95.3 / 88.5 FM Grand Rapids and 95.3 FM Muskegon
Play Live Radio
Next Up:
Available On Air Stations

Senate OKs rescinding inadvertent tax break for car insurers

Pexels | CC BY 2.0

The Michigan Senate has voted to rescind an annual tax break worth up to $80 million a year that was inadvertently given to auto insurers four years ago.

The move is part of a deal to enact the next state budget.

Senators amended the legislation Wednesday to ensure that companies still qualify for the credit for much of this tax year but lose it going forward.

The bills won approval on 29-7 votes and go back to the House for final passage.

Industry leaders have conceded that the credit was awarded by mistake, but warn that premiums will go up.

Some lawmakers question that warning, saying drivers never got a break when the industry qualified for the tax credit in the first place.

Related Content