The program still has an estimated $5.3 billion to pay out as tax credits to businesses over the coming decade. | Pixabay
The program still has an estimated $5.3 billion to pay out as tax credits to businesses over the coming decade. | Pixabay
While the Michigan Economic Growth Authority has been suspended since 2011, the program still has an estimated $5.3 billion to pay out as tax credits to businesses over the coming decade.
The Michigan Economic Growth Authority is a previously passed law that remains on the books, despite having been suspended nearly a decade ago, according to coverage by Michigan Capitol Confidential. The remaining tax credits that were authorized prior to the program’s suspension are still administered by the Michigan Economic Development Corporation.
The “refundable” tax credits provided under the program don’t just mean lower tax bills for the recipients either, according to Michigan Capitol Confidential. Rather, many of the recipients are actually offered direct payments from the state to refund their previous tax expenditures.
The money goes to corporations and developers who applied for the program back when it was still accepting new applicants, and state officials anticipate they will not be done making payments to those applicants until around 2031, according to Michigan Capitol Confidential.
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