Read the full stored bill text
KAS S05191'25 *_SB0924_INTR_1 jd5sph
SENATE BILL NO. 924
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.847) by adding sections 279 and 678.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 279. (1) Subject to the criteria and limitations under 1
this section, a qualified taxpayer that that has a preapproval 2
letter issued after the effective date of the amendatory act that 3
added this section and a certificate of completion issued under 4
April 23, 2026, Introduced by Senators SINGH, DAMOOSE and CHANG and referred to
Committee on Economic and Community Development.
2
KAS S05191'25 *_SB0924_INTR_1 jd5sph
this section may claim a credit against the tax imposed by this 1
part equal to the amount certified each year by the Michigan 2
strategic fund for the qualified taxpayer's eligible investment 3
paid or accrued by the qualified taxpayer on the eligible property 4
as follows: 5
(a) For a project that includes the rehabilitation of a 6
historic resource, is a rural project, or is a project that is 7
located in an LMI census tract, more than 25%, but not to exceed 8
50%, of the eligible investment. 9
(b) For all other projects, 25% of the eligible investment. 10
(2) To be eligible for a credit under this section, a taxpayer 11
shall submit an application to the fund for preapproval of a 12
project. The fund shall develop and use a detailed application and 13
compliance process to approve credits for projects under this 14
section. The application must require an applicant to demonstrate 15
local support for the project, the ability of the applicant to 16
complete the project, and the applicant's need for the credit and 17
whether the proposed eligible investment would occur without the 18
credit. The applicant shall include a description of the proposed 19
project and submit documentation with the application establishing 20
that the project is located on eligible property. A taxpayer may 21
apply for projects under this section for eligible investment on 22
more than 1 eligible property in a tax year. Each project approved 23
and each project for which a preapproval letter is issued under 24
this section must be for an eligible investment on 1 eligible 25
property. The fund shall consider the following criteria to the 26
extent reasonably applicable for the type of project proposed when 27
reviewing an application and approving a project under this 28
section: 29
3
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(a) Whether the project is financially and economically sound, 1
as measured by projected revenue and the level of private sector 2
and other contributions to the project, including, but not limited 3
to, federal grants and federal tax credits and any state credits 4
that may be available under this section. 5
(b) Whether the project converts vacant, abandoned, or unused 6
public buildings to private use or redevelops blighted property, 7
environmentally contaminated property, or functionally obsolete 8
property. 9
(c) Whether the project will act as a catalyst for additional 10
revitalization of the community in which it is located. 11
(d) Whether the eligible property is located in a walkable 12
downtown, node, or corridor. 13
(e) Whether the project will create additional housing for 14
residents of the community in which it is located. 15
(f) Any other additional criteria specific to each individual 16
project that the fund considers appropriate for the determination 17
of eligibility. 18
(3) Subject to the limitations under this section, the 19
president of the fund or the president's designee shall approve or 20
deny an application submitted under this section at a meeting of 21
the board of directors of the fund not later than 91 days after 22
receipt of an application that is considered administratively 23
complete by the fund. If a project is denied under this section, a 24
taxpayer is not prohibited from subsequently applying under this 25
section for the same project or for another project. If the 26
president or the president's designee approves an application for a 27
project under this section, the fund shall issue a preapproval 28
letter that states all of the following: 29
4
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(a) The taxpayer is a qualified taxpayer. 1
(b) The maximum total eligible investment for the project for 2
which credits may be claimed and the maximum total of all credits 3
for the project when the project is completed and a certificate of 4
completion is issued for the project. 5
(c) Any conditions applicable to the project, including, but 6
not limited to, specific time frames for the project. 7
(d) The project number assigned by the fund. 8
(4) Not later than 1 year, or 18 months for a project that is 9
eligible for a credit or allocation as described under subsection 10
(5)(a), (b) or (c), after the preapproval letter is issued, the 11
qualified taxpayer must have secured the financing for the project 12
and notified the fund. Except as otherwise provided under this 13
subsection, a project must be completed within 3 years after the 14
financing has been secured. The fund may approve a 1-year extension 15
for the completion of a project with an eligible investment of more 16
than $75,000,000.00. A qualified taxpayer that fails to secure the 17
financing and comply with the time frames set forth in the 18
preapproval letter or complete the project within 3 years after the 19
financing is secured is not prohibited from subsequently applying 20
for the same project or for another project. A preapproval letter 21
issued under this section is not transferrable. 22
