2009 Senate Bill 493 / Public Act 160

Revise “anchor company” business subsidies

Introduced in the Senate

April 30, 2009

Introduced by Sen. Jason Allen (R-37)

To expand and revise details of the refundable tax credits (cash subsidies) for “anchor” companies. In addition to other revisions, the bill would allow "anchor" companies to claim tax breaks on the basis of supplier or customer companies payrolls. This refers to a <a href="http://www.michiganvotes.org/2008-SB-1115">2008 law</a>“ granted “refundable” tax credits (cash subsidies) to certain high technology businesses designated as “anchor companies.” The credit is based on the payroll attributed to other companies that locate in Michigan because of the "anchor company's" high tech processes or products.

Referred to the Committee on Commerce and Tourism

June 11, 2009

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

June 18, 2009

Amendment offered by Sen. Mark Jansen (R-28)

To require the Michigan Economic Growth Authority to provide annual reports to the legislature containing certain details of the basis on which these subsidies are calculated.

The amendment passed by voice vote

Passed in the Senate 36 to 0 (details)

Received in the House

June 23, 2009

Referred to the Committee on Natural Resources, Tourism, and Outdoor Recreation

July 28, 2009

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Nov. 10, 2009

Passed in the House 88 to 12 (details)

To expand and revise details of the refundable tax credits (cash subsidies) for “anchor” companies. In addition to other revisions, the bill would allow "anchor" companies to claim tax breaks on the basis of supplier or customer companies payrolls. This refers to a <a href="http://www.michiganvotes.org/2008-SB-1115">2008 law</a> that granted “refundable” tax credits (cash subsidies) to certain high technology businesses designated as “anchor companies.” The credit is based on the payroll attributed to other companies that locate in Michigan because of the "anchor company's" high tech processes or products.

Signed by Gov. Jennifer Granholm

Dec. 11, 2009