The bill amends the Use Tax Act of 1937 by adding a new section, 4mm, which provides a tax exemption for the storage, use, or consumption of tangible personal property sold to individuals or businesses involved in large agricultural processing facility projects. Specifically, the exemption applies to property used for assembly, use, or consumption in connection with such projects, as well as property used by those engaged in construction, alteration, repair, or improvement of real estate related to these facilities. However, the exemption is limited to property that will be affixed to or become an integral part of the agricultural processing facility or its infrastructure improvements.

The bill defines "agricultural processing facility" as a facility that processes livestock, agricultural commodities, or plants into goods for consumption, and it specifies that a "large agricultural processing facility project" must involve a capital investment of at least $100 million. The project can include construction, expansion, or retooling of the facility, as well as infrastructure improvements. This legislation aims to encourage investment in agricultural processing facilities in Michigan by providing significant tax incentives.

Statutes affected:
House Introduced Bill: 205.91, 205.111