Michigan Direct Financial Incentives 2012
Michigan's economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include infrastructure grants, tax-exempt bonds, and the Michigan Magnet Fund.
Area Development Research Desk (Apr/May 10)
Pure Michigan Business Connect:
Pure Michigan Business Connect is a $3 billion public-private initiative that strengthens our economic gardening philosophy through an alliance of the Michigan Economic Development Corporation, Michigan companies and other Michigan organizations. Pure Michigan Business Connect matches people with resources including venture capital, debt financing, collateral support and other funding assistance; business support services like customized market research, executive and professional talent search assistance, training support, customized site searches and ombudsman services. Additional public-private support includes entrepreneur services, export assistance, legal services and matchmaking with Michigan suppliers.
State of Michigan Contract Connect Program:
This program provides opportunities for business growth through access to a wide range of governmental procurement opportunities. More than 1,100 state contract opportunities, assistance with vendor registry and bids, and tools that can notify registered users of upcoming opportunities can be found at http://www.michigan.gov/contractconnect
Michigan Business Growth Fund:
The Business Growth Fund is comprised of two programs: Collateral Support Program (CSP) and Loan Participation Program (LPP). Both increase the availability of loans to businesses. The CSP provides collateral for companies whose property, plant or equipment is undervalued. The LPP buys a portion of the loan from the bank and allows the borrower to avoid interest payments on that portion.
Site development and infrastructure grants:
Grants for public infrastructure improvements are made available to local communities that have an identified company that can commit up-front to job creation. An award of up to $10,000 for each new job created by the company can be given for 90% of the total infrastructure cost. The Michigan Community Development Block Grant (CDBG) program funds grants and loans for economic development, downtown and gateways, community development and planning, and discretionary projects that meet a federally required national objective to either provide direct benefit to low- and moderate-income people or to eliminate slum and blight. The fund provides money for public infrastructure improvements (water, sewer, roads).
Private Activity Bonds are issued on behalf of the borrower by the Michigan Strategic Fund for creditworthy companies considering investment in eligible projects. Tax-Exempt PABs can be issued for capital expenditures in manufacturing, plants, not-for-profit corporations, co-generation solid waste projects and solid waste facilities up to $10 million per site/municipality with a $40 million corporate limit. Because the interest paid to bond buyers is exempt from federal, state and local income taxes, the tax-exempt rates have historically been 60% to 70% of conventional rates, including letter of credit fees. Taxable PABs have few federal restrictions and can be used for financing large business projects in excess of $10 million. Interest rates are approximately 0.50% to 1.25% below conventional long-term rates because state and local income taxes are exempted.
New markets tax credit program:
The Michigan Magnet Fund (MMF), a partnership between the Michigan Economic Development Corporation (MEDC), the Michigan State Housing Development Authority, and the Great Lakes Capital Fund, was awarded $60 million in new markets tax credits for 2009 from the U.S. Department of Treasury. The new markets tax credit program is a $15 billion federal tax initiative aimed at attracting new private investment capital to underserved markets and low-income communities. The allocation will allow the MMF to provide a new source of financing assistance to community development projects across the state. Investors who make equity investments in a qualified community development entity, such as the MMF, can qualify for a 39% federal tax credit over a seven-year period.
Michigan Business Development Program:
The Business Development Program will provide grants, loans or other economic assistance of up to $10 million to businesses that are creating qualified new jobs and making new investments in Michigan.
Michigan Community Revitalization Program:
The Community Revitalization Program will provide grants, loans, or other economic assistance of up to $10 million to projects that will revitalize regional urban areas, act as a catalyst for additional investment in a community, reuse vacant or historic buildings and promote mixed use and sustainable development.
The MEDC is ready and able to provide an extensive workforce development package through our Talent Enhancement program.
Services are provided by a team that includes economic development experts, workforce development specialists and college placement personnel. Talent enhancement services are coordinated by a designated talent advisor that will work closely with the leadership team of your company to create and implement a custom talent enhancement strategy, integrating talent identification, screening and interviewing and salary and HR consulting in addition to relocation and partner assistance. Our talent advisor can connect companies with Regional Skills Alliances (RSAs) comprised of businesses within defined industry clusters, and with other business-oriented groups at the local level.
Education and training programs:
Michigan has nearly 200 college and university campuses with about one-third granting bachelor's degrees and 40-plus offering graduate degrees. More than 100,000 postsecondary degrees are awarded annually by the state's colleges and universities. A total of 18 M-TECs (Michigan Technical Educational Centers) provide a comprehensive array of standardized and customized training and workforce development programs in cooperation with the state's 28 community colleges. Other services include training grants and internship co-ops.
Michigan New Jobs Training Program:
The Michigan New Jobs Training Program, offered via the community college system, is available to assist businesses that are creating new jobs in Michigan by providing flexible funding to meet a wide variety of training needs for new employees at no cost to employers. The training available ranges from highly specialized customized programs to basic skills development. For more information, please go to www.mcca.org or contact Adriana Nichols at the Michigan Community College Association at email@example.com.