2019 House Bill 4189 / Public Act 90

Limit corporate subsidy deal modifications

Introduced in the House

Feb. 14, 2019

Introduced by Rep. Jason Sheppard (R-56)

To prohibit state economic development officials from modifying one of the agreements entered with a relative handful of large companies mostly in the late 2000s that granted them up to $9 billion worth of state taxpayer subsidies (styled as “refundable business tax credits”) over a 20 year period. Specifically, the agreements could not be changed in a way that increases the payouts or extends them. However, the bill makes an exception for subsidies granted to the Federal Mogul company in the 2000s, so that the company that bought the firm in 2018 (Tenneco) can collect additional subsidies on a Michigan facility said to be worth around $12 million, on top of some $60 million already given to the owners of this facility over the years. The bill would also repeal the Michigan Business Tax Act after December 31, 2031, which is no longer levied and remains in statute only to enable these MEGA subsidies and some others, so its repeal would put an end-date on them.

Referred to the Committee on Tax Policy

May 1, 2019

Reported without amendment

Refer to the Committee on Ways and Means with the recommendation that the substitute (H-2) be adopted.

Referred to the Committee on Ways and Means

May 14, 2019

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

May 21, 2019

Substitute offered

To adopt a substitute version of the bill that revised details of the Tenneco deal.

The substitute passed by voice vote

May 22, 2019

Passed in the House 105 to 3 (details)

To prohibit state economic development officials from modifying one of the agreements entered with a relative handful of large companies mostly in the late 2000s that granted them up to $9 billion worth of state taxpayer subsidies (styled as “refundable business tax credits”) over a 20 year period. Specifically, the agreements could not be changed in a way that increases the payouts or extends them. However, the bill makes an exception for subsidies granted to Federal Mogul company in the 2000s, so that the company that bought the firm in 2018 (Tenneco) can collect additional subsidies on a Michigan facility said to be worth around $12 million, on top of some $60 million already given to the owners of this facility over the years. The bill would also repeal the Michigan Business Tax Act after December 31, 2031, which is no longer levied and remains in statute only to enable these MEGA subsidies and some others, so its repeal would put an end-date on them.

Received in the Senate

May 24, 2019

Referred to the Committee on Finance

Sept. 5, 2019

Reported without amendment

With the recommendation that the bill pass.

Sept. 17, 2019

Passed in the Senate 30 to 6 (details)

To prohibit state economic development officials from modifying one of the agreements entered with a relative handful of large companies mostly in the late 2000s that granted them up to $9 billion worth of state taxpayer subsidies (styled as “refundable business tax credits”) over a 20 year period. Specifically, the agreements could not be changed in a way that increases the payouts or extends them. However, the bill makes an exception for subsidies granted to Federal Mogul company in the 2000s, so that the company that bought the firm in 2018 (Tenneco) can collect additional subsidies on a Michigan facility said to be worth around $12 million, on top of some $60 million already given to the owners of this facility over the years. The bill would also repeal the Michigan Business Tax Act after December 31, 2031, which is no longer levied and remains in statute only to enable these MEGA subsidies and some others, so its repeal would put an end-date on them.

Signed by Gov. Gretchen Whitmer

Oct. 10, 2019