Bill > SB0645

This bill amends the Use Tax Act to reflect the elimination of the Michigan Strategic Fund by replacing references to the Michigan Strategic Fund with a new "bureau of fair competition and free enterprise" in provisions related to tax exemptions for data center equipment. The bill maintains existing tax exemptions for qualified data centers and enterprise data centers, which allow businesses to avoid paying use tax on certain computer and technology equipment used in data centers, subject to specific job creation, investment, and environmental requirements. Key changes include establishing a new bureau to handle certificate issuance and tracking, extending the timeframe for tax exemptions through 2050 (or 2065 for certain brownfield or former power plant sites), and maintaining the requirement that data centers create at least 30 new jobs paying 150% of the regional median wage. The bill also encourages data centers to adopt environmentally friendly practices such as using renewable energy, improving energy efficiency, and implementing water conservation strategies. Notably, the bill sets a deadline of December 31, 2029, for issuing new certificates and includes provisions for revoking certificates if facilities fail to meet the specified requirements, potentially requiring repayment of previously claimed tax exemptions.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0645