Tuesday, December 21, 2004
Total of 33 Companies Benefit from Tax-Free Status
The Michigan Economic Development Corporation today announced that eight tool and die companies and/or coalitions have won designation to as many newly created tax-free Tool & Die Recovery Zones under the state's Renaissance Zone program.
The following applicants, representing a total of 33 companies, received Tool & Die Recovery Zone designation: Coopersville Tooling Coalition, Great Lakes Tool & Die Collaborative LLC, LS Mold Inc., Lansing Tool & Engineering Inc., Precision Tooling Coalition, Tooling Systems Group, United Tooling Coalition and West Michigan Tooling Coalition.A complete list of the companies and their locations is attached.
"Tool and die companies across the country have faced tough challenges in the last few years due to foreign competition," MEDC President and CEO Don Jakeway said. "The tax-free zones will extend a helping hand to the industry and encourage collaboration to help secure the industry's future in Michigan."
Recent amendments to the Michigan Renaissance Zone Act allow the MEDC to designate up to 20 of the tax-free zones where state and local taxes may be abated for up to 15 years. A total of 14 applicants from individual companies and tool and die coalitions, which include two or more companies, were considered for the eight spots. The next window of opportunity for Tool and Die Recovery Zone designations is expected to open for applications in the fall of 2005.
In order to qualify, the property designated must be leased or owned by a qualified tool and die business and used primarily for tool and die operations. The company must have fewer than 50 full-time employees and the local government board must agree by resolution to abate the business' local taxes. In addition, the business must enter into a qualified collaborative agreement which designates synergistic opportunities with other qualified tool and die shops, including collaborative marketing and the development of standardized processes and management methods.
Established as an innovative economic development program in 1996, Renaissance Zones are regions of the state set aside as virtually tax-free for any business or resident presently located in or moving to one of the zones. The expanded program now comprises 166 zones and sub-zones throughout the state.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.