LANSING – House Speaker Andy Dillon (D-Redford Twp.) today praised Governor Jennifer M. Granholm for acting quickly to sign the new Michigan Business Tax into law. The comprehensive MBT will help move Michigan toward economic recovery by rewarding investment, protecting Michigan-based companies, and safeguarding funding for education, health care, and police and fire protection.
"The MBT will help jumpstart Michigan's economy by rolling out the welcome mat to 21st century job providers and creating jobs for our workers," Dillon said. "I'd like to thank Governor Granholm for moving quickly to sign the MBT into law. By having a comprehensive business tax that rewards investment, we will be able to show businesses looking to relocate and expand that Michigan is where they want to be."
The MBT replaces Michigan's outdated Single Business Tax, which expires at the end of the year. Under the MBT, about 75 percent of businesses in Michigan will pay less in taxes. The MBT will:
- Provide over $600 million in new tax credits that reward Michigan businesses for investment, compensation, and research and development.
- Reward capital investment by cutting the Personal Property Tax an average of 65 percent for manufacturers and 23 percent for commercial businesses, while protecting funding for local units of government.
- Boost job creation by providing credits for investment in Michigan and for payroll.
- Give significant breaks to small businesses and enhance existing tax credits.
- Protect education, health care, police and fire protection, and other essential services by ensuring revenue-neutrality.
"As we work to get Michigan back on track, we must make our state a magnet for good-paying jobs," Dillon said. "The MBT provides incentives for companies to bring their business to Michigan. Our economy and our workers will reap the rewards of the new Michigan Business Tax."
Dillon also praised State Representatives Kathy Angerer (D-Dundee), Steve Bieda (D-Warren) and Paul Condino (D-Southfield) for their hard work in pulling together lawmakers from both sides of the aisle to craft the new Michigan Business Tax.
In developing the MBT, 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.