Budget & Taxes

in committee · Michigan · House Sep 18, 2025

HB 4971: Use tax: exemptions; sale of baby diapers; exempt. Amends sec. 4 of 1937 PA 94 (MCL 205.94).

HB 4971 amends Michigan's Use Tax Act to clarify that promotional merchandise (including items like baby diapers) transferred to out-of-state customers via redemption offers qualifies for resale exemptions. It specifically updates Section 4(c)(i) to include promotional merchandise shipped outside Michigan as exempt from use tax, directly affecting retailers and businesses selling such items to out-of-state customers. The key mechanism expands existing resale exemptions to cover promotional goods sent to customers in other states, aligning with how businesses handle cross-state promotions. This change does not create new exemptions but clarifies existing rules for promotional sales. (Note: The bill title mentions "baby diapers," but the actual amendment applies broadly to all promotional merchandise, not specifically diapers.)

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption for promotional merchandise shipped out-of-state, reducing business tax burden under Use Tax Act.95% confidence

Sub-Topics Sales Tax

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in committee · Michigan · Senate Sep 18, 2025

SB 557: Corporate income tax: credits; research and development credit for certain businesses located in an aerospace defense zone; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.

SB 557 creates tax credits for businesses in Michigan's designated aerospace defense zones. It offers a 30% credit on qualifying research and development expenses (capped at $10 million per business annually) and a 20% credit on storage/maintenance costs for finished goods inventory (capped at $1 million per business annually). To qualify, businesses must be designated by the Michigan Strategic Fund as defense contractors, aerospace manufacturers, or tiered suppliers with under $5 million in annual revenue. The credits require certification from the Strategic Fund, have annual spending limits ($100 million for R&D credits, $25 million for inventory credits), and cannot be claimed on the same expenses as other credits. This bill directly affects small-to-midsize aerospace and defense businesses operating within designated zones in Michigan.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax credits for businesses, reducing state tax revenue and weakening the tax base.90% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Michigan · Senate Sep 18, 2025

SB 564: Water supply: quality and standards; water quality protection fee; provide for. Amends sec. 8715 of 1994 PA 451 (MCL 324.8715).

This bill amends Michigan's water quality protection fee structure for pesticide and fertilizer businesses. It establishes annual fees for pesticide registrations ($270-$367 per product starting 2026) and specialty fertilizer registrations ($100-$136 per brand/product), with fertilizer manufacturers paying fees based on product weight. Fees will increase annually through 2030 and adjust for inflation starting in 2031 using the Detroit Consumer Price Index. The fee system expires December 31, 2025, but provisions for inflation adjustments begin January 1, 2031.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates mandatory business fees ($100-$367 annually) to fund water quality protection, directly generating revenue for a public environmental program under fiscal management.90% confidence ✓ EnvironmentSupports EnvironmentEstablishes fees for pesticide/fertilizer businesses to fund water quality protection, directly advancing environmental safeguards through mandatory industry contributions.95% confidence

Sub-Topics Water Quality

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passed both · Michigan · House Feb 24, 2026

HB 4080: Property tax: special assessments; special assessment deferment program; reinstate. Amends secs. 1 & 2 of 1976 PA 225 (MCL 211.761 & 211.762). TIE BAR WITH: HB 4079'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesReinstates property tax deferral for eligible homeowners, providing tax relief for lower-income residents and promoting fiscal responsibility through deferred payments.95% confidence ✓ HousingSupports HousingReinstates property tax deferment for homestead owners (including disabled residents), preventing displacement and reducing financial burden on vulnerable homeowners, directly supporting housing affordability.90% confidence

Sub-Topics Property Tax Property Taxes

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in committee · Michigan · House Sep 29, 2025

HB 5063: Individual income tax: credit; credit for fostering animals; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 285.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates state income tax credit for foster caregivers, providing tax relief as per topic indicators.90% confidence

Sub-Topics Tax Credits

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in committee · Michigan · House Sep 29, 2025

HB 5084: Liquor: beer; beer tax; eliminate. Amends sec. 409 of 1998 PA 58 (MCL 436.1409).

HB 5084 proposes to eliminate Michigan's $6.30 per barrel tax on beer. This bill would remove the existing tax requirement for brewers, brewpubs, and wholesalers under the Liquor Control Code. The change would directly affect beer manufacturers and distributors who currently pay this tax on beer sold in Michigan. The bill focuses solely on removing the tax rate and related collection mechanisms, without adding new provisions or exemptions.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates $6.30 per barrel beer excise tax, directly reducing state tax revenue and opposing tax collection efforts in Budget & Taxes.95% confidence

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in committee · Michigan · House Sep 29, 2025

HB 5088: Higher education: other; use of school aid funds for community colleges and higher education expenses; limit. Creates appropriation act.

HB 5088 limits annual state funding for Michigan community colleges and higher education to $1.324 billion from the state school aid fund, starting in fiscal year 2026. This directly affects community colleges and public universities that receive state funding through the school aid program. The bill creates a hard cap on these appropriations, requiring that any amount exceeding the limit be covered by general fund money instead of the school aid fund. This policy change explicitly restricts how state education funds can be allocated, with no additional policy effects described in the bill text.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill imposes a hard cap ($1.324B) on state funding for community colleges/higher education via school aid fund, restricting annual appropriations and requiring excess costs from general fund.95% confidence ✗ EducationOpposes EducationCaps state funding for community colleges/higher ed at $1.324B, requiring general fund coverage for excess, restricting school aid usage per bill's hard cap language.95% confidence

Sub-Topics Higher Education

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in committee · Michigan · House Oct 28, 2025

HB 5129: Sales tax: exemptions; exemptions for the sale of investment coins and bullion; modify. Amends sec. 4s of 1933 PA 167 (MCL 205.54s). TIE BAR WITH: HB 5130'25, HB 5129'25

HB 5129 updates Michigan's sales tax law to exempt purchases of investment coins and bullion from tax. It expands the definition of "bullion" to include gold, silver, or platinum films/leafs (50%+ metal content) used as currency (but not legal tender) starting January 1, 2026, while maintaining the 90% purity standard for other bullion. This directly affects buyers of these specific precious metal products, including new film-based items, by removing sales tax. The bill requires passage of companion bill HB 5130 to take effect.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts investment coins/bullion from sales tax, creating tax break for wealthy investors while reducing state revenue, aligning with 'oppose' indicators.92% confidence

Sub-Topics Sales Tax

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passed both · Michigan · House Oct 30, 2025

HB 4128: Corporate income tax: credits; credit for advanced small modular reactor generated power; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: HB 4127'25, HB 4129'25, HB 4125'25, HB 4126'25, HB 4124'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate income tax credit for SMR power generation, reducing tax liability for qualifying businesses per tax code amendment.95% confidence ✓ EnergySupports EnergyBill provides tax credit for SMR-generated power, incentivizing investment in advanced nuclear energy infrastructure, aligning with clean energy development goals.95% confidence ✓ TechnologySupports TechnologyProvides tax credit to incentivize investment in SMR energy technology, directly funding a specific tech sector per bill's financial incentive mechanism.95% confidence

Sub-Topics Business Taxes Nuclear Renewable Energy

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in committee · Michigan · House Jul 2, 2026

HB 5139: Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c). TIE BAR WITH: HB 5138'25, HB 5140'25

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loophole by requiring marketplace facilitators to collect use tax, expanding state revenue from online sales and strengthening tax collection for budget purposes.90% confidence

Sub-Topics Sales Tax

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