Precautionary or Reactionary Law?

The Michigan Economic Growth Authority (MEGA) was created in 1995 to promote economic growth, private investment, and job creation in Michigan. To do so it established a government committee with the power to offer tax incentives to businesses already in or moving to Michigan. While reading through the law that established MEGA I found the below amendment. (Eligible businesses are those applying for tax breaks, while authorized businesses are those who have been approved for such incentives)

207.808a Fee or donation.Sec. 8a.

Beginning on the effective date of the amendatory act that added this section, the authority shall not require an eligible business, as a condition of becoming an authorized business, to pay an unreasonable fee to or make a donation to the Michigan economic development corporation or a foundation or fund associated with the Michigan economic development corporation.

For more information on MEGA, and why it has largely failed to promote growth, check out the Mackinac Center’s evaluation of the program on its 10th anniversary.

Adam Rule – MCPP Intern


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