(5) Subject to subsection (6), the maximum amount of any 23
credit approved by the fund under this section must not exceed 24
$10,000,000.00 for a single project or $15,000,000.00 for a single 25
project that satisfies 1 or more of the following: 26
(a) The project includes qualified rehabilitation expenditures 27
with respect to a qualified rehabilitated building that are 28
eligible for a credit under section 47 of the internal revenue 29
5
KAS S05191'25 *_SB0924_INTR_1 jd5sph
code. 1
(b) The project is eligible for an allocation under section 2
22b of the state housing development authority act of 1966, 1966 PA 3
346, MCL 125.1422b, of the low income housing credit established 4
under section 42 of the internal revenue code, and the state 5
housing development authority has provided the fund with a letter 6
recommending an additional credit under this subsection for the 7
project. 8
(c) The project includes an equity investment in a qualified 9
community development entity that is eligible for a credit under 10
section 45D of the internal revenue code. 11
(6) The aggregate amount of all credits for all projects 12
approved under this section and section 678 must not exceed 13
$200,000,000.00 each calendar year. Of the aggregate amount of 14
credits approved under this section and section 678 each calendar 15
year, not less than 20% of the $200,000,000.00 must be approved for 16
rural projects or small projects and not less than 30% of the 17
$200,000,000.00 must be approved for projects that create or retain 18
housing. Beginning January 1, 2028 and each January 1 thereafter, 19
the maximum amounts allowed under this subsection and subsection 20
(5) must be adjusted by the percentage increase in the Detroit 21
Consumer Price Index for the immediately preceding calendar year. 22
If the fund approves less than the maximum amount of credits 23
allowed under this section and section 678 for a calendar year, 24
then any unused amounts must carry forward into future calendar 25
years. Any amount carried forward is in addition to the maximum 26
amount allowed each calendar year. Amounts carried forward under 27
this section are not subject to adjustment. If the fund determines 28
that there are previously issued credits authorized under this 29
6
KAS S05191'25 *_SB0924_INTR_1 jd5sph
section or section 678, the fund may reallocate those credits and 1
approve 1 or more additional projects for the calendar year. 2
(7) If, after a taxpayer's project has been approved and the 3
taxpayer has received a preapproval letter but before the taxpayer 4
has made an eligible investment, other than soft costs, at the 5
property, the taxpayer determines that the project cannot be 6
completed as preapproved, the taxpayer may petition the fund to 7
amend the project and the preapproval letter to increase the 8
maximum total eligible investment for the project on which credits 9
may be claimed under this section and the maximum total of all 10
credits under this section for the project. A taxpayer may petition 11
the fund to make any other amendments to the project or preapproval 12
letter before a certificate of completion is issued. Amendments to 13
the project or preapproval letter may include, but are not limited 14
to, extending the duration of time provided to complete the 15
project, as long as that extension does not exceed 10 years from 16
the date of the preapproval letter. 17
(8) When a project under this section is completed, the 18
taxpayer shall submit documentation that the project is completed, 19
including a temporary certificate of occupancy for the project, if 20
applicable, an accounting of the cost of the project, the eligible 21
investment of each taxpayer if there is more than 1 taxpayer 22
eligible for a credit for the project, and, if the taxpayer is not 23
the owner or lessee of the eligible property on which the eligible 24
investment was made at the time the project is completed, that the 25
taxpayer was the owner or lessee of, or was a party to an agreement 26
to purchase or lease, that eligible property when all eligible 27
investment of the taxpayer was made. The president of the fund or 28
the president's designee shall verify that the project is 29
7
KAS S05191'25 *_SB0924_INTR_1 jd5sph
completed. When the completion of the project is verified, the fund 1
shall issue a certificate of completion to each qualified taxpayer 2
that has made an eligible investment on that eligible property. The 3
certificate of completion shall state the total amount of all 4
credits for the project and that total shall not exceed the maximum 5
total of all credits listed in the preapproval letter for the 6
project under this section, including any amendments, and shall 7
state all of the following: 8
(a) That the taxpayer is a qualified taxpayer. 9
(b) The total cost of the project and the eligible investment 10
of each qualified taxpayer. 11
(c) Each qualified taxpayer's credit amount. 12
(d) The qualified taxpayer's federal employer identification 13
number or the Michigan treasury number assigned to the taxpayer. 14
(e) The project number. 15
(9) The cost of eligible investment for leased machinery, 16
equipment, or fixtures is the cost of that property had the 17
property been purchased minus the lessor's estimate, made at the 18
time the lease is entered into, of the market value the property 19
will have at the end of the lease. A credit for property described 20
in this subsection is allowed only if the cost of that property had 21
the property been purchased and the lessor's estimate of the market 22
value at the end of the lease are provided to the fund. 23
