Incentive Programs
| SYNOPSIS OF POTENTIAL INCENTIVES AND ASSISTANCE AVAILABLE FOR MANUFACTURERS Michigan Works! Incumbent Worker Training Program - Provides funds to help train existing workers- Training program developed by the company and delivered by the training organization of your choice - Required 50% matching funds can include in-kind (e.g. worker’s wages while in training) Michigan Works! Employee Assessment and Hiring Assistance - Administration of “Work Keys” skill assessment tool to potential, existing, and new employees- Assistance in accepting employment applications from job seekers Michigan Works! On-The-Job Training - Training costs reimbursed at 50% of the employee’s beginning wage rate- Range of training hours is usually 200-600 hours depending on the specific job - Written agreement must be in place PRIOR to hiring Work Opportunity Tax Credit - Tax credit provided to employer based on hiring workers with specific characteristics (e.g veterans, public assistance recipients, offenders, etc.)Michigan Talent Bank - Internet-based system of job matching for Michigan employers and job seekers- 650,000+ available resumes - 1 million+ searches per month conducted by job seekers - 95% approval rating by employers P.A. 198 Industrial Property Tax Abatement - Granted at the discretion of the local unit of government- Up to 50 % abatement on real or personal property for up to 12 years P.A. 328 Personal Property Tax Relief in Distressed Communities - Granted at the discretion of the local unit of government- Up to 100% abatement on personal property and equipment new to Michigan for a term negotiated with local governmental unit - Only available in eligible distressed communities (i.e. Big Rapids) Economic Development Job Training (EDJT) Program - Offered by the Michigan Economic Development Corporation (MEDC)- Funds awarded to training institution - Training curriculum specified by company Assistance with Plant and Manufacturing Process Layout - Available through the Michigan Manufacturing Technology Center (MMTC) and includes assistance with lean manufacturing and continuous improvement, quality systems, ISO 14001, costing systems, management, and market diversification (there is a cost involved for this service)- Consultation also available through qualified Ferris State University staff (Tom Crandell) - Energy audits for existing facilities as well as “green building” design assistance available through qualified Ferris State University staff (Tom Crandell) State MEGA Tax Credit - Subject to state MEGA Board review and approval and is a tax credit against the Michigan Business Tax (MBT)- Dependent on competing incentive package from out-of-state - Award can be up to 20 years and up to 100% of an amount equal to the personal income tax generated by new (to Michigan) workers - For rural counties (Mecosta), must create 5 new jobs in the first year, 25 by year five - Wage rates must be 150% of the federal minimum wage (on July 24, 2008, this amounts to $9.83; on July 24, 2009 this will amount to $10.88) - Project cannot be announced or work started before the MEGA award Assistance with Procuring Federal Defense Contracts - Available through MEDC Defense Contract Coordination Center- Headed by Major General Bradley M. Lott, USMC (ret.) - Works through the Procurement Technical Assistance Centers - Provides bid matching and bid package assistance Anchor Renaissance Zone - Limited to five projects per year statewide- Pertains to situations where a major industry acts as an anchor to attract additional second and third tier suppliers to locate in proximity to anchor manufacturer - Anchor manufacturer becomes eligible to claim any MEGA tax credits normally due to new second and third tier suppliers Workers’ Compensation Cost Control Service - Available as a free service from the MEDC through a “Letter of Authorization” process- Assists employers in designing and implementing strategies for minimizing their costs of workers’ compensation coverage MIOSHA-Consultation, Education and Training (CET) Service - Free, no penalty, proactive site assessment of potential safety and health hazards provided by MIOSHA-CET Division- Provides the opportunity to learn about possible safety and health hazards and implement corrective actions in advance of a regular MIOSHA enforcement inspection - Offers training programs on a wide range of workplace safety and health topics Identification of Suitable Available Land for New Facility Location or Expansion - Local site selection assistance is available to employers looking to locate or expand in Mecosta County- Local governments are willing to work with existing employers to accommodate expansion needs - Three industrial parks in Mecosta County have sites immediately available for industrial development Community Infrastructure Development - Coordination and proper timing of additional job creation opportunities with local units of government allows for the leverage of outside grant funds in order to provide upgraded water, sanitary sewer, storm sewer, road improvements, and other utility enhancements of benefit to both the company and the local communityBrownfield Redevelopment Incentive - Coordination with the county Brownfield Redevelopment Authority could result in the availability of incentives to recapture the cost of any remediation activities on targeted parcels of property (if needed) to level the playing field and make the development of these parcels revenue neutral for the companyLocal Area Industrial Renaissance Zone Available for New Construction - Located in Big Rapids Township- 90 acres of developable “Greenfield” land - Tax free for up to 16 years with the following provisions: - Facilities are still responsible for taxes mandated by the federal government, local bond obligations, school sinking fund, or special assessments - Companies located in the Renaissance Zone are not exempt from paying Michigan sales and use taxes - Taxes companies located in the Renaissance Zone are exempt from paying include the Michigan Business Tax (MBT), Michigan personal income tax (if a resident of the Zone), Michigan’s 6-mill state education tax, local personal property tax, local real property tax, and local income tax - Served by municipal utilities - Adjacent to U.S. 131
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