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| Job Creation
Tax Credits |
Michigan Economic Growth
Authority (MEGA) job creation tax credits - If you need a
reason to expand or locate in Michigan rather than another
state, you may be eligible for a high-tech job creation tax
credit against the SBT. Each credit may be awarded for up
to 20 years and for up to 100% of the tax related to the project. |
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| Property Tax
Abatements |
Industrial property
taxÈabatements (PA 198) are used to spurÈrenovation and expansion
of aging manufacturing plants and new plant construction.
TheyÈhave recently been extended to high-tech companies. Abatements
are approved by the local units of government and issued by
the state,Èreducing property tax on buildings, machinery and
equipment by roughly 50% for new facilities and 100% for renovation
projects. They are available for up toÈ12 years everywhere
in the state.
Public Act 328 - allows for 100% personal property tax exemption
in the Cities of Muskegon and Muskegon Heights in order to
spur development in these core communities. |
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| Job Training
Grants |
Michigan's Economic
Development Job Training Program provides grants each year
to companies for training or retraining of workers to meet
marketplace needs, with the employer required to match 25%
of the state grant for training of existing workers. Funds
are awarded through a competitive process. The employer works
with private or public education providers to design the training. |
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| Other Incentives |
Brownfield Incentives
- Michigan's brownfield law is designed to encourage and assist
developers who want to return property to productive use more
quickly and at a lower cost than before, while still protecting
human health and natural resources. Owners and operators of
contaminated sites are no longer required to pay for cleanup
actions unless they caused the contamination. Flexible cleanup
standards give developers the option of proposing a solution
to historical contamination based on future use of the property.
Michigan now allows qualified businesses to claim a credit
against the SBT, provided the taxpayer has a pre-approved
letter issued between December 31, 1999 and January 1, 2003
and the project is completed not more than five years after
the letter is issued. If the total of all credits for the
project is $1 million or less, the credit is based on 10%
of the eligible investment. If the total of all credits for
the project is greater than $1 million but not more than $30
million, a credit is available for a percentage of eligible
investment to be determined by the Michigan Economic Growth
Authority (MEGA), but not to exceed 10% of the eligible investment.
Certain location restrictions apply to these credits. |
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Renaissance Zones -
these are areas in the cities of Muskegon and Muskegon Heights
designated as virtually tax free for any business or resident
presently in, or moving into, a zone. The taxes that companies
and residents do not pay comprise nearly all the state and
local taxes levied on business activity: Single Business Tax
(SBT), state personal income tax, six-mill state education
tax, local personal property tax, local real property tax,
local income tax and utility users tax. The duration of the
zone designation is fourteen years, starting from January
1, 1997. The tax relief will be phased out in 25% increments
over the last three years of the program. |
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SmartZone - the goal
is to stimulate the growth of technology-based businesses
and jobs by creating recognized clusters of technological
businesses and research institutions throughout the state.
This innovative program allows municipalities to use tax increment
financing for property acquisition, infrastructure, business
incubators and other park facilities, management, and marketing.
Please visit the Main Site to learn more about Muskegon Lakeshore
SmartZone |
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