Senator Jason Allen's Targeted Tax Break/Subsidy Bills

2009 Senate Bill 619 (Earmark certain use tax revenue to tourism industry promotion)

To earmark increases in state use tax revenue collected from the sale of tourism-related goods and services to promotional subsidies for the tourism industry ("Pure Michigan" ads and related programs).

2009 Senate Bill 585 (Cobo Hall Authority "re-do")

To create a regional convention authority that would own and manage Cobo Hall in Detroit, and transfer the facility to the authority in exchange for $20 million to the city. Passed in the Senate (20 to 16) on May 27, 2009.

2009 Senate Bill 493 (Revise "anchor company" business subsidies)

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 2008 law" granted "refundable" tax credits (cash subsidies) to certain high technology businesses designated as "anchor companies." Passed in the Senate (36 to 0) on June 18, 2009.

2009 Senate Bill 428 (Authorize more "alternative energy" subsidies)

To revise the "local development financing act" which authorizes certain targeted tax breaks to be granted by local governments, so as to shift decision-making authority for certain required state approvals from the Michigan Economic Development Corporations to the Michigan Strategic Fund, which is another arm of the state's selective tax-break granting bureaucracy. Passed in the Senate (35 to 0) on June 18, 2009.

2009 Senate Bill 418 (Increase energy business subsidies)

To authorize a $60 million spending increase over three years for government grants and subsidies to energy technology projects undertaken by for-profit companies selected by certain state officials and appointees. This refers to so-called "centers of energy excellence" subsidies from the "21st Century Jobs Fund" fund that are used for matching federal or international grants. Passed in the Senate (37 to 0) on September 25, 2009.

2009 Senate Bill 364 (Allow continuing tax breaks to particular firm)

To lower the job retention eligibility criteria for a Single Business Tax (SBT) break under the Michigan Economic Growth Authority (MEGA) program so as to still give a tax break to a particular firm (Federal Mogul) that originally had been granted this after promising to keep at least 150 jobs at a particular facility and 1,000 jobs in the state, but will not meet those particular targets. The new thresholds the bill would place in statute is 100 jobs at the particular facility and 750 jobs in the state. The bill would also broaden the definition of "high technology" activities qualifying a firm for one of these targeted tax breaks.

2009 Senate Bill 262 (Revise "neighborhood enterprise zone" tax breaks)

To raise the maximum value above which property is no longer eligible for "neighborhood enterprise zone" property tax breaks, and extend the time a local government has to hold a

2009 Senate Bill 126 (Authorize biomass generator tax breaks)

To authorize a property tax abatement for a proposed wood-chip power plant project in Mancelona. Passed in the Senate (35 to 0) on February 19, 2009.

2009 Senate Bill 18 (Earmark sales tax money to tourism subsidies)

To earmark a portion of state sales tax receipts to government tourism promotion subsidies.

2008 Senate Bill 1630 (Authorize regional Cobo Hall authority)

To authorize regional convention authorities that would own and manage facilities such as Cobo Hall. These authorities would have the power to borrow, use convention facility liquor and hotel taxes, etc. The bill contains provisions related to the transfer of a city-owned facility like Cobo to the authority, and regulations for its operation. Passed in the Senate (35 to 2) on December 10, 2008.

2008 Senate Bill 1584 (Authorize industrial facilities tax break for particular firm)

To create an exception for a particular firm to certain procedures and deadlines for granting industrial facilities property tax breaks. Passed in the Senate (36 to 0) on November 13, 2008.

2008 Senate Bill 1512 (Revise targeted tax break-granting jurisdiction)

To transfer the authority for making eligibility determinations for various types of targeted tax breaks from the Michigan Economic Development Corporation to the Michigan Strategic Fund. These are both different arms of the state's selective tax-break granting bureaucracy.

2008 Senate Bill 1511 (Revise "neighborhood enterprise zone" tax breaks)

To raise the maximum value above which property is no longer eligible for "neighborhood enterprise zone" property tax breaks, and extend the time a local government has to hold a required public hearing on the creation of such a zone.

2008 Senate Bill 1483 (Increase renaissance zones)

To increase from 25 to 35 the maximum number of tool and die renaissance recovery zones, which allow generous tax breaks for these types of firms. Also to reduce certain eligibility thresholds for these tool and die tax breaks, and eliminate a tax-break phaseout provision. Passed in the Senate (37 to 0) on December 4, 2008.

2008 Senate Bill 1422 (Revise "anchor" company tax breaks)

To revise details of the refundable tax credits for "anchor" companies signed into law two months prior to this bill's introduction. In addition to other revisions, the bill would clarify that only sales made subsequent to and as a result of the new law would be included in the formula by which this lucrative tax credit is calculated. "Refundable" tax credit means that if the credit exceeds the recipient's tax liability, the state send the company a check for the difference.

