- Capital: Lansing
- Population (2012 Est.): 9,883,360
- Largest Cities (2012): Detroit, 701,475; Grand Rapids, 190,411; Warren, 134,141; Sterling Heights, 130,410; Ann Arbor, 116,121
- Targeted Industries: Automotive, Advanced Manufacturing, Defense, Medical Device, Food Processing, IT, Logistics
- GDP (All Industry 2012): $400.5 billion*
*Bureau of Economic Analysis, U.S. Department of Commerce
Michigan has a number of tools in its economic development toolkit, including $170 million annually for business attraction, business assistance and gardening efforts. This total includes funding for various incentive programs MEDC can offer to companies considering coming to Michigan or expanding here in return for hitting targets on investments and jobs created.
Freedom to Work: Michigan is the newest freedom-to-work state. Michigan businesses can now realize greater efficiency and higher potential profits while partnering with a world-class workforce that is free to decide whether union membership is right for them.
Pure Michigan Business Connect (PMBC): A public-private initiative that helps Michigan businesses connect with one another and benefit from new relationships. PMBC works to uncover and develop procurement leads both in Michigan and out of state and match those leads with Michigan suppliers. It also connects Michigan entrepreneurs and businesses with lenders and firms that offer free or low-cost professional services like legal, accounting, consulting, business education, business lending, marketing and web support.
Small Business Credit Initiative: A $100 million loan program designed to help small-and medium-size companies that are in a growth mode and have challenges accessing capital. MEDC enables loans up to $5 million in participation with a lender.
Michigan Business Development Program: A cash incentive that the state makes available in increments up to $10 million. The program can be used by any industry from film, pharmaceuticals, manufacturing and everything in between. Funds are made available as grants to companies that demonstrate they are creating jobs and making investments.
Community Revitalization Program: Offers cash grants up to $1 million and loans up to $10 million for projects that restore historic, obsolete or contaminated properties.
Access to Capital: MEDC works to increase the availability of capital for companies in Michigan at every stage of company development. MEDC can help connect businesses with capital providers—federal grants, venture capitalists, banks and others—as well as offer programs that can expand the reach of those capital providers.
Michigan’s flat 6% Corporate Income Tax reduced the state business tax burden for more than 80% for Michigan businesses. The tax continues the state’s single 100% sales factor. There are no weighted sales in Michigan. According to the Tax Foundation, a nonpartisan tax research group based in Washington, D.C., Michigan’s corporate tax ranking jumped to seven from 49 and our overall tax rank climbed to 12 from 18.
- Michigan’s personal income tax rate is one of the lowest in the nation – a flat 4.35% tax rate is scheduled to decline in the next few years.
- Michigan will begin phasing out its Personal Property Tax (PPT) for most businesses beginning in 2014. Without the PPT, companies will realize substantial savings.
- Refinancing of Michigan’s entire Federal Unemployment Insurance loan has allowed the state to repay its $3.2 billion Unemployment Trust Fund balance to the U.S. Treasury and created significant savings for Michigan job providers. The transaction will save the business community $1 billion over the life of the bonds.
- Michigan is the only Midwestern state whose workers’ compensation pure premium rates have decreased by over 7% each of the last two years.
Community Ventures: A public-private nonprofit partnership created to hire at structurally unemployed residents of distressed neighborhoods, initially focusing on Flint, Detroit, Pontiac and Saginaw. Closing in on its first year more than 800 previously unemployed residents have now found work in urban communities. The state’s investment in this effort will leverage additional public and private resources, laying the foundation for a sustainable expansion of employment opportunities for the most challenged communities.
Talent: Michigan businesses have access to the state’s extensive database of job seekers to find employees with the right skills and qualifications, view upcoming career fairs, tap into special services and more.