Michigan Supreme Court Says State Can’t Shield GM Tax Credit
DETROIT (AP) — The state must release details about a tax credit granted to General Motors, the Michigan Supreme Court said Wednesday in a dispute over public access to information.
In a 7-0 decision, the court ruled against the Michigan Economic Development Corp., part of state government, which had argued that GM’s tax credit cap was protected from disclosure under law.
The court said a document that contains the figure doesn’t meet the “proprietary information” exemption that could otherwise keep it under wraps.
“Through the agreement, (the state) extended billions of dollars of tax credits to GM, thereby allowing GM to reduce its tax liability or claim refunds,” the court said.
GM was not a party in the lawsuit. But the Michigan Chamber of Commerce and a coalition of economic development groups had urged the Supreme Court to affirm a lower court ruling against disclosure.
Some information was released in 2020 in an unrelated action while the appeal was pending. The value of GM’s maximum credit was cut by $325 million to approximately $2.28 billion through 2029.
Nonetheless, Detroit activist David Sole said a decision by the Supreme Court would be important in any future disputes over public disclosure of tax credits.