Bill > HB5169

This bill amends the General Sales Tax Act to create a sales tax exemption for large agricultural processing facility projects. Specifically, the bill provides a sales tax exemption for tangible personal property purchased for use in constructing, expanding, or improving an agricultural processing facility, but only if the project involves a capital investment of at least $100 million. An "agricultural processing facility" is defined as a facility in Michigan that transforms, packages, sorts, or grades livestock, agricultural commodities, or plants into goods for intermediate or final consumption. The exemption applies only to property that will be affixed to or become an integral part of the facility or its infrastructure improvements. The bill aims to incentivize significant investments in agricultural processing infrastructure by reducing the tax burden on materials and equipment used in these large-scale projects. This targeted exemption could potentially encourage agricultural businesses to make substantial investments in Michigan by offering a financial benefit through reduced sales tax costs.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5169