Michigan on Business Facilities Online

MICHIGAN Fast Facts

• Population (2008): 10,003,422
• Largest Cities (2008): Detroit, 912,062; Grand Rapids,193,396; Warren,133,939; Sterling Heights, 127,160;
   Ann Arbor, 114,386
• Targeted Industries: Automotive Manufacturing, Life Sciences, Alternative Energy, Homeland Security
• Key Incentives: Industrial Property Tax Abatements, Michigan Economic Growth Authority, Economic Development
   Job Training
• GDP (All Industry 2008): $382.5 billion*

*Bureau of Economic Analysis, U.S. Department of Commerce

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.

Explore detailed community demographic information at ZoomProspector.com

Business Facilities Articles covering Michigan

The New Incentives Guide

Michigan Fund Aids Diversification

Michigan

2009 Metro Rankings

2009 Business Facilities Rankings Report

Michigan Wins Wind Power from Nevada

Governor's Report: Michigan is Still in Motion

Michigan Making Movies

Family-owned Company Expands in Michigan

Deal of the Year Awards Honorable Mention

Michigan State Resources

STATE CONTACTS

UTILITIES

REGIONAL CONTACTS

COUNTY CONTACTS

CITY CONTACTS

Additional Listings