Business
Incentives & Assistance
Welcome to the City of Dearborn! As the eighth largest city in the state with 98,000 residents, we’re a robust regional powerhouse and rapidly growing. We have two vibrant and diverse downtown districts in both our East and West ends - our mainstreet doors are open!
Whether you’re:
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an entrepreneur looking to start a business
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a small business looking to grow, or
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a company considering expansion or relocation
We offer business incentives and relocation assistance to help you at every move and stage of your business, including:
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SPACE
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Site Selection / Available Properties
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Permits, Zoning, Licensing & Fees
LOCAL RESOURCES & GRANTS
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Dearborn's Market & Community
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Facade & Sign Improvement Grants
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Microgrants
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Open Door Dearborn - Cash Awards for Business & Building Owners
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LOCAL SERVICE PROVIDERS
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Planning & Design Help
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Technical Assistance
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Construction Providers
STATE & FEDERAL RESOURCES
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Brownfield Development
FORMS
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Sample Forms - Leases, Letters of Intent
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BUSINESS ASSISTANCE
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Entrepreneur - Resources
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Growing & Relocating Your Business
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Building Owners - Resources
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GET HELP / CONTACT US
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East & West Dearborn Downtown Development Authorities
313-943-3141
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City of Dearborn Economic & Community Development
313-943-2195
All Dearborn Agencies & Departments (including building and permits)
http://cityofdearborn.org/contact-us
Wayne County Economic Development
313-224-0410
waynecounty.com
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Michigan Small Business Development Centers - Southeast Michigan
https://sbdcmichigan.org/southeast-michigan-region
Michigan Economic Development Corporation
888-522-0103
Michiganbusiness.org
LOCAL
RESOURCES & GRANTS
Downtown Dearborn Market Analysis
Facade & Sign Improvement Grants
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OPEN DOOR DEARBORN
Open Door Dearborn is a brand new business accelerator initiative to help new and existing business owners and building owners get their doors open and stay open in our growing city. We offer cash awards and stage-by-stage assistance.
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LOCAL SERVICE PROVIDERS
Design Help & Technical Assistance
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STATE & FEDERAL ASSISTANCE
BROWNFIELD DEVELOPMENT INITIATIVE
Dearborn, Michigan is the hometown of Henry Ford and the world headquarters of the Ford Motor Company, the Henry Ford Museum and Greenfield Village. Between 1920 and 1960, 17 percent of the City's 24.5 square miles was developed for industrial use. Due to age, changes in technology, abandonment and old operational practices, a significant number of industrial sites are in a state of physical and economic decline or total obsolescence.
Many of the obsolete industrial sites, which are concentrated in the eastern portion of the City, are located in neighborhoods with a majority (69%) of low and moderate-income residents. Historic unemployment patterns in the industrial areas are, on average, one-and-a-half to four times the rate of the City as a whole. Dearborn has been working through the Downriver Area Brownfield Consortium to identify and assess brownfield sites. Phase I and II Baseline Environmental Assessments have been completed on three sites. The Downriver Area Brownfield Consortium was designated a Brownfields Assessment Pilot in 1997.
Objectives
The objectives of the Dearborn BCRLF program are to close the financial gap for projects and encourage cleanup and redevelopment of underutilized and obsolete sites.
Specifically, the Dearborn BCRLF program seeks to:
Provide funding necessary to induce brownfields redevelopment;
Create new job and housing opportunities;
Increase the property value of brownfields;
Return obsolete sites to productive use; and
Facilitate private investment.
Loans will be made to projects that further these goals and are consistent with existing zoning and land uses. The primary BCRLF target area is the industrial corridor, although sites throughout the City are eligible for funding.
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SOUTHEAST MICHIGAN RESOURCES
Automation Alley is a leading non-profit association of businesses that has helped boost Southeast Michigan's economy tremendously. Their efforts and focus on innovation and technology, entrepreneurship, providing resources, funding, and much more have provided manufacturing companies in Souteastern Michigan both comfort and accessibility to tools necessary for success. Automation Alley aims to place Southeast Michigan as a global leader when it comes to innovation and industrial progress, and their relentless efforts to do so have and will allow for such innovation and progress to occur.
