LANSING – State Representative Richard LeBlanc (D-Westland) today announced that Governor Jennifer M. Granholm signed 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 new Michigan Business Tax will be key in moving Michigan toward economic recovery," LeBlanc said. "The MBT rewards companies that invest in Michigan and create jobs for our workers, which is exactly what Michigan needs. The MBT will help jumpstart our economy and get Michigan back on the road to recovery."
The MBT replaces Michigan's outdated Single Business Tax, which expires at the end of the year.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.
"The MBT gives companies looking to relocate or expand every reason to set up shop in Michigan," LeBlanc said. "This plan will help ensure that Michigan is a destination for emerging industries. The MBT will help make Michigan a powerhouse in the 21st century."