In a bid to tackle Michigan’s pressing affordable housing crisis, a set of bills proposing tax credits for developers has successfully advanced through a state Senate committee, garnering support from both sides of the aisle.
This legislative initiative echoes Governor Gretchen Whitmer’s “build, baby, build” strategy, which she championed during her State of the State address earlier this year.
With bipartisan backing, the three-bill package moved forward in the Michigan Senate Housing and Human Services Committee. Committee Chair Senator Jeff Irwin (D-Ann Arbor) expressed optimism about the proposal, calling it a rare opportunity for substantial legislative achievement amid political division and fiscal constraints.
“This is one of the few ideas that’s at the intersection of important and possible here in Lansing,” Irwin stated to Michigan Public Radio.
He added, “I do think that a tax credit is always an easier decision than a budget line item for various reasons. So, I think that’s part of it. But I think what’s really driving this is just that all legislators are hearing from their residents that housing affordability is a crucial issue.”
The financial implications of the legislation include a $100 million allocation in 2027 to support the tax credits, as detailed in a Senate Fiscal Agency analysis. The bills are now poised for a vote on the Senate floor.
However, the proposal faced opposition from Senator Jonathan Lindsey (R-Coldwater), who cast the sole dissenting vote in the committee. Lindsey criticized the tax credit plan, arguing it would aid only a limited number of developers and fail to address the broader issue.
“It’s still something that is effectively the state trying to subsidize its way out of a problem and I don’t think there are enough dollars out there to subsidize our way out of a housing challenge,” Lindsey argued.
In response, Lindsey has introduced a separate bill to impose a two-year halt on local residential development restrictions.
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