tax credit

Steve Carmody / Michigan Radio

More than 436,000 Michigan residents will qualify for tax subsidies under the Affordable Care Act, according to a report released today from the Kaiser Family Foundation.

According to the study, 17 million Americans are eligible for tax credits that will lower their cost of coverage.

Most of those eligible folks come from states with high populations: Texas, for instance, is estimated to have over 2 million residents who would qualify for subsidies.

California’s not far behind with $1.9 million.

Steve Carmody/Michigan Radio

LANSING, Mich. (AP) - New legislation would give college graduates an income tax credit for their student loans if they stay in Michigan after graduation.

The credit would be equal to half the amount paid on qualified student loans in a tax year but couldn't exceed 20 percent of the average annual tuition at Michigan's public universities. To be eligible, students would have to be a state resident, a graduate of a Michigan university and have earned a bachelor's degree.

Democratic Senator Glenn Anderson of Westland says his bill introduced last week gives graduates an incentive to stay in Michigan and helps address the "brain drain" of grads leaving the state. His legislation is backed by Democrats along with a couple Republicans in the GOP-led Senate.

Michigan House Democrats

 As new grads drift out of Ann Arbor after last weekend's commencement, where will they go?

Degrees in hand, they're on the job search - which doesn't mean they're staying in Michigan.

State Representative Andy Schor, D-Lansing, is the sponsor of House Bill 4182, which would provide tax credits to college graduates of public or private four-year colleges and universities in Michigan.

User: Brother O'Mara / flickr

Senate votes to keep film incentive money

"Michigan’s film industry wouldn’t lose a dime of the $50 million currently set aside for state incentives under a proposal in the Legislature. The state Senate voted to reject Governor Rick Snyder’s plan to cut the incentives in half," Jake Neher reports.

Proposed bill would give tax credits for student loans

"State tax credits could be given for student loan payments if a new bill in Lansing becomes law. The tax credit would equal half of a student's annual loan payments, if the graduate stays in Michigan," Chris Zollars reports.

Bill would make Michigan online retailers charge sales tax

"Michigan lawmakers are looking at how to get online retailers to collect state sales taxes. Currently, shoppers are supposed to report any sales taxes they owe on online purchases, and pay them with their income tax, but most people don’t. A proposed bill at the state capitol would put the responsibility on the online retailer," Steve Carmody reports.

Student loan payments may be applied as tax credits if a new bill in Lansing becomes law. Democratic State Representative Andy Schor is sponsoring the legislation. 

He says “it’s the start of keeping that talent here and reversing the brain drain as we create some of the places where they want to be.”

Steve Carmody/Michigan Radio

The Lansing City Council has approved a 12 year-four million dollar tax abatement for General Motors.

GM is planning a $38 million expansion to its Lansing Grand River assembly plant.  The expansion is expected to add 150 jobs to the plant.

GM currently makes its Cadillac ATS and CTS at the Lansing plant.   The automaker also plans to start producing its next generation Camaro at the Lansing plant.

Steve Carmody/Michigan Radio

LANSING, Mich. (AP) - In the height of tax season, many Michigan residents owe more money to Lansing.

Some major income tax changes approved 21 months ago by Gov. Rick Snyder and lawmakers are just now starting to hit taxpayers filing their state returns.

Homeowners and renters used to qualify for a credit if their household income was no more than around $83,000 a year. Now they don't get it unless their total household resources are $50,000 or less.

A state tax deduction for children is gone. So is a special exemption for seniors.

John-Morgan / flickr

Michigan taxpayers who want to get a state tax credit for some charitable donations have about a week and a half left before the credits expire. Governor Rick Snyder and the Republican-led Legislature eliminated the credits as part of a tax overhaul designed to help balance the budget.

Many groups say it's difficult to predict how the expiration will affect charitable giving.

Brandon C / Flickr

A state board has approved tax incentives for projects connected to General Motors and other companies in Michigan.

The Michigan Economic Growth Authority on Tuesday approved an amended brownfield tax credit valued at $10 million for GM's Van Slyke complex in Flint. The new project is expected to retain up to 185 jobs.

HP Enterprise Services is a subsidiary of Hewlett-Packard and was awarded a tax credit valued at $3.5 million over the next seven years. The credit will support a project in Pontiac expected to create up to 250 jobs.

Magna Exteriors and Interiors USA will receive a $1.5 million tax credit over the next three years connected to facilities in Howell, Benzonia and St. Clair County's China Township. More than 300 new jobs are connected to the projects.

Alaina Buzas / Flickr

A state Senate committee opens hearings tomorrow on Governor Rick Snyder’s tax reform proposals.

Altogether, two dozen tax breaks could disappear if the governor’s plan is adopted.

Ending the tax exemption for pensions has gotten a lot of attention, but the plan would also largely eliminate the use of tax breaks that encourage the re-use of old factories and historic buildings.

Andrew McFarlane / creative commons

Governor Rick Snyder’s proposal to get rid of the current film tax credit and replace it with a more modest grant program has met with a lot of resistance from the film community.

But now some film folks say they’re willing to compromise.

Since 2008, Michigan has offered up to a 42% tax credit for movies made here. That amounted to the state paying out  $60 million last year.

Photo courtesy of Flickr user tEdGuY49

Detroit is home to one of the world’s largest incinerators. That facility burns around 800,000 tons of trash every year.

The issue has sparked passionate conflict in Detroit for more than 20 years. And a recent public hearing—on whether to give the incinerator’s new owners tax credits—showed that conflict is just as intense as ever.

Alan Cleaver / Flickr

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.

michigan.gov

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.

Photo courtesy of www.stabenow.senate.gov

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.

Lloydpictures.com

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.

Attic insulation
Ryan McFarland / Flickr

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.