Michigan Taxpayers Still On Hook For $5.3 Billion To Corporations In Next 10 Years
One of the state of Michigan’s primary methods of delivering taxpayer-funded subsidies to select private businesses was a law and program called the Michigan Economic Growth Authority.
The law is still on the books, but the program has been suspended since 2011, with no new deals for MEGA tax credits granted to corporations and developers.
Yet state officials anticipate they will be handing out refundable tax credits to businesses as far out as 2031, according to the its most recent report. "Refundable" means a good portion of the benefits will go to recipients in the form of cash, not just reduced tax bills. The exact amount is a government secret, however.
The Michigan Economic Development Corporation is the state agency that manages all this, and it projects the state still has $5.3 billion more in previously promised MEGA tax credits to give out over the next 10 years.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.