SB 793 — Economic development: plant rehabilitation; industrial facility tax; modify. Amends secs. 3, 6, 7 & 9 of 1974 PA 198 (MCL 207.553 et seq.).

SB-793, As Passed Senate, July 2, 2026 SENATE BILL NO.

and to provide penalties," by amending sections 3, 6, 7, and 9 (MCL 207.553, 207.556, 207.557, ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r and 207.559), section 3 as amended by 2010 PA 122, section 6 as amended by 2021 PA 157, section 7 as amended by 2014 PA 514, and section 9 as amended by 2014 PA 513.

ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 (6) "Manufacturing facility" means buildings and structures, including the machinery, equipment, furniture, and fixtures located in the buildings and structures, the primary purpose of which is 1 or more of the following:

A program involving expenditures for changes to the industrial property improvements aggregating less than 10% ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 of the true cash value at commencement of the restoration of the industrial property improvements is delayed maintenance.

(12) (8) "Speculative building" means a building that meets 1 ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 of the following criteria and the machinery, equipment, furniture, and fixtures located in the building:

(9) "Development organization" means any economic development ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 corporation, downtown development authority, tax increment financing authority, or an organization under the supervision of and created for economic development purposes by a local governmental unit.

If ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 disapproved, the reasons shall be set forth in writing in the resolution.

Before issuing a certificate, the commission shall must notify the state treasurer of the application and shall must obtain the written concurrence of the department of licensing and regulatory affairs Michigan strategic fund or, if the ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 Michigan strategic fund delegates this action to the Michigan economic development corporation, the Michigan economic development corporation, that the application complies with the requirements in section 9.

(4) Notwithstanding any other provision of this act, if pursuant to under section 16a a local governmental unit passed a ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 resolution approving an industrial facilities exemption certificate for a new facility on October 14, 2003 for a certificate that expired in December 2002, the commission shall issue for that property an industrial facilities exemption certificate that begins on December 30, 2002 and ends December 30, 2009.

(7) Notwithstanding any other provision of this act, if on February 21, 2012, a local governmental unit passed a resolution approving an industrial facilities exemption certificate for a new facility, but the application was not made complete until 2013, the ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 commission shall issue for that property an industrial facilities exemption certificate that begins on December 31, 2012.

(10) If the clerk of the qualified local governmental unit failed to forward an application, an amended or transfer application, or a request to revoke a certificate that was approved by the legislative body of the qualified local governmental unit before October 31 of that year to the commission before October 31 but filed the application, the amended or transfer application, or ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 the request to revoke a certificate before October 31 of the immediately succeeding year and the commission approves the application, the amended or transfer application, or the request to revoke a certificate, notwithstanding any other provision of this act, the certificate shall be is considered to be issued, transferred, amended, or revoked on December 31 of the year in which the local governmental unit approved the application, the amended or transfer application, or the request to revoke the certificate.

(1) The legislative body of the local governmental unit, in its resolution approving an application, shall set forth a finding and determination that the granting of the industrial facilities exemption certificate, considered together with the aggregate amount of industrial facilities exemption certificates previously granted and currently in force, shall will not have the ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 effect of substantially impeding impede the operation of the local governmental unit or impairing impair the financial soundness of a taxing unit that levies an ad valorem property tax in the local governmental unit in which the facility is located or is to be located.

If the application is not filed within the 12-month period, the application may be filed within the succeeding 12-month period and the industrial facilities exemption certificate shall in this case expire expires 1 year earlier than it would have ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 expired if the application had been timely filed.

(f) Completion of the facility does not constitute merely the addition of machinery and equipment for the purpose of increasing ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 productive capacity but rather is primarily for the purpose and will primarily have the effect of restoration, replacement, or updating the technology of obsolete industrial property.

(ii) A facility located in an industrial development district that was established in January 1994 and that was owned by a person who filed an application that applied for an industrial facilities exemption certificate in February 1994 if the personal property and real property portions of the application were approved by the ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 legislative body of the local governmental unit and the personal property portion of the application was approved by the state tax commission in December 1994 and the real property portion of the application was denied by the state tax commission in December 1994.

If granting the industrial facilities exemption certificate under this subparagraph results in an overpayment of the tax, a rebate, including any interest and penalties paid, shall must be made to the taxpayer by the local tax collecting unit if ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 the local tax collecting unit has possession of the tax roll or by the county treasurer if the county has possession of the tax roll within 30 days of the date the exemption is granted.

(viii) A new facility located in an industrial development district that was established by the legislative body of the local governmental unit in September of 2007 for construction that was ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 commenced in March 2007 and for which an application for an industrial facilities exemption certificate was filed in September of 2007.

(xiii) A facility located in an industrial development district that was established by the legislative body of the local governmental unit in December 2007 for construction that was commenced in September 2007 and a certificate of occupancy issued ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 in September 2008 for which an application for an industrial facilities exemption certificate was approved in May of 2008.

(iv) A facility located in an existing industrial development district and occupied by a person who filed an application that applied for an industrial facilities exemption certificate in June ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 of 1995 if the application was approved by the legislative body of the local governmental unit in October of 1995 for construction that was commenced in November or December of 1994.

(4) The legislative body of the local governmental unit shall ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 not approve an application and the commission shall not grant an industrial facilities exemption certificate that applies to a speculative building unless the speculative building is located or is to be located in a plant rehabilitation district or industrial development district duly established by a local governmental unit eligible under this act to establish a district;

The facility described in this subsection shall must be taxed under this act as if it was granted ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 an industrial facilities exemption certificate on December 30, 1987.

(9) Notwithstanding section 16a and any other provision of this act, if a local governmental unit passed a resolution approving an industrial facilities exemption certificate for a new facility on October 28, 1996 for a certificate that expired in December 2003 and the local governmental unit passes a resolution approving the extension of the certificate after December 2003 and before March 1, 2006, the commission shall issue for that property an industrial facilities exemption certificate that begins on ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 December 30, 2005 and ends December 30, 2010 as long as the property continues to qualify under this act.

(12) Notwithstanding any other provision of this act, if in August 2008 a local governmental unit passed a resolution approving an exemption certificate for 12 years for real and personal property but the commission did not receive the application until 2008, then the commission shall issue, for that property, an industrial facilities exemption certificate that begins December ERE S05147'25 *_SB0793_INTR_1*_SB793_APS_1 fu3dtxhb5f6r 1 31, 2006 and ends December 30, 2018.

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