills for qualifying facilities for up to 6 years to promote job growth, with a yearly cap of 45 such exclusions. Local governments must annually report on exemption impacts, including property values and job creation. This directly affects commercial businesses seeking tax benefits, local governments issuing exemptions, and state tax administration.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill allows temporary exclusion of education tax mills for commercial facilities, reducing state tax revenue to promote job growth, directly weakening tax collection.90% confidence

Sub-Topics Property Tax Tax Incentives Tags Economic Development

in committee · Michigan · House Feb 26, 2025

HB 4112: Economic development: Michigan economic growth authority; definition of new construction under the Michigan economic growth authority act; modify. Amends sec. 3 of 1995 PA 24 (MCL 207.803). TIE BAR WITH: HB 4111'25

HB 4112 amends the Michigan Economic Growth Authority Act to adjust the definition of "authorized business" for tax credit eligibility. The bill allows businesses to count jobs created or maintained by related entities - such as subsidiaries, affiliated businesses, or employee leasing companies - as qualifying for tax credits, without requiring the business itself to directly create or retain those jobs. This change directly affects businesses applying for economic development tax credits under the program, particularly those using third-party employment arrangements. The amendment provides greater flexibility for businesses to meet job creation or retention requirements while maintaining eligibility for tax credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility for economic development by allowing related entities' jobs to count, increasing business incentives under tax credit programs.92% confidence

Tags Economic Development

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passed · Michigan · Senate Apr 21, 2026

SB 553: Economic development: tax increment financing; water resource improvement authorities; modify. Amends secs. 703, 705 & 710 of 2018 PA 57 (MCL 125.4703 et seq.).

SB 553 amends Michigan's tax increment financing (TIF) law to allow municipalities to fund water resource improvements using TIF revenues. It specifically adds projects like lake management, shoreline protection, stormwater systems, invasive species control, and public access to inland lakes or rivers to the list of eligible TIF activities. Municipalities can now create authorities within designated "water resource improvement districts" (areas near lakes, rivers, or harbors) to finance these projects through captured tax revenues. The bill clarifies definitions for terms like "water resource improvement" and "water resource improvement district" to ensure TIF funds are properly applied to environmental and public access enhancements.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands TIF use to fund water resource infrastructure, enabling local spending on essential public projects via existing tax increment revenues.95% confidence ✓ EnvironmentSupports EnvironmentBill explicitly funds water resource projects including shoreline protection, invasive species control, and stormwater systems via TIF, advancing environmental conservation and pollution control.95% confidence

Sub-Topics Tax Incentives Coastal & Flood Protection Water Quality Tags Economic Development

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in committee · Michigan · Senate Jul 29, 2025

SB 491: Appropriations: supplemental; economic development incentive evaluations for SOAR projects; require. Amends secs. 3, 5 & 7 of 2018 PA 540 (MCL 18.1753 et seq.) & adds sec. 7a.

SB 491 requires the Michigan Department of Technology, Management, and Budget to periodically evaluate economic development incentives, with specific timelines based on program type. It mandates evaluations for SOAR projects (funded by the Strategic Outreach and Attraction Reserve) "as often as necessary," and for other incentives at least every 4-6 years depending on funding size. The department must contract independent evaluators, complete reviews within 270 days, and publish results on its website. This directly affects the Michigan Strategic Fund, state agencies administering incentives, and businesses receiving tax breaks, grants, or other economic development support.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires periodic evaluations of economic development incentives to ensure fiscal responsibility and program effectiveness, promoting accountable budget management per appropriations oversight.85% confidence

Sub-Topics Appropriations Tax Incentives Tags Economic Development

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passed · Michigan · Senate Nov 13, 2025

SB 199: Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).

SB 199 amends Michigan's tax increment financing law to modify funding limits for certain legacy obligations. It specifically restricts the amount of tax increment revenue (revenue from increased property taxes in redevelopment areas) that can be used to pay for ongoing management contracts and professional services established before 1993. The bill phases out these payments annually, starting with $3 million per year for taxes levied through 2009, decreasing to $0 for taxes levied after June 2015. This directly affects municipalities and tax increment authorities that issued or incurred these pre-1993 obligations or related contracts.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts TIF funds for pre-1993 management contracts, phasing out $3M/year payments for taxes through 2009, reducing fiscal allocation to legacy obligations.95% confidence

Sub-Topics Debt & Bonds Tax Incentives Tags Economic Development

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