WeVote
Log In

Bill

Bill

HB 4128

Corporate income tax: credits; credit for advanced small modular reactor generated power; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: HB 4127'25, HB 4129'25, HB 4125'25, HB 4126'25, HB 4124'25

2025-2026 Regular Session Introduced by Greg Alexander and 13 co-sponsors

Michigan creates corporate income tax credits for businesses generating power from advanced small modular reactors, reducing tax liability to incentivize nuclear energy investment.

REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT
#corporateincometax:credits
0
WeVote Research Nonpartisan
Bill Summary · HB 4128

Legislative bill overview

HB 4128 creates a corporate income tax credit for Michigan businesses that generate electricity from advanced small modular reactors (SMRs). The credit incentivizes investment in this nuclear technology by reducing state tax liability for qualifying power generation. The bill is tied to four companion bills addressing related nuclear energy policy and infrastructure.

Why is this important

Small modular reactors represent an emerging low-carbon energy technology that could diversify Michigan's power grid and reduce fossil fuel dependence. Tax credits directly lower the financial barrier to deploying these reactors, potentially attracting significant capital investment and creating energy jobs. However, this effectively uses state revenue to subsidize a specific energy technology, shifting costs to other taxpayers.

Potential points of contention

  • Cost to state budget: The credit's value is not specified in the bill summary; actual revenue loss depends on credit amount and how many companies qualify, creating uncertainty about fiscal impact
  • Technology uncertainty: SMRs remain largely unproven at commercial scale; subsidizing unproven technology carries financial risk if the technology fails to deliver promised benefits
  • Market distortion: Preferential tax treatment for nuclear over renewables (solar, wind) raises fairness questions about energy technology favoritism and may disadvantage competing clean energy sectors
  • Tied legislation concern: The bill's linkage to four other nuclear-related bills suggests a coordinated policy push that warrants examining the full package's combined fiscal and regulatory impact

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

Sign in to ask a question.