MEDC approves new incentive programs for businesses and community development

There are over $100 million in incentives for highly competitive projects throughout Michigan that will be available starting Oct. 1 thanks to a decision by the Michigan Economic Development Corporation and the Michigan Strategic Fund.

The two organizations approved the new economic development and community revitalization programs that will replace three of the states former tax credit programs that were features of the Michigan Business Tax--which will be eliminated under business tax restructuring legislation approved and signed into law by Gov. Rick Snyder.

"We are creating entirely new incentive programs to attract new business investment for job creation and redevelopment of our communities that are performance based with clear benchmarks, that will offer greater flexibility and a transparent process," says MEDC president and CEO Michael Finney. "Most importantly, we are building a friendlier business climate in Michigan to help drive Michigan's economic turnaround. These programs will better leverage our state's many assets in ways that are simple, fair, efficient and transparent."

The new 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.

There will be a number of factors considered in giving out these awards, including: 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. Business retention and retail projects are not eligible for consideration of these incentives.

The new 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.

Writer: Sam Eggleston
Source: Michael Finney, MEDC