Border County Incentives
The State of Michigan recognizes that eligible new warehouse, distribution, or logistics facilities that locate in a county bordering another state may qualify for tax incentives. If you are considering a location in Berrien, Branch, Cass or St. Joseph Counties, connect with our team to learn more.
Financial assistance is available to help offset the cost of redeveloping contaminated, blighted or functionally obsolete property. Utilizing tax increment financing, which captures the new property taxes generated by a development project, a business can be reimbursed on a dollar for dollar basis over time for certain Eligible Activities. Eligible Activities may include environmental site assessment & remediation, demolition, lead & asbestos abatement, site preparation and public infrastructure improvements. Property must be contaminated, blighted, functionally obsolete, or owned by the County Land Bank.
Foreign Trade Zones
Foreign Trade Zones (FTZs) are special economic zones in the United States where imported goods can be stored, distributed, processed and used without being subject to customs duty. FTZs provide customs-related advantages to help U.S. companies compete in the global marketplace.
Industrial Property Tax Abatement (P.A. 198)
Industrial property tax abatements provide incentives for eligible businesses to make new investments in Michigan. These abatements encourage 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 abatement. This program is administered at the local level within each municipality.
Michigan Business Development Program
The Michigan Business Development Program is a fairly new incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans or other economic assistance for highly competitive projects in Michigan that create jobs and/or provide investment.
Michigan Collateral Support Program
The Michigan Collateral Support Program supplies cash collateral accounts to lending institutions to enhance the collateral coverage of borrowers. To qualify, a business must be engaged with a private lender for the purpose of acquiring a commercial extension of commercial credit and must exhibit a collateral shortfall according to the lender’s analysis.
Michigan Loan Participation Program
The Michigan Loan Participation Program participates with lenders to finance diversification projects when faced with eligible borrower companies whose projected cash flows are considered speculative by the lender.
To retain the state’s current workforce, Michigan Works! offers several workforce assistance programs, including Employee Enhancement Training through the Incumbent Worker Program. This program allows companies to spend up to $3,500 to train each employee, depending on the training program. Michigan Works! also provides screening and hiring services, funding to complete on-the-job training, Worker Opportunity Tax Credits and ongoing training strategies. Past training programs have included computer skills, LEAN manufacturing, ISO and trade apprenticeships.
- Michigan Works! Southwest
serving Branch, Calhoun, Kalamazoo and St. Joseph Counties
- Michigan Works! powered by Kinexus
serving Berrien, Cass and Van Buren Counties
SBA Certified Development Company (504) Loans
The U.S. Small Business Administration’s (SBA) program provides small- and medium-sized businesses with long-term fixed-rate financing for the acquisition or construction of fixed assets. Companies must have a tangible net worth of less than $15 million and an average net profit of less than $5 million for the past two years.
There are several loan and loan guaranty programs made available through the Small Business Administration.
Utility and Energy-saving Programs
Substantial business energy savings rebates are available for achieving energy efficiencies through Consumers Energy and AEP Indiana Michigan Power.