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2009 House Bill 4922: Lower eligibility for certain MEGA tax breaks

Public Act 123 of 2009

  1. Introduced by Rep. Ed Clemente (D) on May 12, 2009, to reduce another eligibility standard in selective tax breaks granted by the Michigan Economic Growth Authority (MEGA), this one requiring at least 25 percent of the total operating expenses of certain “high technology” businesses to be for research and development for the first three years of their tax break deals.
    • Referred to the House New Economy And Quality Of Life Committee on May 12, 2009.
      • Reported in the House on May 20, 2009, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on June 10, 2009, to replace the previous version of the bill with one that also increases the number of selective tax breaks that can be granted by the Michigan Economic Growth Authority (MEGA) each year. The substitute passed by voice vote in the House on June 10, 2009.
    • Amendment offered by Rep. Tom McMillin (R) on June 10, 2009, to establish that if it is discovered that a company lied on its MEGA tax break application it must not just pay back the tax breaks, but also pay a penalty equal to 50 percent of their value. The amendment passed by voice vote in the House on June 10, 2009.
    • Amendment offered by Rep. Tom McMillin (R) on June 10, 2009, to prohibit MEGA tax breaks for a firm likely to compete with any existing Michigan-based business (which is not the beneficiary of a special tax break). The amendment would require make granting MEGA tax breaks contingent on an analysis that shows this non-competition status. The amendment failed by voice vote in the House on June 10, 2009.
    • Amendment offered by Rep. Tom McMillin (R) on June 10, 2009, to require that a cost/benefit analysis required as a condition of awarding a MEGA tax break to a particular firm must be promptly made available to the public for inspection. The required cost/benefit analysis must "reveal that authorizing the . . . tax credits will result in an overall positive fiscal impact to the state". The amendment failed by voice vote in the House on June 10, 2009.
    • Amendment offered by Rep. Tom McMillin (R) on June 10, 2009, to tie-bar the bill to Senate Bill 71, meaning this bill cannot become law unless that one does also. SB 71 would require the Michigan Economic Growth Authority to file annual reports that disclose not just aggregate data on the tax break deals offered to particular firms it selects, but also disclose the amount of capital investment and jobs that each individual beneficiary firm must "create or retain” to earn a tax break reward, and the amount of jobs, investments and tax credits rewards actually generated by each current and past beneficiary. The amendment failed by voice vote in the House on June 10, 2009.
  2. Passed 92 to 15 in the House on June 10, 2009, to increase the number of selective tax breaks that can be granted by the Michigan Economic Growth Authority (MEGA) in 2009, cap the number in future years, and reduce the eligibility standards for certain tax breaks.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on June 16, 2009.
    • Referred to the Senate Finance Committee on June 16, 2009.
    • Motion by Sen. Samuel B. Thomas, III (D) on August 27, 2009, to discharge the Finance Committee from further consideration of the bill, and bring it directly to the full Senate for a vote. The motion failed 16 to 19 in the Senate on August 27, 2009.
      Who Voted "Yes" and Who Voted "No"

    • Substitute offered by Sen. Nancy Cassis (R) on October 15, 2009, to replace the previous version of the bill with one that revises the proposed caps and eligibility standards. The substitute passed by voice vote in the Senate on October 15, 2009.
  4. Passed 32 to 3 in the Senate on October 15, 2009, to increase the number of selective tax breaks that can be granted by the Michigan Economic Growth Authority (MEGA) in 2009, cap the number in future years, and reduce the eligibility standards for certain tax breaks.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on October 15, 2009.
    • Amendment offered by Rep. Tom McMillin (R) on October 21, 2009, to require members of the board of the Michigan Economic Growth Authority (which selects particular companies to be beneficiaries of targeted state tax breaks and subsidies) to disclose their own personal financial investment decisions made during the past five years. The amendment failed by voice vote in the House on October 21, 2009.
    • Amendment offered by Rep. Ed Clemente (D) on October 21, 2009, to strip out a provision making an exception to the MEGA tax break eligibility criteria inserted by the Senate to benefit the Federal Mogul company. The amendment passed by voice vote in the House on October 21, 2009.
    • Amendment offered by Rep. Ed Clemente (D) on October 21, 2009, to clarify that the cap on "yearly tax credits" applies to future tax breaks. The amendment passed by voice vote in the House on October 21, 2009.
  6. Passed 93 to 11 in the House on October 21, 2009, to increase the number of selective tax breaks that can be granted by the Michigan Economic Growth Authority (MEGA) in 2009 and cap the number in future years. The House removed a provision added by the Senate carving out a special break for the Federal Mogul company.
    Who Voted "Yes" and Who Voted "No"

  7. Received in the Senate on October 22, 2009.
  8. Passed 30 to 4 in the Senate on October 22, 2009, to concur with the House-passed version of the bill, which removed a special tax break eligibility exemption for the Federal Mogul company.
    Who Voted "Yes" and Who Voted "No"

  9. Signed by Gov. Jennifer Granholm on October 27, 2009.

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