Sales tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4mm.
Key claim: Michigan HB5169 proposes adding a sales tax exemption for large agricultural processing facility projects by amending the General Sales Tax Act.
Abstract
(HB5169 · 103rd Legislature) Sales tax: exemptions; large agricultural processing facility project exemption; provide for. Amends 1933 PA 167 (MCL 205.51 - 205.78) by adding sec. 4mm. Latest action (2026-06-18): Referred To Committee On Rules
Why this matters
Sales and use tax exemptions targeted at specific industrial project categories reduce state revenue while lowering capital costs for qualifying developers, shifting incentive policy toward large agricultural processors. Paired with the companion use tax bill, this proposal would carve out a new exemption category in Michigan’s transactional tax base. The fiscal scale and eligibility bar will determine whether the benefit accrues to a narrow set of large projects or a broader industry segment.