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SB 647

AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- VETERINARY PRACTICE

2025 Regular Session Introduced by Bob Britto and 7 co-sponsors

SB 647 removes MSF references from the Income Tax Act and redirects withholding tax capture receipts to a restricted account to honor remaining contracts, preserving credits.

03/19/2025 Committee recommended measure be held for further study
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Bill Summary · SB 647

SB 647 — Summary (Income Tax Act conforming changes following elimination of the Michigan Strategic Fund)

Status: Introduced Feb 20, 2025; Referred to Committee on Government Operations. Tie‑bar: SB 631 (2025). Final action: Governor vetoed (Oct 3, 2025); consideration of veto by the Senate pending.

Main purpose

SB 647 makes statutory, conforming amendments to the Michigan Income Tax Act of 1967 to reflect the statutory elimination (or reorganization) of the Michigan Strategic Fund. The bill removes or replaces cross‑references to the former Michigan Strategic Fund statutes and adjusts where certain tax‑related receipts and credits are administered or directed so existing contractual and tax‑credit commitments continue to be honored.

Key provisions and changes

  • Amends multiple sections of 1967 PA 281 (Income Tax Act) — specifically sections 51f, 266a, 270, 278, 676, 680, 696, 701, 711, 713, and 718 (MCL 206.51f et seq.) — to update language and cross‑references that previously relied on the Michigan Strategic Fund Act (former 1984 PA 270).
  • Section 51f (withholding tax capture receipts for job‑creation agreements): redirects the treatment of withholding tax capture revenues previously tied to the Michigan Strategic Fund. The bill requires that amounts attributable to certified new jobs and amounts due under written agreements be deposited into a restricted account for the purpose of satisfying remaining contractual obligations under those agreements (rather than into a fund named under the former Strategic Fund statutes).
  • Conforming edits across historic‑rehabilitation and other tax credit provisions (e.g., section 266a and related sections) to preserve program operation and credit reservation/approval processes while removing or updating references to the now‑eliminated Strategic Fund law.
  • The bill preserves program limits, administrative timing (application, preapproval, reservation), and allocation priorities described in the amended sections, while shifting administrative references and deposit destinations as needed.

Who is affected

  • Businesses and authorized recipients with existing written agreements tied to Strategic Fund withholding captures (e.g., job‑creation capture arrangements).
  • Taxpayers and developers using state tax credits governed under the Income Tax Act (e.g., historic rehabilitation credits) — the bill makes procedural and reference updates but generally preserves credit reservation limits and application rules.
  • State agencies (Treasury, departments that administered Strategic Fund programs) will face administrative changes to where funds are held/managed and how credits/agreements are tracked after the Strategic Fund’s statutory provisions are removed.
  • Local governments and taxpayers could be indirectly affected insofar as property/sales charge captures and allocations are clarified.

Fiscal and administrative notes

  • The bill was referred to fiscal review (fiscal committee involvement noted). Changes are primarily administrative and conforming; the bill does not create new ongoing appropriations but redirects or places certain receipts into restricted accounts to satisfy preexisting contractual obligations.
  • Exact fiscal impact depends on the outstanding obligations under former Strategic Fund agreements and how those funds are administered going forward.

Procedural/timeline aspects

  • Introduced Feb 20, 2025 and assigned to Government Operations.
  • Tied legislation: SB 631 (2025) — likely part of a package reorganizing or replacing the Strategic Fund structure.
  • Final recorded action: Governor vetoed the bill on Oct 3, 2025; the Legislature (Senate) was recorded as having the Governor’s veto under consideration.

If you’d like, I can prepare:
- A side‑by‑side excerpt showing the pre‑existing and amended language for Section 51f (withholding capture) and Section 266a (historic rehabilitation credit), or
- A breakdown of potential administrative steps Treasury and affected agencies would need to implement the redirection of funds and credit administration.

Compiled from official sources — confirm details with the bill’s official record.

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