Economic development: Michigan economic growth authority; definition of new construction under the Michigan economic growth authority act; modify. Amends sec. 3 of 1995 PA 24 (MCL 207.803). TIE BAR WITH: HB 4111'25

Michigan House Bill 4112, introduced by Representative Greg VanWoerkom on February 25, 2025, aims to amend the Michigan Economic Growth Authority (MEGA) Act by modifying the definition of 'new construction' in Section 3 of the 1995 PA 24 (MCL 207.803). This amendment is tied to House Bill 4111, indicating that both bills are interconnected and must be enacted together. The proposed change seeks to expand the scope of economic development incentives under the MEGA Act, potentially including new projects such as the installation of hydrogen fuel pumping stations, as analyzed by the Mackinac Center. The bill is currently pending in the House Finance Committee.

Supporters of HB 4112 argue that by broadening the definition of 'new construction' under the MEGA Act, the bill will attract innovative projects and investments to Michigan, particularly in emerging sectors like hydrogen fuel infrastructure. This expansion is seen as a strategic move to position the state as a leader in sustainable energy and advanced technology industries, potentially leading to job creation and economic growth.

Critics express concern that the bill's expansion of 'new construction' definitions may lead to increased tax breaks and MEGA credits without sufficient oversight, potentially resulting in reduced state revenues. There is also apprehension that such incentives might disproportionately benefit certain industries or companies, raising questions about fairness and the effective allocation of public resources.