LANSING, Michigan – Senator Michael D. MacDonald outlines tax breaks for Macomb County families and job providers, as well as funding for local services, as part of the Make it in Michigan plan, which the legislature finalized in a bipartisan manner on Tuesday.
“Small businesses are the backbone of our economy and have been disproportionately affected by the COVID-19 pandemic, forcing thousands of Michigan businesses to close their doors for good,” said MacDonald, R-Macomb Township. “This plan will help surviving local businesses get back on their feet with important tax breaks, and it will help Michigan compete for significant investments and high-wage jobs through an effective and responsible program.
“In addition to strict repayment policies and reporting requirements to ensure businesses meet their agreements and tax dollars get results, this plan includes additional funding to support local governments affected by the private property tax savings.”
Senate Bill 769 would create the Strategic Outreach and Attraction Reserve (SOAR) fund, which would receive funding through legislative approval. SOAR funds would be transferred to the Critical Industry Program (CIP) or the Michigan Strategic Site Readiness Program (MSSRP).
House Bill 5603 would create the MSSRP to provide grants, loans and other economic assistance to eligible applicants so they can conduct investment-ready site creation activities. SB 771 would create the CIP that provides skilled businesses with funding for skilled investment to close deals, fund gaps or create other economic aid that creates new skilled jobs and / or makes capital investments (not for administrative purposes).
Under HB 5351, the state’s personal property tax (PPT) exemption for small businesses would be increased from $ 80,000 to $ 180,000 to avoid losses due to COVID-19.
SB 85 includes $ 75 million to hold local governments harmless for any revenue shortfalls they would see from the PPT change.
“Before I supported this reform, I also received a solid commitment from the Senate leadership that we would soon work on a permanent solution to protect our local governments going forward and to ensure that they can continue to provide the vital services that families and communities need Leverage company every day, ”said MacDonald.