Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website
In the latest development of data center tax breaks in the House, one of two bills passed while the other failed to secure enough votes. SB 237, a use tax exemption, was approved with a 56-41 vote. Several Democrats in competitive seats refrained from voting due to concerns about upsetting their environmental and labor supporters.
After nearly 40 minutes of deliberation and mixed support from both parties, Representatives Matt Koleszar (D-Plymouth) and Ranjeev Puri (D-Canton) cast the deciding votes. The bill passed with backing from 34 Republicans and 22 Democrats.
Twelve Democrats abstained from voting: Julie Brixie (D-Okemos), Erin Byrnes (D-Dearborn), Jaime Churches (D-Wyandotte), Betsy Coffia (D-Traverse City), Jennifer Conlin (D-Ann Arbor), John Fitzgerald (D-Wyoming), Carol Glanville (D-Grand Rapids), Jim Haadsma (D-Battle Creek), Denise Mentzer (D-Mount Clemens), Jason Morgan (D-Ann Arbor), Carrie A. Rheingans (D-Ann Arbor) and Mai Xiong (D-Warren).
When Speaker Pro Tem Laurie Pohutsky (D-Livonia) attempted to secure votes from those who had not yet voted, Rep. Jason Morgan declined, prompting Pohutsky to respond, “That’s not an option.”
In contrast, HB 4906 failed twice due to insufficient votes. Republican leadership insisted that all Democratic members vote on the bill, but some Democrats refused, and some Republicans changed their initial affirmative votes.
The session ended at 6:30 p.m. without further progress on HB 4906.
Both SB 237 and HB 4906 aim to exempt data centers from sales and use taxes. The debate within the Democratic caucus has been intense as it involves balancing interests between labor unions seeking construction jobs and environmentalists demanding clean energy sources for these large facilities.
A source noted that members are hesitant to "choose an enemy this close to November."
Before closing the vote on SB 237, Rep. Graham Filler (R-St. Johns) urged for more support by saying, “we’ve got a bunch of nice, wonderful human beings who love their areas... you get two more and let’s move the ball down the field.”
Rep. Bill G. Schuette (R-Midland) expressed his support for lowering taxes to boost investments in Michigan's economy: “Data is going to be a huge resource fueling part of the 21st century economy... I want those investments to happen in Michigan.”
This article is courtesy of MIRS News for SBAM’s Lansing Watchdog newsletter.
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