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.
Property Tax Abatements
Industrial property tax abatements (PA 198) are used to
spur renovation and expansion of aging manufacturing plants
and new plant construction. They have recently been extended
to high-tech companies. Abatements are approved by the local
units of government and issued by the state, reducing property
tax on buildings, machinery and equipment by roughly 50%
for new facilities and 100% for renovation projects. They
are available for up to 12 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.
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.
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 .
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 1999. The tax relief will be phased
out in 25% increments over the last three years of the program.
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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