Michigan Legislative Update
Week of March 12, 2015
by Judy Augenstein
This week, the House eliminated the film incentives program beginning October 1, 2015. The bill cleared the chamber 58-51 along party lines. A lot has happened concerning tax incentives in the state since last December when the Legislature voted to put a 7 year sunset on the film incentive program. A budget short fall was revealed and a $9.4 billion liability during the next 16 years was also realized, so tax incentives are on the line.
Republicans introduced bills on Wednesday that would prohibit tax credits originating under the now defunct Michigan Economic Growth Authority which have accumulated a $9.4 billion liability in the state and caused a budget shortfall in the current fiscal year. HB 4333 prohibits MEGA tax credit extensions as currently allowed in the Michigan Economic Growth Authority Act and HB 4334 prohibits MEGA tax credit extensions as currently allowed in the Michigan Business Tax.
DNR budget hearings have been initiated by committee chair Senator Mike Green, R-Mayville in the Senate and committee chair Rep. Jon Bumstead, R-Newaygo in the House. A budget plan will not be finalized by the Legislature until after the 1 % sales tax ballot initiative is addressed by the public on May 1.