Michigan House Bill HB5095

Michigan 2023-2024 Regular Session

• Introduced: 10/4/23
• Refer: 10/4/23
• Report Pass: 10/31/23

Caption

Economic development: other; economic development incentive evaluations for make it in Michigan projects; require. Amends sec. 3 of 2018 PA 540 (MCL 18.1753). TIE BAR WITH: HB 5104'23, HB 5106'23

Impact

The passage of HB 5095 could significantly influence state economic policies by establishing a more rigorous framework for analyzing how effectively incentives are utilized to foster economic growth. By mandating evaluations of the 'Make It in Michigan' programs, the state aims to ensure that incentive allocations correlate with tangible economic benefits. Consequently, this bill may lead to adjustments in existing economic development strategies based on the findings from these evaluations, potentially driving more focused and effective use of state resources in fostering local businesses.

Summary

House Bill 5095 amends the Economic Development Incentive Evaluation Act to enhance the evaluation process for economic development incentives associated with the 'Make It in Michigan' projects. The bill defines various economic development incentives, including tax abatements, credits, exemptions, and grants, and outlines the role of the designated contractor in evaluating their effectiveness. This initiative signifies a step towards more systematic assessments of state-funded economic programs, aiming to ensure accountability and measurable outcomes for taxpayers.

Contention

While proponents of HB 5095 advocate for a structured approach to evaluating economic incentives, potential points of contention may arise regarding the types of projects selected for evaluation and the criteria used to define success. Critics might argue that the bill creates additional bureaucratic processes that could hinder the agility of economic development initiatives. Additionally, there may be debates over whether certain industries receive disproportionate attention or resources through these evaluations, impacting the overall fairness and balance of state economic development efforts.