(10) Except as otherwise provided under subsection (15), each 24
qualified taxpayer and assignee or reassignee under subsection (13) 25
that claims a credit under this section shall attach a copy of the 26
certificate of completion and, if the credit was assigned, a copy 27
of the assignment form provided for under this section or section 28
678 to the annual return filed under this part on which the credit 29
8
KAS S05191'25 *_SB0924_INTR_1 jd5sph
under this section is claimed. 1
(11) Except as otherwise provided under subsection (13), a 2
credit under this section must be claimed in the tax year in which 3
the certificate of completion is issued to the qualified taxpayer 4
or the immediately succeeding tax year. The credits approved under 5
this section must be claimed after the application of all other 6
credits allowed under this part. 7
(12) Except as otherwise provided under this subsection, if 8
the credit allowed under this section for the tax year and any 9
unused carryforward of the credit allowed under this section exceed 10
the qualified taxpayer's, assignee's, or reassignee's tax liability 11
for the tax year, that portion that exceeds the tax liability for 12
the tax year must not be refunded but may be carried forward to 13
offset tax liability in subsequent tax years for 10 years or until 14
used up, whichever occurs first. Except as otherwise provided in 15
this subsection, the maximum time allowed under the carryforward 16
provisions under this subsection begins with the tax year in which 17
the qualified taxpayer first claims the credit under this section. 18
If the credit allowed under this section for the tax year exceeds 19
the qualified taxpayer's tax liability for the tax year, the 20
qualified taxpayer may elect to have the excess refunded at a rate 21
equal to 90% of that portion of the credit that exceeds the tax 22
liability of the qualified taxpayer for the tax year and forgo the 23
remaining 10% of the credit and any carryforward. 24
(13) A qualified taxpayer that has been issued a certificate 25
of completion for a project approved under this section may 26
monetize that credit and assign all or a portion of a credit 27
allowed under this section. A credit assignment under this 28
subsection is irrevocable and must be made in the tax year in which 29
9
KAS S05191'25 *_SB0924_INTR_1 jd5sph
a certificate of completion is issued unless the assignee or 1
reassignee is an unknown lessee. If a qualified taxpayer wishes to 2
monetize that credit and assign all or a portion of its credit to a 3
lessee but the lessee is unknown in the tax year in which the 4
certificate of completion is issued, the qualified taxpayer may 5
delay claiming and assigning the credit until the first tax year in 6
which the lessee is known. A qualified taxpayer may claim a portion 7
of a credit and assign the remaining credit amount. If the 8
qualified taxpayer both claims and assigns portions of the credit, 9
the qualified taxpayer shall claim the portion it claims in the tax 10
year in which a certificate of completion is issued pursuant to 11
this section. An assignee may monetize that credit and subsequently 12
assign a credit, or any portion of a credit assigned under this 13
subsection, to 1 or more assignees. The credit assignment or a 14
subsequent reassignment under this subsection must be made on a 15
form prescribed by the fund. The fund shall review and issue a 16
completed assignment or reassignment certificate to the assignee or 17
reassignee. An assignee or subsequent reassignee shall attach a 18
copy of the completed assignment certificate to its annual return 19
required under this part, for the tax year in which the assignment 20
or reassignment is made and the assignee or reassignee first claims 21
a credit, which shall be the same tax year. 22
(14) The fund annually shall prepare and submit to the 23
standing committees of the senate and house of representatives with 24
primary jurisdiction over tax and finance issues a report on the 25
credits under this section and section 678. The report must 26
include, without limitation, both of the following: 27
(a) A listing of the projects under this section and section 28
678 that were approved in the calendar year. 29
10
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(b) The total amount of eligible investment for projects 1
approved under this section and section 678 in the calendar year. 2
(15) The department shall develop a form, in lieu of an annual 3
return, for a qualified taxpayer that is a nonprofit corporation 4
that has been issued a certificate of completion under this section 5
to file with the department to claim the credit allowed under this 6
section. The nonprofit corporation must include a copy of the 7
certificate of completion with the form filed under this 8
subsection. Upon receipt of the completed form and copy of the 9
certificate of completion, the department shall issue a refund 10
payment to that nonprofit corporation equal to the amount of the 11
credit certified under this section. For a qualified taxpayer who 12
is a member of a flow-through entity that qualifies for the credit 13
under this section, that taxpayer may claim a credit against the 14
member's tax liability under this part based on the member's 15
distributive share of business income reported from that flow-16
through entity or an alternative method approved by the department. 17
(16) As used in this section: 18
(a) "Area median income" means the median family income of a 19
geographic area of this state, as annually estimated by the United 20
