Michigan offers a wide range of economic development incentives aimed at supporting business growth, innovation, and job creation.  With a strong emphasis on advanced manufacturing, technology, energy, and automotive industries, the state provides numerous tax credits, grants, and financing programs to help businesses thrive.  Below are some of the key business incentives available in Michigan.

Michigan Business Development Program (BDP)

Overview

The BDP is a competitive incentive program designed to encourage business growth and job creation in Michigan.  This program is intended for businesses that are considering expanding or relocating to the state.

Eligibility

• Businesses must demonstrate plans for job creation, capital investment, and positive economic impact.

• The program is open to businesses across various sectors, including manufacturing, technology, and research and development.

Incentive Value

• The program offers performance-based grants, tax credits, or loans to qualifying businesses.

• Grants can be awarded for up to 20% of the total project costs, depending on the scope of the investment and job creation.

Application Process

Businesses must apply to the Michigan Economic Development Corporation (MEDC), providing financial projections, job creation plans, and investment details.

Michigan Renaissance Zones

Overview

The Michigan Renaissance Zones program offers property tax exemptions for businesses and residents located in designated areas of Michigan.  This program aims to revitalize economically distressed areas by incentivizing business development and job creation.

Eligibility

• Businesses must operate within one of Michigan’s designated Renaissance Zones.

• The program is available to businesses in sectors such as manufacturing, technology, and retail.

• Businesses must meet job creation and investment criteria to qualify for the property tax exemption.

Incentive Value

• Businesses and residents within the zone can receive a 100% exemption from local property taxes.

• The exemption can last for up to 15 years, depending on the location and economic impact.

Application Process

Businesses must apply to the MEDC and local municipalities for designation within a Renaissance Zone.

Michigan Economic Growth Authority (MEGA) Tax Credit

Overview

The MEGA Tax Credit is designed to provide tax incentives to businesses that create jobs and make significant investments in the state.  This program is especially beneficial for businesses that engage in high-tech industries, advanced manufacturing, and research and development.

Eligibility

• The business must create a minimum number of full-time, permanent jobs.

• The business must make a significant investment in facilities or equipment within Michigan.

Incentive Value

• The MEGA Tax Credit provides income tax credits based on the number of jobs created and the amount of investment.

• Businesses can receive credits for up to 10 years, with a potential value of up to $10 million or more.

Application Process

Businesses must apply to the MEDC, providing detailed plans for job creation and investment.

Michigan Film Incentive Program

Overview

The Michigan Film Incentive Program offers financial incentives to production companies in the film, television, and digital media industries.  This program is designed to encourage the creation of films and TV shows in Michigan and provide job opportunities in the entertainment industry.

Eligibility

• Businesses must be involved in the production of feature films, television shows, or digital media content.

• The project must incur qualifying production expenses within Michigan.

Incentive Value

• The program provides a refundable tax credit of up to 40% of eligible production expenditures.

• The credit can be applied to state taxes and can be used to offset production costs in Michigan.

Application Process

Businesses must apply to the Michigan Film Office, providing documentation of production costs and project plans.

Michigan Research and Development (R&D) Tax Credit

Overview

Michigan’s R&D Tax Credit is designed to incentivize businesses to invest in research and development activities.  The credit is aimed at businesses that engage in the development or improvement of products, processes, or technologies.

Eligibility

• The business must incur qualified R&D expenses within Michigan.

• Eligible R&D activities must involve technological innovation or the development of new products or processes.

Incentive Value

• Businesses can receive a tax credit equal to 1% to 3% of their qualified R&D expenses.

• The credit can be used to offset Michigan corporate income taxes.

Application Process

Businesses must file a claim with the Michigan Department of Treasury (MDT), providing detailed information on R&D expenses and activities.

Michigan Clean Energy Manufacturing Credit

Overview

The Michigan Clean Energy Manufacturing Credit is aimed at encouraging businesses to invest in renewable energy technologies and clean energy manufacturing facilities.  The credit supports efforts to expand Michigan’s clean energy sector and reduce greenhouse gas emissions.

Eligibility

• Businesses must make a significant investment in the construction or expansion of clean energy manufacturing facilities.

• Eligible projects must involve the production of renewable energy equipment, energy-efficient technologies, or clean energy products.

Incentive Value

• The credit provides up to 20% of eligible project costs.

• The value of the credit is dependent on the scale of the project and the impact on Michigan’s energy economy.

Application Process

Businesses must apply to the MEDC, providing a detailed proposal and investment plans for the clean energy project.

Michigan Talent Development Program (TDP)

Overview

The Michigan Talent Development Program (TDP) provides financial assistance to businesses for employee training and workforce development.  The program is designed to ensure that businesses can access the skilled labor they need to succeed in a rapidly changing economy.

Eligibility

• Businesses must be registered in Michigan and employ at least one full-time employee.

• The training program must be designed to enhance the skills of the workforce in key industries, such as manufacturing, technology, and health care.

Incentive Value

• The program provides grants to cover up to 50% of the costs associated with employee training programs.

• Businesses can receive grants of up to $250,000 for specialized training projects.

Application Process

Businesses must apply through the Michigan Department of Labor and Economic Opportunity, providing details on their training needs and projected outcomes.

Michigan Export Growth Program

Overview

The Michigan Export Growth Program is designed to assist businesses in expanding their international markets by providing funding for export-related activities.  The program aims to help businesses grow their export operations and increase Michigan’s global competitiveness.

Eligibility

• Businesses must be involved in manufacturing or services with the intent to increase international sales.

• The program is available to small and medium-sized businesses located in Michigan.

Incentive Value

• The program provides grants of up to $5,000 to help cover costs related to market research, trade shows, and international marketing.

• The grant can be used for activities that will help businesses establish or expand international operations.

Application Process

Businesses must apply through MEDC, providing details of their export activities and goals.

Michigan New Markets Tax Credit Program

Overview

The Michigan New Markets Tax Credit Program is aimed at incentivizing investment in economically distressed areas by providing tax credits to investors.  The program encourages business development in low-income communities and promotes economic revitalization.

Eligibility

• Businesses located in designated low-income areas may be eligible for the program.

• Investors who invest in qualifying businesses may receive tax credits for their contributions.

Incentive Value

• The program offers investors tax credits equal to up to 39% of their qualified investment over a 7-year period.

• The program is designed to provide long-term financial support for business development in underserved communities.

Application Process

Investors and businesses must apply to MDT, providing documentation of the project and investment details.