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The Detroit Region Aerotropolis is an organization is committed to stimulating economic development in aviation based regions through expanding and empowering aviation-linked commercial facilities and residential properties, including time-sensitive manufacturing and distribution, hotels, entertainment, retail facilities, convention, trade and exhibition complexes, and office buildings that accommodate air-travel visitors, executives, and professionals
The Detroit Regional Chamber of Commerce plays a vital leadership role in strengthening and promoting a healthy and lucrative Southeast Michigan business community. Through their networking, partnership, and political support resources and programs, the Chamber improves the economic environment for members in the areas of education, workforce preparation and economic development in a way that enhances and provides efficient solutions for local community issues.
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DTE Energy is a multi-faceted energy corporation geared towards enhancing, managing and developing energy-related businesses and services nationwide. DTE operates in the field of electric utility service and non-utility energy businesses that focus on power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and tracing. Furthermore, DTE Energy is dedicated to community development through economic engagement, volunteerism and philanthropy.
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Michigan Economic Development Corporation
The Michigan Economic Development Corporation strives to stimulate economic growth, innovation implementation, job creation and stability, and inward investment flows through strengthening relationships government and private agencies.
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Michigan Small Business Development Center
The Michigan Small Business Development Center aims to improve Michigan's economic welfare through counseling, training and research resources for new ventures, existing small businesses and advanced technological companies.
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South East Michigan Community Alliance
The South East Michigan Community Alliance is a 501(c) (3) non-profit organization that provides human services in the Wayne County and Monroe County areas through talent development programs, and creating partnerships with community organizations and contractors who provide service to residents.
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Southeast Michigan Council of Governments (SEMCOG)
The Southeast Michigan Council of Governments is an organization geared towards providing aid to local planning projects through data, technical, and intergovernmental assistance, as well as implementing environment and transportation safety improvement strategies for enhanced community living quality.
BUSINESS PROGRAMS
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Business Development Managers (BDM) Region Map
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Michigan Business Development Program Guidelines
Revised Date: Jul 3, 2018
View the Michigan Business Development Program Guidelines Program Guidelines.
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Michigan Manufacturing Technology Center (MMTC)
Revised Date: Jul 2, 2018
View the MMTC Fact Sheet.
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Speculative Building Development Program
Revised Date: Jun 26, 2018
View the Speculative Building Development Program fact sheet.
Revised Date: Jun 8, 2018
View the Michigan SmartZoneâ„ Network Fact Sheet.
Michigan Loan Participation Program
Revised Date: Apr 25, 2018
View the Michigan Loan Participation Program Fact Sheet.
Michigan Collateral Support Program
Revised Date: Apr 25, 2018
View the Michigan Collateral Support Program Fact Sheet.
Revised Date: Apr 25, 2018
View the Capital Access Program Fact Sheet.
Agribusiness Financing Programs
Revised Date: Apr 25, 2018
View the Agribusiness Financing Programs Fact Sheet.
Michigan Defense Center (formerly known as the Defense Contract Coordination Center or DC3)
Revised Date: Feb 13, 2018
View the Michigan Defense Center Fact Sheet.
Revised Date: Jan 22, 2018
View the Good Jobs for Michigan Fact Sheet.
Office of the Chief Compliance Officer
Revised Date: Jul 6, 2016
View the Office of the Chief Compliance Officer Fact Sheet.
Community Development Brownfield Program Overview
Revised Date: Jul 5, 2016
View MEDC's Community Development Brownfield Program Overview fact sheet.
Revised Date: Sep 11, 2015
View the Next Michigan Development Act Fact Sheet.
Tax Exemptions for Michigan Companies
Revised Date: Jul 22, 2015
View the Tax Exemptions for Michigan Companies Fact Sheet.