2008 Senate Bill 1380 (Authorize $40 million in energy technology business subsidies)

To authorize spending up to $45 million of "21st Century Jobs Fund" money on grants and subsidies to energy technology projects undertaken by for-profit companies selected by state economic development officials. At least 50 percent of these "centers of energy excellence" grants would have to be used for matching federal or international grants. Passed in the Senate (35 to 1) on June 19, 2008.

2008 Senate Bill 1367 (Revise "high wage activity" selective tax breaks)

To revise the definition of "high wage activity" in the law that makes a firm eligible on that basis to be considered by state economic development officials for selective tax breaks. Passed in the Senate (37 to 1) on June 26, 2008.

2008 Senate Bill 1269 (Authorize tax break for Hemlock Semiconductor)

To grant a refundable business tax break based on the price it pays for electricity to the Hemlock Semiconductor company and perhaps other producers of polycrystalline silicon used in solar cells and semiconductor chips. Refundable means that if the value of the tax credit exceeds what the company owes, the state would write it a check for the difference. Passed in the Senate (35 to 2) on April 24, 2008.

2008 Senate Bill 1206 (Expand tool and die tax breaks)

To revise the definition of a firm eligible for the "Tool and Die Renaissance Recovery Zone" tax breaks authorized by Public Act 202 of 2004, so as to increase from 25 to 30 the number of such "zones" authorized (these zones are actually particular firms or groups of firms, rather than real "zones").

2008 Senate Bill 1115 (Authorize "anchor company" tax breaks)

To authorize a refundable Michigan Business Tax credit for certain high technology businesses designated as "anchor companies."  "Refundable" means the state would send the firm a check if the credit exceeds its tax liability. Passed in the Senate (34 to 1) on March 13, 2008.

2007 Senate Bill 970 (Allow DDAs to subsidize certain retailers)

To allow Downtown Development Authorities to establish and fund retail business "incubators," which would essentially be buildings owned and operated by a DDA and rented at below-market rates to particular private retailers selected by the DDA board. These government-owned operations and subsidies would paid for with the tax revenue "captured" from other local taxing authorities that is the source of DDA funding. Passed in the Senate (38 to 0) on March 19, 2008.

2007 Senate Bill 982 (Expand brownfield tax breaks)

To expand the eligibility criteria for brownfield tax breaks. Passed in the Senate (36 to 0) on December 13, 2007.

2007 Senate Bill 757 (Grant certain tax breaks to particular firms)

To retroactively revise the procedures required by local governments to grant industrial facility tax exemptions, so as to allow tax breaks for CME Corporation in Mt. Pleasant, the Rolled Alloys company in Monroe County, and the Michigan Brewing Company (MBC), a microbrewery located in Webberville.. Passed in the Senate (37 to 0) on September 12, 2007.

2007 Senate Bill 733 (Give non-monetary state support certain veterans' businesses)

To require the Michigan Economic Development Corporation to promote the "Michigan Patriot Businesses" proposed by Senate Bill 732 on its websites, and to provide these businesses with window decals identifying them as such. Passed in the Senate (36 to 0) on October 10, 2007.

2007 Senate Bill 690 (Increase tourism industry marketing subsidies)

To earmark a specified portion of sales tax revenues to spending on tourism industry subsidies in the form of government advertising campaigns.

2007 Senate Bill 467 (Allow local tax receipts pledge for certain authority debt)

To establish that a local government may choose to back the loans of a historic neighborhood tax increment finance authority with a limited tax pledge, or if it gets a vote of the people, agree to back the authority's debt with a full faith and credit pledge, which means that the municipality is promising to raise taxes if necessary to repay money borrowed by the authority.

2007 Senate Bill 400 (Allow tax break for "strategic response" firm at Pellston regional airport)

To revise the eligibility criteria for granting a property tax abatement under the law that authorizes these for industrial facilities to also allow granting a tax break to a "qualified logistical and distribution center" that administers catastrophe response for private corporations and governmental entities, including education and training, communications and data support, delivery of food, water, and safety equipment, and aviation support. The bill would allow a tax break for a particular firm (called "Sovereign Deed") considering locating a business like this at the Pellston regional airport. Passed in the Senate (38 to 0) on April 24, 2007.

2007 Senate Bill 207 (Allow continuing tax breaks to Federal Mogul)

To revise the eligibility criteria for a Single Business Tax (SBT) break under the Michigan Economic Growth Authority (MEGA) program so as to still give a tax break to Federal Mogul that originally had been granted this after promising to keep at least 150 jobs at a particular facility and 1,000 jobs in the state, and with the expectation that it would be out of bankruptcy within three years. The bill extends that last to six years. Passed in the Senate (32 to 0) on August 1, 2007.

2007 Senate Bill 208 (Expand brownfield tax break eligibility)

To expand a certain community population eligibility criteria in the brownfield redevelopment act so as to allow additional firms to be granted these particular tax breaks. Passed in the Senate (35 to 0) on December 4, 2008.

