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SB 645

Economic development: other; use tax act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 4cc of 1937 PA 94 (MCL 205.94cc). TIE BAR WITH: SB 0631'25

2025-2026 Regular Session Introduced by Thomas Albert

Eliminates Michigan Strategic Fund references from use tax law, consolidating economic development funding mechanisms statewide.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
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Bill Summary · SB 645

Legislative bill overview

SB 645 amends Michigan's Use Tax Act to remove references to the Michigan Strategic Fund, which is being eliminated. The bill is tied to SB 631, suggesting coordinated legislative action to wind down this economic development funding mechanism and update related tax code provisions accordingly.

Why is this important

The Michigan Strategic Fund has been a key tool for business incentives and economic development projects. Eliminating it represents a significant shift in how the state approaches business recruitment and development, potentially affecting how tax revenue is allocated and what economic incentive programs remain available to businesses and municipalities.

Potential points of contention

  • Whether eliminating the fund reduces Michigan's competitive advantage in recruiting businesses compared to neighboring states that maintain active incentive programs
  • Uncertainty about what replaces the Strategic Fund's role in economic development, or whether projects previously funded through it will lose support
  • Potential impact on existing contracts or commitments made under the Strategic Fund that may need to be honored or renegotiated

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

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