Tagged: tax credit

Update 12:21 p.m.

The State of Michigan will have to honor some tax credits for years to come because of contractual obligations.  In a speech today, Governor Snyder indicated over the next four years, the state was on the hook for $2-billion dollars in credits.  About $500-million of that is in next year's budget. 

March 2nd, 8:23a.m.

Governor Snyder says his approach to taxes in Michigan is “simple, fair, and efficient.”  One way the Governor wants to make the tax structure more fair is by eliminating all tax credits for business.  It’s a controversial move which surprised many people in Lansing.

Governor Rick Snyder defended his budget proposal in front of a group of Detroit business and civic leaders this morning.

The governor wants to get rid of the tax breaks Michigan gives certain industries, and replace them with smaller pots of money that would be issued as grants.

Snyder told the crowd Michigan has been offering tax incentives to certain businesses for years because its tax system is broken. And he says he’s been talking about his plan for fixing it since he was a candidate.

"People kept going around Lansing and saying: 'Well, he did what he said he was going to do.' And it was like that was a surprise."

Snyder says his proposal is more transparent, accountable and honest than what the state does now.

U.S. Senator Debbie Stabenow has introduced legislation to help people who buy plug-in electric cars – and to help the companies making the advanced vehicles.

Right now, someone who buys a plug-in electric car like a Nissan Leaf or Chevy Volt gets a tax credit of up to $7,500.  But the buyer doesn’t collect the money until tax time.

Stabenow says the program could be improved.

I think it would be an even bigger incentive if it were on the front end for consumers.

Stabenow says Congress already approved the money for the tax credit, so it wouldn’t cost any more to give it out as a rebate at the time of sale.

Currently, cars that qualify for the full rebate include the Chevy Volt, the Nissan Leaf, and the Tesla Roadster. Coda and Wheego also make an electric vehicle that qualifies for the credit. Ford, Fiat and Toyota plan to launch electric plug-in cars within the next year.

Stabenow’s legislation would also commit the federal government to spend two billion dollars to help companies that make advanced lithium ion batteries for vehicles. That’s on top of the two billion dollars the federal government has already spent to help the new industry. 

The Congresswoman admits the legislation is being proposed during a tough budget year:

 (But) I think that strategic investments in innovation like battery innovation and manufacturing equals jobs – and so I’m hopeful that this will be a priority.

Michigan received the lion’s share of the last round of federal grants for advanced battery development– more than one billion dollars.  Michigan now has more advanced battery companies than any other state.

Republican state senator Rick Jones says Michigan’s film tax credit might need to be trimmed, but he doesn’t think it should be eliminated. 

Governor Rick Snyder has said he’s going to put Michigan’s generous film tax credit policy under the microscope.

Movie companies can get up to a 42 percent tax credit if they film here.

But State Sen. Rick Jones says movies made in Michigan can be good for the state, because a hit can bring residual money into a community:

A good example would be "Somewhere in Time" with Christopher Reeve." We still have people traveling to Mackinac Island to see where that movie was made. There are still souvenirs sold, and it increases tourism.

Jones says his position has nothing to do with the possibility that the next Batman movie may be shot in his hometown of Grand Ledge.

Another movie, “Red  Dawn,” was also filmed in  Grand Ledge  and is awaiting release.

Michigan businesses that make and install residential furnaces, windows and other energy-related products are getting a burst of last-minute jobs before the year ends.

Tony Ianni is a sales manager for WeatherGard, which installs windows, roofs and insulation – all of which qualify for a federal tax credit for energy efficiency:

"It’s definitely been a big push, everybody’s calling and the first question out of their mouths is, 'Can we still get the tax credit?'” 

Ianni says informing customers about the credit has been a big push for his industry. "Of course all your last-minute people are coming through now, trying to get everything done," he said. 

The tax credit also applies to hot water heaters, furnaces and stoves that burn wood or pellets. It’s good for 30 percent of the cost of the project, up to 15-hundred dollars.