Monday, June 13, 2005
Michael Shore, MEDC
Companies Sought for 12 Tax-Free Designations
The Michigan Economic Development Corporation today announced it is accepting applications for the second round of Tool and Die Recovery Zones. The zones allow companies to operate free of virtually all state and local taxes for up to 15 years, thus boosting their efforts to compete in the face of global competition. In 2004, amendments to the Michigan Renaissance Zone Act allowed the MEDC to designate up to 20 tax-free Tool and Die Recovery Zones, of which 12 remain.
"We are doing everything we can to deliver on Governor Granholm's goal of making Michigan a global economic powerhouse in the 21st century," MEDC President and CEO Don Jakeway said. "Fighting for every job means doing all we can to make our business climate more attractive to employers."
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, the Renaissance Zone now comprises 166 zones and sub-zones throughout the state. To date, the zones have led to more than $2.4 billion of private investment in over 400 projects and the creation of more than 8,200 jobs.
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.