Budget & Taxes (Tax Incentives)

in committee · Michigan · House Dec 18, 2025

HB 5396: Sales tax: exemptions; data center exemption; eliminate. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & repeals sec. 4ee of 1933 PA 167 (MCL 205.54ee).

HB 5396 eliminates a sales tax exemption for data center equipment in Michigan. The bill repeals Section 4ee of the General Sales Tax Act (MCL 205.54ee), which previously allowed data centers to avoid paying the standard 4% sales tax on equipment purchases. This change directly affects data center businesses operating in Michigan, requiring them to pay sales tax on qualifying equipment starting when the bill takes effect. The policy change removes a specific tax break, aligning data center equipment purchases with standard sales tax rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates tax exemption for data centers, closing a loophole to increase state sales tax revenue per bill's repeal of Section 4ee.90% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Michigan · Senate Jul 29, 2026

SB 722: Economic development: commercial redevelopment; commercial rehabilitation act; modify. Amends secs. 2, 6, 7, 14 & 16 of 2005 PA 210 (MCL 207.842 et seq.).

SB 722 amends Michigan's Commercial Rehabilitation Act to update eligibility rules for tax credits aimed at revitalizing commercial properties. It clarifies definitions of "qualified facility" (including new requirements for retail food establishments in underserved areas) and allows commercial rehabilitation districts to be smaller than 3 acres in downtowns or near qualifying food stores. The bill explicitly excludes stadiums and casinos from receiving tax benefits. These changes aim to streamline the process for property owners seeking credits while ensuring funds target specific revitalization projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax credit program for commercial rehab, clarifies eligibility, and excludes stadiums/casinos, strengthening targeted fiscal incentives for development.90% confidence

Sub-Topics Tax Incentives

in committee · Michigan · House Dec 18, 2025

HB 5398: Property tax: exemptions; general property tax act; reflect repeal of data center tax exemptions. Amends sec. 7ff of 1893 PA 206 (MCL 211.7ff). TIE BAR WITH: HB 5396'25, HB 5397'25

HB 5398 amends Michigan's General Property Tax Act to remove a tax exemption for data centers located in Renaissance Zones. Specifically, it eliminates the exemption previously available for "eligible data center property" in zones approved by the Michigan Strategic Fund in 2016 with at least $100 million in investment. This change directly affects data center operators in designated Renaissance Zones who previously qualified for reduced property taxes. The bill updates Section 7ff of the tax act to reflect this repeal, ensuring data centers no longer receive the tax break.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for data centers, closing a loophole to increase state revenue. Aligns with closing tax loopholes as a support indicator.95% confidence ✗ TechnologyOpposes TechnologyRemoves tax exemption for data centers, increasing operational costs and limiting financial incentives for tech infrastructure development.85% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Dec 9, 2025

HB 5305: Economic development: commercial redevelopment; commercial redevelopment certificate; extend sunset. Amends sec. 18 of 1978 PA 255 (MCL 207.668).

HB 5305 extends the deadline for granting new tax exemptions under Michigan's Commercial Redevelopment Act from 2025 to 2030. This means developers can still apply for new exemptions until December 31, 2030, but no new exemptions will be approved after that date. Existing exemptions granted before 2030 will remain valid until their original expiration dates. The bill amends Section 18 of the Commercial Redevelopment Act (MCL 207.668) to update this sunset provision.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExtends tax exemptions for commercial redevelopment, reducing state revenue by allowing additional tax breaks until 2030.90% confidence

Sub-Topics Tax Incentives

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signed · Michigan · Senate Jul 29, 2026

SB 723: Economic development: brownfield redevelopment authority; transformational brownfield plan; modify. Amends secs. 2, 13c, 14a & 16 of 1996 PA 381 (MCL 125.2652 et seq.) & adds secs.16a & 16b.

SB 723 modifies Michigan's Brownfield Redevelopment Financing Act to streamline cleanup and development of contaminated or underused industrial sites. It defines "blighted" properties more clearly (e.g., sites with disconnections, fire hazards, or buried debris) and creates a new "transformational brownfield plan" that allows developers to capture tax revenues generated during construction. The bill establishes "construction period tax capture revenues" - taxes collected from wages paid during site improvements - which are calculated using a specific formula and reported to the state treasury. This policy directly affects developers, local governments, and property owners working on eligible brownfield sites, providing a new funding mechanism for redevelopment projects.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates 'construction period tax capture revenues' from wages during development, directly generating state tax revenue to fund brownfield redevelopment projects, aligning with fiscal management and economic development funding.95% confidence ✓ HousingSupports HousingStreamlines brownfield redevelopment, enabling new housing development on underused industrial sites without explicit housing language but directly facilitates housing construction through tax incentives.85% confidence

Sub-Topics Tax Incentives Community Development Property Development

in committee · Michigan · House Dec 9, 2025

HB 5306: Economic development: commercial redevelopment; commercial rehabilitation exemption certificate; extend sunset. Amends sec. 16 of 2005 PA 210 (MCL 207.856).

