2023 House Bill 4906

Sales tax: definitions; definition of enterprise data center; include as qualified data center.

A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending section 4ee (MCL 205.54ee), as added by 2015 PA 251.

Mackinac Center Analysis

Extends exemptions of particular data centers from sales and use taxes to 2050. Exemptions are only available to large data centers who meet other criteria and apply for exemptions.

Introduced in the House

July 18, 2023

Introduced by Rep. Joey Andrews (D-38) and 9 co-sponsors

Co-sponsored by Reps. Alabas Farhat (D-3), Penelope Tsernoglou (D-75), Jasper Martus (D-69), Mike McFall (D-8), Will Snyder (D-87), Carrie Rheingans (D-47), Jason Hoskins (D-18), Emily Dievendorf (D-77) and Jim Haadsma (D-44)

Referred to the Committee on Tax Policy

Oct. 18, 2023

Reported without amendment

Nov. 8, 2023

Passed in the House 79 to 30 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Nov. 9, 2023

Referred to the Committee on Finance, Insurance, and Consumer Protection

March 13, 2024

Reported with substitute S-3

March 14, 2024

Referred to the Committee of the Whole

May 16, 2024

Reported with substitute S-10

Substitute S-10 concurred in by voice vote

Passed in the Senate 22 to 11 (details)

Received in the House

May 21, 2024

Sept. 25, 2024

Substitute H-1 offered by Rep. Joey Andrews (D-38)

The substitute failed by voice vote

Substitute H-3 offered by Rep. Joey Andrews (D-38)

The substitute passed by voice vote

Amendment offered by Rep. Mike Harris (R-52)

1. Amend page 14, following line 21, by inserting:

“(x) The facility will not take electric service under any of the following rates:

(A) The long-term industrial load rate established under section 10gg of 1939 PA 3, MCL 460.10gg, unless the designated power supply resource on which the long-term industrial load rate is based was placed in operation after January 1, 2024, and the rate is at least equivalent to the average industrial rate charged to other industrial customers of the electric utility that serves the facility.

(B) A tariff rate approved in Michigan Public Service Commission Case No. U-21160, U-21163, or U-21646.

(C) A rate that causes residential customers to subsidize the costs incurred to provide electric service to the facility.”.

The amendment passed by voice vote

Nov. 13, 2024

Substitute H-3 concurred in 64 to 45 (details)