2007 Senate Bill 47 (Authorize local "water resource improvement" TIFAs)

To authorize local governments to create "water resource improvement tax increment financing authorities" with the purpose of using "captured" tax revenues to pay for broadly defined "water resource improvement" projects. A municipality could condemn and take property under its eminent domain powers and give the property to the authority. A municipality could also add special assessments to property tax bills to pay for these projects. Passed in the Senate (36 to 0) on March 7, 2007.

2006 Senate Bill 1159 (Authorize local "water resource improvement" TIFAs)

To authorize local governments to create "water resource improvement tax increment financing authorities" with the purpose of using "captured" tax revenues to pay for broadly defined "water resource improvement" projects. A municipality could condemn and take property under its eminent domain powers and give the property to the authority. A municipality could also add special assessments to property tax bills to pay for these projects. Passed in the Senate (36 to 0) on June 8, 2006.

2005 Senate Bill 802 (Expand MEGA tax subsidies)

To expand the number of Michigan Economic Growth Authority Act (MEGA) tax credits that can be offered each year to particular businesses selected by the state. The bill would ease a number of the job-promise requirements that make a firm eligible for these tax subsidies. Passed in the Senate (34 to 3) on January 25, 2006.

2005 Senate Bill 482 (Expand use of brownfield authority revenue)

To allow a brownfield redevelopment authority to use its revenue to subsidize financing costs incurred by private entities on environmental remediation and economic development of brownfield site projects. Also, to allow the use of brownfield subsidies for a former landfill in Walker. Passed in the Senate (36 to 0) on June 9, 2005.

2005 Senate Bill 163 (Authorize "redevelopment project area liquor licenses")

To authorize the issuance of "redevelopment project area liquor licenses" over and above a particular city's liquor license quota if the city meets certain redevelopment capital investment thresholds. The license fee would be $20,000 (which is less that what it costs in many places to purchase a license from a current licensee, given the quota system). Passed in the Senate (36 to 0) on November 14, 2006.

2003 Senate Bill 873 (Tax breaks for "start-up business")

To exempt for five years a "qualified start-up business" from the commercial facilities specific tax, which is levied in lieu of property tax on firms which have received a commercial facilities exemption certificate (otherwise known as a property tax abatement). A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation.

2003 Senate Bill 825 To authorize the Michigan Economic Development Corporation to designate up to 20 tool and die recovery zones, which could essentially be the premises of selected existing tool and die businesses. Firms in a "zone" would be exempt from the Single Business Tax (SBT), the personal income tax, the six-mill state education tax, local personal and real property taxes, local income taxes, and the utility users tax. These advantages would be available to small tool and die businesses (50 employees or less). Passed in the Senate (38 to 0) on November 13, 2003.

2003 Senate Bill 824 To grant tax breaks for a facility in Greenville owned by the ElectroLux company which employs 2,000 workers and is scheduled to close. The bill would eliminate MEGA's power to impose administrative rules on participating businesses, and require responses to Freedom of Information Act (FOIA) requests to be approved by the full MEGA board, rather than just the director. However the board only meets monthly, and FOIA requires requests to be responded to within five days. Financial or proprietary information about MEGA beneficiary companies is exempt from disclosure under FOIA. Passed in the Senate (38 to 0) on November 12, 2003.

2003 Senate Bill 203 To extend for one additional year the Dec. 31, 2002 deadline for applications for designation for an agricultural processing facility Renaissance Zone. See also Senate Bill 163.

2002 House Bill 6502 To extend to the end of 2007 the sunset on the authority of the Michigan Economic Development Corporation (MEDC) to provide brownfield redevelopment single business tax credits, and revise the MEDC's authority over brownfield tax increment financing plans. See also House Bill 6501. Passed in the House (104 to 0) on November 13, 2002.

2001 House Bill 5472 To allow brownfield redevelopment authorities to capture tax increment revenues from the "specific tax" levied under the Neighborhood Enterprise Zone Act in the same way that revenues from other specific taxes are captured. Currently, the brownfield statute does not allow for a capture of these revenues. Passed in the House (104 to 0) on January 22, 2002.

2001 House Bill 4735 To give local governments the authority to establish "downtown redevelopment" or "principal shopping district" zones in which special property tax assessments could be levied on privately owned non-residential property that benefits from the improvement, for the purpose of funding various improvements to parks, sidewalks, lighting, etc. within the zone. Passed in the House (104 to 0) on July 11, 2001.

2001 House Bill 4698 To require Michigan Economic Growth Authority (MEGA) to use specific procedures when approving or denying an application for a tax increment financing proposal to be used to finance infrastructure improvements in a brownfield redevelopment district. Passed in the House (103 to 0) on May 24, 2001.