LANSING – State Representatives Kate Ebli (D-Monroe) and Kathy Angerer (D-Dundee) 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.
Ebli was the lead sponsor of one of the key components of the business incentive package – the legislation that cuts the Personal Property Tax an average of 65 percent for manufacturers and 23 percent for commercial businesses.
"Residents of Michigan have made it clear that they want fair and effective programs that will protect funding for vital services while jumpstarting the economy – and the MBT does that," Ebli said. "By cutting the Personal Property Tax, our state will reward capital investment, which will boost our economy. The MBT will help make our state an economic powerhouse of the 21st century."
The MBT replaces Michigan's outdated Single Business Tax, which expires at the end of the year.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.
· 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 is comprehensive legislation that will provide incentives for companies that invest in our state and create good-paying jobs for our workers," said Angerer, who was a key player in the negotiations held between the House and Senate. "Under the Michigan Business Tax, about three-quarters of Michigan businesses will actually pay less in taxes. It's a tremendous victory for our state that the MBT was signed into law today."