Budget & Taxes (Tax Incentives)

in committee · Michigan · House Apr 23, 2026

HB 5853: Individual income tax: city; HOPE zone exemption; provide for. Amends sec. 8, ch. 1 & secs. 35, 54 & 55, ch. 2 of 1964 PA 284 (MCL 141.508, 141.635, 141.654, & 141.655). TIE BAR WITH: HB 5852'26

HB 5853 requires cities in Michigan that impose an income tax to allow residents and businesses in designated Renaissance or HOPE zones to claim a tax deduction. The bill mandates that city income tax ordinances be updated to let qualified taxpayers subtract specific amounts of income earned within these zones, including wages, capital gains, and lottery winnings. This change directly affects individuals and businesses operating in areas officially recognized for economic revitalization, providing them with a financial incentive tied to their location. By amending state law, the bill ensures that local tax rules align with existing state-level incentives for these designated zones.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deductions for residents in revitalization zones, offering tax relief that supports economic development and fiscal incentives.85% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Tags Economic Development

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in committee · Michigan · House Apr 23, 2026

HB 5864: Economic development: commercial redevelopment; HOPE zone exemption; provide for. Amends sec. 10 of 2005 PA 210 (MCL 207.850). TIE BAR WITH: HB 5852'26, HB 5856'26

This bill amends Michigan's Commercial Rehabilitation Act to clarify how the commercial rehabilitation tax is calculated for specific types of properties. It establishes that owners of qualified facilities must pay an annual tax based on their property's taxable value, with funds distributed to the state, local governments, and school districts in the same proportions as regular property taxes. A key provision exempts properties located in designated Renaissance or HOPE zones from this tax, provided they meet the requirements of those specific economic development programs. Additionally, the bill includes a special calculation method for retail food establishments that received their exemption certificates before December 31, 2009. The legislation is tied to two other bills, meaning it will only take effect if those companion bills are also enacted into law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies tax calculations and exempts properties in Renaissance/HOPE zones, promoting economic development and fiscal management.85% confidence ✓ EducationSupports EducationBill ensures school districts receive property tax revenue from commercial developments, including exemptions for Renaissance/HOPE zones, thereby maintaining funding streams for education.75% confidence

Sub-Topics Tax Incentives Tags Economic Development

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passed both · Michigan · House Jun 2, 2026

HB 5875: Economic development: downtown development authorities; exemption from real estate transfer taxes; modify to reflect repeal of the state real estate transfer tax act. Amends sec. 228a of 2018 PA 57 (MCL 125.4228a). TIE BAR WITH: HB 5880'26, HB 5874'26

This bill amends state law to update tax exemption rules for downtown development authorities in Michigan. It clarifies that these entities remain exempt from real estate transfer taxes even after the state real estate transfer tax act was repealed. The changes will only take effect if two other related bills are also enacted into law. Ultimately, the measure ensures these local economic development organizations do not face new transfer tax obligations on property instruments.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill maintains tax exemptions for downtown development authorities, preventing new transfer tax obligations and supporting local economic development.90% confidence

Sub-Topics Tax Incentives

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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 26, 2026

HB 5573: Property tax: other; definition of nonprofit charitable institution; provide for. Amends sec. 7o of 1893 PA 206 (MCL 211.7o).

HB 5573 expands property tax exemptions for specific nonprofit organizations in Michigan. It adds new exemptions for conservation land held by qualified nonprofit groups (like nature preserves open for public recreation) and clarifies exemptions for nonprofit hospitals, skilled nursing facilities, and educational institutions. The bill specifies detailed requirements for organizations to qualify, such as perpetual land preservation for conservation groups and licensing for healthcare facilities. These changes directly affect qualifying nonprofits, conservation organizations, and healthcare providers by allowing them to exclude certain properties from local property taxes. The bill refines existing tax exemption rules without creating new tax rates or funding mechanisms.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax exemptions for nonprofits, providing targeted tax relief per bill's intent to reduce tax burden on qualifying organizations.92% confidence ✓ EnvironmentSupports EnvironmentExpands property tax exemptions for nonprofits managing conservation land requiring perpetual preservation, directly advancing environmental protection through tax incentives for land conservation.90% confidence

Sub-Topics Property Tax Tax Incentives Conservation

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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 Jan 22, 2026

HB 5464: Economic development: plant rehabilitation; requirements related to the revocation of an industrial facilities exemption certificate; modify. Amends sec. 15 of 1974 PA 198 (MCL 207.565). TIE BAR WITH: HB 5463'26

HB 5464 amends Michigan's law governing industrial facilities exemption certificates, which allow businesses to temporarily avoid certain property taxes for rehabilitating or building industrial facilities. The bill clarifies that certificates may be revoked if businesses fail to meet specific deadlines: completing replacement facilities within 2 years (or longer with commission approval), finishing speculative buildings within 2 years, or using facilities for non-qualifying purposes. It requires the state tax commission to provide notice and hold hearings before revoking certificates, with revocations taking effect by December 31 following the commission's order. This directly affects businesses holding these tax exemptions who miss project deadlines or deviate from approved facility uses.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies revocation of tax exemptions for non-compliance, enforcing fiscal responsibility in industrial facility tax programs.85% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · House Dec 17, 2025

HB 5379: Property tax: exemptions; property tax exemption from certain millages levied under the district library establishment act if the property's owner has no children attending public schools in this state; provide for. Amends sec. 13 of 1989 PA 24 (MCL 397.183). TIE BAR WITH: HB 5376'25, HB 5377'25, HB 5378'25

HB 5379 creates a property tax exemption for homeowners without children attending Michigan public schools or receiving publicly funded educational services. Starting December 31, 2026, these property owners will be exempt from the portion of library millages (tax rates) levied by districts that include school districts, specifically the part exceeding 2 mills. This change applies to taxes under the District Library Establishment Act and aligns with existing exemptions in the General Property Tax Act. The bill affects residential property owners who do not have school-age children enrolled in Michigan public education.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption for homeowners without school-aged children, reducing their tax burden under library millages, aligning with tax relief for middle-income homeowners.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Dec 17, 2025

HB 5376: Property tax: exemptions; property tax exemption from certain school-related millages if the property's owner has no children attending public schools in this state; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 5377'25, HB 5378'25, HB 5379'25

HB 5376 would create a property tax exemption for Michigan homeowners without children enrolled in public schools or publicly funded educational services (K-12) in the state. Starting in 2027, eligible property owners would receive a phased reduction in school-related property taxes: 40% in 2027, increasing to 100% by 2031. To qualify, owners must provide proof (like a withdrawal letter or affidavit) that no dependents used public education, and the exemption excludes properties owned through private entities where the actual owner has school-aged children. The bill specifically targets school millages (taxes funding schools), not general property taxes, and requires local assessors to verify eligibility using state education data.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption reducing school-related millages for homeowners without public school children, providing direct tax relief.95% confidence ✗ EducationOpposes EducationBill reduces school funding by exempting homeowners without public school children from school-related property taxes, cutting revenue for schools.90% confidence

Sub-Topics Property Tax Tax Incentives K-12 Education

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