Budget & Taxes (Tax Incentives)

in committee · Michigan · Senate Jul 29, 2025

SB 491: Appropriations: supplemental; economic development incentive evaluations for SOAR projects; require. Amends secs. 3, 5 & 7 of 2018 PA 540 (MCL 18.1753 et seq.) & adds sec. 7a.

SB 491 requires the Michigan Department of Technology, Management, and Budget to periodically evaluate economic development incentives, with specific timelines based on program type. It mandates evaluations for SOAR projects (funded by the Strategic Outreach and Attraction Reserve) "as often as necessary," and for other incentives at least every 4-6 years depending on funding size. The department must contract independent evaluators, complete reviews within 270 days, and publish results on its website. This directly affects the Michigan Strategic Fund, state agencies administering incentives, and businesses receiving tax breaks, grants, or other economic development support.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires periodic evaluations of economic development incentives to ensure fiscal responsibility and program effectiveness, promoting accountable budget management per appropriations oversight.85% confidence

Sub-Topics Appropriations Tax Incentives Tags Economic Development

Track

in committee · Michigan · Senate Jul 29, 2025

SB 486: Economic development: other; SOAR fund; eliminate. Amends sec. 2 of 2000 PA 489 (MCL 12.252) & repeals sec. 4 of 2000 PA 489 (MCL 12.254). TIE BAR WITH: SB 488'25

SB 486 eliminates the Strategic Outreach and Attraction Reserve (SOAR) fund, a dedicated revenue source for economic development programs under Michigan's trust fund law. The bill repeals Section 4 of the 2000 Michigan Trust Fund Act (MCL 12.254), which established the SOAR fund for attracting businesses and supporting community outreach initiatives. This change directly affects state funding mechanisms for economic development efforts, removing a specific allocation channel. The repeal is contingent on Senate Bill 488 also becoming law.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals dedicated SOAR fund, eliminating specific revenue allocation for economic development programs, reducing dedicated budget funding.90% confidence

Sub-Topics Tax Incentives

Track

passed both · Michigan · House Jun 23, 2026

HB 4026: Use tax: exemptions; sunset date on exemption for firearm safety devices; extend. Amends sec. 4ll of 1937 PA 94 (MCL 205.94ll).

HB 4026 exempts firearm safety devices from Michigan's sales and use tax through December 31, 2024, directly affecting gun owners purchasing these devices. The bill defines "firearm safety devices" as trigger locks, secure storage containers (like gun safes or lockboxes requiring keys/combinations), but excludes display cases. Retail sellers must provide written notices to buyers and post visible signage at points of sale explaining the tax exemption. This is a temporary measure with a sunset date, not a permanent policy change.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts firearm safety devices from sales tax, providing tax relief per bill's explicit language on tax exemptions.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

Track

in committee · Michigan · Senate Jul 17, 2025

SB 484: Property tax: exemptions; exemption of certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends sec. 7gg of 1893 PA 206 (MCL 211.7gg). TIE BAR WITH: SB 485'25

SB 484 creates a 5-year property tax exemption for real estate sold or conveyed by land banks or local governments after tax delinquency. This applies to properties sold under the Land Bank Fast Track Act or Tax Reverted Clean Title Act, beginning the year after sale and lasting through the fifth December 31. The exemption does not apply to properties in brownfield redevelopment plans if specific conditions are met (e.g., land bank bonds or brownfield plan details). Properties under this exemption remain subject to the tax levied under the Tax Reverted Clean Title Act.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5-year property tax exemption for land bank-sold properties, offering tax relief to new owners and encouraging redevelopment of delinquent properties.95% confidence ✓ HousingSupports HousingCreates 5-year property tax exemption for land bank-sold tax-delinquent properties, incentivizing redevelopment into housing and supporting affordable housing development.85% confidence

Sub-Topics Property Tax Tax Incentives Community Development Property Taxes

Track

passed both · Michigan · House Jun 23, 2026

HB 4025: Sales tax: exemptions; sunset date on exemption for firearm safety devices; extend. Amends sec. 4ll of 1933 PA 167 (MCL 205.54ll).

