LANSING, Mich. — The Michigan Senate on Wednesday approved legislation sponsored by Sen. Jim Stamas to help the state attract new and expanded business investments that result in the creation of high-wage Michigan jobs.
“We have made significant strides in creating a positive business environment that has helped create nearly half a million new private sector jobs in our state, and this will help build on that success,” said Stamas, R-Midland. “This is about jobs — good jobs with good wages. The competition for new investment and new jobs is tough, and Michigan cannot afford to stand on the sidelines. This Good Jobs for Michigan initiative will give Michigan a critical tool to effectively compete in attracting new opportunities and jobs to our state.”
Senate Bills 242-244 would create a transparent and capped incentive program aimed at attracting large-scale projects that would provide a significant number of new high-wage jobs.
Under the legislation, 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 250 qualified new jobs paying wages at 125 percent or more of the prosperity region average wage would be eligible to receive up to a 10-year, 100 percent abatement.
The incentive program would be limited to 15 new projects per year, with a maximum value for all outstanding projects at any time capped at $250 million.
“While this performance-based program is designed to create jobs, it also includes numerous safeguards to protect taxpayers and our communities,” Stamas said. “The incentive would be transparent, capped and accountable. A business will not get the incentive unless it creates new jobs with certain high-wage requirements, and those numbers will be verified each year.
Stamas said that the incentive would not impact current revenues because it would only be for a percentage of new tax revenue generated from new jobs.
“I thank my fellow senators for their strong support and look forward to working with my colleagues in the House to bring good jobs to our state and help enable current residents and future generations to live and work here in Michigan,” Stamas said.