The Latest: Michigan Senate OKs new businesses incentives

LANSING, Mich. – The Latest on the Michigan Senate’s consideration of new economic development incentives (all times local):

3:45 p.m.

Michigan could provide up to $300 million in annual tax incentives to attract larger-scale business expansion and to foster the development of contaminated brownfield sites under legislation approved by the state Senate.

The chamber voted overwhelmingly Tuesday to move the bills to the House.

The job-creation incentives are backed by Gov. Rick Snyder — a departure from his past skepticism of such tax breaks — while lawmakers hope to make changes so he will support the brownfield package.

Some bills would authorize the Michigan Strategic Fund to strike 10-year deals with companies so they could keep income tax withholdings.

Business could qualify if they create at least 250 jobs that pay 125 per cent or more of the average wage in the county, or if they create at least 500 jobs.

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10:25 a.m.

Michigan would provide up to $250 million in tax breaks a year to attract larger-scale business expansions under legislation advancing in the Legislature.

A Senate committee quickly and unanimously approved bipartisan bills Tuesday that supporters say are needed to compete with other states. They say Michigan is among two states with a corporate income tax and no tax credits, and Ohio and Indiana offer incentives worth seven times more than Michigan’s.

The legislation, which the Senate plans to pass Tuesday, would authorize the Michigan Strategic Fund to strike 10-year deals with companies so they could keep income tax withholdings.

Business could qualify if they create at least 250 jobs that pay 125 per cent or more of the average wage in the county, or if they create at least 500 jobs.