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A Law Meant to Clean Michigan's Air Costs the State Billions with Little Oversight
The tax exemption program has cost Michigan municipalities $1.2 billion in property taxes over the last decade while nearly half of exempted facilities violated air quality laws, officials say.
- Reviewing state records, BridgeDetroit found the pollution-control exemption program spans hundreds of certificates covering nearly $9 billion in equipment, costing nearly $2900 million over the last decade, with EGLE not tracking emissions reductions .
- The law dates to the Air Pollution Act of 1965, which created the exemption framework for pollution-control equipment, but certificates issued in perpetuity after EGLE review give municipalities only 21 days to object.
- EGLE records show limited penalties: DTE was fined $16,619 in 2015 and Gerdau $90,000 in 2016 despite ongoing violations, with recent violations not fined.
- Detroit and River Rouge leaders point to lost tax revenue and public-health harms, with Detroit losing $46 million and River Rouge exemptions matching half its lead line replacements, fueling calls for reform.
- Consumers Energy's rate filing for a $436 million increase affecting 1.9 million customers highlights fiscal pressure, while Michigan Manufacturers Association warns removing exemptions harms competitiveness and notes similar programs in other states.
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Associated Press News+7 Reposted by 7 other sources
A law meant to clean Michigan’s air now costs the state billions with little oversight
Over the last decade, Michigan municipalities have given more than a billion dollars in local tax breaks to industrial companies to keep the air clean.
·United States
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Michigan cities lose millions to pollution tax breaks
Michigan companies receive hundreds of millions of dollars in tax breaks each year meant to incentivize pollution control. But the cities footing the bill often don’t know how much money they’re losing to these equipment tax breaks, they aren’t required to report it to taxpayers and they have little say in whether the exemptions are granted. They also don’t know how much pollution is being controlled. Sterling Heights ranks sixth among Michiga…
Coverage Details
Total News Sources12
Leaning Left6Leaning Right1Center5Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 42%
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