Unique to this bill is its structured revenue distribution; the proposed allocation includes a significant portion earmarked for both the Michigan housing and community development fund as well as the revitalization and placemaking fund. This approach is designed to address housing and infrastructure needs while supporting economic growth initiatives, which proponents argue is vital for the enhancement of local communities across Michigan. Furthermore, beginning in the 2025-2026 fiscal year, the bill prescribes further significant allocations to the department of transportation, which would benefit county road commissions and cities.
Summary
House Bill 4143 is an amendment to the Income Tax Act of 1967, specifically targeting the distribution of revenue collected from income tax. The bill outlines a systematic approach to allocate tax revenues from the state fiscal years of 2022-2023 through 2024-2025. It stipulates the maximum amounts to be deposited into the general fund and earmarks specific funds for housing and community development, revitalization projects, and transportation initiatives within the state of Michigan.
Contention
There may be notable points of contention surrounding the bill's distribution of funds, particularly the allocations to various development and transportation projects. Critics may argue that prioritizing infrastructure and community development could divert essential funds from other crucial areas, necessitating a careful balance in fiscal policy and funding strategies. The proposed earmarking of such large sums towards specific funds has sparked debate regarding the efficiency and effectiveness of these allocations, raising questions about long-term state financial implications and priorities.
Corporate income tax: revenue distribution; earmark to support grant, fellowship, and internship programs offered by the Michigan Space Grant Consortium; provide for. Amends sec. 695 of 1967 PA 281 (MCL 206.695).
Corporate income tax: revenue distribution; earmark for the beverage container handling fund; provide for. Amends sec. 695 of 1967 PA 281 (MCL 206.695). TIE BAR WITH: SB 416'25
Corporate income tax: rate; rate increase and earmark of increased revenue to school aid fund; provide for. Amends secs. 623 & 695 of 1967 PA 281 (MCL 206.623 & 206.695).
Individual income tax: income; treatment of certain provisions under the internal revenue code and revenue distributions; modify. Amends secs. 12, 30, 36, 607, 695 & 805 of 1967 PA 281 (MCL 206.12 et seq.) & repeals sec. 51d of 1967 PA 281 (MCL 206.51d). TIE BAR WITH: HB 4183'25, HB 4951'25, HB 4968'25
Economic development: other; length of time for an exemption; limit. Amends secs. 3, 4, 5, 6, 8c, 8d, 8e, 8f, 8g, 8h, 9 & 10 of 1996 PA 376 (MCL 125.2683 et seq.) & adds sec. 9a. TIE BAR WITH: SB 0631'25
Economic development: Michigan strategic fund; procurement technical assistance center (PTAC); update to APEX Accelerator. Amends sec. 2 of 2006 PA 317 (MCL 125.1972).
Economic development: other; Michigan strategic fund centers; amend to reflect elimination of the Michigan strategic fund. Amends title & sec. 2 of 2006 PA 317 (MCL 125.1972). TIE BAR WITH: SB 0631'25
Economic development: other; strategic advisory board; create, and provide for the development of strategic plans. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding secs. 9a & 9b. TIE BAR WITH: SB 0213'25