Signed bipartisan three-bill package in Rochester Hills on available industrial property
Wednesday, July 26, 2017
ROCHESTER HILLS, Mich. – It wasn’t the usual bill signing location for Gov. Rick Snyder – he wasn’t in the state Capitol or the Romney building in Lansing. On an available industrial property just off of M-59 in Oakland County, Gov. Snyder inked a three-bill package into law designed to diversify Michigan’s economy and attract new, large-scale employers, with a bipartisan group of legislators from across the state, along with economic development partners from every region and representatives of organized labor.
“The resurgence of Michigan as a manufacturing powerhouse is clear. We are prouder than ever of our thriving economy, our talented workforce and our low unemployment rate,” Gov. Rick Snyder said. “But we will not be complacent, as we were during the Lost Decade. Michigan needs to set the stage to grow entirely new industries and continue to diversify our economy. By now we know the realities of today’s economic environment and will do everything we can to remain the most competitive state for business and show the rest of the nation and the world that Michigan is the best place to create new jobs.”
Senate Bills 242-244, sponsored by Sen. Jim Stamas, Wayne Schmidt and Steve Bieda, respectively, will entice new and emerging businesses with sizable workforces, by allowing them to keep some or all of the state income tax paid by their employees if certain criteria are met. The incentives vary in amount and length of time according to the number of new jobs the qualifying businesses creates, and whether or not it can meet or exceed regional average wage requirements.
To qualify, applicants must create at least 250 new jobs, and pay salaries that are 125 percent or more of the prosperity region average wage. Businesses that meet the 500 or 3,000 (or more) job thresholds must pay wages at least equal to 100 percent of the prosperity region average wage. Qualifying 3,000 or more job and wage applicants are eligible to receive the maximum income tax capture for 10 years, the maximum length of time allowed under the legislation.
The new law also:
“The worldwide competition for new investment and new jobs is tough, and this performance-based incentive will help our state attract thousands of good jobs with good wages to Michigan,” said Sen. Jim Stamas, R-Midland. “This transparent, capped and accountable initiative will help us build on the positive business foundation we have strengthened over the last seven years. Most importantly, it will help allow for the creation of well-paying jobs for Michigan workers while also protecting our taxpayers and communities.”
The bills were supported by a majority of Republicans and Democrats in both the state House and Senate.
For more information on this and other legislation, please visit www.legislature.mi.gov.