Michigan House Bill HB4128

Michigan 2025-2026 Regular Session

• Introduced: 2/25/25
• Refer: 2/25/25
• Report Pass: 3/25/25

Caption

Corporate income tax: credits; credit for advanced small modular reactor generated power; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 678. TIE BAR WITH: HB 4127'25, HB 4129'25, HB 4125'25, HB 4126'25, HB 4124'25

Impact

The introduction of HB 4128 is significant as it reflects Michigan's legislative intent to foster innovation in nuclear energy production and ease the transition to cleaner energy solutions. By providing tax incentives for the construction and utilization of advanced nuclear facilities, the state plans to attract investment in the nuclear energy sector, thereby boosting the local economy. Additionally, this bill aligns with national trends towards increasing reliance on nuclear power as part of a broader strategy to reduce greenhouse gas emissions and combat climate change.

Summary

House Bill 4128 seeks to amend the Income Tax Act of 1967 by introducing a tax credit for the production of electricity using small modular reactors (SMRs). This legislation permits taxpayers to claim a credit equal to $1.00 per kilowatt hour produced by eligible SMRs at qualified facilities. The credit aims to promote the utilization of advanced nuclear technology while ensuring that eligible facilities adhere to specific regulatory guidelines. Taxpayers can avail of this credit for the first ten years of operation of the SMRs and for up to 10,000 megawatts of electricity produced per facility during their operational lifespan.

Contention

However, the bill has faced scrutiny and debate regarding the implications of expanding nuclear energy in Michigan. Opponents may raise concerns about the safety and environmental impact of nuclear facilities, juxtaposed against potential benefits. Furthermore, the explicit limit on tax credits and the tie-bar requirement for this bill—meaning it will not take effect unless related bills are also enacted—adds another layer of complexity. Stakeholder discussions will likely focus on the balance between advancing technology and maintaining safety and environmental protection standards.