New Programs Replace MEGA, Brownfield and Historic Tax Credit
The Michigan Economic Development Corporation (MEDC) and the Michigan Strategic Fund (MSF) last week Wednesday approved $100 million in new incentives.
Two programs, the Michigan Business Development and Michigan Community Revitalization Programs, will replace MEGA, Brownfield and Historic tax credit programs. The previous programs were features of the Michigan Business Tax, which was eliminated earlier this year by Governor Rick Snyder and the Legislature.
The entirely new incentive programs are designed to attract new business investment for job creation and redevelopment. The new programs are performance based with clear benchmarks, that will offer greater flexibility and a transparent process.
The Michigan 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.
The MSF will consider factors such as out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state when making the awards.
The Michigan 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.
Both programs will start with the fiscal year 2012 starting on October 1, 2011.
The programs are intended to build a friendlier business climate in Michigan to help drive Michigan's economic turnaround. These programs will better leverage the state's many assets in ways that are simple, fair, efficient and transparent.