Michigan Incentives and Workforce Development Guide
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For a list of Michigan economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.
Michigan Business Development Program: One of the 21st Century Jobs Fund’s economic incentive programs in Michigan administered by the MEDC is the MBDP or “Program.” The MBDP is designed to provide a grant, loan or other economic assistance to qualified businesses that make qualified investments, create qualified new jobs, or both, in Michigan. While the Program is operated and funded through the MSF, recommendations for awards under the Program are presented by the MEDC to the MSF Board. Cash incentive that the state makes available in increments up to $10 million.
Community Development Block Grant – Public Infrastructure: The MSF administers the Michigan Community Development Block Grant (CDBG) program, which is a federal program that provides funds to eligible counties, cities, villages and townships for economic and community development. Qualifying economic development projects are those directly related to a for-profit business location or expansion involving eligible activities that will result in the creation of jobs, with at least 51% of those jobs held by low- and moderate-income workers.
MEDC Talent: The MEDC is ready and able to provide an extensive workforce development package through our Talent Enhancement program. Talent Enhancement services are coordinated by a designated Talent Advisor that specializes in your industry that will work closely with the leadership team of your company to create and implement a custom Talent Enhancement strategy. Your Advisor will integrate programs to attract, train, and retain key talent for the success of your business.
- Job posting and talent outreach services on the Michigan Job Portal.
- Ability to search thousands of highly accomplished resumes.
- Feature opportunities in e-newsletters that reach 5000+ job seekers each week.
- Launch a robust social media campaign that includes Facebook, LinkedIn and Twitter.
- Host senior-level invitation only career networking events.
- Arrange with Michigan College and university placement offices for on-campus interviewing.
- Contact candidates and schedule interviews at a variety of local area office locations or at the company’s workplace.
Community Ventures: Community Ventures is an effort led by the Michigan Economic Development Corporation (MEDC) to help structurally unemployed individuals pursue career opportunities at Michigan companies. The program provides a grant to a qualified employer of up to $5,000 per qualified employee, with an additional $3,000 per qualified employee available for wraparound support services.
Michigan Works!: Local office can provide assistance for everything from locating and recruiting potential employees, posting your job openings, screening applicants and providing training assistance. In some instances, there may be wage subsidies, tax credits or other incentives available.
Municipalities have the authority to provide a tax abatement on real and personal property for manufacturing facilities.
Property Tax Abatement under PA 198 of 1974: Local units of government in Michigan’s border counties have the ability to reduce property taxes on new investment by 50% for some warehouse, distribution and logistics centers. These abatements can last up to 12 years and can provide relief on both real and personal property taxes. The business must occupy a building that is no smaller than 100,000 square feet in size, and at least 90% of the facility must be used for warehousing, distribution or logistic purposes. The local unit of government is responsible for approving these abatements and their duration.
State Education Tax Abatement: The MEDC can abate half or all of the 6-mill State Education Tax on new investment when the project presents significant economic benefits to Michigan, and when the project receives a property tax abatement under PA 198 of 1974.
Personal Property Tax Reform: In an ongoing effort to make the state a more attractive place for businesses to invest and grow, Michigan is phasing out its Personal Property Tax (PPT) for most businesses beginning in 2014. This reform will substantially reduce compliance and administrative costs for businesses and will be especially attractive to manufacturers who rely on expensive capital investments in tools and other equipment. Eligible manufacturing personal property could include both commercial personal property and industrial personal property. More specifically, the term refers to all personal property located on real property where that personal property is used more than 50% of the time in industrial processing or in supporting industrial processes.
Eligible manufacturing personal property purchased by the first owner:
- after 2012 will be 100% exempt beginning in 2016.
- before 2006 will be 100% exempt beginning in 2016.
- in 2006 through 2012 will be 100% exempt when the personal property becomes 10 years old.
Other Tax Incentives
Inventory Tax: No inventory tax – no matter where a company locates in Michigan. All inventory is exempt from state and local property taxes.
Sales Tax Exemptions: The 6% state sales tax is not levied on the purchase of machinery and equipment used in manufacturing.
Pure Michigan Business Connect: Through economic gardening initiatives, Michigan businesses have new ways to buy and sell, raise capital and connect with each other. Pure Michigan Business Connect is a $3 billion public-private initiative that strengthens our economic gardening philosophy through an alliance of the MEDC, Michigan companies and other Michigan organizations. Pure Michigan Business Connect matches people with resources including venture capital, debt financing, collateral support and other funding assistance; business support services like customized market research, executive and professional talent search assistance, training support, customized site searches and ombudsman services; and additional public/private support such as entrepreneur services, export assistance, legal services and matchmaking with Michigan suppliers.