HB 5306 extends the deadline for granting new commercial rehabilitation tax exemptions in Michigan from 2025 to 2030 under the Commercial Rehabilitation Act. It directly affects property owners and developers who rely on these tax breaks for renovating older commercial buildings. The bill changes Section 16 of the act to prevent new exemptions after December 31, 2030, while allowing existing exemptions to continue until their original expiration dates. This is a straightforward policy extension with no new eligibility rules or funding changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax exemptions for commercial redevelopment, providing ongoing tax relief to property owners and developers under existing program, directly strengthening tax incentive policy.95% confidence

Sub-Topics Tax Incentives

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signed · Michigan · Senate Jul 29, 2026

SB 721: Economic development: commercial redevelopment; commercial redevelopment act; modify. Amends secs. 9, 12a, 16 & 18 of 1978 PA 255 (MCL 207.659 et seq.).

SB 721 amends Michigan's Commercial Redevelopment Act to update property tax exemption rules for commercial facilities. It limits total exemption periods to 12 years (including extensions), requires local governments to document criteria for renewing exemptions, and extends the deadline for new exemptions from 2025 to 2035. The bill also allows the state treasurer to temporarily exclude up to half the education tax mills for qualifying facilities for up to 6 years to promote job growth, with a yearly cap of 45 such exclusions. Local governments must annually report on exemption impacts, including property values and job creation. This directly affects commercial businesses seeking tax benefits, local governments issuing exemptions, and state tax administration.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill allows temporary exclusion of education tax mills for commercial facilities, reducing state tax revenue to promote job growth, directly weakening tax collection.90% confidence

Sub-Topics Property Tax Tax Incentives Tags Economic Development

in committee · Michigan · House Dec 18, 2025

HB 5395: Economic development: brownfield redevelopment authority; brownfield tax increment financing credits; modify. Amends secs. 2, 12, 13 & 13b of 1996 PA 381 (MCL 125.2652 et seq.).

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax credit rules for brownfield redevelopment, creating fiscal incentives to fund property cleanup and redevelopment through tax increment financing.90% confidence

Sub-Topics Revenue Tax Credits Tax Incentives

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in committee · Michigan · House Dec 17, 2025

HB 5377: Property tax: exemptions; property tax exemption from certain millages levied under the revised school code if the property's owner has no children attending public schools in this state; provide for. Amends secs. 1211, 1212 & 1364 of 1976 PA 451 (MCL 380.1211 et seq.). TIE BAR WITH: HB 5376'25, HB 5378'25, HB 5379'25

HB 5377 would allow property owners without children attending Michigan public schools to qualify for a property tax exemption on certain school millages under the Revised School Code. It directly affects homeowners who do not have children enrolled in public schools within the state. The bill amends specific sections of the school code (380.1211, 380.1212, and 380.1364) to establish this new exemption category. This change modifies existing tax eligibility rules but does not alter current tax rates or funding formulas.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for homeowners without children in public schools, reducing tax burden per bill's tax relief provision.95% confidence ✗ EducationOpposes EducationBill reduces school funding by exempting non-enrolling property owners from school millages, decreasing potential revenue for districts under Revised School Code.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · Senate Feb 26, 2025

SB 108: Economic development: downtown development authorities; certain requirements for initial assessed value; modify. Amends sec. 201 of 2018 PA 57 (MCL 125.4201).

SB 108 amends Michigan's Tax Increment Financing Act to adjust how the "initial assessed value" is calculated for downtown development authorities. It specifically modifies the baseline property value used to determine tax increments for certain municipalities with historical circumstances, such as small cities with expired development plans or areas later designated as Renaissance Zones. The bill affects downtown development authorities and municipalities using tax increment financing in these specific scenarios. The key change ensures initial assessed value calculations account for past plan expirations or Renaissance Zone exemptions, maintaining a consistent baseline for tax increment calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends Tax Increment Financing Act to adjust baseline property value calculations, facilitating municipal use of TIF for economic development funding without increasing taxes or reducing public funds.90% confidence

Sub-Topics Tax Incentives

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