The leaders of the House Workforce and Talent Development Committee applauded today’s approval of legislation designed to help Michigan compete for large economic development projects.
The House approved the “Good Jobs for Michigan” legislation with bipartisan support. The bills will soon be headed to Gov. Rick Snyder for his consideration.
Committee chair Ben Frederick (R-Owosso) and minority vice chair Leslie Love (D-Detroit) both support the three-bill package, saying it will boost opportunities for Michigan workers.
The tax incentive plan could help Michigan better compete against Indiana, Ohio, Wisconsin and other states that offer lucrative tax incentives to businesses.
“We must continue to fight for our state, to grow our economy in Michigan, to be bold and try new things and get people working again,” Love said. “This is an opportunity to attract new industry and create new jobs. This creates new opportunities to advance into a new career, to create a better life.”
Love said the program will create opportunities for Michigan families who need a boost.
“Much has been done over the past several years to improve the economic environment in our state. But while Michigan is a peninsula, it is not an island,” Frederick said. “There are other states. Some of them have quite generous credits, to the level I would consider them to be mistakes. Some states simply have open checkbooks, which is wrong. How does Michigan compete? Wisely and prudently, with performance-based incentives through programs like this one.”
The legislation will allow companies creating at least 250 jobs to keep some income tax withholdings created through new employees. Wage levels help determine the amount of tax revenue that can be captured, and the length of time for which it may be captured.
Several taxpayer protections are built into the plan. Businesses must create a specified number of jobs within a specified time to qualify, and the size of the program is limited.