LANSING – To quicken the pace for turning Michigan's economy around, the House today strengthened its comprehensive business tax and incentive package that rewards investment and protects Michigan-based companies, and sent the package back to the Senate.
"This reform package rewards companies that invest in our state," said State Representative Kate Ebli (D-Monroe) said. "By strengthening these sets of reforms, we pave the way for the creation of even more jobs, giving Michigan's economy the boost it needs."
The House first unveiled the plan in April – putting out the only plan of its kind to address both the Personal Property Tax and the Single Business Tax (SBT) in such a far-reaching manner. The Michigan Business Tax (MBT) would allow 75 percent of businesses in Michigan to pay less in taxes while protecting funding for education, health care and the 21st Century Jobs Fund.
The Single Business Tax (SBT), widely regarded as an outdated tax structure, is due to expire at the end of the year. The MBT provides a revenue-neutral replacement that will spur job creation by rewarding companies that invest in our state.
"By strengthening this reform package even further, we send a strong message to businesses: Michigan is the place to come to do business," said State Representative Kathy Angerer (D-Dundee). "This plan will make our state a magnet for 21st century jobs providers."
In developing the tax reform legislation, House lawmakers consulted with a variety of leaders from the public and private sectors, including tax experts, small business leaders, local government, the nonprofit community, organized labor and many others. The result is a comprehensive package that incorporates elements from the plans offered by Governor Jennifer M. Granholm, the State Senate, the Michigan Chamber of Commerce, the Grand Rapids Chamber of Commerce and others.
This plan has drawn support from the Michigan Chamber of Commerce, the Michigan Manufacturers Association, the auto industry, and other groups that are vital to our economy.