Companies in urban areas can receive 20% credits to their Michigan Business Tax (MBT) liability for Brownfield projects. This tool has been used to great success in communities and has created incredible amounts of private investment and jobs. The provision in the law allowing up to 20% in credits for urban projects will sunset (expire) at the end of 2010.
State Representative Ed Clemente (D-Lincoln Park) on Tuesday introduced HB 6044, which will extend sunset in the law by five years to December 31, 2014. Representative Clemente, who is also the Chair of the House New Economy and Quality of Life Committee, added this to the agenda for his committee yesterday. An amendment was added by Rep. Sharon Tyler (R-Niles) to ensure that Brownfield credits are not granted to those who commit fraud. The bill was then passed unanimously. The Michigan Municipal League supports the bill and the 20% Brownfield MBT credit, and I testified in support of the legislation.
The bill now goes to the full House for consideration, and is expected to be considered and passed next week. After that, it will go to the Senate for consideration. I am optimistic that this bill will become law before the end of the year, averting the end of the 20% MBT credit. Thanks go to Rep. Clemente for taking up this imortant cause!
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email.
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