HB 4080 reinstates a program deferring property tax special assessments for eligible Michigan homestead owners. It applies to assessments due before October 1, 2020, or on/before October 1, 2022, for primary residences owned by qualifying individuals (including those who are totally and permanently disabled). The bill allows owners to defer payments until death, sale, or transfer of the property, with up to four annual partial payments (minimum $500 or 5% of the balance) and interest accruing on unpaid amounts. Full payment becomes due upon sale, transfer, or death, and the bill requires the state to notify owners of these terms. This amendment to Michigan’s 1976 property tax law (MCL 211.761-762) is contingent on HB 4079 passing.
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.
HB 4128 creates a new corporate income tax credit for businesses generating power from advanced small modular reactors (SMRs) in Michigan. It directly affects utility companies and energy developers investing in SMR technology by providing a financial incentive to offset project costs. The key provision adds Section 678 to Michigan's tax code, allowing qualifying entities to claim a credit against their state corporate income tax liability for SMR-generated electricity. This policy change aims to support clean energy development without specifying expected outcomes or endorsing particular technologies. The bill passed the House on October 28, 2025, and is now pending final approval in the Senate.
HB 5139 amends Michigan's Use Tax Act to require online platforms (called "marketplace facilitators") to collect and remit sales tax on all taxable sales made through their platforms to Michigan residents, regardless of whether the individual seller has a physical presence in the state. This directly affects large online marketplaces like Amazon or Airbnb, as well as small businesses selling via these platforms. The bill establishes that facilitators - not just the sellers - are legally responsible for tax collection, while providing relief for sellers who use compliant platforms (by filing a simple annual attestation). The key change shifts tax collection responsibility from sellers to platforms, simplifying compliance for small sellers but increasing accountability for digital marketplaces.
SB 695 allows regional transit authorities in Michigan to charge an extra $1.20 per $1,000 of a vehicle’s value (on top of standard registration fees) for transit funding, but only if approved by voters in a November election. It requires ballot measures to specify how funds will be used and limits spending to transit projects. The tax applies to regular vehicle registrations in transit regions, excluding company test vehicles (e.g., manufacturer-owned vehicles used for testing). It takes effect January 1, 2027, pending approval of related legislation. This change directly affects vehicle owners in participating transit regions through their registration costs.
HB 5166 creates a new tax credit program to improve food security by allowing certain food businesses (like farms, processors, or distributors) to claim a 65% credit against their state income tax for donating food to certified organizations. Qualified organizations - such as food pantries, soup kitchens, shelters, or regional food banks - must apply for certification annually and provide donors with written acknowledgments detailing the donation. The credit is capped at 50% of the business’s tax liability or $10,000 per year, whichever is lower, and must be claimed with annual tax returns. This directly affects food businesses making donations and certified food providers serving communities facing hunger.
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 5280 adds a new tax deduction for retirement or pension benefits received by commissioned officers serving in the National Oceanic and Atmospheric Administration (NOAA) Commissioned Officer Corps or the U.S. Public Health Service Commissioned Corps, effective January 1, 2026. This change modifies Michigan's income tax code to allow these specific federal service members to deduct such benefits from their taxable income, similar to existing deductions for military and National Guard retirees. The bill directly affects Michigan taxpayers who are commissioned officers in these two federal corps, providing them with a targeted tax benefit for their retirement income. This is a concrete policy change to the state's tax code, not a procedural or commemorative measure.
HB 5256 amends Michigan's income tax code to adjust deductions for retirement and pension benefits. It expands the deduction for benefits received from public retirement systems (including federal, Michigan, or other states' systems with reciprocal treatment) and updates the annual cap for non-federal retirement benefits to $42,240 for single filers and $84,480 for joint filers. The bill also requires annual adjustments to these caps based on the Consumer Price Index. This directly affects Michigan taxpayers claiming these specific retirement deductions when calculating taxable income.
HB 5257 exempts qualified disabled veterans from Michigan's use tax when purchasing a vehicle for personal use. This applies to veterans meeting the definition in Michigan's General Property Tax Act (MCL 211.7b), which requires a service-connected disability rating. The exemption begins January 1, 2026, and covers the full purchase price of the vehicle. The bill amends the Use Tax Act to add this specific exemption while maintaining other tax collection provisions.
