Incentives and Taxes
Michigan Business Tax
The Details
The Michigan Business Tax (MBT) taxes apportioned business income at 4.95% and apportioned gross receipts (minus purchases from other firms) at 0.8%. A surcharge of 21.99% is applied to the income tax and gross receipts tax prior to credits. The MBT is apportioned to Michigan on a single sales factor. When applicable, companies are required to file as a unitary group. The MBT cuts industrial personal property taxes by 65% overall and contains a number of credits specifically for small businesses and capital expenditures.
The Credits
The MBT provides significant tax credits for investment in human and physical capital in addition to investment in R&D. Implemented in 2008, the MBT provides credits for small business, entrepreneurs and others, while crediting expenditures on:
For more information on the MBT:
Bissell, Inc. plans to invest approximately $9 million in an expansion and the opening of an innovation center at its facility in Walker.
State incentives have been approved to encourage General Motors to develop and produce the new Chevrolet Volt in Michigan along with additional advanced energy and conventional fuel vehicles and components.
Ohio-based Consolidated Biscuit Company (CBC)will invest $12 million in a new manufacturing center in Tecumseh, taking over the vacant Tecumseh Products plant.
Leggett & Platt d/b/a Genesis Seating plans to invest $9.1 million to expand operations in West Michigan.
Company expanding operations in Michigan as well as locating its new North American headquarters in Southeast Michigan over competing sites on the east and west coasts.
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