MEGA was created to promote high quality economic growth and job creation. Since their inception in 1995, MEGA tax credits have spurred an estimated $5.1 billion in private investment, creating 29,000 jobs and spinning off another 35,000.

If you are an employer in electronics, communications, medical science and other high technology fields whose company devotes at least 25% of operating expenses to research and development, and you need a reason to expand or locate in Michigan rather than another state, you may be eligible for a high-tech job creation tax credit against the SBT. Each credit may be awarded for up to 20 years and for up to 100% of the tax related to the project.

These tax credits through MEGA (Michigan Economic Growth Authority) are designed to attract new, innovative and cutting-edge companies that specialize in new technologies. They are available to firms doing advanced computing, biotechnology, electronic device technology, engineering and laboratory testing related to product development, medical device technology, product research and development, advanced vehicle technology or technology that assists in the assessment or prevention of threats or damage to human health or the environment. 

MEGA tax credits are also available to companies creating good-paying jobs in manufacturing, R&D, wholesale trade and office operations that meet the criteria. 

Michigan is an active participant in maintaining a highly trained, skilled labor force. Its approach, resources and results are unmatched by any state in the nation. In recent years, Michigan has developed trend-setting programs to deliver job training assistance to employers. It is the nation’s #3 state in workforce training as ranked by Expansion Management magazine in 2001. Employers are at the front end identifying their own customized employee training needs and working in partnership with schools, government agencies and other community resources to develop the most effective worker readiness programs in the United States. Grants averaging $700 per employee can be used to train or upgrade skills.

Michigan’s annual Economic Development Job Training (EDJT) program is a major feature of the state’s economic development incentive package. It provides approximately $29 million each year to companies for training or retraining of workers to meet marketplace needs, with the employer required to match 25% of the state grant for training of existing workers. Funds are awarded through a competitive process. The employer works with private or public education providers to design the training.

Major programs available for location and expansion projects include industrial development revenue bonds, taxable revenue bonds, SBA (Small Business Administration) and Rural Development Agency loan guarantees and SBA 504 loans.

State and federal government have a number of programs that can be used to supplement local funds for such projects. They include industrial property tax abatement, Community Development Block Grants and Core Communities. Federal funds in the form of state-administered Community Development Block Grants can be used for road, water and sewer improvements necessary for a firm to locate or expand in an area. The amount of the grant depends on the number of jobs created and the amount of private investment.

Industrial property tax abatements are used to spur renovation and expansion of aging manufacturing plants and new plant construction. They have recently been extended to high-tech companies. Abatements are approved by the local units of government and issued by the state, reducing property tax on buildings, machinery and equipment by roughly 50% for new facilities and 100% for renovation projects. They are available for up to 12 years everywhere in the state.

The Core Communities Fund (CCF), a program established to revitalize urban cores in 88 eligible communities, has a $50-million fund to be used for land assembly, site preparation and infrastructure improvements. CCF projects have included land assembly of an urban industrial park, acquisition and demolition of riverfront parcels for new office development and demolition of a blighted area to make way for an exciting new mixed-use development. In addition, the fund is being used to jumpstart several SmartZones^SM through acquisition and build-out of specialty-designed business incubators that feature wet lab space and provide super connectivity and bandwidth in the zone, as well as other amenities sought after by emerging high-tech companies.   

Certified air and water pollution abatement equipment is 100% exempt from property taxes in Michigan. Certification is approved by DEQ.