Bill > HB4787

This bill proposes a property tax exemption for qualified replacement electric distribution infrastructure, which means new electrical infrastructure that replaces older, depreciated equipment. Starting January 1, 2026, electric utility companies can apply for a tax exemption for these new infrastructure investments, but must submit an annual application to the local assessing unit by March 1st each year. To receive the exemption, the utility must provide a detailed report by March 31st that describes the replaced infrastructure, its previous condition, and the expected reliability and safety improvements. The exemption is tied to a specific tax levied under the replacement electric distribution infrastructure specific tax act, which means the infrastructure will still be subject to a different type of tax. The bill requires utilities to provide comprehensive information about the infrastructure replacement, including location, age, condition, and potential performance enhancements. Importantly, the bill will only take effect if a related House Bill (HB 4788) is also enacted into law, creating a legislative dependency to ensure comprehensive implementation of the tax policy.

Agriculture and Natural Resources, Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4787