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HB 6041

Economic development: brownfield redevelopment authority; tax capture by brownfield redevelopment authorities; exempt certain special millages.

2023-2024 Regular Session Introduced by Phil Green

HB 6041 would allow capturing state income taxes on wages for construction of brownfield projects, expanding eligible activities and shifting funds to redevelopment.

bill electronically reproduced 11/07/2024
#economicdevelopment:brownfieldredevelopmentauthority #economicdevelopment:taxincrementfinancing
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Bill Summary · HB 6041

Summary — HB 6041 (Brownfield Redevelopment Financing Act amendments)

Status: Introduced (Rep. Phil Green). Electronically reproduced 11/07/2024. Referred to committee; later withdrawn/indefinitely postponed and died in subcommittee (see procedural timeline below).

Purpose / Intent

HB 6041 would amend the Michigan Brownfield Redevelopment Financing Act (1996 PA 381) to revise and expand statutory definitions and eligible activities, and to create a new mechanism for certain tax capture revenues tied to construction wages on transformational brownfield projects. The bill’s title also indicates it would address tax capture by brownfield authorities and exempt certain special millages, although the full text for millage exemptions is not included in the portion provided.

Key provisions (from the introduced version)

  • Revises/expands definitions in section 2, including:
    • “Blighted” — lists expanded or clarified criteria (public nuisance under local codes; attractive nuisance to children; fire hazard; permanently disconnected utilities; previously developed or tax‑reverted property; property owned/controlled by a land bank fast track authority; substantial buried subsurface demolition debris). Clarifies that sale/transfer after inclusion in a brownfield plan does not remove blighted status for purposes of the Act.
    • “Captured taxable value” — retains a definition of taxable value capture and directs the State Tax Commission to prescribe the calculation method.
    • “Department specific activities” — broadens the list of environmentally related eligible activities that can be included in a brownfield plan beyond minimum due‑care obligations. Examples added or clarified include removal/closure of underground storage tanks; disposal of solid waste from eligible property; dust control; removal/disposal of lake/river sediments tied to economic development projects; industrial cleaning; sheeting/shoring for removal of contaminants; lead/mold/asbestos abatement where there is an imminent/significant health threat; and environmental insurance.
    • New definition: “construction period tax capture revenues” — authorizes capture of income tax attributable to wages paid to individuals physically working on construction/renovation of eligible property that is included in a transformational brownfield plan. The state treasurer would calculate the amount using reported taxable wages, multiplied by an estimated effective income‑tax rate (accounting for exemptions/credits). Owners/developers must report wages and may be required to provide audited reconciliation.

Who would be affected

  • Brownfield redevelopment authorities and their boards — expanded eligible activities and financing mechanisms.
  • Developers/owners of eligible properties — new reporting and potential auditing requirements for construction wages.
  • Municipalities, counties, school districts and other taxing jurisdictions — potential diversion of captured property tax and (for transformational projects) captured state income tax tied to construction wages; the title suggests some special millages may be exempt from capture (text not shown).
  • State agencies — Department of Environment, Great Lakes, and Energy (DEGLE) and the State Treasurer (new calculation/reporting role).

Procedural / Timeline highlights

  • 11/07/2024: Introduced by Rep. Phil Green; read 1st time; referred to Committee on Economic Development & Small Business; electronically reproduced 11/07/2024.
  • 2025: Multiple filings and referrals to committees and subcommittees (Education & Employment; Education Administration; Student Academic Success; Joint Comm. on Government Administration and Elections) per the legislative history.
  • 05/03/2025: Indefinitely postponed and withdrawn from consideration.
  • 06/16/2025: Died in Education Administration Subcommittee.

Potential impacts / considerations

  • Provides brownfield authorities additional eligible activities and a new funding source (construction-period income tax capture) to finance remediation and redevelopment, which could accelerate projects classified as “transformational.”
  • Could reduce near‑term revenues for affected taxing jurisdictions if more tax streams are captured; the bill’s title suggests some special millages may be exempt, which would limit diversion for certain local levies (specific exemptions not shown in provided text).
  • Imposes new reporting and verification obligations on developers/owners and gives the State Treasurer a significant administrative role in calculating and reconciling construction-period tax capture.

Note: This summary is based on the portions of HB 6041 provided (amendments to sections 2 and 4 of 1996 PA 381) and the bill title; other provisions (including explicit millage exemptions) that may appear elsewhere in the full bill text are not included here.

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

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