House subcommittee presses MEDC on SOAR fund oversight, job promises and disclosure of tax-credit terms

The House Oversight Subcommittee on Corporate Subsidies and State Investments on April 30 heard a roughly hourlong presentation from the Michigan Economic Development Corporation on the Strategic Outreach and Reserve (SOAR) Fund and followed with detailed questions about job commitments, compliance and document disclosure.

The presentation, delivered by Kristen Armstrong and Josh Hunt of the MEDC, described SOAR as a two-part reserve established by statute in December 2021 to support (1) the Critical Industry Program, which provides performance-based grants and closing/gap financing to secure or retain transformational projects, and (2) the Strategic Site Readiness Program (SSRP), which pays to make land or infrastructure “investment ready.” Armstrong said, “We’re looking forward to discussing the impact and the value of the SOAR Fund over the past several years,” and emphasized the fund’s legislative-transfer approval step that requires both the Michigan Strategic Fund (MSF) Board and the relevant appropriations committees to sign off before money is spent.

Why it matters: Committee members pressed MEDC on whether SOAR delivers the jobs and local benefits promised, how performance is measured and enforced, and whether legally nonproprietary terms in tax-credit agreements (previously redacted) must be shared after court rulings. The answers will affect how lawmakers evaluate future transfers of state funds for large private investments.

What MEDC told the committee

- Purpose and structure: MEDC officials framed SOAR as a time-limited, competitive tool to help Michigan win large-scale projects in sectors such as semiconductors, EV/battery supply chains, advanced manufacturing and clean energy. Josh Hunt cited national examples of high-dollar incentive packages — for example, Intel’s Columbus plans (about $20 billion investment and roughly $2 billion in incentives from Ohio) and Micron in New York (multi‑year investment and roughly $6 billion in incentives) — to illustrate the competitive environment that prompted creation of…