New Law Strengthens Our Tools to Compete for Jobs

April 28-Governor Jennifer Granholm today signed into law a package of bills reforming the state's major business incentive to allow more flexibility in meeting interstate and international competition for business investment.

Under the reforms, a company that is retaining or creating a minimum of 50 jobs can qualify for a Michigan Economic Growth Authority (MEGA) Michigan Business Tax credit. For the first time, tourism attraction projects including cultural, historical, or scenic sites can qualify for MEGA business tax credits. The reforms also pave the way for small, high-tech businesses in "creative class" industries like architectural design to qualify for the incentives as well.

Individuals or groups that win procurement contracts with the U.S. Departments of Defense, Energy, or Homeland Security can receive MEGA tax credits based on creation of at least 25 qualified new jobs.

"This is a great new tool allowing us to reinvigorate the state's economy by bringing not just new companies but whole new industries to Michigan," Michigan Economic Development Corporation President and CEO James Epolito said. "It will strengthen Michigan in the competition for job creation and investment."