LANSING, Mich. — State Sen. Ken Horn on Wednesday introduced legislation aimed at encouraging business leaders to invest in and grow their businesses in Michigan.
“Since taking the reins of the Senate’s Economic and Small Business Development Committee, I have been focused on creating good jobs, training a workforce into those jobs and having vibrant communities to settle in and raise families,” said Horn, R-Frankenmuth. “I’ve spent a lot of time developing this new program that will help attract employers to every corner of the state, while posing no financial threat to taxpayers.”
Senate Bill 615 would create the Michigan Employment Opportunity Program. The program would provide financial support for the creation of certified new jobs through income tax capture withholding from those jobs. If a company does not create the jobs, they would receive no funding. The bill creates three tiers for withholdings depending on the community’s population, as well as the number of jobs created, and the average wage offered for newly created positions. It also outlines the timeframes for capture.
JoAnn Crary, president of Saginaw Future Inc., praised the legislation saying it makes resources available to help smaller communities grow as well.
“This incentive is critical to attracting new, well-paying jobs to Michigan,” Crary said. “It also includes a formula that enables smaller communities like Saginaw to utilize the incentive to support job creation.”
Jeff Donofrio, president and CEO of Business Leaders for Michigan, agreed.
“Michigan’s ability to grow and compete for jobs, attract talent, and provide widely shared prosperity will depend on a strong economic development system,” Donofrio said. “Senator Horn’s bill will make Michigan a more competitive state and further add to the economic development tools at our disposal.”
John J. Walsh, president and CEO of the Michigan Manufacturers Association, said this program will also help encourage businesses to stay in Michigan.
“We appreciate Senator Horn’s leadership in working to attract businesses that will grow and create jobs in Michigan,” Walsh said. “Other states are actively luring Michigan companies away, but the new Michigan Employment Opportunity Program would proactively encourage companies to grow here in Michigan, thereby retaining jobs and capital investment in the Great Lakes State.”
SB 615 was referred to the Senate Committee on Economic and Small Business Development for further consideration.