Michigan Senate Bill SB0579

Michigan 2023-2024 Regular Session

• Introduced: 12/10/24
• Refer: 10/11/23
• Report Pass: 10/26/23
• Refer: 10/26/23
• Report Pass: 10/31/23
• Engrossed: 3/20/24
• Refer: 3/20/24
• Report Pass: 12/10/24

Caption

Economic development: Michigan strategic fund; good jobs for Michigan program; modify. Amends secs. 9, 90g & 90h of 1984 PA 270 (MCL 125.2009 et seq.). TIE BAR WITH: SB 0580'23

Impact

If enacted, SB0579 could significantly alter the landscape for economic development in Michigan by making it more attractive for businesses to expand or establish operations in the state. The legislation emphasizes the creation of certified new jobs, defined as full-time jobs exceeding previous employment levels at a given facility. This shift may encourage investment in the state economy, ultimately supporting unemployment reduction and wage growth among workers. The provision for tax capture revenues, up to 100% for a period of up to ten years, aims to alleviate the financial burden for companies during their transition into these new roles.

Summary

Senate Bill 0579 seeks to amend the Michigan Strategic Fund Act to enhance the Good Jobs for Michigan program by modifying the stipulations regarding tax incentives for businesses that create certified new jobs in the state. This bill introduces a framework for the High-Wage Incentive for Regional Employment (H.I.R.E.) Michigan fund, allowing eligible businesses to receive withholding tax capture revenues as a financial incentive to promote job creation and expansion within Michigan. Under the proposed changes, businesses must commit to maintaining a certain number of jobs and providing competitive wages above regional averages to qualify for funding.

Sentiment

Support for SB0579 appears to be driven primarily by business interests and economic development advocates who argue that such incentives are crucial for attracting and retaining high-wage jobs. Proponents view the bill as a strategic move to boost the state’s economy and directly benefit its workforce. However, there are concerns from opposition groups regarding the long-term sustainability of such tax incentives, fearing it might lead to an undue burden on public finances or result in a race to the bottom in terms of wages and working conditions if not managed carefully.

Contention

Notable points of contention surrounding SB0579 include the potential impact on regulatory oversight and the overall ability of local governments to address their unique employment and economic needs. Critics argue that while the emphasis on job creation is important, substantial reliance on tax incentives could undermine local economies and necessary public investments in education and infrastructure. Additionally, the efficacy in meeting job creation benchmarks and whether the program will yield a net positive return on investment for the state remains a debated issue among lawmakers.