Michigan Considering Future of Tax Credit for Auto Insurers
Posted on Feb 11, 2016 in Insurance Regulation | Comments Off on Michigan Considering Future of Tax Credit for Auto Insurers
Lawmakers in Michigan have discovered that an administrative change in the way the state’s assigned claims program is funded is costing the state tax revenue. The assigned claims program covers medical care of people injured in auto accidents where there is no insurance coverage. Insurers doing business in Michigan are required to pay into the program to cover these claims. Because of the administrative change, they now are eligible for a dollar-for-dollar tax credit for amounts paid into the program. However, this has resulted in a significant unanticipated reduction in tax revenues. Legislators are considering how to address the issue, including possibly eliminating the tax credit.
