LANSING – In a move that will reward companies that invest in Michigan and create good-paying jobs for our workers, the House today passed a bill introduced by State Representative Robert Dean (D-Grand Rapids) that will allow more industrial businesses to take advantage of personal property tax breaks.
"We must give our businesses incentives to invest in Michigan and create jobs," Dean said. "By slashing the personal property taxes paid by industrial businesses, we will create a friendlier climate that will attract businesses and good-paying jobs to our state. Rewarding companies that invest in our state is key to rebuilding Michigan's economy and creating jobs now for our workers."
Public Act 198 of 1974 is used by local units of government as an incentive for industrial companies to renovate and expand aging manufacturing plants or to build new plants in Michigan. When the House passed the new Michigan Business Tax last year, industrial properties covered under PA 198 were made eligible for additional personal property tax breaks on the moveable equipment within the plants. However, the plan did not include personal property tax breaks for equipment in industrial facilities that are zoned commercially.
Dean's bill will ensure that equipment in commercially zoned industrial businesses is eligible for those tax breaks.
"As long as a company is investing in Michigan and its workers, it shouldn't matter how its plant is zoned," Dean said. "Michigan owes a lot to the industrial and manufacturing businesses that helped build this state, and we need to stand by them when times are tough. By passing this plan, we are strengthening our economy and making our communities even better places to live, work, do business and raise a family."