LARGE PROJECT MEGA CREDIT

House Bill 6748

Sponsor:  Rep. Andy Meisner

Committee:  Commerce

Complete to 12-1-08

A SUMMARY OF HOUSE BILL 6748 AS INTRODUCED 11-25-08

The bill would amend a provision in the Michigan Business Tax Act that allows the Michigan Economic Growth Authority (MEGA) to award tax credits each year to 20 projects each costing over $10 million.  A maximum of three of these projects can be outside of a core community if certain criteria are met.  The bill would expand the criteria that apply to these three credits so that a tax credit could be awarded to property that is functionally obsolete or blighted property identified in a brownfield plan and located in a city with a population of 70,000 or more and within ten miles of another city in the state with a population of 500,000 or more. 

The bill also would specify that for these credits, MEGA is to give preference to mixed use projects that satisfy each of the following criteria:  (1) the amount of new construction investment is $50 million or more; (2) the project includes at least one aboveground, multilevel parking facility or underground parking facility; (3) the project includes at least one two-story or greater structure other than a parking facility; (4) the project is regionally transformational; (5) the state and region will benefit from the project; (6) the project addresses a major redevelopment need in the community; and (7) the project's requirements require a strong subsidy.

MCL 208.1437

FISCAL IMPACT:

The bill would reduce Michigan Business Tax revenue by an indeterminate amount.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Jim Stansell

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.