Michigan Senate Bill SB0938

Michigan 2025-2026 Regular Session

• Introduced: 4/29/26
• Refer: 4/29/26
• Report Pass: 5/13/26
• Refer: 5/13/26
• Report Pass: 5/14/26
• Engrossed: 5/19/26
• Refer: 5/19/26

Caption

Individual income tax: credit; credit for the sale of mobile home park or seasonal mobile home to residents or resident's association or cooperative; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 281 & 678. TIE BAR WITH: SB 0937'26

Summary

Senate Bill 938 would create a new Michigan income tax credit for certain mobile home park owners who sell a mobile home park or seasonal mobile home park to the residents, a residents’ association, or a cooperative. The credit would equal 15% of the purchase price and would apply to tax years beginning on or after January 1, 2026. To qualify, the seller must be a licensed owner of the park, must have provided the notice of intent to sell required under the Mobile Home Commission Act, and must file the notice and settlement statement with the annual tax return. The bill also allows members of a flow-through entity to claim their share of the credit based on distributive business income or another method approved by the Department of Treasury. The credit is nonrefundable, so it can reduce tax liability to zero but cannot generate a refund if it exceeds the taxpayer’s liability. The bill is tie-barred to Senate Bill 937, meaning it would not take effect unless that related bill is enacted into law.

Impact

SB 938 would amend the Michigan Income Tax Act by adding new credit provisions in two sections, one for the individual income tax and one for the corporate income tax, both aimed at incentivizing sales of mobile home parks to resident-controlled entities. It would affect licensed mobile home park owners, resident associations, cooperatives, and flow-through entity members, while also linking tax administration to notice requirements under the Mobile Home Commission Act. Because the credit is nonrefundable and applies only to qualifying sales after January 1, 2026, the bill would create a targeted tax preference rather than a broad tax change.

Sentiment

The available context suggests generally favorable intent around the bill, as it is framed as a policy tool to support resident ownership of mobile home parks and seasonal mobile home parks. No committee transcript or recorded votes were provided, so there is no direct evidence of opposition or debate in the supplied materials. The tie-bar to SB 937 indicates the proposal is part of a coordinated legislative package rather than a standalone tax change.

Contention

The main policy issue is the size and structure of the tax incentive: the bill grants a credit equal to 15% of the purchase price, which may be viewed as a significant subsidy for qualifying transactions. Another point of possible contention is that the credit is limited to sales to residents, resident associations, or cooperatives after the statutory notice process, so it benefits a narrow class of transactions and taxpayers. Because the credit is nonrefundable, some may also question whether it is sufficient to influence sales decisions for taxpayers with limited tax liability.