Economic development tools and efforts strengthen Michigan and secure good-paying jobs for our families. The Good Jobs for Michigan Program is one of those critical tools. It was created to ensure Michigan was no longer the only other state besides Alaska with a corporate income tax and ZERO tax credits to attract new jobs and large-scale projects.
Since it was signed into law, the Good Jobs for Michigan package has attracted several key projects in communities across the state, resulting in 7,800 new jobs and more than $4.5 billion in investment and economic development in the state. These businesses would likely not have located or expanded in Michigan were it not for the Good Jobs for Michigan package, helping us beat out key competitors like Silicon Valley, Dallas, Toronto and fellow Midwest states like Indiana.
The reason it has been so successful is because it is Simple, Transparent, Performance-Based, Predictable and Positive!
- The program provides an incentive in the form of a return of state personal income taxes for companies that create hundreds of new jobs in Michigan. It uses one simple overarching criteria: will the project create hundreds of new, good-paying jobs?
- Business expansions or new locations that create a minimum of 3,000 NEW jobs and pay wages at 100% or more of the regional average wage would be eligible to capture up to 100% of personal income tax withholdings for up to 10 years.
- Business expansions or new locations that create a minimum of 500 NEW jobs and pay wages at 100% or more of the regional average wage would be eligible to capture up to 50% of personal income tax withholdings for up to five years.
- Business expansions or new locations that create a minimum of 250 NEW jobs and pay wages at 125% or more of the regional average wage would be eligible to capture up to 100% of personal income tax withholdings for up to 10 years.
- All businesses receiving the incentive agree to have their names and the value and duration of the incentive publicly disclosed.
- To qualify, a business must create the required jobs at the required wages within five years.
- The incentive doesn’t start until the job and wage targets are reached and the targets must be maintained and verified each year for the duration of the incentive.
- If job or wage requirements are not met in a given year, the company does not receive the incentive for that year.
- There is a cap of 15 projects per year.
- There can be no more than $200M in total incentives committed.
- The incentives do not favor one industry over another, and instead focus on large-scale projects that will benefit Michigan.
Positive: Advancing a stronger, healthier state and communities
- Not a cut to state revenue – the jobs would not be here without the incentive. While the state will forego some personal income tax revenue in the short-term, these revenues will accrue to the state over the long-term.
- In addition, the state, our local schools and communities will benefit from added property tax and sales tax revenues from increased economic activity. Expansion or location plans need:
- A third party analysis showing that the project are economically sound and provide a net economic benefit for the state.
- The local unit of government where the project will expand or relocate approves the project by resolution.
- To stipulate that the company would not have created the jobs in Michigan if not for the incentive.