LANSING – State Representatives Richard E. Hammel (D-Mt. Morris Township) and Lee Gonzales (D-Flint Twp.) announced today 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.
"This is a victory for Michigan's workers, Michigan's businesses and Michigan's communities," Hammel said. "Rewarding companies that invest in Michigan and create jobs for our workers will jumpstart our economy while keeping our communities strong. With the MBT in place, our state can truly start moving in the right direction. "
The MBT replaces Michigan's outdated Single Business Tax, which expires at the end of the year.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.
"The MBT provides strong incentives for emerging industries and the types of companies that will provide the good-paying jobs of the future," Gonzales said. "The New Michigan Business Tax will help put Michigan in a strong position in the 21st century global economy."