Michigan Paying Out Billions in Tax Credits
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Over the next two decades Michigan is expected to pay out $9.4 billion in tax credits for businesses. That is almost $3 billion more that the figure previously projected, according to the Associated Press.
Steve Arwood the CEO for the Michigan Economic Development Corporation presented the revised report to the state legislature during a hearing on Wednesday.
When Michigan was facing the recession in 2008 they set up tax incentives to entice companies to keep jobs in the state, said Arwood. The changes made seven years ago are affecting the current budget and will affect the budget for several years to come.
Those credits are not available any longer, however Michigan is liable to keep paying on those credits until 2032.
The Governor, Rick Snyder along with the state lawmakers are working to make cuts to the current budget because more companies are redeeming the credits.