Bill > HB5168

This bill amends the Michigan Use Tax Act to create a new tax exemption for large agricultural processing facility projects. Specifically, the bill provides a use tax exemption for tangible personal property purchased for projects that involve constructing, expanding, or retooling an agricultural processing facility, or making infrastructure improvements to such a facility. To qualify for the exemption, the project must involve 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 agricultural processing facility or its infrastructure. This means that equipment, materials, and other tangible personal property used in these large-scale agricultural processing projects would be exempt from use tax, potentially incentivizing significant agricultural infrastructure investments in the state.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5168