Gov. Rick Snyder has signed legislation rescinding an annual tax break worth up to $80 million that was inadvertently given to auto insurers four years ago.
His signature Friday had been expected as part of a state budget deal.
Industry leaders have conceded that the tax credit was awarded by mistake, but warn that premiums will go up. Some lawmakers question that warning, saying drivers never got a break when the industry qualified for the tax credit in the first place.
The unintended credit began after legislators transferred management of Michigan's assigned claims plan in 2012.
The Republican governor called for eliminating the tax break as part of his budget proposal earlier this year.
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