LANSING – State Representative Bob Constan (D-Dearborn Heights) today announced a huge victory for Michigan's business community after the House and the Senate reached an agreement on the Michigan Business Tax, a comprehensive solution to replacing the Single Business Tax that rewards investment, protects Michigan-based companies, and safeguards funding for education, health care, and police and fire protection.
"The Michigan Business Tax does two essential things – it rewards companies that invest in Michigan and it rewards companies that create jobs for our workers," Constan said. "This plan will make Michigan a magnet for investment and 21st century job providers. This is just what we need to jumpstart our economy and get Michigan back on track."
Under the agreement reached this week, about 75 percent of businesses in Michigan would pay less in taxes under the Michigan Business Tax (MBT). It is the only plan of its kind to address both the Personal Property Tax and the Single Business Tax (SBT) in such a far-reaching manner.
The House Democrats' MBT plan 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 by an average of
67 percent for manufacturers and 23 percent for commercial businesses, while also protecting funding for local units of government. - 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 essential services by ensuring revenue-neutrality.