LANSING, MI (AP)-- The tax credit program that unexpectedly brought on more than $9 billion in
potential liability for the state would be limited under two bills moving through the Michigan Legislature.
Despite opposition from business groups, the Republican-led House Tax Policy Committee approved the bills nearly unanimously Wednesday.
The bills would prevent the Michigan Economic Growth Authority from entering into new agreements allowing tax credits for businesses. It would also be prohibited from changing existing agreements unless the change results in a reduction of the amount of the credit.
Officials said in February that Michigan is potentially on the hook for $9.4 billion in business tax credits over the next two decades.
Republican Gov. Rick Snyder and the Republican-led Legislature were forced to cut the budget mid-year as a result.