LANSING, Mich. — Sen. Michael D. MacDonald is outlining tax relief for Macomb County families and job providers and funding for local services as part of the Make it in Michigan Plan that was finalized by the Legislature in bipartisan fashion on Tuesday.
“Small businesses are the backbone of our economy and have been disproportionately affected by the COVID-19 pandemic, with thousands of Michigan businesses forced to close their doors for good,” said MacDonald, R-Macomb Township. “This plan will help the local businesses who survived to get back on their feet with important tax relief and help Michigan compete for significant investments and high-wage jobs through an effective and accountable program.
“In addition to strong repayment provisions and reporting requirements to ensure companies live up to their agreements and taxpayer dollars are producing results, this plan includes additional funding to support local governments impacted by the personal property tax savings.”
Senate Bill 769 would create the Strategic Outreach and Attraction Reserve (SOAR) fund, which would receive funds through a legislative appropriation. Funds from SOAR would be transferred to the Critical Industry Program (CIP) or Michigan Strategic Site Readiness Program (MSSRP).
House Bill 5603 would create the MSSRP to provide grants, loans, and other economic assistance for eligible applicants to conduct activities creating investment-ready sites. SB 771 would create the CIP, which would provide funds for qualified investments to qualified businesses for deal-closing, gap financing, or other economic assistance that create new qualified jobs and/or make capital investments (not for administrative purposes).
Under HB 5351, the state’s Personal Property Tax (PPT) exemption would increase from $80,000 to $180,000 for small businesses to help counter losses incurred because of COVID-19.
SB 85 includes $75 million to help hold local governments harmless for any revenue shortfalls they would see from the PPT change.
“Before supporting this reform, I also secured a solid commitment from Senate leadership that we will soon work on a permanent solution to protect our local governments in the future and ensure they can continue providing the vital services that families and businesses use every day,” MacDonald said.