first_img Legislation ensures state can’t extend costly MEGA creditsMichigan taxpayers are protected from additional liability due to budget-busting Michigan Economic Growth Authority (MEGA) tax credits under common-sense legislation introduced today that prohibits the state from extending the costly credits, state Rep. Lee Chatfield announced.Since the MEGA credits were greatly expanded in 2008, the program has accumulated a projected taxpayer liability of $9.38 billion. The Republican-led Legislature and newly elected Gov. Rick Snyder ended MEGA in 2011, but even with the irresponsible program’s demise, state law still allows the existing credits to be increased and extended.  Legislation introduced today by state Rep. Chatfield prevents this from happening.“No future governor of Michigan should be given the opportunity to extend these MEGA credits,” said Rep. Chatfield, R-Levering. “Although the current governor has no intention of extending these harmful credits, the reality is that a less fiscally responsible administration could come into office and put our state in greater financial jeopardy.  We simply can’t allow that to happen – the stakes are too high.  It’s up to us to ensure that the mess created during the previous administration is cleaned up not only for current Michigan taxpayers, but for our future generations.”The $9.38 billion estimated liability is projected to be incurred over the next 17 years.  This year, the credits created a $325 million state budget shortfall.House Bill 4333, sponsored by Rep. Chatfield, prohibits MEGA tax credit extensions as currently allowed in the Michigan Economic Growth Authority Act. Categories: Chatfield News 11Mar Chatfield bill protects Michigan taxpayers by prohibiting tax credit extensionslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *