State Representative Ed Clemente (Lincoln Park) watches as the House of Representatives passes his job-creation plan on Wednesday, Oct. 21, 2009. The lawmaker's plan will expand the number Michigan Economic Growth Authority (MEGA) tax credits being made available to bring new and emerging industries to Michigan and create jobs for our workers.
LANSING – The Michigan House of Representatives today passed legislation to expand the number of tax credits being made available for businesses that create jobs for Michigan workers. The plan passed the House with broad bipartisan support.
"Rewarding businesses that create good-paying jobs for our workers is one of the smartest and fastest ways to grow our economy," said State Representative Ed Clemente (D-Lincoln Park). "These tax credits have been instrumental in bringing new industries to our state and getting our workers back on the job. Expanding this program is good for our workers and good for Michigan."
The plan expands the number of Michigan Economic Growth Authority (MEGA) tax credits being made available to bring new and emerging industries to Michigan. The value of the MEGA credits awarded is based on various factors, including the number of Michigan jobs created and the salaries for those jobs. These credits have been so successful in Michigan that other states have recently created similar programs using Michigan as a model.
"Michigan's workers need good-paying jobs now," said State Representative Dian Slavens (D-Canton). "By drawing new industries to Michigan we can make that happen. Passing this plan today tells companies looking to relocate or expand that Michigan is open for business."
Similar Michigan tax credits for businesses were recently heralded as central in attracting alternative energy and advanced battery manufacturers to Michigan. Such credits have resulted in nearly $3 billion in investment by world-class alternative energy companies that will create more than 9,000 Michigan jobs.
The plan passed today also will increase accountability for businesses that take advantage of the credits by requiring more detailed reporting of how many Michigan jobs are created as a result.
House Democrats have been at the forefront of leveraging tax credits to bring high-tech, renewable energy industries to Michigan – including credits for the production of lithium-ion batteries for General Motors' new Chevy Volt and the transformation of a shuttered Ford plant in Wixom into a cutting-edge alternative energy park.
"Michigan has the best workers in the world," said State Representative Lisa Brown (D-West Bloomfield). "These credits will roll out the welcome mat for employers looking to make our state the place where they set up shop and create jobs. This is exactly the kind of action necessary to attract businesses and the good-paying jobs Michigan needs to succeed in the 21st century economy."