Michigan Economic Growth Authority (MEGA)

Program Purpose and Description

In 1995, the Michigan legislature enacted the Michigan Economic Growth Authority Act to promote high quality economic growth and job creation.

Companies engaged in manufacturing, research and development, wholesale and trade, or office operations that are financially sound and that have financially sound proposed business plans are eligible to receive a tax credit against the Michigan Business Tax (MBT – Public Act 36 of 2007 – Section 208.1431). This credit is for the incremental MBT liability attributable to an expansion/new location project and/or the amount of personal income tax attributable to new jobs being created. Each credit may be awarded for up to 20 years and up to 100% of the amount attributed to the project.

An in-state business that is expanding must create at least 50 new full-time jobs at the project’s facility; an out-of-state business locating in Michigan must create at least 100 new full-time jobs at the project’s facility. The new jobs must be in addition to any jobs existing at the company during the year preceding the application for the credit. The jobs in existence at the company prior to the application for a credit must be maintained for the life of the credit.

Eligible companies must meet the following criteria:

• The average wage of the new jobs must equal or exceed 150% of the federal minimum wage
  
• The tax credits must respond specifically to the advantages the company would gain by expanding outside Michigan
  
• The tax credits must be necessary for the expansion/location to occur in Michigan
  
• The local community must be financially committed to the project
  
• The business must not have announced the location of the facility

Factors affecting the amount and duration of credits
awarded are:

• The number of new jobs created
  
• The average wage of new jobs being created
• Total capital investment of the business
• The cost disparity to the business between expanding or locating in Michigan and a site outside of Michigan
  
• The impact of the project on Michigan’s economy
• Assistance provided by local communities

The Michigan Economic Growth Authority evaluates applications for this program

Eligibility:

Companies engaged in manufacturing, research and development, wholesale and trade, or office operations; that are financially sound and that have financially sound proposed plans are eligible.

View Michigan Economic Growth Authority Public Act 24 of 1995

View Michigan Business Tax Public Act 36 of 2007 – Section 208.1431