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HB 6211

Economic development: plant rehabilitation; requirements related to the revocation of an industrial facilities exemption certificate; modify. Amends sec. 15 of 1974 PA 198 (MCL 207.565).

2023-2024 Regular Session Introduced by Kristian Grant and 1 co-sponsor

Expands industrial facility tax exemptions to include warehousing and distribution, relaxes location rules for eligibility, and broadens speculative-building coverage.

postponed temporarily
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Bill Summary · HB 6211

Summary of House Bill 6211 (Economic development: plant rehabilitation; requirements related to the revocation of an industrial facilities exemption certificate; modify)

Status: postponed temporarily
Introduced: January 23, 2025
Sponsor: Rep. Kristian Grant
Committee: Economic Development and Small Business
Subject: Economic development and plant rehabilitation

Overview and purpose

HB 6211 amends the plant rehabilitation and industrial development act (1974 PA 198, MCL 207.565) to broaden which buildings can qualify for industrial facilities exemption certificates (IFTs) and to update certain administration and revocation provisions. The bills are part of a package intended to expand eligibility for tax abatements tied to industrial property, with particular focus on warehouse and distribution facilities and on speculative development. The bill’s provisions rely on concurrent enactment with related bills (Senate Bills 536 and 537 and House Bills 6212) to take effect.

What the bill would do

  • Expand eligible uses for tax abatements

    • Add “warehousing or distribution” to the list of activities that can qualify under the act, aligning with changes proposed in Senate Bill 536.
    • Remove the current requirement that warehousing/distribution activities must be in a county that borders another state or Canada to qualify as qualified commercial activity, widening eligible locations.

  • Extend or redefine what counts as a speculative building

    • Specifically expand the definition of a speculative building to include buildings constructed for warehousing or distribution facilities before a specific user is identified, provided other criteria are met (as proposed in Senate Bill 536).

  • Change the effective date for speculative buildings

    • Provide that the standard effective date of an IFT for a speculative building or portion of a speculative building is December 31 of the year following issuance of the certificate (as proposed in House Bill 6212), rather than the December 31 following the date the building is used as a manufacturing facility.

  • Revocation and compliance provisions (House Bill 6211 text excerpt)

    • Establishes revocation mechanics for IFT certificates, including the ability for the commission to revoke a certificate upon request, or by local legislative action if certain milestones (e.g., completion within specified timeframes) are not met.
    • Sets notice and hearing requirements for revocation, and the possibility of reinstating a revoked certificate upon compliance and concurrence by local authorities, including transfer scenarios to a subsequent owner.

  • Interdependencies

    • The enacted changes would not take effect unless Senate Bills 536 and 537 and House Bills 6212 (as well as 6211) are enacted into law, indicating a tightly coordinated package.

Who would be affected

  • Businesses and developers seeking IFTs for new, rehabilitated, or speculative industrial facilities, including warehousing and distribution centers.
  • Local units of government responsible for approving speculative buildings and expediting industrial development districts.
  • Property owners and tenants of qualifying industrial facilities; school districts and ISDs potentially affected by the distribution of tax revenue from IFTs.
  • Economic development organizations and development districts involved in eligibility determinations.

Procedural and timeline notes

  • The measures are part of a package requiring concurrent passage of multiple bills (SBs 536, 537; HBs 6211, 6212).
  • Current status is postponed temporarily; the package would advance only if all related bills are enacted.

Fiscal impact

  • The bills would reduce state and local property tax revenue by an unknown amount, contingent on the number and characteristics of newly eligible property (location, value, millage rates).
  • Some revenue losses could be mitigated if the changes would not have occurred absent the bill provisions, but exact impacts cannot be determined with certainty.

Key takeaways

  • Broadens eligibility to include warehousing/distribution facilities for industrial facility exemptions.
  • Removes restrictive location proximity rules for warehousing eligibility.
  • Aligns speculative building rules to allow warehousing/distribution before a user is identified.
  • Adjusts the timing for when speculative buildings’ tax abatements become effective.
  • Establishes revocation and reinstatement procedures to ensure compliance with program goals.
  • Requires passage of related bills to take effect.

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

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