2011 House Bill 4362 / Public Act 39

“Grandfather” certain corporate subsidies and tax breaks

Introduced in the House

March 1, 2011

Introduced by Rep. Jud Gilbert (R-81)

To “grandfather” a range of the special business tax breaks and subsidies that have been granted to particular firms under a number of “targeted” exemptions and “credits” (some of which are actually cash payments). The bill is a part package to enact Gov. Rick Snyder’s proposal to convert the Michigan Business Tax into a 6 percent corporate income tax (see House Bill 4361). The “grandfathering” would only apply to firms that have already become eligible for a particular tax break or subsidy, or have a written agreement with the state granting one.

Referred to the Committee on Tax Policy

April 27, 2011

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Jud Gilbert (R-81)

To clarify certain technical details in the bill.

The amendment passed by voice vote

April 28, 2011

Passed in the House 57 to 52 (details)

Received in the Senate

May 4, 2011

Referred to the Committee on Reforms, Restructuring, and Reinventing

May 12, 2011

Reported without amendment

With the recommendation that the bill pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Sen. Coleman Young (D-1)

To require individuals eligible for certain corporate tax breaks to report all his or her state political contributions.

The amendment failed by voice vote

Amendment offered by Sen. Bert Johnson (D-2)

To "grandfather" certain additional corporate tax breaks.

The amendment failed 16 to 22 (details)

Passed in the Senate 27 to 10 (details)

To “grandfather” a range of the special business tax breaks and subsidies that have been granted to particular firms under a number of “targeted” exemptions and “credits” (some of which are actually cash payments). The bill is a part package to enact Gov. Rick Snyder’s proposal to convert the Michigan Business Tax into a 6 percent corporate income tax (see House Bill 4361). The “grandfathering” would only apply to firms that have already become eligible for a particular tax break or subsidy, or have a written agreement with the state granting one.

Received in the House

May 12, 2011

Passed in the House 57 to 51 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

May 25, 2011