Use tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding sec. 4mm.
Key claim: HB5168 would amend Michigan’s Use Tax Act to add a new exemption for large agricultural processing facility projects.
Abstract
(HB5168 · 103rd Legislature) Use tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1937 PA 94 (MCL 205.91 - 205.111) by adding sec. 4mm. Latest action (2026-06-18): Referred To Committee On Rules
Why this matters
Targeted use tax exemptions shift the state’s tax base by carving out specific industries — here, large-scale agricultural processing — from taxes that otherwise apply broadly. For developers of qualifying facilities, the exemption lowers capital and equipment costs; for taxpayers and the state general fund, it represents foregone revenue justified as an economic development incentive. The measure fits within Michigan’s broader pattern of industry-specific tax carveouts (aircraft, data centers, brownfields) whose cumulative fiscal effect merits tracking.