LANSING, MI (WLNS) – After Michigan’s budgets had to be reduced due to companies cashing in tax credits at a higher rate than expected, some legislators are aiming to limit future liabilities.
Two new bipartisan bills would cap expenses the state might have to pay related to the Venture Michigan Fund. The fund was created in 2003 as an effort to lure more startup businesses to the state.
According to a report from the nonpartisan House Fiscal Agency, the state will owe $140 million related to the program over the next three years.
The bills introduced last week would effectively prevent the fund from receiving an additional pot of money it could put toward making new investments, because that money would also put the state on the hook for more payments in the future.