LANSING – State Representative Robert Jones (D-Kalamazoo) 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 Michigan Business Tax is exactly what we need to move Michigan forward," said Jones who serves on the House Tax Policy Committee. "It rewards companies that invest in our state and create jobs for our workers. It also requires that companies that send their jobs to other states and countries pay their fair share. This new business tax will help jumpstart our economy and get our state back on track."
The MBT replaces Michigan's outdated Single Business Tax, which expires at the end of the year.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.