Community Development Block Grant Revolving Loan Fund (RLF)
Revised Date: Jun 1, 2015
View the Community Development Block Grant RLF Fact Sheet.
Conditional Land Use Transfer (P.A. 425)
Revised Date: Jun 1, 2015
View the Conditional Land Use Transfer Fact Sheet.
Community Development Block Grant (CDBG) Business Development Initiatives
Revised Date: Jun 1, 2015
View the CDBG Business Development Initiatives Fact Sheet.
Revised Date: Jun 1, 2015
View the BID/PSD/BIZ Fact Sheet.
Community Development Block Grant (CDBG) Program Community Development Initiatives
Revised Date: Apr 29, 2015
View the CDBG Program Community Development Initiatives Fact Sheet.
Small Business Administration Loan Programs
Revised Date: Apr 17, 2015
View the Small Business Administration Loan Programs Fact Sheet.
Historic Neighborhood Tax Increment Financing Authority (HNTIF)
Revised Date: Apr 8, 2015
View the HNTIF Fact Sheet.
EB-5 Regional Center at the MEDC
Revised Date: Mar 26, 2015
View the EB-5 Regional Center at the MEDC Fact Sheet.
Redevelopment Liquor License (P.A. 501)
Revised Date: Mar 23, 2015
View the Redevelopment Liquor License Fact Sheet.
Procurement Technical Assistance Centers (PTAC)
Revised Date: Mar 9, 2015
View the PTAC Fact Sheet.
Michigan Community Revitalization Program
Revised Date: Feb 27, 2015
View the Michigan Community Revitalization Program Fact Sheet.
Revised Date: Feb 20, 2015
View the Foreign Trade Zones Fact Sheet.
Michigan Technical Education Centers (M-TEC)
Revised Date: Feb 11, 2015
View the M-TEC Fact Sheet.
Revised Date: Dec 30, 2014
View the Michigan Business Ombudsman Fact Sheet.
Michigan Business Development Program
Revised Date: Dec 29, 2014
View the Michigan Business Development Program Fact Sheet.
Neighborhood Improvement Authority
Revised Date: Jun 30, 2014
View the Neighborhood Improvement Authority Fact Sheet.
Michigan Redevelopment Ready Communities Program
Revised Date: Jun 27, 2014
View the Michigan Redevelopment Ready Communities Program Fact Sheet.
Local Development Financing Act (LDFA) (P.A. 281)
Revised Date: Jun 19, 2014
View the LDFA Fact Sheet.
Corridor Improvement Authority (P.A. 280)
Revised Date: May 15, 2014
View the Corridor Improvement Authority Fact Sheet.
Revised Date: Apr 16, 2014
View the Required Workplace Posters Fact Sheet.
Revised Date: Mar 28, 2014
View the Certified Business Parks Fact Sheet.
Revised Date: Mar 10, 2014
View the Renaissance Zones® Fact Sheet.
Michigan Business Tax (MBT) - Booklet
Revised Date: Feb 4, 2013
View the MBT Fact Sheet.
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BUSINESS INCENTIVES
Michigan Business Development Program Guidelines
Revised Date: Jul 3, 2018
View the Michigan Business Development Program Guidelines Program Guidelines.
Industrial Property Tax Abatement (P.A. 198)
Revised Date: Jul 3, 2018
View the Industrial Property Tax Abatement Fact Sheet.
Revised Date: Jul 3, 2018
View the Boarder County Incentives Fact Sheet.
Personal Property Tax Relief in Distressed Communities (P.A. 328)
Revised Date: Jul 3, 2018
View the Personal Property Tax Relief in Distressed Communities Fact Sheet.
Speculative Building Development Program
Revised Date: Jun 26, 2018
View the Speculative Building Development Program fact sheet.
Michigan Loan Participation Program
Revised Date: Apr 25, 2018
View the Michigan Loan Participation Program Fact Sheet.
