This Senate Resolution (SR 88) requests Governor Whitmer to join the federal Tax Credit Scholarship Program for K-12 education. The resolution directly addresses the governor, asking her to opt-in to a federal program that would allow Michigan taxpayers to receive a $1,700 tax credit for donations to scholarship organizations. These organizations would then provide tax-free scholarships to K-12 students in Michigan public and private schools, starting in 2027. The resolution is non-binding and seeks to encourage state participation in the federal program, which Michigan has not yet elected to join.
HB 5359 creates tax credits for Michigan retail dealers selling specific ethanol-blended fuels. It provides a $0.05 per gallon credit for E15 fuel (10-15% ethanol) and $0.085 per gallon for E85 fuel (50-83% ethanol) sold through metered pumps at their retail sites. The credit applies to tax years 2026-2030 and can be refunded if it exceeds the dealer's tax liability. This directly affects motor fuel retailers who sell these ethanol blends to the public, with eligibility defined under Michigan's motor fuel tax act.
HB 5395 modifies Michigan's Brownfield Redevelopment Financing Act to update tax credit rules for cleaning and redeveloping contaminated properties. The bill revises definitions of "blighted" property (including previously developed land and land bank properties) and clarifies how tax revenue captured during redevelopment - specifically construction-phase income taxes on wages - will be calculated and reinvested. Local authorities, developers, and municipalities working on brownfield sites will directly use these revised rules for tax increment financing. The changes aim to streamline financing for projects that clean up environmental hazards while redeveloping underutilized land.
HB 5214 creates a new tax credit for Michigan family caregivers, allowing eligible taxpayers to claim up to $2,000 (30% of qualified expenses, whichever is less) against their state income tax for care provided to qualifying family members. It directly affects Michigan residents who provide unpaid care for family members living at home (not in facilities) with specific health needs, such as inability to perform two or more daily activities or requiring supervision due to cognitive impairment. Qualified expenses include respite care, assistive devices, home modifications, and transportation, but exclude general household maintenance. To claim the credit, caregivers must document expenses, provide family member details, and meet income limits ($50,000 single / $100,000 joint). The credit applies to tax years beginning January 1, 2026.
SB 115 creates a 50% tax credit for individual Michigan taxpayers who invest in qualifying Michigan businesses, with a maximum credit of $3,000 per business and $3,000 total per tax year. Taxpayers must obtain certification from the Michigan Strategic Fund within 60 days of investing to claim the credit. The credit can be carried forward for up to 10 years if it exceeds the taxpayer’s current tax liability. Qualifying businesses must be headquartered in Michigan with at least 80% of revenue, assets, and employees located in the state, as certified by the Strategic Fund.
HB 4504 amends Michigan's income tax act to modify the state historic preservation tax credit program. It allows qualified taxpayers to receive a state income tax credit of 25% or 30% for expenses incurred rehabilitating historic resources, depending on the property type. The bill establishes an application process through the state historic preservation office and sets annual limits on the total credits issued. These limits are $5 million per year through 2025, increasing to $100 million annually starting in 2026, with specific amounts allocated to different categories of historic resources.
HB 5063 creates a state income tax credit for Michigan taxpayers who foster animals in their homes. Eligible taxpayers can claim a $50 credit per animal fostered for at least 7 days during the tax year, with an additional $50 for each extra 30 days per animal (capped at 5 animals yearly). To qualify, taxpayers must provide verification from a qualified nonprofit animal rescue, shelter, or registered animal control facility. The credit amount will adjust annually based on the U.S. Consumer Price Index starting in 2027, but any unused portion cannot be refunded if it exceeds the taxpayer’s total tax bill.
SB 685 amends Michigan's farmland tax credit law (MCL 324.101-324.90106) by adding Section 36109b. It expands eligibility for the farmland tax credit to properties with existing legal agreements (like easements or leases) that were in place before a specific date, even if those arrangements complicate ownership. This change directly affects farmers and landowners who hold farmland subject to multiple pre-existing agreements, allowing them to qualify for the tax credit they previously might have been excluded from. The bill passed unanimously in the Michigan Senate on December 2, 2025, after being referred to the Agriculture Committee.
HB 5293 creates a tax credit for Michigan employers that create new, qualified jobs. Employers can claim a credit equal to 50% of income tax withheld on new jobs meeting specific criteria (permanent, full-time positions paying at least 150% of the local "prosperity region" median wage, exceeding the employer's September 2025 job count). The credit applies to tax years 2026-2035, with a $50 million annual cap and minimum allocations for small ($10M), medium ($15M), and large ($25M) employers. Employers must submit claims by March 15 each year, and unused credits can be carried forward for up to three years. This directly affects employers in Michigan’s designated economic regions seeking to expand their workforce.
SB 13 creates a tax credit for Michigan taxpayers who sell or rent agricultural assets (like land, equipment, or livestock) to qualifying "beginning farmers." Owners can claim up to 5% of a sale price (capped at $32,000) or 10-15% of rental income for the first three years (capped at $7,000 or $10,000 annually), subject to a $5 million total annual limit. To qualify, the recipient must be certified as a beginning farmer (a resident new to farming within 10 years, with net worth under $800,000 adjusted for inflation, and not related to the asset owner). The credit requires state certification and annual reporting to track its impact on supporting new farmers.
