Summary of Bill SB 925 (2025-2026) – Michigan
Jurisdiction: Michigan
Title: Economic development: Michigan strategic fund; community development tax credit program; establish and administer. Amends sections 7 & 9 of 1984 PA 270 (MCL 125.2007 & 125.2009). Tie bar with SB 923/ SB 923'26.
Status: Introduced April 23, 2026; referred to the Senate Committee on Economic and Community Development.
Purpose and intent
- The bill amends the Michigan Strategic Fund Act to clarify and expand the powers, duties, reporting requirements, and program administration of the Michigan Strategic Fund (the fund).
- It emphasizes enhanced transparency, reporting, and oversight for the fund’s various economic development programs and tax-credit related activities.
Key provisions and changes
- Section 7 (Powers and duties of the fund)
- Reaffirms broad authorities for the fund, including:
- Legal capacity (suing, being sued, contracting, bylaws, etc.).
- Accepting gifts, grants, loans, and participating in government programs.
- Granting loans/investments, loan guarantees, and issuing letters of credit.
- Real property activities: acquisition, construction, rehabilitation, lease, sale, or disposition of projects.
- Financing: borrowing, issuing bonds/notes, securing debt, and personal property investments.
- Property interests: leasing, mortgaging, securitization, and disposition to support purposes of the fund.
- Insurance, investment management, and hiring personnel/consultants.
- Fee collection, indemnification, and protection against liability.
- Leases, mortgages, and conveyance arrangements related to funded projects.
- Financial planning and asset management, including special purposes related to FWC settlements, export-related financing, brownfield/historic investment programs, and clawback enforcement.
- Support for job training and a brownfield/historic investment program.
- Tax-related and 21st-century investment activities, including functions under certain tax acts.
- Broad catch-all authority: perform any other actions necessary to achieve fund objectives.
- Section 9 (Annual reporting and audits)
- The fund must prepare and transmit annual reports to legislators and key legislative leadership by April 10, covering activities from the prior fiscal year.
- Required disclosures for each program include:
- Entities receiving assistance; project types; types and amounts of financial assistance.
- Job effects: number of new/retained jobs committed and actual non-temporary jobs created/retained; average salaries for new and retained jobs.
- Duration of assistance; other non-state funding; repayments or clawbacks.
- Loan status and bankruptcy notices (with specific reporting timelines and distribution to legislative leadership and committees).
- Audits: Auditor General or appointed CPA must annually audit the fund, assessing continued ability to meet obligations and the status of loans.
- Public availability: Audit and financial reports must be accessible on the fund’s website; specific details to be published monthly for certain programs (chapter 8A/8B actions, etc.).
- 21st century investment reporting: Requires data on venture capital/mezzanine/private equity investments, loan reserve funds, and related year-over-year growth.
- Section 88r/88d/90b/Chapter 8C actions: Summaries of investments, job creation, project metrics (square footage, tax value changes), and project compliance.
- Site visits: For programs requiring site visits, provide guidelines, count of visits, and monitoring by a chief compliance officer; publish related information on the fund’s site.
- Good Jobs for Michigan (Chapter 8D) and other program activities: Include details like authorized business names, required job maintenance, and tax-withholding revenue details.
- Critical industry program and Michigan strategic site readiness program: Include activity details.
- Tax credit coordination: Coordinate with the Department of Treasury to provide information related to credits certified/approved under relevant tax acts (sections 279 and 678).
- Definitions: Clarifies “financial assistance” to include all forms of grants, loans, and incentives under the act.
- Enacting condition
- Effective only if certain companion bills are enacted into law (SB 923 and associated request bills).
Who is affected
- Michigan Strategic Fund and its governing board.
- Entities receiving financial assistance through fund programs.
- Michigan taxpayers and local units of government (through transparency and reporting requirements).
- Legislators and agency partners (Treasury, MEDC, and related committees) via reporting and oversight obligations.
Procedural and timeline aspects
- Annual reporting deadline: Not later than April 10 each year for the preceding fiscal year.
- Monthly publication requirement: Beginning on January 1, 2012 (with revised or continued requirements) for certain 8C-related actions.
- Audit: Annual, with public accessibility of audit and related materials.
- Tie bar: The act’s enactment is contingent on passage of SB 923 and related bills.
Impact considerations
- Increased transparency and public accountability for the Michigan Strategic Fund.
- Expanded programmatic authority to support a wider array of economic development activities, including export financing, brownfield and historic investment, job training, and tax-credit coordination.
- Potentially greater reporting burdens on the fund, with detailed metrics on jobs, investments, and project outcomes.
- Coordination with Treasury for tax credits could affect timing and administration of incentives.
