Michigan Senate Bill SB0580

Michigan 2023-2024 Regular Session

• Introduced: 10/11/23
• 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. 90i & 90j of 1984 PA 270 (MCL 125.2090i & 125.2090j). TIE BAR WITH: SB 0579'23

Impact

The proposed amendments stipulate that authorized businesses must meet certain job creation criteria to benefit from revenue capture payments, and failure to adhere to these requirements could result in the forfeiture of funds. This could potentially streamline how tax revenue is reinvested into job growth, ensuring that state funds support operations that genuinely contribute to economic development. The creation of the H.I.R.E. Michigan fund, under this bill, emphasizes Michigan's focus on fostering a work environment that not only attracts businesses but also improves local job markets by supporting higher wage jobs.

Summary

Senate Bill 580 aims to amend the 1984 PA 270, known as the Michigan Strategic Fund Act, to add new provisions concerning withholding tax capture revenue payments for businesses participating in the H.I.R.E. Michigan program. The bill introduces new sections 90v and 90w which outline eligibility criteria for authorized businesses to receive these refunds. These measures are intended to incentivize job creation in Michigan, particularly through higher wages and regional employment programs, enhancing the attractiveness of the state for businesses seeking to expand or relocate.

Sentiment

The sentiment around SB 580 has generally been positive among business stakeholders who believe that providing tax capture revenue payments will stimulate economic growth and attract more businesses to the state. Supporters argue that these incentives are crucial for retaining and growing the workforce in Michigan. However, some concerns have been raised regarding the sustainability of such incentives and whether they ultimately produce the desired outcomes in terms of job creation and regional employment.

Contention

Notable points of contention include the implications of these incentives on state budget and resources. Critics may argue that allocating significant funds to support certain businesses could detract from other essential services or programs within the state budget. Further, there are concerns about the long-term effectiveness of reliance on such incentives as a strategy for economic development, particularly whether these businesses will sustain the jobs created beyond the initial incentive period.