States Department of Housing and Urban Development under section 8 21
of the United States housing act of 1937, 42 USC 1437f. 22
(b) "Blighted property" means property that meets any of the 23
following criteria: 24
(i) Has been declared a public nuisance in accordance with a 25
local housing, building, plumbing, fire, or other related code or 26
ordinance. 27
(ii) Is an attractive nuisance to children because of physical 28
condition, use, or occupancy. 29
11
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(iii) Is a fire hazard or is otherwise dangerous to the safety 1
of persons or property. 2
(iv) Has had the utilities, plumbing, heating, or sewerage 3
permanently disconnected, destroyed, removed, or rendered 4
ineffective so that the property is unfit for its intended use. 5
(v) Is tax reverted property owned by a qualified local 6
governmental unit, by a county, or by this state. 7
(vi) Is property owned or under the control of a land bank fast 8
track authority under the land bank fast track act, 2003 PA 258, 9
MCL 124.751 to 124.774. 10
(vii) Has substantial subsurface demolition debris buried on 11
site so that the property is unfit for its intended use. 12
(c) "Detroit Consumer Price Index" means the most 13
comprehensive index of consumer prices available for the Detroit-14
Warren-Dearborn area from the United States Department of Labor, 15
Bureau of Labor Statistics. 16
(d) "Eligible investment", subject to subdivision (e), means 1 17
or more of the following, attributable to an approved project, 18
including an eligible investment that occurred before the issuance 19
of the preapproval letter if the costs of the eligible investment 20
are not otherwise reimbursed to the taxpayer or paid for on behalf 21
of the taxpayer from any source other than the taxpayer: 22
(i) Any demolition, construction, alteration, rehabilitation, 23
or improvement of buildings. 24
(ii) Site improvements. 25
(iii) The addition of machinery, equipment, or fixtures to the 26
approved project. 27
(iv) Architectural, engineering, surveying, appraisal, 28
insurance, and other similar professional fees. 29
12
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(e) Eligible investment does not include certain soft costs of 1
the eligible investment, as determined by the fund, including, but 2
not limited to, developer fees, performance bonds, closing costs, 3
bank fees, loan fees, financing costs, permanent or construction 4
period interest, legal expenses, leasing or sales commissions, 5
marketing costs, shared savings, bank inspection fees, and project 6
management fees. 7
(f) "Eligible property" means property that meets 1 or more of 8
the following conditions: 9
(i) Is determined to be a facility. 10
(ii) Is a historic resource. 11
(iii) Is blighted property. 12
(iv) Is functionally obsolete property. 13
(g) "Facility" means that term as defined in section 20101 of 14
the natural resources and environmental protection act, 1994 PA 15
451, MCL 324.20101. 16
(h) "Functionally obsolete" means that the property is unable 17
to be used to adequately perform the function for which it was 18
intended due to a substantial loss in value resulting from factors 19
such as overcapacity, changes in technology, deficiencies or 20
superadequacies in design, or other similar factors that affect the 21
property itself or the property's relationship with other 22
surrounding property, as determined by a Michigan advanced 23
assessing officer or a Michigan master assessing officer. 24
(i) "Fund" means the Michigan strategic fund created under 25
section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 26
125.2005. 27
(j) "Historic resource" means a publicly or privately owned 28
historic building, structure, site, object, feature, or open space, 29
13
KAS S05191'25 *_SB0924_INTR_1 jd5sph
either manmade or natural, individually listed or located within 1
and contributing to a historic district designated by the National 2
Register of Historic Places, the state register of historic sites, 3
or a local unit acting under the local historic districts act, 1970 4
PA 169, MCL 399.201 to 399.215. 5
(k) "LMI census tract" means a census tract identified by the 6
United States Department of Housing and Urban Development as a 7
census tract in which 51% or more of the households earn less than 8
80% of the area median income. 9
(l) "National Register of Historic Places" means that term as 10
defined in 36 CFR 67.2. 11
(m) "Nonprofit corporation" means that term as defined under 12
section 108 of the nonprofit corporation act, 1982 PA 162, MCL 13
450.2108. 14
(n) "Open space" means undeveloped land, a naturally 15
landscaped area, or a formal or man-made landscaped area that 16
provides a connective link or a buffer between other resources. 17
(o) "Previously issued credits" means the total amount of 18
credits authorized by the fund under this section or section 678 19
for a taxpayer under this section or section 678 that meet both of 20
the following: 21
(i) The taxpayer did not use any or a portion of the credits 22
authorized under the preapproval letter under this section or 23
section 678. 24
(ii) The fund determined that the credits previously authorized 25
satisfy subparagraph (i). 26
(p) "Project" means the total of all eligible investments on 27
an eligible property. 28
(q) "Qualified rehabilitation expenditure" means that term as 29
14
KAS S05191'25 *_SB0924_INTR_1 jd5sph
defined in section 47 of the internal revenue code but is limited 1
to amounts properly chargeable to a capital account for property 2
within this state and the rehabilitation of a qualified 3
rehabilitated building. 4
