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SB 918

Economic development: tax increment financing; tax increment financing act; amend to include dam repairs and maintenance. Amends sec. 703 of 2018 PA 57 (MCL 125.4703).

2025-2026 Regular Session Introduced by Michele Hoitenga

SB 918 adds dam maintenance and repairs as an eligible water resource improvement for financing via tax increment financing.

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT
#economicdevelopment:taxincrementfinancing #watersupply:dams
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Bill Summary · SB 918

Summary of Bill SB 918 (2025-2026, Michigan)

Primary purpose

SB 918 would amend the Tax Increment Financing (TIF) Act, specifically section 703 of 2018 PA 57 (MCL 125.4703), to include dam maintenance and repairs as a recognized component of water resource improvements that can be financed through tax increment financing. The bill adds dam maintenance/repairs to the listed activities under the definition of water resource improvement.

Key provisions and changes

  • Definitions revised/expanded:
    • The bill incorporates “dam maintenance and repairs” into the category of water resource improvements (section 703(g)).
    • Water resource improvements already include items like water quality improvements, sewer/stormwater system enhancements, dredging, and related activities; dam work becomes an explicitly eligible activity within this framework.
  • Scope of water resource improvement (section 703(g)):
    • The following are identified as water resource improvements:
    • Elimination of causes and proliferation of aquatic nuisance species.
    • Sewer systems servicing existing structures with failing on-site disposal.
    • Stormwater systems servicing existing infrastructure.
    • Dredging, removal of spoils, and related improvements or maintenance to enhance navigability of a waterway.
    • Dam maintenance and repairs (newly added).
  • Water resource improvement district coverage (section 703(h)):
    • The bill defines the “water resource improvement district” more broadly in terms of inland bodies of water and shoreline-adjacent lands, including areas near Great Lake harbors, with specified geographic reach (up to 1 mile inland from inland lakes; up to 5 miles upstream from harbor shorelines, etc.).
  • Other definitions unchanged but relevant:
    • “Operations,” “Parcel,” “Public facility,” “Specific local tax,” and “Tax increment revenues” retain their existing meanings as in the Act, with the standard exclusions to tax increment revenues (e.g., education taxes, certain district taxes, school millages, etc.) remaining applicable.
  • Effective date and implementation:
    • The bill does not specify a separate effective date beyond the normal operation of amendments to the act. As introduced, it would take effect in accordance with existing legislative and regulatory processes once enacted.

Who would be affected

  • Municipal authorities and redevelopment authorities using TIF under the Michigan TIF Act: They would be allowed to include dam maintenance and repair projects as part of approved water resource improvement plans funded by tax increment revenues.
  • Local governments with water resource projects: Communities with inland lakes, waterways, or harbor areas could leverage TIF to finance dam-related maintenance or repair work as part of broader water quality and navigability initiatives.
  • Taxing jurisdictions within TIF districts: Since tax increment revenues are used to fund approved improvements, participating jurisdictions could see redirected property tax revenues within a development area to cover dam-related projects, subject to statutory exclusions.

Procedural and timeline considerations

  • Legislative action: Introduced April 23, 2026, assigned to the Committee on Local Government. The bill would proceed through the normal Michigan legislative process (committee review, potential amendments, floor votes, and eventual enactment or rejection).
  • Fiscal impact considerations: As with typical TIF amendments, potential impacts include shifting property tax revenues within a development district to fund improvements; the specific financial effects would depend on district size, assessed values, and plan approvals, as well as the scope of dam-related projects encumbered by the TIF plan.

Why this matters

  • By explicitly authorizing dam maintenance and repairs as eligible water resource improvements, SB 918 broadens the toolkit for financing critical infrastructure projects using tax increment financing. This can enable communities to address dam safety, aging infrastructure, and water resource management within the TIF framework, potentially accelerating funding for upgrades alongside other water-related improvements.

If you’d like, I can provide a side-by-side comparison of current law vs. SB 918 language, or a brief outline of potential implementation steps for local authorities.

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

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