The Senate Commerce committee yesterday unanimously passed a series of
bills that will require state and local governments to use companies who hire Michigan employees first
when they offer tax abatements or credits.
For us, the bills require companies to make a good faith effort to use Michigan employees when they
receive abatements through the Obsolete Property Rehabilitation Act, Brownfield
Redevelopment Act, Industrial Development Revenue Bond Act, Renaissance Zone
Act, MEGA, and Transportation Economic Development Fund. Companies will report to locals, and locals will
forward the information on to the state.
Enforcement is done at the state level. Language in the House bills
that required Industrial Revenue Bonds and TEDF grants to comply with prevailing wage and strengthening the enforcement was stripped in the Senate. These bills are expected to pass the Senate
quickly.
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