LANSING – The Michigan House today approved a comprehensive new business tax that rewards investment, protects Michigan-based companies, and safeguards funding for education, health care, and police and fire protection. The new Michigan Business Tax (MBT) replaces the Single Business Tax, which was repealed during last year's legislative session.
"In order to jumpstart Michigan's economy, we need to reward companies that invest in our state instead of those that outsource jobs to other areas," said State Representative Martin J. Griffin (D-Jackson), who sponsored House Bill 4370, a bill in the new MBT package that would exempt commercial and industrial personal property from the 6-mill State property tax. "This reform package will pave the way for job creation, which will better position Michigan in the global economy."
Michigan businesses will pay less in taxes under the new plan passed by the House. The comprehensive plan makes Michigan a more attractive place to do business and by rewarding investment.
The MBT will:
- Provide new tax credits that reward Michigan businesses for investment.
- Cut the Personal Property Tax by an average of 65 percent for manufacturers and 23 percent for commercial businesses.
- Protect funding for local units of government.
- Reward companies that employ Michigan workers and increase payroll.
- Enhance existing small businesses tax credits and help both large and small employers.
Large and small employers across the state have praised House Democrats for showing leadership and vision in the development of the MBT.