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Rep. Afendoulis plan would make Michigan’s economic incentive program more transparent, fairer for taxpayers
RELEASE|February 4, 2020

Rep. Lynn Afendoulis – chair of the House Tax Policy Committee – today helped introduce a bipartisan plan giving Michigan taxpayers more transparency and recourse related to state economic incentives.

Through the Afendoulis legislation, when a company fails to meet its obligations in employment growth and must amend its agreement to reflect lower job creation, the amount of the financial incentive they receive would be lowered by a proportionate amount.

The bipartisan package of bills also requires the Michigan Strategic Fund to post draft contract agreements and related information on its website 10 business days before it can approve a grant, tax credit or other assistance; requires the Michigan Economic Development Corp. to post a notice on its website when a recipient of taxpayer assistance fails to meet the terms of an agreement or requests to amend an agreement; and requires that money returned to the state because of failed agreements revert to the state general fund rather than go back to the Michigan Strategic Fund, which grants the incentives.

“Taxpayers pay for these economic incentives, and they deserve to have better information about their effectiveness,” said Afendoulis, of Grand Rapids Township. “In cases where corporations don’t deliver the number of jobs promised, their tax assistance should be reduced accordingly. This is what’s fair and right for Michigan taxpayers, and I am ready to help these measures advance in the Legislature.”

Other proposals in the bipartisan package would make tax credits under the Michigan Economic Growth Authority subject to disclosure through the Freedom of Information Act.

The legislation was referred to the House Tax Policy Committee, which Afendoulis chairs.

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