House Committee Approved Ending MEGA Tax Credits

A Michigan House committee has approved a measure prohibiting new Michigan Economic Growth Authority (MEGA) tax credit agreements.

The MEGA program had been blamed for what was called an unexpected $9 billion tax liability to the state.

MEGA agreements offer big tax credits to businesses that locate in Michigan instead of other states.

MEGA supporters fear Michigan will lose investments in the future if there is no MEGA program.

But sponsors of the bill note that the program is a burden, and besides, the state could still offer other types of incentives to businesses.

The bills, approved by the Michigan House Tax Policy Committee Wednesday, now go to the full House.