Introduced by Rep. Justin Amash (R) on June 15, 2010, to prohibit the disbursement of state business subsidy checks through the device of granting a “refundable” tax credit to a firm located in a “renaissance zone.” Companies in a renaissance zone have no business tax liability, so a so-called “refundable” credit automatically means the firm will get a check from the state for the full amount. Many firms not located in renaissance zones also get these “refundable” credits, and depending on their tax liability may also collect some or most of them in the form of a check from the state. The bill was introduced in the wake of a questionable film subsidy deal for the promoter of the “Hangar 42” studio project in Grand Rapids. Full Text and Analysis.
Referred to the House Tax Policy Committee on June 15, 2010.