LANSING – State Representatives Joan Bauer (D-Lansing), Mark Meadows (D-East Lansing) and Barb Byrum (D-Onondaga) today announced that Governor Jennifer M. Granholm signed the new Michigan Business Tax into law. The comprehensive MBT will help move Michigan toward economic recovery by rewarding investment, protecting Michigan-based companies, and safeguarding funding for education, health care, and police and fire protection.
"Michigan has the potential to be an economic powerhouse in the 21st century economy, and the MBT will help us harness that potential," Bauer said. "The MBT rewards companies that invest in our state and creates good-paying jobs for our workers. This is a huge victory for Michigan."
"The MBT requires companies that ship jobs to other states and countries to pay their fair share," Byrum said. "This is the first plan of its kind to tackle both replacing the Single Business Tax and slashing the Personal Property Tax."
The MBT replaces Michigan's outdated Single Business Tax, which expires at the end of the year. Under the MBT, about 75 percent of businesses in Michigan will pay less in taxes. The MBT will:
- Provide over $600 million in new tax credits that reward Michigan businesses for investment, compensation, and research and development.
- Reward capital investment by cutting the Personal Property Tax an average of 65 percent for manufacturers and 23 percent for commercial businesses, while protecting funding for local units of government.
- Boost job creation by providing credits for investment in Michigan and for payroll.
- Give significant breaks to small businesses and enhance existing tax credits.
- Protect education, health care, police and fire protection, and other essential services by ensuring revenue-neutrality.
- Preserve local government revenue from the personal property tax and provide a tax credit to Michigan businesses for that amount.
"We worked closely with Michigan's business community to craft a comprehensive plan that truly will move Michigan forward," Meadows said. "The MBT provides significant incentives that will help make Michigan a magnet for 21st century businesses and industries. It will help us become a leader in today's global economy."