The Future of the Michigan Bottle Return Law
Michigan’s bottle deposit laws are some of the most robust in the country, and boasted a 98.2% redemption rate in 1990. But, in the years since, unclaimed deposits have risen, and the state is now reporting a 69.4% redemption rate, which is the lowest in the Treasury records since 1990.
Michigan residents benefit greatly from bottle deposit laws, as returning eligible containers puts money directly back into consumers’ pockets. Even better, it eliminates roughly $4 million in “avoidable litter” cleanup costs. If you’ve ever been curious about the efficacy or popularity of our state’s bottle deposit laws, this post’s for you!
Today, let’s look at what the bottle bill is, how members of our community can help, and how Schupan is championing the future of the program.
What is the Bottle Bill?
Passed in 1976, Michigan created one of the earliest statewide bottle deposit laws in the nation. All of the financial aspects of the program are handled by the Michigan Department of Treasury, including the distribution of funds to eligible retailers, the bottle bill enforcement fund, and a fund to promote environmental cleanup and conservation.
At its core, Michigan’s bottle bill is defined by a few essential features:
- Retailers who sell canned and bottled beverages with deposits must accept beverage containers for refunds. The deposit law includes penalties, such as fines and loss of liquor licenses, for retailers who do not comply. However, retailers are allowed to limit the value of containers a single person can return to $25 per person per day.
- Beverage distributors must pick up returned containers, pay back the deposit, and ensure the containers are processed for recycling. Beverage containers are recycled into a range of items, including gutters, window frames, polyester fleece, and (of course) new bottles and cans.
- Unclaimed deposits are claimed by the Treasury, with 25% of unclaimed deposits after $1 million going back to retailers. There was about $119 million in non-refunded deposits in 2025, with between 1% and 5% of people saying they put deposit containers in the trash.
How Do Grocery Stores Help?
Grocery stores and anywhere that sells soft drinks, beer, and carbonated water or spirits play an absolutely crucial role in the success of Michigan’s bottle deposit law. With the refund rate falling to 69.4% in 2025, retailer participation is more critical than ever. Even with this reduced rate, it’s important to note that bottle deposits are a $390 million consumer engine:
- 3.9 billion containers are handled annually
- $119 million in unredeemed deposits in 2025
- 50% reduction in roadside litter since 1978
- 92% of likely voters support the deposit law
Building on Michigan’s Bottle Deposit Law
At Schupan, we’re proud to play our part in Michigan’s bottle deposit laws. We firmly believe that the program represents a massive opportunity for both consumers and the state as a whole. But we recognize that there’s a lot of hard work to be done. We need to reverse the 30-point decline in redemption rates, expand the program, and promote participation across the board.
So, if you’re as big a fan of Michigan’s natural resources and beauty as we are, don’t forget to return your bottles and cans, and, more importantly, keep our state’s deposit law strong.