WeVote
Log In

Bill

Bill

HB 5517

Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.

2025-2026 Regular Session Introduced by Joe Aragona

Michigan bill creates corporate income tax credit for beverage distributors managing returnable containers, with implementation details and fiscal costs yet to be specified.

bill electronically reproduced 02/18/2026
#corporateincometax:credits #individualincometax:credit
0
WeVote Research Nonpartisan
Bill Summary · HB 5517

Legislative bill overview

HB 5517 amends Michigan's corporate income tax code to create a new tax credit for distributors handling returnable containers. The bill adds two sections (279 and 679) to the 1967 Michigan Business Tax Act, establishing mechanisms for how this credit would function within the state's tax system.

Why is this important

Returnable container programs incentivize beverage recycling and reduce waste, but distributors bear significant logistical costs in managing returns and storage. A tax credit could lower distributor operating costs, potentially making such programs more economically viable or expanding their adoption in Michigan, which currently has no statewide returnable container deposit law.

Potential points of contention

  • Fiscal impact unclear: The bill text doesn't specify credit amounts, eligibility thresholds, or revenue cost to the state—making it impossible to assess whether this represents modest relief or substantial revenue loss
  • Market distortion concerns: Critics may argue tax credits for specific industries artificially advantage certain businesses over competitors or consumers, raising questions about fair competition
  • Program scope undefined: No details provided on which container types qualify, which distributors eligible, or how the credit integrates with existing Michigan tax policy—leaving implementation questions unresolved

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

Sign in to ask a question.