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MICHIGAN Fast Facts

• Population (2006): 10,095,643
• Largest Cities (2006): Detroit, 871,121; Grand Rapids, 193,083; Warren, 134,589; Sterling Heights, 127,991; Flint, 117,068
• Targeted Industries: Life sciences, advanced automotive technologies, homeland security and defense, alternative energy, tourism

• Key Incentives: Industrial Property Tax Abatements, Michigan Economic Growth Authority, Economic Development Job Training, Tax-Free Renaissance Zones, Brownfields Redevelopment, Distressed Communities Personal Property Tax Abatement

MICHIGAN State Incentives

The $2 billion 21st Century Jobs Fund helps diversify and grow Michigan's high-tech economy by investing in basic research at universities and non-profit research institutions; applied research; university technology transfer; and the commercialization of products, processes, and services. The four competitive-edge technologies targeted are life sciences; alternative energy; advanced automotive, manufacturing, and materials; and homeland security and defense. Also supported are advanced computing or electronic device technology, design, engineering, testing, diagnostics, or product research and development related to any of the four competitive-edge technologies.

A Manufacturers' Tax Exemption is available for a total of $600 million in tax relief targeted to embattled manufacturers. The package includes a 15% credit to the Single Business Tax (SBT) on personal property tax paid; adjustment of the SBT sales apportionment factor to benefit Michigan-based companies by increasing the weighting of sales to 92.5% in 2006-07 and 95% in 2008 and beyond; and a 100% personal property tax credit for equipment directly related to jobs "insourced" from other states or countries in 2007-08 by any manufacturing or high-tech business.

Job Creation Tax Credits, authorized by the Michigan Economic Growth Authority (MEGA), provide a refundable tax credit against the SBT to eligible companies expanding or locating their operations in Michigan. Since 1995, the program has assisted 278 major industrial and high-tech projects, generating capital investment of $14 billion and a total of 136,271 jobs (65,670 direct, 70,601 indirect). Companies eligible for a MEGA tax credit are those engaged in manufacturing, R&D, are financially sound, and have solid proposals. Each credit may be awarded for up to 20 years and up to 100% of an amount equal to the personal income tax generated by new workers. To be eligible for a regular MEGA tax break, an in-state expansion must create at least 75 new full-time jobs at the project's facility, while an out-of-state business locating in Michigan must create at least 150. For a high-technology or rural MEGA, the expansion or location in Michigan must create at least five new full-time jobs in the first year of the project and 25 new full-time jobs within five years.

Tax-Free Renaissance Zones include 152 geographic areas around the state that are free of nearly all state and local taxes for any business or resident within a zone. They include three former military bases and nine agricultural processing zones in addition to numerous urban zones. They provide selected communities with the most powerful market-based incentive-no taxes-to spur new jobs and investment. Specialized Renaissance Zones have been created to meet particular needs. Under this program, the state has the ability to grant tax-free status to agricultural process operations; 19 companies have been designated to date.

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