(r) "Qualified taxpayer" means a taxpayer that owns, leases, 5
or has entered into an agreement to purchase or lease eligible 6
property. For purposes of this section only, taxpayer includes a 7
nonprofit corporation. 8
(s) "Rural project" means a project that is located in a city, 9
township, or village that is not located in a county that is part 10
of a metropolitan statistical area as defined by the United States 11
Office of Management and Budget. 12
(t) "Small project" means a project with an eligible 13
investment of $10,000,000.00 or less. 14
Sec. 678. (1) Subject to the criteria and limitations under 15
this section, a qualified taxpayer that that has a preapproval 16
letter issued after the effective date of the amendatory act that 17
added this section and a certificate of completion issued under 18
this section may claim a credit against the tax imposed by this 19
part equal to the amount certified each year by the Michigan 20
strategic fund for the qualified taxpayer's eligible investment 21
paid or accrued by the qualified taxpayer on the eligible property 22
as follows: 23
(a) For a project that includes the rehabilitation of a 24
historic resource, is a rural project, or is a project that is 25
located in an LMI census tract, more than 25%, but not to exceed 26
50%, of the eligible investment. 27
(b) For all other projects, 25% of the eligible investment. 28
(2) To be eligible for a credit under this section, a taxpayer 29
15
KAS S05191'25 *_SB0924_INTR_1 jd5sph
shall submit an application to the fund for preapproval of a 1
project. The fund shall develop and use a detailed application and 2
compliance process to approve credits for projects under this 3
section. The application must require an applicant to demonstrate 4
local support for the project, the ability of the applicant to 5
complete the project, and the applicant's need for the credit and 6
whether the proposed eligible investment would occur without the 7
credit. The applicant shall include a description of the proposed 8
project and submit documentation with the application establishing 9
that the project is located on eligible property. A taxpayer may 10
apply for projects under this section for eligible investment on 11
more than 1 eligible property in a tax year. Each project approved 12
and each project for which a preapproval letter is issued under 13
this section must be for an eligible investment on 1 eligible 14
property. The fund shall consider the following criteria to the 15
extent reasonably applicable for the type of project proposed when 16
reviewing an application and approving a project under this 17
section: 18
(a) Whether the project is financially and economically sound, 19
as measured by projected revenue and the level of private sector 20
and other contributions to the project, including, but not limited 21
to, federal grants and federal tax credits and any state credits 22
that may be available under this section. 23
(b) Whether the project converts vacant, abandoned, or unused 24
public buildings to private use or redevelops blighted property, 25
environmentally contaminated property, or functionally obsolete 26
property. 27
(c) Whether the project will act as a catalyst for additional 28
revitalization of the community in which it is located. 29
16
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(d) Whether the eligible property is located in a walkable 1
downtown, node, or corridor. 2
(e) Whether the project will create additional housing for 3
residents of the community in which it is located. 4
(f) Any other additional criteria specific to each individual 5
project that the fund considers appropriate for the determination 6
of eligibility. 7
(3) Subject to the limitations under this section, the 8
president of the fund or the president's designee shall approve or 9
deny an application submitted under this section at a meeting of 10
the board of directors of the fund not later than 91 days after 11
receipt of an application that is considered administratively 12
complete by the fund. If a project is denied under this section, a 13
taxpayer is not prohibited from subsequently applying under this 14
section for the same project or for another project. If the 15
president or the president's designee approves an application for a 16
project under this section, the fund shall issue a preapproval 17
letter that states all of the following: 18
(a) The taxpayer is a qualified taxpayer. 19
(b) The maximum total eligible investment for the project for 20
which credits may be claimed and the maximum total of all credits 21
for the project when the project is completed and a certificate of 22
completion is issued for the project. 23
(c) Any conditions applicable to the project, including, but 24
not limited to, specific time frames for the project. 25
(d) The project number assigned by the fund. 26
(4) Not later than 1 year, or 18 months for a project that is 27
eligible for a credit or allocation as described under subsection 28
(5)(a), (b), or (c), after the preapproval letter is issued, the 29
17
KAS S05191'25 *_SB0924_INTR_1 jd5sph
qualified taxpayer must have secured the financing for the project 1
and notified the fund. Except as otherwise provided under this 2
subsection, a project must be completed within 3 years after the 3
financing has been secured. The fund may approve a 1-year extension 4
for the completion of a project with an eligible investment of more 5
than $75,000,000.00. A qualified taxpayer that fails to secure the 6
financing and comply with the time frames set forth in the 7
preapproval letter or complete the project within 3 years after the 8
