Budget & Taxes

in committee · Michigan · House May 12, 2026

HB 5925: Corporate income tax: deductions; federal deduction for certain outsourcing expenses; add back. Amends sec. 623 of 1967 PA 281 (MCL 206.623).

HB 5925 amends Michigan's corporate income tax law to require companies to add back certain expenses related to outsourcing and relocating business operations out of the state. Specifically, the bill mandates that businesses must include specified outsourcing expenses in their taxable income if those costs were incurred to eliminate a trade or business located in Michigan or to relocate a business that was previously in the state to a new location outside of it. The legislation defines these eligible expenses as costs associated with ending or moving a business, such as permit fees, lease brokerage fees, and equipment installation costs. This change directly affects corporations with business activity in Michigan that have undertaken outsourcing or relocation activities, requiring them to pay additional state taxes on these specific expenditures.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes a tax loophole by requiring businesses to add back outsourcing expenses, increasing state revenue and promoting fiscal responsibility.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Michigan · House May 13, 2026

HB 5945: Property tax: classification; definition of qualified agricultural property; modify. Amends sec. 7dd of 1893 PA 206 (MCL 211.7dd). TIE BAR WITH: HB 5696'26

HB 5945 amends Michigan's property tax law to clarify definitions of 'owner,' 'principal residence,' and 'qualified agricultural property.' The bill updates who qualifies as an owner to include various individuals and entities, such as those in trusts or cooperative housing corporations. It also refines the definition of a principal residence to account for specific situations like military deployment and partial rentals, while ensuring unoccupied land remains classified as agricultural if more than half the acreage is used for farming. Additionally, the legislation protects agricultural property from losing its classification if owners implement wildlife risk mitigation plans, provided the land is not used for commercial or industrial purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies property tax definitions to ensure fair classification of agricultural property and principal residences, promoting fiscal equity and preventing misclassification that could lead to excessive taxation.75% confidence

Sub-Topics Property Tax

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in committee · Michigan · House Apr 23, 2026

HB 5869: Energy: alternative sources; HOPE zone exemption; provide for. Amends sec. 9 of 2023 PA 108 (MCL 211.1159). TIE BAR WITH: HB 5852'26, HB 5856'26

This bill modifies the Michigan Solar Energy Facilities Taxation Act to create a tax exemption for solar projects located in designated HOPE zones. Under the proposed changes, solar facilities in these areas would not be subject to the standard annual tax, which is normally $7,000 per megawatt of capacity. The exemption applies only to the specific tax portion of the fee and is tied to the duration of the HOPE zone designation. The bill also includes a tie-bar provision, meaning it will only become effective if two other related bills are passed by the legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax exemption for solar projects, reducing the tax burden and promoting renewable energy investment.85% confidence ✓ EnergySupports EnergyBill creates tax exemptions for solar projects in HOPE zones, directly advancing renewable energy development and reducing barriers to clean energy infrastructure.95% confidence ✓ EnvironmentSupports EnvironmentBill creates tax exemptions for solar energy facilities, promoting renewable energy and reducing reliance on fossil fuels.90% confidence

Sub-Topics Tax Incentives Solar

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in committee · Michigan · House Apr 23, 2026

HB 5863: Economic development: obsolete property and rehabilitation; HOPE zone exemption; provide for. Amends sec. 10 of 2000 PA 146 (MCL 125.2790). TIE BAR WITH: HB 5852'26, HB 5856'26

This bill amends Michigan's Obsolete Property Rehabilitation Act to clarify how property taxes are calculated and distributed for buildings that have been rehabilitated. It establishes a specific annual tax on owners of these properties, with the collected funds directed to the state school aid fund rather than local taxing units. The legislation also creates exemptions for facilities located in Renaissance or HOPE zones and allows local governments to grant temporary tax relief to qualified start-up businesses operating in rehabilitated buildings.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directs tax revenue from rehabilitated properties to the state school aid fund, increasing funding for public education while clarifying tax calculations.85% confidence ✓ EducationSupports EducationBill directs tax revenue from rehabilitated properties to the state school aid fund, increasing funding for K-12 schools.85% confidence

Sub-Topics Business Taxes Tax Incentives Tags Economic Development

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in committee · Michigan · House Apr 28, 2026

HB 5885: Property tax: exemptions; when to deny a disabled veteran’s exemption; clarify. Amends secs. 7b & 7c of 1893 PA 206 (MCL 211.7b & 211.7c)

This bill amends Michigan's property tax laws to clarify how disabled veterans and their surviving spouses qualify for tax exemptions on their homes. It establishes specific criteria for eligibility based on U.S. Department of Veterans Affairs ratings and outlines a streamlined process where exemptions granted after January 1, 2025, remain in effect without needing annual reapplication. The legislation also introduces an audit program to verify eligibility every three years and defines clear rules for prorating tax exemptions when property ownership changes during the year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies and streamlines property tax exemptions for disabled veterans, providing tax relief and reducing administrative burdens for a specific group.85% confidence ✓ VeteransSupports VeteransBill clarifies and streamlines property tax exemptions for disabled veterans, expanding benefits and reducing administrative burdens.90% confidence

Sub-Topics Audits & Accountability Property Tax Veteran Benefits Veteran Healthcare Veteran Housing

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in committee · Michigan · Senate Apr 15, 2026

SB 897: Sales tax: exemptions; exemption for certain generators; provide for. Amends sec. 4a of 1933 PA 167 (MCL 205.54a).

