Legislation to incentivize new businesses to invest and create jobs in Michigan passed the House on Wednesday, 7/12/17, with strong bipartisan support and was quickly concurred by the Senate.
Coined the “Good Jobs For Michigan” package, Senate Bill 242 (Senator Jim Stamas, R-Midland), Senate Bill 243 (Senator Wayne Schmidt, R-Traverse City), and Senate Bill 244 (Senator Steven Bieda, D-Warren) each passed the House 71-35, with votes coming from both sides of the aisle, and received similar overwhelming support from the Senate. The bills would create the Good Jobs for Michigan Program within the Michigan Strategic Fund through 2019 and will have a 30-day effective date.
“MMA would like to thank the bill sponsors for championing this legislation to make Michigan competitive for large capital investments and job attraction,” says Mike Johnston, MMA vice president of government affairs. “We also applaud the Legislature for showing leadership on this issue and recognizing the importance of making Michigan more competitive.”
The bills would:
- Allow businesses creating 500 new jobs and paying the average wage in the prosperity region to capture 50 percent of income tax withholding for up to 5 years
- Allow businesses creating 250 new jobs and paying 125 percent of the average wage in the prosperity region to capture 100 percent of income tax withholding for up to 10 years
- Allow businesses creating 25 jobs and paying the average wage in the prosperity region, plus $5 million in personal property with 10% of the equipment used by the business, to capture a percentage of income tax withholding
- Allow businesses creating 3,000 jobs and paying the average wage in the prosperity region to capture a percentage of income tax withholding through an agreement with a primary supplier determining which business benefits from the capture
- Cap the total program at $200 million and 15 total projects
- Require local approval
Senate Bills 242-244 now move to Governor Rick Snyder’s desk where they are expected to be signed soon.