LANSING – Michigan House Democrats have introduced a package of bills designed to curb the budget problems spurred by the Michigan Economic Growth Authority credits issued toward the end of the previous decade.
The bills (HB 4471 , HB 4472 , HB 4473 , HB 4474 and HB 4475 ) would end the secrecy behind which companies received the credits and require much more reporting from MEGA about the credits issued, prohibit modifications of existing credits that increase their duration or ease the ability for them to be claimed and limit the total claiming of credits in any fiscal year to $400 million.
The bills were referred to the House Tax Policy Committee, which met earlier this week on similar bills.
The recent rush of businesses to claim MEGA credits agreed to years ago has caused considerable volatility in state revenues.
“In March, the state paid businesses $52 million in net tax refunds. This comes as Michigan taxpayers are filing their taxes and seeing fewer and fewer tax credits, crowded classrooms and crumbling roads and bridges,” Rep. Jim Townsend (D-Royal Oak), one of the bill sponsors, said in a statement. “My legislation would bring stability, accountability and transparency to our state.”
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