Senate Bill 897 amends Michigan's General Sales Tax Act to clarify and expand exemptions for specific entities and agricultural activities. The bill directly affects nonprofit organizations, religious institutions, schools, and agricultural businesses by defining which sales of tangible personal property are not subject to sales tax. Key provisions include explicit exemptions for parent cooperative preschools, expanded definitions for agricultural machinery and equipment used in farming, and specific rules for newspapers and periodicals. The legislation also clarifies that certain structures like greenhouses and portable grain bins are not considered real estate for tax purposes if they can be disassembled without affecting their functionality.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands sales tax exemptions for nonprofits, schools, and agriculture, reducing tax burdens on essential services and specific sectors.85% confidence ✓ EducationSupports EducationBill expands sales tax exemptions for schools and preschools, effectively reducing costs and protecting educational funding.75% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Apr 21, 2026

HB 5809: Housing: housing development authority; eligibility for credits under the community development tax credit program; coordinate with Michigan strategic fund. Amends sec. 22 of 1966 PA 346 (MCL 125.1422) & adds sec. 22e. TIE BAR WITH: HB 5798'26, HB 5799'26

HB 5809 amends the State Housing Development Authority Act to update the powers of the Michigan State Housing Development Authority (MSHDA) regarding its coordination with federal programs and the Michigan Strategic Fund. The bill clarifies the authority's ability to collect fees for loans and publications, allowing those funds to be used for corporate purposes unless pledged for bond repayment. It also reinforces the authority's role in encouraging community organizations for housing projects and managing the salvage of usable housing scheduled for demolition. Additionally, the legislation ensures that the authority can make loans to mortgage lenders and purchase securities to support housing development efforts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens the Michigan State Housing Development Authority's ability to collect fees and coordinate with federal programs, enhancing funding for housing initiatives.80% confidence ✓ HousingSupports HousingBill strengthens Michigan State Housing Development Authority powers and clarifies funding mechanisms for housing development and community programs.85% confidence

Sub-Topics Tax Credits Affordable Housing Community Development Housing Finance

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in committee · Michigan · House Apr 23, 2026

HB 5855: Local government: financing; HOPE zone exemption; provide for. Amends sec. 5 of 1990 PA 100 (MCL 141.1155). TIE BAR WITH: HB 5852'26

HB 5855 amends Michigan's City Utility Users Tax Act to create exemptions for specific businesses and locations. The bill allows qualified start-up businesses to be exempt from utility taxes for up to five years if they first receive a tax credit and receive approval from their city council. Additionally, it extends tax exemptions to businesses operating within designated Renaissance zones and HOPE zones, while explicitly excluding casinos from these benefits. To claim the start-up exemption, businesses must file an affidavit by September 1 and provide proof of their prior tax credit eligibility.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax exemptions for start-ups and designated zones, reducing tax burdens to stimulate local economic activity and government revenue growth.85% confidence

Sub-Topics Tax Credits Tax Incentives Tags Local Government

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in committee · Michigan · House Apr 23, 2026

HB 5858: Economic development: plant rehabilitation; HOPE zone exemption; provide for. Amends sec. 11 of 1974 PA 198 (MCL 207.561). TIE BAR WITH: HB 5852'26, HB 5856'26

HB 5858 amends Michigan law to clarify how specific taxes and administrative fees are collected from owners of industrial facilities that have received tax exemption certificates. The bill establishes rules for distributing these payments, directing funds to the state treasury to support school aid rather than local districts in most cases, while allowing certain districts to retain funds under specific conditions. It also outlines procedures for calculating tax shares and includes provisions for districts that may or may not receive state aid in future fiscal years. This legislation directly affects property owners of industrial facilities, local and intermediate school districts, and the state treasury.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies tax collection and directs funds to state treasury for school aid, strengthening fiscal management and public funding.85% confidence ✓ EducationSupports EducationBill directs tax revenue from industrial facilities to the state treasury to support school aid, thereby increasing funding for education.85% confidence

Sub-Topics Property Tax Tax Incentives Tags Economic Development

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in committee · Michigan · House Apr 23, 2026

HB 5854: Individual income tax: revenue distributions; earmark of withholding tax capture revenues attributable to certain employees into the workforce development HOPE zone fund; provide for. Amends sec. 51f of 1967 PA 281 (MCL 206.51f). TIE BAR WITH: HB 5852'26

This bill directs a specific portion of Michigan's individual income tax revenue to the Workforce Development HOPE Zone Fund. The funds are designated for employees working within designated HOPE zones and are intended to be distributed to qualified workforce development organizations through formal agreements. The legislation defines key terms such as "HOPE zone" and "qualified workforce development organization" by referencing existing state laws. The bill will only take effect if it is passed alongside a companion bill, HB 5852.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directs individual income tax revenue to fund workforce development programs, strengthening fiscal management and supporting essential public services.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill directs tax revenue to a workforce development fund for employees in HOPE zones, aiming to strengthen workforce capabilities and support workers.65% confidence

Sub-Topics Income Tax Revenue Tax Incentives Workforce Development

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