A plan to repeal the 2024 sales and use tax reforms that were specifically carved out to promote and support data center development was announced this week.
Background:
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- In December 2024, the legislature voted to approve bicameral legislation, and Governor Whitmer signed it into law, addressing certain aspects of data centers.
- Specifically, the legislation prevented the Michigan Economic Development Corporation (MEDC) from releasing information about data centers applying for or using sales and use tax exemptions.
Proposal:
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- The proposed reforms will be introduced by Senator Jim Runestad (R-White Lake).
- It would completely repeal the 2024 reforms and, in Senator Runestad’s opinion, open the door for changes surrounding how and when data center proposals use or pursue tax breaks.
