Cities today must offer a credible package of incentives in order to remain competitive. Buchanan’s menu of incentives includes assistance for companies that are locating in the city, as well as those that choose to grow and expand here.
Industrial Property Tax Abatements
Qualified businesses can now claim a credit against the SBT, provided the taxpayer has a pre-approval letter issued between December 31, 1999 and January 1, 2008 and the project is completed not more than five years after the letter is issued.
If the total of all credits for the project is $1 million or less, the credit is based on 10% of the eligible investment. If the total of all credits for the project is greater than $1 million but not more than $30 million, a credit is available for a percentage of eligible investment to be determined by the Michigan Economic Growth Authority (MEGA), but not to exceed 10% of the eligible investment. Certain location restrictions apply to these credits.
MEGA High-Tech Job Creation Tax Credits
These tax credits through MEGA (Michigan Economic Growth Authority) are designed to attract new, innovative and cutting-edge companies that specialize in new technologies. They are available to firms doing advanced computing, biotechnology, electronic device technology, engineering and laboratory testing related to product development, medical device technology, product research and development, advanced vehicle technology or technology that assists in the assessment or prevention of threats or damage to human health or the environment.
MEGA tax credits are also available to companies creating good-paying jobs in manufacturing, R&D, wholesale trade and office operations that meet the criteria.
Community Development Block Grants
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