© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
TECHNOTE: WKAR broadcast signals will be off-air or low power during tower maintenance

State’s Tax Break Questions Bigger Problem Than Expected

A problem with uncashed business tax credits that threatens future state budgets is bigger than originally thought by about $3 billion.

We have more from The Michigan Public Radio Network’s Rick Pluta.

There are actually more than nine (b) billion dollars in un-cashed Michigan business tax credits outstanding and waiting to play havoc with future state budgets. They can be cashed in any time over the next two decades. The new numbers were just reported by the Michigan Economic Development Corporation.

State Representative Al Psholka chairs the House Appropriations Committee. He says that leaves a lot of uncertainty hanging over future state budgets.

“We’ve got to find a way to provide some sort of certainty so that we can budget for this,” he says.   “What is the actual number going to be per year?”

The state’s current shortfall is blamed largely on businesses cashing in more credits than expected last year.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.
Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!