Budget & Taxes

passed · Michigan · House Jun 9, 2026

HB 5235: Individual income tax: property tax credit; owner and eligibility of a homestead placed in certain trusts; clarify. Amends sec. 510 of 1967 PA 281 (MCL 206.510).

HB 5235 clarifies who qualifies for Michigan's property tax credit on primary homes by expanding the definition of "owner" to include homeowners who place their homestead in revocable trusts or qualified personal residence trusts. This change directly affects homeowners using these specific trust structures to hold their primary residence, ensuring they remain eligible for the tax credit. The bill modifies existing law to explicitly include grantors (homeowners) who transfer their homestead into such trusts, removing ambiguity about their eligibility. It does not change the credit amount or create new requirements, only defining who qualifies under current rules. The bill is currently in committee review after being introduced in November 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands eligibility for property tax credit, ensuring homeowners in specific trusts maintain tax relief, aligning with tax relief indicators.95% confidence

Sub-Topics Property Tax

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signed · Michigan · Senate Dec 23, 2025

SB 690: Land use: farmland and open space; legal arrangements eligible for tax credits; expand. Amends sec. 36109 of 1994 PA 451 (MCL 324.36109). TIE BAR WITH: SB 0688'25, SB 0686'25, SB 0689'25, SB 0687'25, SB 0685'25

SB 690 expands a state income tax credit for property taxes on farmland and open space protected by conservation agreements, such as agricultural easements or development rights agreements. Eligible farm owners - including those in partnerships, S corporations, life estates, trusts, and limited liability companies - can claim a credit for property taxes exceeding 3.5% of household income. The bill clarifies how the credit is calculated and shared among different ownership structures, requiring specific documentation like partnership agreements or trust terms to claim it. This change directly affects Michigan farmers who have conservation agreements on their land to preserve agricultural use.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit for farmland property taxes, providing relief to eligible owners by reducing taxable burden on agricultural land.95% confidence ✓ EnvironmentSupports EnvironmentExpands tax credits for conservation agreements protecting farmland/open space, directly advancing environmental conservation through financial incentives for land preservation.95% confidence

Sub-Topics Conservation Tags Agriculture

in committee · Michigan · House Nov 13, 2025

HB 5275: Individual income tax: property tax credit; definition of disabled veteran and exclusion from credit cap; provide for. Amends secs. 506 & 520 of 1967 PA 281 (MCL 206.506 & 206.520). TIE BAR WITH: HB 5272'25

HB 5275 modifies Michigan's property tax credit for individual income tax by changing the definition of "disabled veteran" and removing a limit on the credit amount for qualifying veterans. The bill amends sections 506 and 520 of the 1967 Income Tax Act (MCL 206.506, 206.520) to expand eligibility and eliminate a cap previously applied to this credit. This directly affects disabled veterans who claim the property tax credit, allowing them to receive the full credit amount without the prior limitation. The change is a specific policy adjustment to the tax code, not a new benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves cap on property tax credit for disabled veterans, increasing tax relief for qualifying veterans, directly advancing tax relief within Budget & Taxes framework.90% confidence ✓ VeteransSupports VeteransBill removes credit cap for disabled veterans, expanding property tax benefits. Directly advances financial support for veterans by eliminating prior limitations on their tax credit.90% confidence

Sub-Topics Property Tax Veteran Benefits Veteran Education Veteran Healthcare

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in committee · Michigan · House Nov 13, 2025

HB 5272: Individual income tax: property tax credit; credit for disabled veteran or widow or widower of disabled veteran who rents or leases a homestead; provide for and exclude from cap. Amends secs. 522 & 530 of 1967 PA 281 (MCL 206. 522 & 206.530). TIE BAR WITH: HB 5275'25

HB 5272 proposes to create a new property tax credit for disabled veterans and surviving spouses (widows/widowers) of disabled veterans who rent or lease a home in Michigan. It amends Michigan’s income tax law to add this credit and specifically exclude it from the state’s income tax cap. This would directly benefit qualifying renters who are disabled veterans or surviving spouses, providing them with a tax reduction they currently cannot access under existing rules. The bill does not change other tax credits or the overall tax structure.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for disabled veterans/renters, providing direct tax relief excluded from cap, aligning with support indicators for lower-income tax relief.95% confidence ✓ HousingSupports HousingProvides tax credit for disabled veteran renters, reducing housing costs and increasing affordability for vulnerable renters.90% confidence ✓ VeteransSupports VeteransCreates tax credit for disabled veterans & surviving spouses, expanding financial benefits for renters who previously couldn't access property tax credits.95% confidence

Sub-Topics Property Tax Property Taxes Renters Veteran Education Veteran Healthcare Veteran Housing

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in committee · Michigan · House Dec 2, 2025

HB 5296: Corporate income tax: revenue distribution; distribution of corporate income tax revenue; modify to reflect repeal of the strategic outreach and attraction reserve fund. Amends sec. 695 of 1967 PA 281 (MCL 206.695). TIE BAR WITH: HB 5294'25

