House Bill 6325 Summary

• Beginning October 1, 2009, prohibits the Michigan Economic Growth Authority from approving tax credits under sections 407, 415, 431, 431a, 431c, and 437 if the business would directly compete with an existing Michigan business in the same 5-digit NAICS industry code classification and would create a competitive disadvantage.

• Adds competitive disadvantage restrictions to qualified taxpayer credits for research and development investments (section 407), start-up business credits (section 415), authorized business credits (section 431), anchor company supplier/customer credits (sections 431a and 431c), and brownfield redevelopment credits (section 437).

• Requires the Michigan Economic Growth Authority to evaluate whether a proposed tax credit would harm existing Michigan businesses operating in the same industry before approving new credit applications submitted on or after October 1, 2009.

• Applies the competitive disadvantage prohibition retroactively to all affected tax credit programs, ensuring consistent treatment across different business incentive categories.