Michigan could see an immediate boost in in-state investment and job growth if the House passes a new statewide economic development incentives package before the Legislature breaks for the summer, testified MMA and other leaders of the state’s business community.
Sandy Ring, vice-chair of the MMA Board of Directors and executive vice president for Ghafari Associates, testified last week alongside Shorty Gleason, legislative director of the Michigan Building and Construction Trades Council, in support of Senate Bills 242-244 — coined the “Good Jobs for Michigan” package.
The bill package would create a fund capped at $250 million to attract larger, job-creating projects to Michigan and allow program eligible companies to capture a percentage of the income tax revenue from the jobs they create over a period of 5-10 years.
“Like it or not, many other States have far richer incentive programs than Michigan – particularly in the context of siting major projects,” testified Ring. “In my varied experience, each company considers and ranks any number of factors in siting decisions…but where the other factors are roughly equal, make no mistake, the better incentive package is likely to close the deal.”
The “Good Jobs” package enjoyed bipartisan support in the Senate, which passed the legislation in March, but has since labored in the House Tax Policy Committee. If signed into law, many companies interested in investing in Michigan could pull the trigger on the move once economic incentives are made available.
A poll commissioned by the Good Jobs for Michigan coalition and conducted by the Marketing Resource Group showed that 77 percent of respondents supported the effort to incentivize new businesses and job creation in Michigan. Additionally, the plan was hailed by Governor Rick Snyder, business, labor, local government and bipartisan legislators during a press conference on Mackinac Island where Ring again spoke in support.
“For better or worse, [economic incentives are], with increasing frequency, an expectation and the Good Jobs for Michigan package is an important step toward keeping Michigan competitive,” said Ring. “On behalf of MMA, I encourage quick action on this package to win the battle for jobs and investment in Michigan.”
With the Legislature set to recess by 6/22/17, time is limited to pass the legislation and Michigan’s ability to remain economically competitive with other states and around the world could be in jeopardy if it does not pass.
Contact MMA with any questions on the progress of this much-needed economic incentives legislation.