HB 5296 modifies Michigan's corporate income tax revenue distribution by removing the allocation to the "strategic outreach and attraction reserve fund" (which was repealed) and redirecting those funds to the "neighborhood roads fund" starting in the 2025-2026 fiscal year. The bill updates Section 695 of the Income Tax Act to reflect this change, specifying that after deposits to the general fund ($1.2 billion) and housing fund ($50 million), funds previously designated for the strategic reserve will instead go to the neighborhood roads fund (starting at $688 million in 2025-2026 and increasing annually through 2028-2029). This affects how corporate tax revenue is allocated to state programs, directly impacting the neighborhood roads fund's funding. The change applies to fiscal years beginning 2025-2026 and beyond, while other allocations (e.g., to housing and revitalization funds) remain unchanged.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects corporate tax revenue to neighborhood roads fund, increasing public infrastructure funding without tax changes or cuts.92% confidence ✓ TransportationSupports TransportationRedirects corporate tax funds to neighborhood roads fund, directly funding transportation infrastructure maintenance and road projects.95% confidence

Sub-Topics Business Taxes Revenue

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in committee · Michigan · House Nov 13, 2025

HB 5246: Property tax: classification; parcels used to cultivate marihuana; classify as commercial real property under the general property tax act. Amend sec. 34c of 1893 PA 206 (MCL 211.34c).

HB 5246 changes Michigan's property tax classification by adding "parcels used to cultivate marihuana" to the definition of commercial real property under the General Property Tax Act. This means properties used for marijuana cultivation will now be taxed at commercial rates instead of potentially lower agricultural rates. The bill directly affects licensed marijuana cultivators and property owners who operate cannabis farms. The key provision amends Section 34c(2)(b)(v) of the tax act to explicitly include marijuana cultivation within the commercial property category, using definitions from Michigan's Marihuana Act. This is a straightforward policy change to align tax treatment with the commercial nature of cannabis cultivation operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesReclassifies marijuana cultivation properties to commercial tax rate, increasing state revenue by closing agricultural tax loophole.95% confidence

Sub-Topics Property Tax

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in committee · Michigan · Senate Nov 5, 2025

SB 248: Human services: services or financial assistance; water rate affordability fund; provide for. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 14t. TIE BAR WITH: SB 0250'25, SB 0252'25

SB 248 creates a water rate affordability fund to provide financial assistance for human services, directly supporting low-income households struggling with water utility costs. The bill amends Michigan's human services code to establish this fund, which would help cover water bills for eligible residents. Currently in committee review (reported favorably with a substitute on November 5, 2025), the bill has not yet been voted on by the full chamber. It focuses on a concrete policy mechanism - funding for water bill assistance - without specifying eligibility details or funding sources in the provided context.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates water rate affordability fund to provide state-funded financial assistance for low-income households, directly increasing government spending on essential public service support.95% confidence

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in committee · Michigan · House Nov 13, 2025

HB 5248: State management: other; state financing of activities or services required of local units of government; provide for. Implements sec. 29, art. IX of the state constitution & repeals 1979 PA 101 (MCL 21.231 - 21.244).

HB 5248, titled the "Headlee unfunded mandates prohibition act," requires the state to fully finance costs for local governments when mandated by state law to provide new or expanded services. It defines "state requirement" as a new or increased service beyond existing law, excluding trivial costs (under $300 per claim) or situations where the mandate offsets existing costs. The bill directly affects cities, counties, school districts, and other local units of government by ensuring the state covers these mandated expenses rather than leaving them to local budgets. Key provisions include requiring state agencies to calculate and fund "necessary costs" for mandated activities, while exempting minor or offsetting cost mandates.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires state to fully finance local government mandates, preventing unfunded costs and promoting fiscal responsibility in budget management.95% confidence ✓ EducationSupports EducationRequires state funding for school district mandates, preventing unfunded costs and supporting education budgets per bill's application to school districts.90% confidence

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passed · Michigan · Senate Oct 30, 2025

SB 182: Appropriations: supplemental; appropriations for multiple departments and branches for fiscal year 2025-2026; provide for. Creates appropriation act.

SB 182 is a supplemental appropriations bill that allocates additional state funding for multiple departments and branches during fiscal year 2025-2026. It directly affects state agencies by providing them with specific budget allocations to cover operational costs and programs beyond initial appropriations. The bill's key mechanism is the formal authorization of these supplemental funds through a dedicated appropriation act, ensuring state agencies have the necessary resources to function throughout the fiscal year. This bill does not create new policies or impact specific public groups, but rather provides the financial framework for existing state operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates supplemental state funding to multiple departments for FY2025-2026, directly supporting budget execution and resource allocation for public services.95% confidence

Sub-Topics Appropriations State Budget

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signed · Michigan · Senate Dec 2, 2025

SB 596: State finance: budgets; legislatively directed spending items; create a request and monitoring process for. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 364. TIE BAR WITH: HB 4420'25

SB 596 creates a formal process for state agencies to request and monitor legislatively directed spending items within the state budget. It requires agencies to submit such requests through a defined procedure and track how funds are used, affecting state departments and legislators who direct funding. The bill amends Michigan's state finance law (MCL 18.1101-18.1594) to establish this requirement. The bill was approved by the governor and became law on November 18, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates formal tracking for legislatively directed spending to improve budget oversight and fiscal accountability within state finance law.85% confidence

Sub-Topics Appropriations State Budget