Michigan House Bill HB4829

Michigan 2023-2024 Regular Session

• Introduced: 6/15/23
• Refer: 6/15/23
• Report Pass: 6/21/23
• Engrossed: 9/6/23
• Refer: 9/7/23
• Report Pass: 9/12/23
• Enrolled: 9/12/23
• Chaptered: 9/13/23
• Passed: 9/13/23

Caption

Michigan business tax: credits; time frame for completion of certain multiphase projects; modify. Amends sec. 437 of 2007 PA 36 (MCL 208.1437) & repeals sec. 601 of 2007 PA 36 (MCL 208.1601).

Impact

This amendment is expected to enhance the business climate in Michigan by streamlining the process for obtaining tax credits for large-scale development projects, particularly those above $10 million. With increased leniency in project completion timelines, more businesses may be incentivized to invest in urban development areas. The impacts will resonate in job creation and the overall economic uplift of communities suffering from blight or property underutilization.

Summary

House Bill 4829 amends the Michigan Business Tax Act to modify regulations pertaining to tax credits for eligible investments related to brownfield redevelopment projects. The bill specifically adjusts the criteria and time frames for these projects, allowing taxpayers with unused tax credits or preapproval letters from earlier years to claim credits against taxes imposed under the act. By emphasizing the completion of projects within specified timelines, the bill aims to encourage investment in revitalizing blighted or functionally obsolete properties across Michigan.

Sentiment

The sentiment around HB 4829 appears largely positive among proponents who view the bill as a necessary tool for accelerating economic recovery post-pandemic. By facilitating the revival of underdeveloped areas, supporters believe it will trigger economic growth and improve public welfare. However, some concerns remain among critics who fear that the expansive nature of incentives may lead to potential misuse or overly generous tax breaks that do not guarantee substantial public benefits.

Contention

Notable points of contention include the specifics of the criteria for project approvals and the limitations on eligible investments. Critics are particularly wary about not including certain sectors like professional sports stadiums and casinos in the tax credit scheme, arguing that it may skew investment opportunities. Additionally, the mechanisms for assignments of credits by taxpayers and clarity on how these credits will be managed in conjunction with state funding processes are also focal points for debate.