December 1, 2025

MI Lawmakers Look to Shift Spending Toward Local Roads, Housing, and High-Wage Jobs

Michigan lawmakers are working through a set of bills that could shape everyday life in very real ways. The proposals steer money away from giant corporate incentive programs and toward relevant things people actually interact with such as local streets, housing, and job opportunities.

Fixing the Roads

A major bill (HB 5296) in the package would send hundreds of millions of dollars into a new Neighborhood Roads Fund, starting in 2025 and growing year by year. Unlike most state road spending, this money is specifically earmarked for local streets and neighborhood connectors, roadsthat take the brunt of daily use but often sit at the bottom of the priority list.

More Support for Housing and Community Development

The same bill would continue annual funding for two programs with local impact.

The Michigan Housing and Community Development Fund, which helps build and preserve affordable housing.
The Revitalization and Placemaking Fund, which supports downtown improvements, public gathering spaces, and small business districts.

As Chelsea, Dexter, Milan, and Saline continue working to address housing options and strengthen their downtowns, these programs could help remedy affordable housing shortages

A Move Away from Corporate Incentives

Another bill (HB 5294) would eliminate the state’s SOAR program (MCL 12.254), the large pot of money used to offer massive incentive packages to major corporations. Those deals have drawn criticism for years, with many residents questioning whether the promised jobs ever materialized.

By proposing a repeal of the legal framework for SOAR and redirecting money toward community needs, lawmakers are signaling a shift with fewer big checks to giant corporations, more investment in neighborhoods.

More Transparency in How State Incentives Are Handled

HB 5297 significantly expands what the public can see about state economic-development deals. The Michigan Strategic Fund (through MEDC) would have to report more detailed information, including:

Who receives state incentives
How many jobs were promised versus actually created
Average wages of those jobs
Clawback payments when companies don’t keep their commitments
Public notice when an incentivized company files for bankruptcy

If passed and signed into law, this would mean more accountability and less mystery around how the state uses taxpayer dollars to attract businesses.

Incentives for High-Paying Jobs

While mega-deals may be going away, the bills do introduce a tax credit for employers who create full-time jobs paying at least 150% of the regional median wage.

Employers would receive a credit equal to 50% of the state income tax withheld from each new employee, but only up to a statewide limit of $50 million per year. The credit is designed to encourage stable, high-paying job growth—without the open-ended costs of older incentive programs.

Phasing Out Old Tax Deals

Michigan still owes companies money from incentive agreements made before 2012. One bill would let companies collect those remaining credits over 10 years, but only if they maintain at least 95% of their current Michigan jobs.

If a company drops below that threshold—even once—it loses the remaining credits for good.

This gives the state a clear end date on long-standing obligations while protecting public dollars if companies shrink their workforce.

Bottom Line

If this package passes, Michigan would see: