LANSING – In an effort to spur investment, create good-paying jobs and get Michigan's economy back on track, State Representative John Espinoza (D-Croswell) today helped the House pass a plan to slash the Personal Property Tax for businesses.
"By cutting the Personal Property Tax, we are showing companies around the world that Michigan is a rewarding place to do business," Espinoza said. "Giving incentives to employers who make a commitment to our workers is the best way to encourage them to create more good-paying jobs, and job creation is the key to jumpstarting our economy here in the Thumb and all across Michigan."
Under the plan to cut the Personal Property Tax, Michigan manufacturers will see an average cut of 67 percent; commercial businesses will see an average cut of 23 percent. Reducing the Personal Property Tax is just one part of the House Michigan Business Tax plan, which the House and Senate reached an agreement on this week. The MBT will:
- Provide over $600 million in new tax credits that reward Michigan businesses for investment, compensation, and research and development.
- Boost job creation by providing credits for investment in Michigan and for Michigan payroll.
- Help small businesses by exempting companies with less than $350,000 in gross receipts from taxation. Businesses with up to $20 million in gross receipts will pay reduced rates. The plan also enhances existing small-business tax credits.
- Protect education, health care, police and fire protection, and other services by ensuring revenue-neutrality.