Michigan Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Michigan, and their state economic development professionals gave us some details (Michigan Economic Development Corp. site click here).
Michigan offers a variety of credits and incentives for new and existing businesses.  CNBC ranked Michigan #22 in their 2015 America’s Top States for Business survey (Georgia was #5 in the same survey).  Read below and see how many of these could be reduce your clients’ tax liabilities:
The Michigan Business Development Program is an incentive program available from the Michigan Strategic Fund (MSF) and the Michigan Economic Development Corporation (MEDC), designed to provide grants, loans or other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment.

InvestMichigan! is a $300 million fund supporting companies in early and later stages of development. It comprises two parts. The Growth Capital Program targets lead and co-investment opportunities in venture capital and small buyout stage companies. The Michigan Opportunities Program targets lead investment opportunities in buyouts and growth equity investments in well established companies.
Agricultural Processing Renaissance Zones (APRZs) were created to promote agricultural processing operations in the State of Michigan and to enhance the industry overall. Can be located anywhere in Michigan.

Border County Incentives — Eligible new warehouse, distribution, or logistics facilities that locate in a county that borders another state or Canada may qualify for tax incentives.
Renaissance Zones® are regions of Michigan designated as virtually tax free for any business or resident presently in or moving to a zone. The zones provide selected communities with a market-based incentive of no state or local taxes to encourage new jobs and investment. There are additional specialized Renaissance Zones available for designation. These types of zones are facility or industry specific. Specialized zones are potentially available for firms doing business in the agricultural processing, renewable energy, forest products processing and tool and die industries.  Good luck with these!
Skilled Trades Training Fund (STTF) provides competitive awards for employer responsive-training that enhances talent, productivity, and employment retention, while increasing the quality and competitiveness of Michigan’s businesses.

Your clients will have to get pre-approval for almost any Michigan incentive, so plan early!  So to summarize, Michigan provides a fairly complicated, mixed bag of business incentives in a key Midwest location.

DaleSig