We have made great strides in creating a positive business environment that has helped create nearly half a million new private sector jobs in our state. It is a positive record, yet the competition for new investment and new jobs is tough and Michigan cannot afford to stand on the sidelines.
The Michigan Legislature has finalized my legislation to help the state attract new and expanded business investments that result in the creation of high-wage Michigan jobs. It now heads to the governor to be signed.
This is about jobs — good jobs with good wages for Michigan workers. This Good Jobs for Michigan initiative will give our state a vital tool to effectively compete for new opportunities and well-paying jobs.
The performance-based incentive will help create jobs while also protecting taxpayers and our communities. It will be transparent, capped and accountable. A business will not get the incentive unless it creates new jobs meeting certain high-wage requirements, and those numbers will be verified each year. Simply put, no new jobs means no incentive
This is not a refundable credit and will not impact current revenues. The incentive would only be for a percentage of new tax revenue generated from new jobs.
Under the bills, business expansions or new locations creating at least 500 qualified new jobs that pay the prosperity region average wage or higher would be eligible to receive up to a five-year, 50 percent abatement on the personal income tax withholdings of the new employees. Companies creating at least 3,000 qualified new jobs paying the regional average wage, or at least 250 jobs paying 125 percent or more of the average wage, would be eligible to receive up to a 10-year, 100 percent abatement.
The program would be limited to 15 new projects per year, with a maximum value for all outstanding projects at any time capped at $200 million.
I thank everyone who worked on this important legislation for their strong support for helping our state attract good jobs and enabling current residents and future generations to live and work here in Michigan.