January 9, 2006
MiBiz West
LANSING — The Michigan Economic Development Corp. has approved 11 tool and die coalitions for tax-free Tool and Die Recovery Zone designations under the state’s Renaissance Zone program. Eight of the 11 zones are on the west side of the state and they encompass over 65 companies.
Tool and Die Recovery Zones allow companies to operate free of virtually all state and local taxes for up to 15 years, thus boosting their efforts to compete in the face of global competition.
The following applicants, representing a total of 92 companies, received Tool & Die Recovery Zone designations: Automotive & Tooling Alliance of North America, Berrien Tooling Coalition, Central Michigan Collaborative, Custom Design Inc, Eastern Michigan Tool & Die Collaborative, Michigan Tooling Group, Precision Tooling Coalition, Southwest Michigan Tooling Collaborative, Tooling Advantage Group LLC, West Coast Tooling Coalition, and Whitehall Township Tooling Coalition.
“The Tool and Die Recovery Zone program exemplifies the types of innovative steps we are taking to create an environment where tool and die companies can thrive,” MEDC President and CEO James Epolito said. “Although this has been one of the nation’s hardest-hit industries in recent years, the collaborations created through this initiative are helping many Michigan tool and die companies compete and grow in the global economy.”
To qualify, the property designated must be leased or owned by a qualified tool and die business and used primarily for tool and die operations. The company must have fewer than 50 full-time employees and the local government board must agree by resolution to abate the businesses’ local taxes.
In addition, the business must enter into a qualified collaborative agreement that designates synergistic opportunities with other qualified tool and die shops, including collaborative marketing and the development of standardized processes and management methods.
This second round of designations comes exactly one year after the first Tool and Die Recovery Zone designees were awarded in 2004. The next round of designations is expected to open for applications in fall 2006.
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This article appeared in the January 9, 2006 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.
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