Michigan Collateral Support Program
Revised Date: Apr 25, 2018
View the Michigan Collateral Support Program Fact Sheet.
Revised Date: Jan 22, 2018
View the Good Jobs for Michigan Fact Sheet.
Community Development Brownfield Program Overview
Revised Date: Jul 5, 2016
View MEDC's Community Development Brownfield Program Overview fact sheet.
SBA Certified Development Company (504) Loans
Revised Date: Mar 17, 2016
View the SBA Certified Development Company (504) Loans Fact Sheet.
Tax Exemptions for Michigan Companies
Revised Date: Jul 22, 2015
View the Tax Exemptions for Michigan Companies Fact Sheet.
Revised Date: Jul 11, 2015
View the State Essential Services Assessment (SESA) Exemption and Alternative State Essential Services Incentive Programs fact sheet.
Brownfield Redevelopment Authority (P.A. 381)
Revised Date: Jun 4, 2015
View the Brownfield Redevelopment Authority Fact Sheet.
Community Development Block Grant Revolving Loan Fund (RLF)
Revised Date: Jun 1, 2015
View the Community Development Block Grant RLF Fact Sheet.
Commercial Redevelopment Act (P.A. 255)
Revised Date: May 8, 2015
View the Commercial Redevelopment Act Fact Sheet.
Agricultural Processing Renaissance Zones
Revised Date: May 8, 2015
View the Agricultural Processing Renaissance Zones Fact Sheet.
Community Development Block Grant (CDBG) Program Community Development Initiatives
Revised Date: Apr 29, 2015
View the CDBG Program Community Development Initiatives Fact Sheet.
Revised Date: Apr 22, 2015
View the Michigan Corporate Income Tax Fact Sheet.
Small Business Administration Loan Programs
Revised Date: Apr 17, 2015
View the Small Business Administration Loan Programs Fact Sheet.
Historic Neighborhood Tax Increment Financing Authority (HNTIF)
Revised Date: Apr 8, 2015
View the HNTIF Fact Sheet.
Michigan Community Revitalization Program
Revised Date: Feb 27, 2015
View the Michigan Community Revitalization Program Fact Sheet.Private Activity Bond Program (former IDRB)
Revised Date: Jan 8, 2015
View the Private Activity Bond Program Fact Sheet.
Michigan Business Development Program
Revised Date: Dec 29, 2014
View the Michigan Business Development Program Fact Sheet.
Revised Date: Oct 6, 2014
View the Neighborhood Enterprise Zone Fact Sheet.
Obsolete Property Rehabilitation Act (OPRA)
Revised Date: Aug 21, 2014
View the OPRA Fact Sheet.
Energy Efficiency and Renewable Energy (EERE) Loans
Revised Date: Jul 28, 2014
View the EERE Loans Fact Sheet.
Neighborhood Improvement Authority
Revised Date: Jun 30, 2014
View the Neighborhood Improvement Authority Fact Sheet.
Local Development Financing Act (LDFA) (P.A. 281)
Revised Date: Jun 19, 2014
View the LDFA Fact Sheet.
Corridor Improvement Authority (P.A. 280)
Revised Date: May 15, 2014
View the Corridor Improvement Authority Fact Sheet.
Commercial Rehabilitation Act (P.A. 210)
Revised Date: Apr 10, 2014
View the Commercial Rehabilitation Act Fact Sheet.
Forest Products Processing Renaissance Zones
Revised Date: Mar 11, 2014
View the Forest Products Processing Renaissance Zones Fact Sheet.
Renewable Energy Renaissance Zones
Revised Date: Mar 11, 2014
View the Renewable Energy Renaissance Zones Fact Sheet.
Revised Date: Mar 10, 2014
View the Geographic Renaissance Zones Fact Sheet.
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Revised Date: Mar 10, 2014
View the Renaissance Zones® Fact Sheet.
Emerging Technologies Fund (ETF)
Revised Date: Feb 7, 2014
View the ETF Fact Sheet.