financing is secured is not prohibited from subsequently applying 9
for the same project or for another project. A preapproval letter 10
issued under this section is not transferrable. 11
(5) Subject to subsection (6), the maximum amount of any 12
credit approved by the fund under this section must not exceed 13
$10,000,000.00 for a single project or $15,000,000.00 for a single 14
project that satisfies 1 or more of the following: 15
(a) The project includes qualified rehabilitation expenditures 16
with respect to a qualified rehabilitated building that are 17
eligible for a credit under section 47 of the internal revenue 18
code. 19
(b) The project is eligible for an allocation under section 20
22b of the state housing development authority act of 1966, 1966 PA 21
346, MCL 125.1422b, of the low income housing credit established 22
under section 42 of the internal revenue code, and the state 23
housing development authority has provided the fund with a letter 24
recommending an additional credit under this subsection for the 25
project. 26
(c) The project includes an equity investment in a qualified 27
community development entity that is eligible for a credit under 28
section 45D of the internal revenue code. 29
18
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(6) The aggregate amount of all credits for all projects 1
approved under this section and section 279 must not exceed 2
$200,000,000.00 each calendar year. Of the aggregate amount of 3
credits approved under this section and section 279 each calendar 4
year, not less than 20% of the $200,000,000.00 must be approved for 5
rural projects or small projects and not less than 30% of the 6
$200,000,000.00 must be approved for projects that create or retain 7
housing. Beginning January 1, 2028 and each January 1 thereafter, 8
the maximum amounts allowed under this subsection and subsection 9
(5) must be adjusted by the percentage increase in the Detroit 10
Consumer Price Index for the immediately preceding calendar year. 11
If the fund approves less than the maximum amount of credits 12
allowed under this section and section 279 for a calendar year, 13
then any unused amounts must carry forward into future calendar 14
years. Any amount carried forward is in addition to the maximum 15
amount allowed each calendar year. Amounts carried forward under 16
this section are not subject to adjustment. If the fund determines 17
that there are previously issued credits authorized under this 18
section or section 279, the fund may reallocate those credits and 19
approve 1 or more additional projects for the calendar year. 20
(7) If, after a taxpayer's project has been approved and the 21
taxpayer has received a preapproval letter but before the taxpayer 22
has made an eligible investment, other than soft costs, at the 23
property, the taxpayer determines that the project cannot be 24
completed as preapproved, the taxpayer may petition the fund to 25
amend the project and the preapproval letter to increase the 26
maximum total eligible investment for the project on which credits 27
may be claimed under this section and the maximum total of all 28
credits under this section for the project. A taxpayer may petition 29
19
KAS S05191'25 *_SB0924_INTR_1 jd5sph
the fund to make any other amendments to the project or preapproval 1
letter before a certificate of completion is issued. Amendments to 2
the project or preapproval letter may include, but are not limited 3
to, extending the duration of time provided to complete the 4
project, as long as that extension does not exceed 10 years from 5
the date of the preapproval letter. 6
(8) When a project under this section is completed, the 7
taxpayer shall submit documentation that the project is completed, 8
including a temporary certificate of occupancy for the project, if 9
applicable, an accounting of the cost of the project, the eligible 10
investment of each taxpayer if there is more than 1 taxpayer 11
eligible for a credit for the project, and, if the taxpayer is not 12
the owner or lessee of the eligible property on which the eligible 13
investment was made at the time the project is completed, that the 14
taxpayer was the owner or lessee of, or was a party to an agreement 15
to purchase or lease, that eligible property when all eligible 16
investment of the taxpayer was made. The president of the fund or 17
the president's designee shall verify that the project is 18
completed. When the completion of the project is verified, the fund 19
shall issue a certificate of completion to each qualified taxpayer 20
that has made an eligible investment on that eligible property. The 21
certificate of completion shall state the total amount of all 22
credits for the project and that total shall not exceed the maximum 23
total of all credits listed in the preapproval letter for the 24
project under this section, including any amendments, and shall 25
state all of the following: 26
(a) That the taxpayer is a qualified taxpayer. 27
(b) The total cost of the project and the eligible investment 28
of each qualified taxpayer. 29
20
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(c) Each qualified taxpayer's credit amount. 1
(d) The qualified taxpayer's federal employer identification 2
number or the Michigan treasury number assigned to the taxpayer. 3
(e) The project number. 4
(9) The cost of eligible investment for leased machinery, 5
equipment, or fixtures is the cost of that property had the 6
property been purchased minus the lessor's estimate, made at the 7
time the lease is entered into, of the market value the property 8