HB 4025 extends Michigan's sales tax exemption for firearm safety devices until December 31, 2024. It defines "firearm safety devices" as equipment (like gun safes, lockboxes, or trigger locks) designed to prevent unauthorized access or operation of firearms, but excludes display cabinets. Retail sellers must provide written notices to purchasers and post conspicuous signage at points of sale about the tax exemption. The bill also requires the state to annually compensate the school aid fund for any revenue lost due to this exemption.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends sales tax exemption for firearm safety devices, providing tax relief per bill's explicit language on tax policy.90% confidence

Sub-Topics Sales Tax Tax Incentives

Track

signed · Michigan · Senate Oct 8, 2025

SB 565: Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

SB 565 amends Michigan's property tax reimbursement fund rules to require that unused funds from the local government reimbursement fund lapse (transfer) to the state's general fund at year-end, instead of remaining in the fund. It directly affects municipalities that receive state reimbursements for revenue lost due to small business property tax exemptions under the General Property Tax Act. The key change modifies Section 3a of the Michigan Trust Fund Act (2000 PA 489) to ensure unspent funds are returned to the state's general budget annually, rather than carrying over. This is a procedural adjustment to fund management, not a change to tax exemptions or reimbursement eligibility.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires unused property tax reimbursement funds to lapse to general fund, enhancing fiscal responsibility by preventing fund accumulation and ensuring funds are available for broader state budget use.85% confidence

Sub-Topics Property Tax Tax Incentives

in committee · Michigan · House Oct 21, 2025

HB 4787: Property tax: exemptions; property tax exemption for certain utility personal property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 4788'25

HB 4787 would exempt utility companies' replacement electric distribution infrastructure from general property taxes after December 31, 2025, if the infrastructure replaces older systems. To qualify, owners must apply annually by March 1 to local assessors and submit detailed reports by March 31 each year, including location, description of the replaced infrastructure, and safety/reliability improvements. The exemption depends on another bill (HB 4788) being enacted first. This directly affects electric utilities upgrading their aging infrastructure.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts utility infrastructure from property taxes, reducing state/local tax revenue. Directly weakens government fiscal resources through corporate tax break, aligning with 'oppose' indicators.90% confidence

Sub-Topics Property Tax Tax Incentives

Track

in committee · Michigan · House Oct 28, 2025

HB 5118: Individual income tax: credit; work opportunity tax credit for qualified employees; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: HB 5119'25

HB 5118 would create a Michigan income tax credit for employers hiring residents from specific federal "targeted groups" (like veterans or long-term unemployed individuals). The credit equals 50% of the federal work opportunity tax credit amount, applied to qualified wages paid to Michigan residents certified by the state unemployment agency as part of these groups. It applies to tax years beginning January 1, 2026, and cannot exceed an employer's total tax liability for that year. The bill directly affects Michigan employers (excluding tax-exempt organizations) who hire eligible employees meeting federal and state certification criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for employers hiring targeted groups (veterans, long-term unemployed), reducing tax liability and incentivizing employment. Aligns with tax relief and economic support policies.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employers hiring from targeted worker groups (veterans, long-term unemployed), directly promoting employment opportunities and labor market inclusion.95% confidence ✓ VeteransSupports VeteransVeterans explicitly listed as a targeted group for tax credit, incentivizing employer hiring to support veteran employment and workforce integration.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Professional Licensing Unemployment Veteran Employment

Track

in committee · Michigan · Senate Oct 30, 2025

SB 633: Individual income tax: credit; state historic preservation tax credit; eliminate. Amends secs. 266a & 676 of 1967 PA 281 (MCL 206.266a & 206.676). TIE BAR WITH: SB 0631'25

SB 633 eliminates Michigan's state historic preservation tax credit program, which previously allowed property owners to claim a 25% tax credit for qualified rehabilitation expenses on historic buildings. The bill directly affects developers and property owners who relied on this credit for restoring historic resources, removing their eligibility for tax benefits under this program. Key provisions include repealing sections of the Income Tax Act that governed the credit's application process, annual funding limits ($5 million total), and requirements for certification of historic rehabilitation projects. This change would end the state's financial incentive for historic preservation projects that currently qualify under this credit.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates historic preservation tax credit, removing tax benefits for property owners under individual income tax provisions.95% confidence ✗ HousingOpposes HousingEliminates historic preservation tax credit (25% rehab credit) that supported housing development on historic properties, directly reducing financial incentives for housing rehabilitation projects.92% confidence

Sub-Topics Income Tax Tax Incentives Historic Preservation Property Taxes

Track

passed · Michigan · Senate Nov 13, 2025

SB 199: Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).

SB 199 amends Michigan's tax increment financing law to modify funding limits for certain legacy obligations. It specifically restricts the amount of tax increment revenue (revenue from increased property taxes in redevelopment areas) that can be used to pay for ongoing management contracts and professional services established before 1993. The bill phases out these payments annually, starting with $3 million per year for taxes levied through 2009, decreasing to $0 for taxes levied after June 2015. This directly affects municipalities and tax increment authorities that issued or incurred these pre-1993 obligations or related contracts.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts TIF funds for pre-1993 management contracts, phasing out $3M/year payments for taxes through 2009, reducing fiscal allocation to legacy obligations.95% confidence

Sub-Topics Debt & Bonds Tax Incentives Tags Economic Development

Track