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House OKs repeal of insurance tax credit in budget deal

Michigan lawmakers are repealing a tax break inadvertently given to auto insurers, a move agreed to as part of a state budget deal.

The Republican-led House voted 78-30 and 79-29 late Thursday for two bills that would ensure the state again collects $80 million in taxes from the industry.

They next go to the Senate. Michigan has an assigned claims plan to cover medical care for people injured in accidents but who don't have auto insurance.

The secretary of state managed the program until 2012, when a law transferred the plan to an entity that sells insurance to people unable to buy it from insurance companies.

But the switch meant insurers, who receive a tax credit against payments to the group, inadvertently qualified for a tax credit.

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