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Revised Date: Dec 18, 2013
View the Taxable Bond Financing Fact Sheet.
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Michigan Business Tax (MBBooklet
Revised Date: Feb 4, 2013
View the MBT Fact Sheet.
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MICHIGAN BUSINESS INCENTIVE PROGRAMS
Michigan Accelerator Fund
Michigan Accelerator Fund 1
The Fund 1 invests in Michigan-based, early stage companies in six target sectors: advanced manufacturing, life sciences technology, homeland security, alternative energy technology, information technology, and agriculture. MAF-1 focuses primarly on life sciences technology opportunities.
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Michigan Agricultural Processing Renaissance Zones
Michigan Economic Development Corporation
These APRZs differ from Michigan's original renaissance zones because they require them to contain a company's agricultural processing facility and can be located anywhere in Michigan.
Michigan Biomass Gasification and Methane Digester Property Tax Exemption
Department of Agriculture and Rural Development
Property tax exemption for facilities using methane digesters, biomass gasification equipment, and equipment that processes agriculture left over material for energy production.
Michigan Border County Incentives: PA 198 and PA 328
Michigan Economic Development Corporation
Eligible businesses that locate in a county that borders another state or Canada may qualify for special tax incentives under PA 198 of 1974 (as amended) and PA 328 of 1998.
Michigan Capital Access Program
Michigan Economic Development Corporation
This innovative program uses small amounts of public resources to generate private bank financing, providing small, Michigan businesses access to capital that might not otherwise be available.
Michigan Capital Conduit Program
Michigan Economic Development Corporation
The Capital Conduit Program provides public funding through the form of loans and investments to public private partnerships as part of a real estate initiative and an operating company inititative designed to serve as a catalyst for private capital. So far only Grow Michigan LLC and Develop Michigan Inc. have received loans or investments.
Michigan Commercial Redevelopment Act
Michigan Economic Development Corporation
The Commercial Redevelopment Act allows local jurisdictions to set up Commercial Redevelopment Districts wherein business investments are eligible for an exemption or reduction in property tax.
Michigan Commercial Rehabilitation Act
Michigan Economic Development Corporation
The Act encourages the rehabilitation of commercial property by abating the property taxes generated from new investment.
Michigan Community Development Brownfield Program
Michigan Economic Development Corporation
The Brownfield Program uses tax increment financing (TIF) to reimburse brownfield related costs incurred while redeveloping contaminated, functionally obsolete, blighted or historic properties.
Michigan Forest Products Processing Renaissance Zones (FPPRZ)
Michigan Economic Development Corporation
Companies or facilities located in a Forest Products Processing Renaissance Zone gets tax abatements from state's tax system.
Michigan Good Jobs for Michigan Program
Michigan Economic Development Corporation
The Michigan Strategic Fund (MSF) board may authorize State Withholding Tax Capture Revenues for businesses that provide certified new jobs in Michigan.
Michigan Industrial Processing Exemption
Michigan Department of Treasury
The State of Michigan allows an exemption from sales and use tax for persons engaged in the manufacturing and industrial process including research or experimental activity. This industrial processing exemption is allowed for equipment, supplies and materials used or consumed in the activity of transforming, altering or modifying tangible personal property by changing the form, composition, quality or character of the property for ultimate sale at retail or sale to another industrial processor to be further processed for ultimate sale at retail.
Michigan Industrial Property Tax Abatement
Michigan Economic Development Corporation
Industrial property tax abatements provide incentives for eligible businesses to make new investment in Michigan.
Michigan Invest Michigan! Growth Capital Program
Grosvenor Capital Management
InvestMichigan! is an initiative that makes capital available to successful entrepreneurs who create jobs in Michigan. Investments are made across a broad range of industry sectors and investment stages, ranging from early-stage venture through mature companies.
Michigan Invest Michigan--Michigan Opportunities Fund
Glencoe Capital
Glencoe Capital's Michigan Opportunities Fund, L.P. is a $153 million private equity fund making lead-sponsored acquisitions and growth equity investments in lower middle-market companies.
