Tax Relief, Housing Reforms, and the Push for Economic Competitiveness 

• Republican Tax Relief: Speaker Matt Hall proposed a $4 billion property tax plan to eliminate the state education tax and save homeowners an average of $900 yearly. 

• Major EPA Repeal: The federal government repealed the 2009 greenhouse gas finding, removing the legal basis for emissions regulations and triggering immediate lawsuits. 

• Housing and Tech Growth: New bipartisan bills aim to speed up housing approvals, while House legislation seeks a 15-year extension for SmartZone tech hubs. 

• R&D Tax Victory: Treasury exempted R&D costs from the Corporate Alternative Minimum Tax, a major win for the tech and manufacturing sectors. 

During the week of Feb. 16, 2026, the legislative landscape shifted from Lansing to Washington, D.C., highlighted by a $4 billion property tax relief plan in Michigan and a landmark EPA repeal of greenhouse gas regulations. From bipartisan housing reform to new federal tax exemptions for R&D, this agenda was dominated by fiscal relief and regulatory overhauls. Here is your breakdown of what the Detroit Regional Chamber was watching this week. 

Michigan Speaker of the House Matt Hall unveiled parts of a $4 billion property tax reduction plan aimed at increasing economic competitiveness and reducing costs for residents and businesses. The proposal includes eliminating the 6-mill State Education Tax, which is estimated to save the average homeowner $900 annually. It also eliminates the real estate transfer tax and the “pop-up” tax, encouraging the healthy turnover of housing stock and removing a significant barrier to neighborhood development.

The plan also eliminates the personal property tax on small businesses and utilities. Eliminating this tax on business equipment removes a direct penalty on capital investment and modernization. As part of the utility tax cut, the plan will mandate a minimum $1 billion reduction in utility bills to ensure savings are passed on to ratepayers. The plan aims to offset lost revenue through a revised tax system while protecting funding for local governments and K-12 schools.

Hall didn’t give any more details on the plan, including how it will be revenue-neutral, but said he’ll discuss it further in his upcoming press conferences.

In the Michigan House Economic Competitiveness Committee, the Chamber supported HB 5031, which extends the SmartZones sunset for another 15 years. SmartZones are designated technology hubs, funded through tax increment financing, that provide tech-based companies and entrepreneurs with high-density access to business accelerators, research universities, and specialized infrastructure.  

SB 301 – Employer Tax Credit for Paid Organ Donation Leave 

In the Michigan Senate Health Policy Committee, the Chamber submitted support for SB 301, which creates a new corporate income tax credit granting employers 100% reimbursement for wages paid to employees on organ donation leave.  

SB 731 and SB 732 – Distributed Generation, Storage, and Aggregation Program 

This package establishes a statewide regulatory structure for distributed energy resources (DERs), including customer‑owned generation, energy storage, and demand response, to participate in grid services and utility rate cases. The Chamber opposed the package in the Michigan Senate Energy and Environment Committee as the bills raise significant reliability, affordability, and implementation concerns. 

A bipartisan coalition in the Michigan Legislature has introduced a housing package to alleviate the statewide housing shortage. Four of these bills were in the House Regulatory Affairs Committee on Thursday, Feb. 19. The bills would accelerate housing development across the state by establishing strict 45-day and 60-day municipal approval timelines, capping minimum lot sizes at 1,500 square feet to increase density, and raising the threshold for protest petitions to 60% to prevent them from stalling critical residential projects.

Five more bills will be discussed in committee in the next two weeks, targeting duplexes and other denser housing options.

At the federal level, the U.S. Department of Treasury issued new regulatory guidance granting a key exemption to the 15% corporate alternative minimum tax (CAMT). Under the new 67-page guidance, companies can take advantage of catch-up breaks for R&D costs without running afoul of the alternative minimum tax.

This exemption is a significant victory for the Detroit Region’s manufacturing and technology sectors, ensuring that businesses are not penalized for making forward-looking investments in domestic research and job creation.

Alongside the R&D exemptions, the document also spares companies from minimum tax penalties on other common deductions, including facility repair costs, film-related production expenses, and the amortization of certain intangible assets.

On Wednesday, Feb. 18, the Environmental Protection Agency (EPA) published its repeal of the 2009 greenhouse gas endangerment finding, officially opening a 60-day window for legal challenges. This repeal eliminates the scientific and legal foundation that has enabled the EPA to regulate greenhouse gases under the Clean Air Act, with Administrator Lee Zeldin arguing that the Act does not authorize regulating globally dispersed pollutants. This move by the Trump administration marks a major shift in federal climate regulatory authority.

Immediately in response to the repeal, a coalition of major public health and environmental organizations filed suit in the U.S. Court of Appeals for the D.C. Circuit, arguing the EPA’s action is unlawful. The lawsuit contends that the 2009 endangerment finding is supported by nearly two decades of scientific evidence and serves as the legal basis for regulating emissions from vehicles, power plants, and industrial sources. Advocates warn the repeal could eliminate all federal greenhouse gas standards for cars and trucks and unravel broader climate protections, creating regulatory uncertainty for businesses and weakening public health safeguards.

This case is likely to involve multiple years of litigation, with briefs expected 6–12 months from now and eventual review by the U.S. Supreme Court years down the line. While Republicans in Congress have been largely silent on the repeal, Democratic lawmakers have publicly criticized it and are exploring their limited options as the minority party. This puts the country in a regulatory grey area, awaiting a stay or injunction from the D.C. Circuit, and for these lawsuits to play out across the board.