will have at the end of the lease. A credit for property described 9
in this subsection is allowed only if the cost of that property had 10
the property been purchased and the lessor's estimate of the market 11
value at the end of the lease are provided to the fund. 12
(10) Except as otherwise provided under subsection (15), each 13
qualified taxpayer and assignee or reassignee under subsection (13) 14
that claims a credit under this section shall attach a copy of the 15
certificate of completion and, if the credit was assigned, a copy 16
of the assignment form provided for under this section or section 17
279 to the annual return filed under this part on which the credit 18
under this section is claimed. 19
(11) Except as otherwise provided under subsection (13), a 20
credit under this section must be claimed in the tax year in which 21
the certificate of completion is issued to the qualified taxpayer 22
or the immediately succeeding tax year. The credits approved under 23
this section must be claimed after the application of all other 24
credits allowed under this part. 25
(12) Except as otherwise provided under this subsection, if 26
the credit allowed under this section for the tax year and any 27
unused carryforward of the credit allowed under this section exceed 28
the qualified taxpayer's, assignee's, or reassignee's tax liability 29
21
KAS S05191'25 *_SB0924_INTR_1 jd5sph
for the tax year, that portion that exceeds the tax liability for 1
the tax year must not be refunded but may be carried forward to 2
offset tax liability in subsequent tax years for 10 years or until 3
used up, whichever occurs first. Except as otherwise provided in 4
this subsection, the maximum time allowed under the carryforward 5
provisions under this subsection begins with the tax year in which 6
the qualified taxpayer first claims the credit under this section. 7
If the credit allowed under this section for the tax year exceeds 8
the qualified taxpayer's tax liability for the tax year, the 9
qualified taxpayer may elect to have the excess refunded at a rate 10
equal to 90% of that portion of the credit that exceeds the tax 11
liability of the qualified taxpayer for the tax year and forgo the 12
remaining 10% of the credit and any carryforward. 13
(13) A qualified taxpayer that has been issued a certificate 14
of completion for a project approved under this section may 15
monetize that credit and assign all or a portion of a credit 16
allowed under this section. A credit assignment under this 17
subsection is irrevocable and must be made in the tax year in which 18
a certificate of completion is issued unless the assignee or 19
reassignee is an unknown lessee. If a qualified taxpayer wishes to 20
monetize that credit and assign all or a portion of its credit to a 21
lessee but the lessee is unknown in the tax year in which the 22
certificate of completion is issued, the qualified taxpayer may 23
delay claiming and assigning the credit until the first tax year in 24
which the lessee is known. A qualified taxpayer may claim a portion 25
of a credit and assign the remaining credit amount. If the 26
qualified taxpayer both claims and assigns portions of the credit, 27
the qualified taxpayer shall claim the portion it claims in the tax 28
year in which a certificate of completion is issued pursuant to 29
22
KAS S05191'25 *_SB0924_INTR_1 jd5sph
this section. An assignee may monetize that credit and subsequently 1
assign a credit, or any portion of a credit assigned under this 2
subsection, to 1 or more assignees. The credit assignment or a 3
subsequent reassignment under this subsection must be made on a 4
form prescribed by the fund. The fund shall review and issue a 5
completed assignment or reassignment certificate to the assignee or 6
reassignee. An assignee or subsequent reassignee shall attach a 7
copy of the completed assignment certificate to its annual return 8
required under this part, for the tax year in which the assignment 9
or reassignment is made and the assignee or reassignee first claims 10
a credit, which shall be the same tax year. 11
(14) The department shall develop a form, in lieu of an annual 12
return, for a qualified taxpayer that is a nonprofit corporation 13
that has been issued a certificate of completion under this section 14
to file with the department to claim the credit allowed under this 15
section. The nonprofit corporation must include a copy of the 16
certificate of completion with the form filed under this 17
subsection. Upon receipt of the completed form and copy of the 18
certificate of completion, the department shall issue a refund 19
payment to that nonprofit corporation equal to the amount of the 20
credit certified under this section. 21
(15) As used in this section: 22
(a) "Area median income" means the median family income of a 23
geographic area of this state, as annually estimated by the United 24
States Department of Housing and Urban Development under section 8 25
of the United States housing act of 1937, 42 USC 1437f. 26
(b) "Blighted property" means property that meets any of the 27
following criteria: 28
(i) Has been declared a public nuisance in accordance with a 29
23
KAS S05191'25 *_SB0924_INTR_1 jd5sph
local housing, building, plumbing, fire, or other related code or 1
ordinance. 2
(ii) Is an attractive nuisance to children because of physical 3
condition, use, or occupancy. 4
(iii) Is a fire hazard or is otherwise dangerous to the safety 5
of persons or property. 6
(iv) Has had the utilities, plumbing, heating, or sewerage 7
permanently disconnected, destroyed, removed, or rendered 8
ineffective so that the property is unfit for its intended use. 9
