HB 5274 creates a sales tax exemption for qualified disabled veterans purchasing vehicles. Beginning January 1, 2026, disabled veterans who meet the state's definition (as outlined in the General Property Tax Act) will not pay the 4% state sales tax on new or used vehicles bought for their personal use and registered in their name. This directly affects disabled veterans seeking to purchase a vehicle for personal transportation. The exemption applies specifically to the sales tax on the vehicle itself, not other taxes or fees.
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.
HB 4420 creates a standardized form requiring Michigan legislators to disclose any spending items they direct to specific projects or organizations. This requirement applies directly to all state legislators and state agencies when allocating funds based on legislative direction. The key mechanism mandates that this disclosure form be completed for every instance of directed spending, ensuring consistent public transparency. The bill aims to clarify and document how lawmakers influence state fund allocation without altering the underlying spending authority.
SB 12 amends Michigan's Individual Income Tax Act (MCL 206.8) to add a fetus as a qualifying dependent for state tax deductions, effective for tax years beginning January 1, 2025. It defines a "dependent" to include a fetus that has completed at least 12 weeks of gestation, is under physician care since that point, and is observed by a physician through the end of the tax year. This change directly affects Michigan taxpayers who claim dependents on their state income tax returns, allowing deductions for qualifying fetuses meeting the specified medical criteria. The bill does not alter federal tax law but modifies state-level dependent definitions and deductions.
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.
This bill (SB 91) amends Michigan's income tax code to exclude certain gratuities received by tipped employees from taxable income. It directly affects Michigan workers in service industries (like restaurants) who earn tips, allowing them to deduct specific tip income from their taxable earnings. The key provision modifies Section 30 of the Income Tax Act to add this exclusion, reducing the taxable income for eligible tipped workers. This change aligns Michigan's tax treatment with federal guidelines for tip income deductions.
SB 110 adds a property tax exemption for the surviving spouse of an emergency first responder (police, firefighter, etc.) who died while on duty. It directly affects surviving spouses who own their primary residence (homestead) and do not remarry. The bill expands existing homestead tax exemptions - previously limited to disabled veterans and their spouses - to include this group, allowing them to avoid property taxes on their home indefinitely. To qualify, the spouse must apply annually by December 31, and the exemption applies to any homestead property they own, including property acquired after the first responder's death.
HB 4111 exempts certain hydrogen fuel pumps from Michigan property taxes after December 31, 2025. It directly affects businesses installing qualifying hydrogen fueling infrastructure, such as stations filling vehicles with hydrogen. The bill defines a "qualified hydrogen fuel pump" as equipment meeting H35 (35 MPa) or H70 (70 MPa) pressure standards for dispensing hydrogen into motor vehicles. This exemption applies to the pumps themselves (classified as personal property), not the land or buildings they occupy, and is added to Michigan’s property tax law under Section 9q. The change aims to support development of hydrogen fueling infrastructure by reducing operational costs for businesses.
HB 4142 would impose a progressive tax on large digital advertising companies operating in Michigan, with rates ranging from 2.5% to 10% based on their global annual revenue. Companies with over $1 million in annual Michigan digital ad revenue (defined as revenue from banner ads, search ads, and similar services) would be required to file annual tax returns starting in 2026, with quarterly estimated payments for those exceeding the threshold. The tax applies to revenue derived from digital advertising services accessed by Michigan users, calculated using a specific apportionment formula. Collected revenue would fund Michigan's school aid and transportation funds.
HB 4121 prohibits local governments (counties, cities, townships, villages) from adopting property tax caps that automatically reduce tax rates when revenue hits a fixed dollar limit. It voids any existing local tax cap with this automatic reduction feature and requires local units to disregard such caps. The bill specifically targets caps imposed by local charter, ordinance, or policy - not state-mandated limits - making them unenforceable. This change ensures local tax revenue limits cannot trigger automatic rate cuts based solely on annual dollar amounts.
