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Governor Granholm Signs Historic Michigan Business Tax into Law
July 12, 2007
July 12, 2007
LANSING - Governor Jennifer M. Granholm today signed Senate Bill 94, officially enacting the Michigan Business Tax (MBT) to make Michigan more competitive and attract job providers to the state. The new law takes effect January 1, 2008.
"The new Michigan Business Tax will make Michigan's business climate more competitive and will help us attract jobs and job providers," Granholm said. "Instead of punishing business for creating new jobs, the MBT will encourage companies to invest in Michigan today and expand in the future."
The MBT will cut taxes for more than seven out of ten Michigan businesses, including both small businesses and Michigan's major manufacturers. It is a fair, simple tax that will provide the same amount of revenue as the Single Business Tax it replaces, while encouraging job creation in Michigan.
The MBT will help stimulate Michigan's economy by 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.
The governor also signed into law House Bills 4369-4372, companion bills to the MBT.
Granholm said the MBT is a critical part of the state' s comprehensive economic plan, which includes the 21st Century Jobs Fund, the Michigan Promise scholarship, and her "go anywhere, do anything" approach to bringing jobs to Michigan. Just this week, Governor Granholm announced plans to travel to Sweden and Germany in August to encourage additional foreign business investment and job creation in Michigan. The investment mission will be Granholm's fifth overseas investment mission since 2004.