Michigan House Bill HB6021

Michigan 2023-2024 Regular Session

• Introduced: 10/15/24
• Refer: 10/15/24

Caption

Economic development: Michigan strategic fund; community investment tax credit program; create. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 88u. TIE BAR WITH: HB 6020'24

Impact

The introduction of HB 6021 is expected to have a significant impact on existing state laws governing economic development and community support. By providing a structured tax credit program, Michigan anticipates fostering increased participation from community-based organizations and individual donors. The bill calls for a robust application and compliance process to ensure that the community investment plans are effectively managed and monitored, resulting in allocated funds directly benefitting economically disadvantaged communities.

Summary

House Bill 6021 seeks to amend the Michigan Strategic Fund Act by introducing a community investment tax credit program. The initiative is designed to foster collaborations among nonprofit organizations, businesses, and local residents to enhance community development efforts, particularly in distressed areas. The Michigan Strategic Fund, in conjunction with the Department of Treasury, will oversee the implementation of this program, which aims to stimulate local economy and support low-income populations, ultimately targeting neighborhoods and commercial corridors that require assistance.

Contention

Despite its potential benefits, HB 6021 may face opposition related to the governance and allocation process of the tax credits. Some stakeholders may express concerns regarding the limits on the total tax credits allocated per year, along with the minimum and maximum caps on individual organizational allocations. Furthermore, the eligibility defined for place-based nonprofit organizations may be scrutinized, with debates focusing on whether it adequately captures the diverse community needs and ensures equitable access to financial resources. The relationship between local governance and state oversight in this new framework may also be a point of contention.

Additional_notes

The bill is linked to another legislative measure, House Bill 6020, which suggests that its enactment may be contingent on the approval of related legislation. This interconnectedness may create further discussions among lawmakers about the best strategy for community development and investment at the state level.