Data centers must follow labor rules to get tax breaks

Use tax: exemptions; compliance with enterprise data center construction labor act; require. Amends sec. 4cc of 1937 PA 94 (MCL 205.94cc). TIE BAR WITH: HB 5786'26, HB 5787'26

Introduced· 2026-04-14

Who's it for

Who's it for: Workers

What it means for you

7/10Helps you

Good for everyday people ·

Heavily funded

Plain‑English summary, cross‑checked against the official bill text.

This bill would require tech companies to follow specific construction labor rules if they want to keep their state tax breaks for building data centers.

Our take

What we think, in plain words.

States often hand out massive tax breaks to lure tech giants, leaving ordinary taxpayers to make up the difference. This legislation tries to ensure those companies at least provide good construction jobs in return, threatening to pull their tax exemptions if they refuse to follow labor standards.

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The facts

What the bill actually says, no spin.

Exempts data center equipment from the state use tax through 2050, or 2065 for certain industrial sites.
Requires data centers to hit specific job creation targets to maintain the tax break.
Ties the tax exemption to a new construction labor law, meaning companies must follow labor rules to get the money.
Forces the state to revoke the tax certificate if the facility fails to meet these requirements.