Incentives

Southwest Michigan First's experience with and knowledge of business incentives allow us to help companies identify and understand the opportunities available through the state of Michigan, Kalamazoo County and individual municipalities in our Region.  Please contact us at 269.553.9588 for assistance in deciding which programs might work for you and facilitating the process between your company and the above mentioned government organizations. 

Renaissance Zones
Renaissance Zones are virtually tax free geographical areas for any business or resident presently in, or moving into, the zone.   Renaissance Zones are designed to provide selected communities with the most powerful market-based incentive – no taxes – to create new jobs and investment.

Kalamazoo Renaissance Zones
Midlink Business Park

Brownfield Redevelopment
Brownfield is a term describing the obstacle to industrial or commercial property redevelopment caused by the threat of liability for existing contamination. In Michigan, that obstacle has been removed. Buyers and lenders are now reliably protected from liability under Michigan law. On a case by case basis, sites or an obsolete building in this category may be eligible for incentives.

 

Kalamazoo County Brownfield Redevelopment
City of Kalamazoo Brownfield Redevelopment
City of Portage Brownfield Redevelopment
Brownfield Redevelopment (Source:  MEDC)

MEGA Tax Credit
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.

 

Companies eligible for a MEGA tax credit against the MBT are those engaged in manufacturing, research and development, wholesale trade or office operations that are financially sound and have solid proposals. Retail facilities are not eligible. Each credit may be awarded for up to 20 years and up to 100 percent of an amount equal to the personal income tax generated by new workers, based on program guidelines and MEGA board approval.

 
Industrial Property Tax Abatement (P.A. 198)
Industrial property tax abatements provide incentives for 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. “High-technology activity” is defined in the MEGA act as: advanced computing, advanced materials, biotechnology, electronic device technology, engineering or laboratory testing, medical device technology, product research and development and advanced vehicles technology. 

Each municipality may have their own policy and terms for the length of the abatement.

Industrial Property Tax Abatement (Source:  MEDC)

Private Activity Bond Program
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.

Private Activity Bond Program (Source:  MEDC)

Economic Development Job Training Program
The Economic Development Job Training (EDJT) Program seeks to ensure that Michigan has the training resources to retain and attract business and people to move into the 21st Century with a highly skilled workforce. EDJT awards are discretionary and require that businesses and training providers work closely with an Michigan Economic Development Corporation (MEDC) account manager and workforce development specialist to develop an effective training plan. 

Employee Training under Michigan's Economic Development Job Training (EDJT) Program (Source:  MEDC)

Procurement Technical Assistance Centers

The Procurement Technical Assistance Centers (PTACs) of Michigan are your first step in getting government contracts. Not only that, the PTACs can assist your company throughout the entire process from start to finish: registering to become a government contract, identifying bid opportunities, walking you through and simplifying the bidding process, helping you to expedite payments through electronic invoicing and even helping you post award with the evaluation of contract awards.

The Procurement Technical Assistance Centers of Michigan, Inc. (Source:  MEDC)