As the budget discussions start and the new Legislature and Governor begin to close the $2 billion deficit at the state level, discussions are arising in the House about reviewing certain tax credit programs for effectiveness and cost to the state. The House Republican majority have mentioned the following credits to be reviewed:

- Brownfield, Film, anchor company, food retailer, historic preservation, Michigan Economic Growth Authority, hybrid technology research and development, Next Energy,renaissance zone, Obsolete Property Act, Logistic facilities, SmartZones, Neighborhood Enterprise Zones, battery production

This list is not exhaustive and are just examples.  All credits could be on the table for review.  As you know, many of these and other credits are used effectively by communities to create jobs and private investments to their community, and help to bring people back to Michigan. I am compiling a list of examples showing the effectiveness of many of these tools in communities that I will share with legislators. Please send me any examples that you have that you would like to include on the list. The more examples, the better.  It would be especially helpful to have examples from every legislative district in the state. I expect these discussions to happen rather quickly as the budget is proposed and worked on.  I can also easily see the Legislature proposing to cut the state dollars that are used with many of these credits.

Please email me directly if you or anyone in your community have any examples that you can share showing the benefits of any of these credits and the importance of both state and local contributions towards these economic development tools. I will compile them and put them in a document for the Legislature.

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.

 

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