Michigan Michigan Business Development Program
Michigan Economic Development Corporation
The Michigan Business Development Program is a new incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC) that provides financing to locate highly competitive business projects in Michigan.
Michigan Michigan Collateral Support Program (MCSP)
Michigan Economic Development Corporation
The Michigan Collateral Support Program (MCSP) will supply cash collateral accounts to lending institutions to enhance the collateral coverage borrowers.
Michigan Michigan Community Revitalization Program (MCRP)
Michigan Economic Development Corporation
The Michigan Community Revitalization Program (MCRP) is a new incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC), designed to promote community revitalization that will accelerate private investment in areas with historically declining property values, contribute to Michigan’s reinvention as a vital, job generating state, foster redevelopment of functionally obsolete or historic properties, reduce blight, and protect natural resources of this state.
Michigan Michigan Emerging Technologies Fund
Michigan Small Business Development Center
The Michigan Emerging Technologies Fund (the ETF) is designed to expand funding opportunities for Michigan technology based companies in the federal innovation research and development arena by matching SBIR/STTR funding opportunities in Michigan.
Michigan Michigan Loan Participation Program (MLPP)
Michigan Economic Development Corporation
Lenders will participate in the MLPP to finance diversification projects when faced with borrowers whose projected cash flows are considered speculative by the lender.
Michigan Michigan Sales and Use Tax Exemptions
Michigan Department of Treasury
The State of Michigan provides sales and use tax exemptions for various products and services.
Michigan New Jobs Training Program
Michigan Community College Association
The Michigan New Jobs Training Program provides financial assistance for the customized training for new employees of companies moving to or expanding in Michigan. This economic incentive allows for businesses to partner with one of the state's 21 community colleges, to develop a training program that produces the highly-trained employees that can increase your competitive edge.
Michigan Next Michigan Development Act
Michigan Economic Development Corporation
The Act is to encourage the creation of Next Michigan Development Corporations by interlocal agreement or eligible urban entity and to prescribe their powers and duties.
Michigan Obsolete Property Rehabilitation Act (OPRA)
State Tax Commission
The Obsolete Property Rehabilitation Act (OPRA) provides for a tax incentive to encourage the redevelopment of obsolete buildings. The tax incentive is designed to assist in the redevelopment of older buildings, in which a facility is contaminated, blighted or functionally obsolete.
Michigan Pollution Control Tax Exemptions
Michigan Economic Development Corporation
Air and industrial water pollution control facilities are exempt from sales, use and property taxes in Michigan.
Michigan Pre-Seed Capital Fund/SmartZones
Michigan Economic Development Corporation
The Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to early-stage capital to accelerate company development.
Michigan Private Activity Bonds (PAB)
Michigan Economic Development Corporation
Private Activity Bonds are a source of financial assistance to economic development projects in Michigan. MEDC provides profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates.
Michigan Property Tax Exemption for Special Tooling
Michigan Economic Development Corporation
Michigan exempts special tooling from all property taxes.
Michigan Pure Michigan Business Connect
Michigan Economic Development Corporation
Pure Michigan Business Connect (PMBC), a public-private initiative developed by the Michigan Economic Development Corporation (MEDC), connects Michigan companies with opportunities to help them grow and expand. By participating in the program, companies can find procurement resources to expand their supply chain, find new business opportunities, access a new business-to-business network and receive business assistance at little to no cost like legal, accounting, and other services.
Michigan Pure Michigan Micro Lending Initiative
Michigan Economic Development Corporation
This is a new micro lending program led by Huntington Bank and Michigan Economic Development Corporation that will provide loans to small and micro businesses statewide. This program is also supported by U.S. Treasury's State Small Business Credit Initiative (SSBCI) funds.
