Thursday, May 04, 2006
Six Tax-Free Designations Are Available
The Michigan Economic Development Corporation today announced it is accepting applications for the third round of Tool and Die Recovery Zones. The deadline for applications is September 18.
The zones allow companies to operate free of virtually all state and local taxes for up to 15 years, providing an incentive for companies to locate and expand in Michigan. In 2005, amendments to the Michigan Renaissance Zone Act allowed the MEDC to designate up to 25 tax-free Tool and Die Recovery Zones, of which six remain open.
The MEDC launched the Tool & Die Recovery Zone program in September 2004. It designated eight recovery zones comprised of tool and die firms and/or coalitions representing 33 companies in December 2004 during the first competitive round. The following December, the MEDC announced that 11 tool and die coalitions representing 92 companies were approved in the second round.
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 75 full-time employees and the local government board must agree by resolution to abate the businesses 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 and administered by the Michigan Economic Development Corporation, Michigan Renaissance Zones now comprise 152 geographic locations in 21 urban, rural and military zones throughout the state. To date, they have led to $2.5 billion of private investment in more than 430 projects and the creation of more than 8,500 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. For more information on Tool and Die Recovery Zones and how to apply, visit the MEDC Web site at www.michigan.org.
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