2016 House Bill 5457 / Public Act 277

Repeal auto insurance company tax credit

Introduced in the House

March 15, 2016

Introduced by Rep. Jon Bumstead (R-100)

To repeal a controversial tax credit that auto insurance companies can collect based on their payments into an “insurance placement facility” or high risk pool for individuals unable to get coverage through the regular risk-based underwriting process. Reportedly the companies are collecting $80 million annually for the credit, which they claim would be tacked on to insurance bills if it is repealed.

Referred to the Committee on Government Operations

June 2, 2016

Substitute offered by Rep. Jon Bumstead (R-100)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Passed in the House 78 to 30 (details)

Received in the Senate

June 7, 2016

Referred to the Committee of the Whole

June 8, 2016

Amendment offered

To allow the tax credit in the current year but end it starting in 2017.

The amendment passed by voice vote

Passed in the Senate 29 to 7 (details)

To repeal a controversial tax credit that auto insurance companies can collect based on their payments into an “insurance placement facility” or high risk pool for individuals unable to get coverage through the regular risk-based underwriting process. Reportedly the companies are collecting $80 million annually for the credit, which they claim would be tacked on to insurance bills if it is repealed.

Received in the House

June 8, 2016

Passed in the House 80 to 28 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

June 29, 2016