There are a variety of tax incentives available to new industrial developments, depending on the level of job creation and private investment involved.   These incentives are as follows:

 

• Industrial Facility Tax Exemption (IFTE) Certificates – Industrial property tax exemption certificates are used to spur renovation and expansion of aging manufacturing plants and new plant construction.   They have recently been extended to high-tech companies.   Exemptions are approved by local units of government and issued by the state, reducing property tax on buildings, machinery and equipment by roughly 50% for new facilities and 100% for renovation projects.   They are available for up to 12 years.   The City of Cadillac has a solid history regarding the granting of IFTE’s, as evidenced by its attached City Council policy on this matter.

 

• Michigan Economic Growth Authority (MEGA) Tax Credits – Employers in electronics, communications, medical science and other high technology fields whose company devotes at least 25% of operating expenses to research and development, and need a reason to expand or locate in Michigan rather than another state may be eligible for a high-tech job creation tax credit against the Single Business Tax (SBT).   Each credit may be awarded for up to 20 years and for up to 100% of the tax related to the project.   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. The MEGA board normally meets on a monthly basis to consider new MEGA tax credit applications.   The City of Cadillac is very willing to assist industrial prospects in completing a MEGA application and lobbying for its approval before the MEGA board.   The City of Cadillac has successfully secured two such MEGA incentives in the past four years for area industry.

 

• Job Training – The City of Cadillac can assist in accessing funds from the state’s Economic Development Job Training (EDJT) grant program.   This grant program provides approximately $29 million each year to companies ($700 per employee, on average) for training or retraining of workers to meet marketplace needs, with the employer required to match 25% of the state grant for training of existing workers.   Funds are awarded through a competitive application process.   The employer works with private or public education providers to design the training.   The City of Cadillac can coordinate contact with the Michigan Economic Development Corporation to access these funds.

 

• Pollution Control Equipment Tax Exemption – Certified air and water pollution abatement equipment is 100% exempt from property taxes in Michigan.   Certification is approved by the Michigan Department of Environmental Quality (MDEQ).

 

• Environmental Assistance – Within the MDEQ, the Environmental Assistance Divisions (EAD) provides businesses with direct access to environmental programs.   Staff members work with new and existing corporate citizens to provide assistance with permits, information on brownfield redevelopment, pollution prevention, and waste reduction services.   EAD also conducts numerous statewide educational seminars, workshops and training programs.   Michigan’s Clear Air Ombudsman, housed within the Michigan Economic Development Corporation (MEDC), provides assistance to businesses in understanding air quality regulations and compliance issues, mediation in resolving complaints or disputes and represents small business concerns during air-quality rule development.   The City of Cadillac has an excellent relationship with these agencies and can facilitate discussion in this regard.

• Additional Incentives -- By using the MEDC’s online “Incentives Profiler” accessible at http://medc.michigan.org/miadvantage/incentives/profiler/incentives.asp , additional economic incentives may be identifiable through the State of Michigan.   Also, many of the incentives described above can be roughly calculated on a case by case basic, given specific job creation and private investment estimates.

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