Yesterday Governor Snyder signed into law the Jobs Bill. A tax break for businesses that create a large number of jobs in Michigan.
The Jobs Bill will offer incentives in the following manner. Any business that creates at least:
- 250 jobs would qualify for a 100% credit of the Michigan tax withheld from employees for up to 10 years.
- 500 jobs would qualify for a 50% credit of the Michigan tax withheld from employees for up to 5 years.
- 3,000 or more jobs would qualify for a 100% credit of the Michigan tax withheld from employees for up to 10 years.
In order to qualify for the Jobs Bill not only do the businesses have to create the jobs within a certain time frame, they may also have to create the jobs at or above the average regional wage (except those employers that create at least 3,000 jobs). They would also have to apply with the State of Michigan and have their application accepted prior to 12/31/2019 (when the program is set to end, unless it is extended). This credit is available for up to 19 businesses annually, so if you are thinking about applying, you will want to make sure you do so as soon as possible.
Bill makers have supported this bill due to the fact that unlike other job creation bills, if the employer does not create the jobs, they do not receive the credit. We hope the State continues to support these types of bills which not only support job creation, but also hold the applicants accountable to create the jobs in order to qualify.
For more information about the Jobs Bill check out this great article on MLive: