Michigan House Bill HB4112

Michigan 2025-2026 Regular Session

• Introduced: 2/25/25
• Refer: 2/25/25

Caption

Economic development: Michigan economic growth authority; definition of new construction under the Michigan economic growth authority act; modify. Amends sec. 3 of 1995 PA 24 (MCL 207.803). TIE BAR WITH: HB 4111'25

Impact

The provisions in HB 4112 are designed to enhance support for businesses in Michigan that may be struggling, particularly those classified as distressed. By redefining what constitutes an eligible business and how job creation and retention are monitored, the bill directly influences state laws relating to corporate tax incentives. This could lead to an increase in economic stability for certain sectors and would potentially contribute to job growth across the state.

Summary

House Bill 4112 aims to amend the Michigan Economic Growth Authority Act, specifically regarding the definitions surrounding new construction and the conditions under which new jobs or retained jobs must be maintained by businesses receiving tax credits. The bill introduces new definitions for terms such as 'affiliated business,' 'associated business,' and 'distressed business,' focusing on criteria for businesses that are eligible for economic support from the state. It emphasizes the importance of job retention and creation as pivotal to the operations of authorized businesses in Michigan.

Contention

However, the bill has also raised questions regarding the implications of these changing definitions. Critics express concern that looser criteria for what constitutes job maintenance or creation could lead to loopholes, allowing businesses to benefit from state support without making substantial contributions to the workforce. Furthermore, there are worries about how these amendments may affect existing businesses that fulfill stricter definitions but do not meet the new criteria for assistance.