Michigan Renewable Energy Renaissance Zones (RERZ)
Michigan Economic Development Corporation
Renewable energy Renaissance Zones (RERZ) requires companies to contain their renewable energy facility. Unlike Michigan's orignial RZ, the facilities can be located anywhere in Michigan.
Michigan Sales Tax Exemption and Refund for Energy Used in Industrial Processing
Michigan Economic Development Corporation
According to Michigan law, any energy used directly in the manufacturing process, such as natural gas, electricity and propane, is exempt from the sales tax. Manufacturers who have unnecessarily paid sales tax on eligible exempt energy usage in the industrial process may request a refund through their energy provider.
Michigan Economic Development Corporation
The State Essential Services Assessment Exemption reduces or exempts the Assessment fee for manufacturers taht do not pay personal property tax on eligible manufacturing personal property for projects that create jobs and or private investment in Michigan.
MichiganTaxable Bond Financing
Michigan Economic Development Corporation
Michigan's Taxable Bond Financing Program provides access to long-term fixed rate or variable rate financing accesible by small and medium sized companies.
Michigan Tool & Die Recovery Renaissance Zones
Michigan Economic Development Corporation
The Michigan Renaissance Zone Act, PA 376 of 1996 (MCL 125.2681 et seq), was amended to allow the Michigan Strategic Fund (MSF) Board to designate up to 35 tool and die renaissance recovery zones ("Recovery Zone"). A Recovery Zone shall have a duration of a renaissance zone status for a duration of not less than five years and not more than 15 years as determined by the board of the Michigan Strategic Fund.
Michigan Venture Michigan Fund (VMF)
Grosvenor Capital Management
The Venture Michigan Fund develop venture capital funds that target investments in Michigan-based start-up companies engaged in research, technology and new product development.
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DOING BUSINESS IN MICHIGAN (TAX SUMMARY)
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Michigan levies a flat 6% corporate income tax on firms structured as C corporations. Income for other business entities flows through to the owners' personal income taxes and is taxed at the personal income tax rate of 4.25%.
The U.S. Federal tax rate is 15% on the first $50,000 of taxable income; 25% on the next $25,000; 34% on the next $25,000; There is an additional 5% tax on taxable income over $100,000 up to a maximum additional tax of $11,750.
Michigan's corporate tax ranking is now 7th according to the Tax Foundation. Michigan's overall business tax climate is ranked 12th.
Property Tax
Both real and personal property are subject to taxation. Property is assessed at 50% of current market value. The millage rate will vary within each county and will depend on the exact business site location and taxing jurisdiction. Michigan's average non-homestead property tax rate was 49.54 mills, per $1,000 of assessed property. Under the recently reformed property tax system, industrial personal property is exempt from the 24 mills for schools and commercial personal property is exempt from 12 mills. (A mill equals $1 per $1,000 of assessed property.)
Inventory, special tooling, and pollution control equipment are exempt from property taxes.
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Available property tax abatements are negotiated at the local level.
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Including 100% new personal property exemption available in specified communities.
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50% abatements for up to 12 years for real and personal property are available to industrial processors and high tech companies.
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Rehabilitation projects can be abated 100%
Michigan also has more than 100 sites with tax-free Renaissance Zones, as well as the ability to designate Renewable Energy Renaissance Zones, effectively eliminating general property taxes.
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Workers' Compensation Insurance
Michigan allows open competition among insurance carriers in setting rates. Thus, Michigan companies can shop for the best prices from among more than 250 insurance carriers. Actual costs will be determined by a combination of factors including the selected insurance carrier, occupation code, payroll, and others.
Personal Income Tax
Michigan levies a flat 4.25% personal income tax rate, among the lowest in the nation.
Sales Tax
The state sales tax is 6% on sales of tangible goods.
No local sales taxes are allowed.
Exempt are:
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manufacturing machinery and equipment,
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electricity and natural gas used in production,
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pollution control equipment
Unemployment Insurance
Tax Base: $9,500
New Employer Rate: 2.7%
Cost per Employee for New Employer: $257
Minimum Rate: 0.06%
Maximum Rate: 10.3%
Note: MI employers also pay an annual $42 per employee UI fee.
