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Committee advances bill letting businesses and state alter Renaissance-zone tax-credit agreements early
Summary
The House Tax Policy Committee advanced HB 5937, which would allow early termination and modification of Renaissance-zone tax credits to ease the MBT-to-CIT transition; proponents call it a narrow fix and identified one known affected taxpayer in West Michigan.
Chair Neely presented House Bill 5937 to the Tax Policy Committee as a narrow technical fix to transition provisions between the Michigan Business Tax and the Corporate Income Tax. The bill would allow both a taxpayer and the Michigan Strategic Fund to agree to an early change to a Renaissance-zone tax-credit agreement before the renozone designation expires under statute.
"This bill allowed the early termination of the Renaissance zone tax credit on specific circumstances," Chair Neely said, describing the measure as "greater flexibility for both state and business alike." Troy Cummings of Warner Norcross & Judd said the proposal remedies what he called an oversight in the transition law and identified one affected taxpayer in West Michigan, Request Foods, as an example of the small number of remaining MBT-era Renaissance credits.
Committee members asked whether the situation was widespread. Cummings replied the issue is limited: "I think it's just 1 taxpayer that we know of," and framed the bill as a targeted statutory fix rather than broad tax policy.
The clerk read a public comment card in support from Mike Johnson of the Michigan Manufacturers Association. The committee took multiple procedural votes on HB 5937 during the hearing. The clerk recorded the bill as "reported with recommendation" after roll calls during the session. The committee also moved to reconsider an earlier vote before reporting the bill again.
What happens next: Reporting a bill with recommendation sends it to the next legislative step (the floor or another committee, as applicable). The transcript records multiple committee roll-call tallies during the session; committee clerks announced the bill was reported with recommendation at several points during the hearing.