(v) Is tax reverted property owned by a qualified local 10
governmental unit, by a county, or by this state. 11
(vi) Is property owned or under the control of a land bank fast 12
track authority under the land bank fast track act, 2003 PA 258, 13
MCL 124.751 to 124.774. 14
(vii) Has substantial subsurface demolition debris buried on 15
site so that the property is unfit for its intended use. 16
(c) "Detroit Consumer Price Index" means the most 17
comprehensive index of consumer prices available for the Detroit-18
Warren-Dearborn area from the United States Department of Labor, 19
Bureau of Labor Statistics. 20
(d) "Eligible investment", subject to subdivision (e), means 1 21
or more of the following, attributable to an approved project, 22
including an eligible investment that occurred before the issuance 23
of the preapproval letter if the costs of the eligible investment 24
are not otherwise reimbursed to the taxpayer or paid for on behalf 25
of the taxpayer from any source other than the taxpayer: 26
(i) Any demolition, construction, alteration, rehabilitation, 27
or improvement of buildings. 28
(ii) Site improvements. 29
24
KAS S05191'25 *_SB0924_INTR_1 jd5sph
(iii) The addition of machinery, equipment, or fixtures to the 1
approved project. 2
(iv) Architectural, engineering, surveying, appraisal, 3
insurance, and other similar professional fees. 4
(e) Eligible investment does not include certain soft costs of 5
the eligible investment, as determined by the fund, including, but 6
not limited to, developer fees, performance bonds, closing costs, 7
bank fees, loan fees, financing costs, permanent or construction 8
period interest, legal expenses, leasing or sales commissions, 9
marketing costs, shared savings, bank inspection fees, and project 10
management fees. 11
(f) "Eligible property" means property that meets 1 or more of 12
the following conditions: 13
(i) Is determined to be a facility. 14
(ii) Is a historic resource. 15
(iii) Is blighted property. 16
(iv) Is functionally obsolete property. 17
(g) "Facility" means that term as defined in section 20101 of 18
the natural resources and environmental protection act, 1994 PA 19
451, MCL 324.20101. 20
(h) "Functionally obsolete" means that the property is unable 21
to be used to adequately perform the function for which it was 22
intended due to a substantial loss in value resulting from factors 23
such as overcapacity, changes in technology, deficiencies or 24
superadequacies in design, or other similar factors that affect the 25
property itself or the property's relationship with other 26
surrounding property, as determined by a Michigan advanced 27
assessing officer or a Michigan master assessing officer. 28
(i) "Fund" means the Michigan strategic fund created under 29
25
KAS S05191'25 *_SB0924_INTR_1 jd5sph
section 5 of the Michigan strategic fund act, 1984 PA 270, MCL 1
125.2005. 2
(j) "Historic resource" means a publicly or privately owned 3
historic building, structure, site, object, feature, or open space, 4
either manmade or natural, individually listed or located within 5
and contributing to a historic district designated by the National 6
Register of Historic Places, the state register of historic sites, 7
or a local unit acting under the local historic districts act, 1970 8
PA 169, MCL 399.201 to 399.215. 9
(k) "LMI census tract" means a census tract identified by the 10
United States Department of Housing and Urban Development as a 11
census tract in which 51% or more of the households earn less than 12
80% of the area median income. 13
(l) "National Register of Historic Places" means that term as 14
defined in 36 CFR 67.2. 15
(m) "Nonprofit corporation" means that term as defined under 16
section 108 of the nonprofit corporation act, 1982 PA 162, MCL 17
450.2108. 18
(n) "Open space" means undeveloped land, a naturally 19
landscaped area, or a formal or man-made landscaped area that 20
provides a connective link or a buffer between other resources. 21
(o) "Previously issued credits" means the total amount of 22
credits authorized by the fund under this section or section 279 23
for a taxpayer under this section or section 279 that meet both of 24
the following: 25
(i) The taxpayer did not use any or a portion of the credits 26
authorized under the preapproval letter under this section or 27
section 279. 28
(ii) The fund determined that the credits previously authorized 29
26
Final Page
KAS S05191'25 *_SB0924_INTR_1 jd5sph
satisfy subparagraph (i). 1
(p) "Project" means the total of all eligible investments on 2
an eligible property. 3
(q) "Qualified rehabilitation expenditure" means that term as 4
defined in section 47 of the internal revenue code but is limited 5
to amounts properly chargeable to a capital account for property 6
within this state and the rehabilitation of a qualified 7
rehabilitated building. 8
(r) "Qualified taxpayer" means a taxpayer that owns, leases, 9
or has entered into an agreement to purchase or lease eligible 10
property. For purposes of this section only, taxpayer includes a 11
nonprofit corporation. 12
(s) "Rural project" means a project that is located in a city, 13
township, or village that is not located in a county that is part 14
of a metropolitan statistical area as defined by the United States 15
Office of Management and Budget. 16
(t) "Small project" means a project with an eligible 17
investment of $10,000,000.00 or less. 18
Enacting section 1. This amendatory act does not take effect 19
unless all of the following bills of the 103rd Legislature are 20
enacted into law: 21
(a) Senate Bill No. 925. 22
(b) Senate Bill No. 923. 23