POPULATION: 9,969,727 (2009)
LABOR FORCE: 4,889,000 (2009)
RIGHT TO WORK: No
INDUSTRIES: Life sciences, advanced automotive
technologies, advanced battery/
electric vehicle mfg./development,
homeland security/defense, LED
(light-emitting diode) lamps, alternative
energy technologies, autorelated
R&D,advanced materials,
telematics, tourism, agriculture,
information technologies, microand
nanotechnology, pharmaceuticals,
medical devices, instrumentation
and diagnostics, research and
ancillary services
COLLEGE GRADUATES: (Age 25 and over) 24.7% (2008)
BASIC BUSINESS TAXES:
Michigan Business Tax (effective
Jan. 1, 2008): 4.95 percent of business
income in Michigan, .08 percent
of modified gross receipts in
Michigan (minus purchases from
other firms), and a 21.99 percent
surcharge on the tax liability before
credits; tax is apportioned to
Michigan on a 100 percent sales
factor; there is a 35 percent credit
for taxes paid on owned industrial
personal property; tax credits provided
for capital investment, R&D
expenditures, and compensation;
certain small businesses may use
an alternative 1.8 percent profits
tax; filing threshold of $350,000 in
Michigan gross receipts
Sales and Use Tax: 6 percent;
no local sales tax allowed; exemptions
allowed for purchase of manufacturing
equipment, energy used
directly in manufacturing and
pollution-control equipment
Property Tax: Assessed at 50 percent
market value; assessment
increases limited to 5 percent or
inflation, whichever is less; owned
industrial personal property gets
automatic 24-mill exemption and
commercial property gets a 12-mill
exemption; a variety of property
tax abatements are available
BUSINESS INCENTIVES:
MIchigan Business Tax Credits
(for capital investment, R&D expenditures
and compensation, defense
contracts, anchor district)
21st Century Jobs Fund
21st Century Investment Fund
(available to venture capital,
mezzanine, and private equity
funds with a Michigan focus)
Michigan Economic Growth
Authority (state tax credits for job
creation and retention, including
high-tech and alternative energy,
advanced battery, photovoltaic)
Michigan Supplier Diversification Fund
Film and media production,
infrastructure credits
Entrepreneurial credit
Tax-Free Renaissance Zones
Tax-Free Tool & Die Recovery Zones
NextEnergy Zone (tax-free for
alternative energy)
Smart Zones (high-tech clusters
of businesses and resources)
Private Activity Bond Program
(taxable and tax-exempt)
Economic development job training
grants
Brownfield redevelopment state
tax credits and TIF
Capital Access Program (loans for
Michigan companies)
Community Development Block
Grants (for economic development)
Industrial and high-tech property
tax abatement
Personal property tax exemptions
in qualified communities
SelectSites Program (prime
properties ready for development)
Web access to Commercial
Property Info Exchange (CPIX)
Foreign trade zones
Certified business parks
Technology and productivity consulting
Ombudsman services
Worker recruitment assistance
Permit coordination
Site proposal assistance
