Funding & Incentives
The information below provides a snapshot of the state and federal programs offered to qualified businesses for funding and other incentives.
State & local incentives:
INCENTIVES
Michigan Economic Growth Authority (MEGA) - Hi-tech
The High-Tech Michigan Economic Growth Authority (MEGA) program promotes the development of high-tech businesses in both traditional and emerging industries by providing a tax credit against the Michigan Business Tax (MBT) and assists in the diversification of Michigan’s economy.
MEGA - Retention
The Michigan Economic Growth Authority (MEGA) is empowered to assist Michigan companies that are considering a business closure by awarding a Retention MEGA.
MEGA - Standard
The Michigan Economic Growth Authority (MEGA), the state’s response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan.
Michigan Film Incentive
The film incentive, officially called the film production credit, is a refundable, assignable tax credit of up to 42% of the amount of a production company’s expenditures (depending upon type) that are incurred in producing a film or other media entertainment project in Michigan.
PA 328 - New Personal Property Tax Exemption (local)
The Personal Property Tax Relief in Distressed Communities allows distressed communities, county seats and certain border county communities to abate personal property taxes on new investments made by eligible businesses.
PA 198 - Industrial Property Tax Abatement (local)
Industrial property tax abatements provide incentives for eligible businesses to make new investment in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, renovate aging plants, or add new machinery and equipment. High-technology operations are also eligible for the abatement.
TAX CREDITS
Anchor Jobs Credit
The Anchor Jobs credit, passed by the legislature in 2008, is designed to diversify Michigan’s economy while creating significant value chain jobs. The qualified taxpayer is able to claim a credit for the payroll of the customers or suppliers who create qualified new jobs, for up to five years. The credit also provides that qualified sales to a qualified supplier or customer would not be sales in Michigan for the purposes of calculating the sales factor under the Michigan Business Tax (MBT).
Brownfield Tax Credit
Brownfield is a term describing the obstacle to property redevelopment caused by the threat of liability from existing contamination. In Michigan, that obstacle has been removed. Buyers and lenders are now reliably protected from liability under Michigan law.
The Technology Collaboration Tax Credit (TCC) provides the opportunity to develop strategic partnerships between emerging technology companies and larger, established businesses by providing an incentive for the larger companies to invest in the smaller companies, while helping to diversify Michigan’s economy.
FINANCING / LOANS
Diversification Loan Program
If you are a manufacturing company looking to diversify into a new industry, the Michigan Economic Development CorporationSM (MEDC), along with local economic development partners and state supported service providers, are offering opportunities for companies. The overriding goal is to help Michigan companies land more contracts in these new or growing industry spaces.
Private Activity Bonds
Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates.
Recovery Zone Bonds
The Recovery Act creates two new categories of bonds to provide reduced rate financing and stimulate economic growth Recovery Zones:
- Recovery Economic Development Bonds (for governmental borrowers)
- Recovery Zone Facility Bonds (for private borrowers)
Small Business Administration (SBA)
Whether you’re just starting a small business or expanding to take advantage of new opportunities, your business needs the right financing at the right time in order to succeed. SBA is committed to helping small businesses, which are the backbone of the nation’s economy, thrive. Working closely with a wide range of lending partners across the country, SBA has developed a number of financial programs that address the various needs of small businesses.
See more information on Funding & Incentives for Start-ups >