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MICHIGAN BUSINESS INCENTIVE OVERVIEW
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Business Development
Michigan has reinvented the incentive process. Instead of offering tax credits that may provide future savings based on jobs and investment targets, MEDC has programs that provide immediate benefit. Couple these innovative programs with a low 6% Corporate Income Tax and the elimination of the Personal Property Tax, Michigan offers one of the best pro-business environments in the country.
Border County Program
Eligible businesses may apply for tax incentives under P.A. 198 (Industrial Property Tax Abatement or P.A. 328 Personal Property Tax Relief in Distressed Communities.
Locate a warehouse, distribution or logistics facility in a county that borders another state or Canada.
Commercial Rehabilitation Act P.A. 210
Encourages the rehabilitation of commercial properties that are at minimum 15 years old by providing tax abatements for up to 10 years.
Eligibility gained via resolution by the local municipality.
Commercial Redevelopment Abatement P.A. 255
Encourages the replacement, restoration or new construction of commercial properties. Eligibility gained via resolution by the local municipality.
New Facility Property Tax Abatement P.A. 198
Tax abatement of about 50% of property taxes from value of new improvements and personal property, land not included of up to 12 years. Manufacturing and technology company focus.
Renaissance Zones
Renaissance Zones are virtually tax free geographical areas for any business or resident presently in, or moving into, the zone. Must physically be located in one of the Renaissance zones:
Agriculture Food Processing Renaissance Zone
Food processing is one of Detroit's reinvigorated industries.
Tool & Dye Renaissance Zone: The Detroit region is home to several Tool & Dye Renaissance Zones.
Genessee (7), Macomb (49), Livingston (1), Monroe (2), Oakland (19), Wayne (9)
Industrial Property Tax Abatement (P.A. 198)
Industrial property tax abatements provide incentives for Michigan manufacturers to build new plants, expand existing plants, renovate aging plants or add new machinery and equipment. Also eligible for the abatement are high-technology operations defined as advanced computing, advanced materials, biotechnology, electronic device technology, engineering or laboratory testing, medical device technology, product research and development and advanced vehicles technology.
Each municipality may have their own policy and terms for the length of the abatement. Not available to Retail Operations.
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Obsolete Property Tax Act (OPRA)
Property tax exemption for value of improvements made to obsolete commercial real property for up to 12 years. Excludes land and personal property. Core communities only.
SmartZones
SmartZones provide distinct geographical locations where technology-based firms, entrepreneurs and researchers locate in close proximity top all of the community assets that assist in their endeavors. Companies located in the SmartZones benefit from resource collaborations, Small Business Innovation Research assistance, Small Business Technology Transfer assistance and venture capital preparation and introductions.
Regional SmartZone locations are: Ann Arbor SPARK, Pinnacle Park DTW,TechTown, OU INCubator, Macomb INCubator, Automation Alley
Michigan Emerging Technologies
Designed to assist Michigan technology based companies with funding needs who are engaged in federal innovation research and development.
Michigan Works!
To retain the current workforce, the Michigan Works! program 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.
Services include screening and hiring services, on-the-job training funds, Worker Opportunity Tax Credits and ongoing training strategies. Past training programs have included computer skills, LEAN manufacturing, ISO and trade apprenticeships.
Procurement Technical Assistance Centers
Procurement Technical Assistance Centers (PTACs) of Michigan are your first step in getting government contracts and can assist your company throughout the entire process from start to finish: registering to become a government contract, identifying bid opportunities, walking you through and simplifying the bidding process, helping you to expedite payments through electronic invoicing and even helping you post award with the evaluation of contract awards.
WORKFORCE DEVELOPMENT / EMPLOYEES + EMPLOYERS
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Employment Assistance for Job Seekers
Hiring Assistance for Employers
Reemployment and Layoff Assistance
Additional Resources