LANSING – Updates to Michigan?s main economic development program, the Michigan Economic Growth Authority, which proponents said are needed to make the state more competitive, overwhelmingly cleared the House on Thursday.

Only three Republicans, Rep. David Agema (R-Grandville), Rep. Tom Pearce (R-Rockford) and Rep. Brian Palmer (R-Romeo), opposed SB 1187 , SB 1188 , SB 1189 and SB 1190 , although they were joined by four other GOP members in opposing SB 1189.

Jim McBryde, director of governmental affairs for the Michigan Economic Development Corporation, told a House committee earlier in the day that MEDC officials had been challenged by CEO Jim Epolito to look at the entity’s core programs and find changes that would make them more competitive with other states.

Some of the changes to the program are making tourism attraction facilities and qualified lodging facilities eligible for MEGA, and adding qualified high-wage activity to the definition of a qualified high-technology business.

Also, in order to receive a Michigan Business Tax credit through MEGA, a company would have to create or retain 50 jobs and not 100 under the bills. The legislation also removes a reporting standard that has forced companies to look for competing offers from other states to the detriment of Michigan. And the bills all more flexibility in awarding MEGA credits by basing them on credit years and not just providing 25 regular 20-year credits like under the current law.

According to the House Fiscal Agency, the legislative package would reduce MBT revenues by an amount unknown at this time since it would depend on how many companies met the new eligibility requirements, what “level of activity” the company is engaged in and the total of overall new credits awarded.

The House also approved SB 1118 (92-13), which grants a MBT credit to owners and operators of multiple large sports and entertainment complexes (that seat at least 14,000 people). Rep. Aldo Vagnozzi (D-Farmington Hills) was one of the 13 Democrats to opposed the measure, arguing that the state shouldn’t be awarded tax breaks for multi-millionaires “at a time when we have hundreds of thousands of our residents losing their home and their jobs.”

The House had discharged the bill from the Tax Policy Committee in order to take the measure up, which was the same procedure used in the Senate. However, the measure passed 38-0 in the Senate.

DISTILLERIES: The chamber unanimously approved HB 5925 , which allows the state to license small distillers that manufacture 60,000 gallons or less of liquors like whiskey and vodka. Under the bill, the distillers could offer tastings at their facilities and retail operations, but they would be barred from selling the liquor via the mail or the Internet and they would have to pay a $100 fee for their license.

“My plan gets rid of the red tape that’s hampering the growth of Michigan’s small distilleries, allowing them to reach their full potential and give our struggling economy a shot in the arm,” said sponsor, Rep. Barb Byrum (D-Onondaga).

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