LANSING - As Governor Snyder is set to announce his proposals for Michigan’s infrastructure next week, State Representatives Jim Ananich (Flint) and Sean McCann (Kalamazoo) have introduced legislation that would provide more road funding by eliminating tax loopholes for corporations like BP and Exxon. Currently, some members of the oil industry are allowed to receive an estimated $12 million a year or more in tax breaks that could be better spent going directly to help repair Michigan’s roads and bridges.
“More investment in roads and bridges will help get people back to work right away and improve our infrastructure for continued economic growth,” said Ananich, a member of the House Appropriations Committee. “We hope the Governor considers our proposal as one piece of the transportation funding puzzle.”
The oil industry, which continues to make record profits, receives an “electronic transfer credit” of 1.5% from the state. This credit replaced an “evaporation credit” that was no longer applicable. The new legislation would get rid of this credit so that more funding is available for the Michigan Transportation Fund.
“We have to make sure every dime that can be going towards better infrastructure is actually being used to create jobs and improve roads,” said MCann, also a House Appropriations Committee member. “Eliminating this outdated loophole is one way of checking under every stone for critical transportation funding.”
House Democrats also introduced a “Michigan Jobs Now” plan earlier this year, HB 4758, which would invest more in transportation projects around the state. It has yet to receive a hearing.