Pscholka Praises House Vote On Insurance Company Tax Credit

A tax credit for Michigan-based auto insurance companies called a “boondoggle” by state Representative Al Pscholka could soon be no more. The Michigan House voted Thursday to end the $80 million credit created in 2012. Pscholka says it was inadvertently created when the legislature was making changes to the Michigan Assigned Claims Plan.

“This was inadvertently done a number of years ago, and the $80 million was never passed along to any of the drivers,” Pscholka told WSJM. “So, none of the consumers of Michigan got diddly for this. It’s a tax credit and corporate hand-out that needed to stop.”

Pscholka had called for the credit to be ended when legislative leaders started looking for cuts they could make to deal with a shortfall in the state’s revenue estimates. Pscholka says the credit applied to just a handful of companies that are based in Michigan. He adds the House vote to repeal it was bipartisan and by a wide margin. The matter now goes on to the Michigan Senate.