LANSING – In a move to jumpstart Michigan's economy and reward businesses that create jobs here in Michigan, State Representative Marc Corriveau (D-Northville) today announced a comprehensive business tax and incentive package that rewards investment, protects Michigan-based companies, and ensures funding for education, health care and the 21st Century Jobs Fund.
Under the Michigan Business Tax (MBT), about 75 percent of businesses in Michigan would pay less in taxes. It is the only plan of its kind to address both the Personal Property Tax and the Single Business Tax (SBT) in such a far-reaching manner.
"This is a bold, comprehensive plan that will help jumpstart Michigan's economy by rewarding companies that invest in Michigan," Corriveau said. "The plan being offered by the House will help spur job creation and turn Michigan into a magnet for the jobs of the future. It lets businesses know that if they invest in Michigan and create good-paying jobs for our workers, they will be rewarded."
The House's solution for replacing the SBT and reforming the Personal Property Tax will:
- Provide $700 million in new tax credits that reward Michigan businesses for investment, compensation, and research and development.
- Reward capital investment by cutting the Personal Property Tax by an average of 73 percent for manufacturers and 46 percent for commercial businesses, while also protecting funding for local units of government.
- Boost job creation by providing credits for investment in Michigan and for Michigan payroll.
- Help small businesses by exempting companies with less than $350,000 in gross receipts from taxation. Businesses with up to $700,000 in gross receipts will pay reduced rates. The plan also enhances existing small-business tax credits.
- Protect education, health care, police and fire protection, and other essential services by ensuring revenue-neutrality.
- Benefit most businesses by creating a 0.488 percent tax on net worth and a 7 percent tax on profits.
- Offer a rebate to business taxpayers if the tax generates 10 percent beyond the revenue-neutral point.
In developing the tax reform legislation, House lawmakers consulted with a variety of leaders from the public and private sectors, including tax experts, small business leaders, local government, the nonprofit community, organized labor and many others. The result is a comprehensive package that incorporates elements from the plans offered by Governor Jennifer M. Granholm, the State Senate, the Michigan Chamber of Commerce, the Grand Rapids Chamber of Commerce and others.
"This plan will help emerging industries and make Michigan a destination for 21st century jobs providers, which will help boost our economy," Corriveau said. "The plan also protects funding for essential services such as health care, public safety and job creation. This is the right kind of plan to get Michigan back on track and headed in the right direction."