Alt Energy, Jobs & California .(MP3- 3MB)

Radio Address: Exciting Things Happening in Michigan in Alternative Energy Industry Granholm Names Dan Krichbaum Chief Operating Officer, Announces Deloitte will Explore Innovation in State Government Granholm Visits Local Alternative Energy Businesses, Says Expansion Shows Industry's Potential to Create Thousands of Jobs Granholm Pitches California Venture Capitalists on Investing in Michigan, Creating Jobs

Lt. Governor John D. Cherry, Jr., Senate Majority Leader Michael D. Bishop, House Speaker Andy Dillon, Senate Democratic Leader Mark Schauer, and I, along with legislative members, have agreed to replace the service tax that went into effect at 12:01 a.m. Saturday, December 1, 2007. Under the agreement, revenue generated by a service tax will be fully replaced by a surcharge on the Michigan Business Tax (MBT).

The agreement protects health care, public safety, and education while replacing revenue from the service tax. I applaud the members of the business community and the legislators who worked with us to craft this fair and responsible compromise.

The negotiations were very difficult due to our challenging economic climate, but we believe this agreement is a fair compromise that will allow the state to provide the services necessary to support our businesses and attract new businesses to a state that has a tremendous quality of life. Under the agreement, businesses will be granted legal protection if they fail to collect the service tax until the effective date of the new law. Also, the replacement for the service tax will phase out under certain economic conditions.

The MBT, which takes effect January 1, provides tax cuts for more than 60 percent of Michigan businesses and provides tax cuts to both small businesses and Michigan's major manufacturers while encouraging job creation in Michigan.

The MBT will help stimulate Michigan's economy by relying more on profit, providing tax credits to companies that locate or create new jobs in Michigan, and tax credits for entrepreneurial and R&D activities. In addition, a significant cut in the personal property tax will help the state's largest employers and commercial businesses.

With this agreement in place, we can continue working on the economic plan that will help grow our economy and create jobs for Michiganians.

For more information: http://www.michigan.gov/treasury