Tuesday, April 8, 2008
Part of Stimulus Package to Grow Economy
LANSING - Governor Jennifer M. Granholm today signed into law a package of bills that create new tools designed to attract new business investment and jobs in fast-growing, high-technology industries. The bills create "anchor zones" that provide incentives to companies to attract other growing companies. The anchor zones are part of an overall job creation and economic stimulus package proposed by the governor in her State of the State address earlier this year.
"These are great new tools that allow us to pursue high-growth companies and new jobs," Granholm said. "They will enhance our ability to compete for new jobs and investment."
The first of two bills signed into law provides tax credits for anchor companies, those companies that attract or influence suppliers or customers to expand anywhere in Michigan. The size of those anchor zone tax credits are based on the number of jobs created and the amount of personal income taxes generated by those jobs.
A second bill grants the anchor company a Michigan Business Tax credit incentive for up to 10 years for successfully encouraging a customer or supplier company to locate within a 10-mile radius of the anchor company's facility. The company entering the anchor zone must invest at least $1 million and create more than 10 full-time jobs. It can be a Michigan company adding a new location in Michigan, a business relocating to the state, or one expanding operations in Michigan as a result of doing business with the anchor company.
"We want to reward companies that are helping us attract investment by job-producing companies in high-tech industries that will grow Michigan's economy," Michigan Economic Development Corporation President and CEO James C. Epolito. "We are laying the foundation for broad investments and jobs in new competitive-edge industries."
The new anchor zone incentives are directed at companies, suppliers, and customers active in high-growth, high-technology industries targeted in the governor's 21st Century Jobs Fund initiative to diversify and strengthen Michigan's economy, particularly in the area of alternative energy. Other areas of growth include advanced manufacturing and materials, information technology, medical devices, and life sciences.
Earlier this week, Governor Granholm signed into law another part of her economic stimulus plan: legislation that establishes the most aggressive film incentive program in the nation. These new laws have set the stage for hundreds of millions of dollars in private investment that will create jobs in the state.
The bills signed today are Senate Bill 1115 sponsored by State Senator Jason Allen (R-Traverse City) and House Bill 5858 sponsored by State Representative Ed Clemente (D-Lincoln Park).
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
