Tax Incentives

Savings no company can afford to ignore
Midlink Business Park includes 110 acres of land that has been designated by the State of Michigan as a Tax Free Renaissance Zone which waives virtually all state and local taxes through 2017.

The total savings could be as much as $2,392,992 as shown below in our example based on 10 acres in Midlink’s Renaissance Zone:

Example

Real Property
Land value for 10 acres: $ 700,000
Building value ($50/SF): $6,300,000

Personal Property
Machinery & Equipment: $3,700,000
Furniture & Fixtures: $ 500,000
Computers: $ 300,000

Employment Projections
150 new jobs with an average annual wage of $27,000

Real Property: $1,328,379
Personal Property: $454,973
Single Business Tax: $609,640

Total Tax Savings: $2,392,992 (2007 through 2017)

*The above calculation is only intended to provide an example of how the Renaissance Zone calculation could benefit a business locating in the zone. Actual tax savings calculations can and will vary. Midlink Business Park advises the use of a certified accountant familiar with company specific investment and employment numbers to determine actual tax savings.

State and local taxes waived as part of the Renaissance Zone includes:
  • Real and Personal Property Taxes
    (2004 Rates)
  • State Education Tax (SET) – 6 mils
  • Local Property Tax – 32.9595 mils
  • An additional 6.9250 school debt/special
    assessments mils is not abated
  • Single Business Tax (Michigan’s corporate
    income tax)

Beginning in 2015, there is a gradual phase-in of tax liability. Seventy-five percent of the eligible taxes are abated in 2015, 50% in 2016 and 25% in 2017.

Taking advantage of the tax savings is simple
Moving your business into the Renaissance Zone entitles you to the savings. There are no lengthy application processes or performance clauses for job creation, just a simple notification to the Michigan Department of Treasury by the Charter Township of Comstock that you located in the Zone.

Additional tax incentives and grants may be available, subject to state and local government approval. These include:
  • MEGA (Michigan Economic Growth
    Authority) which provides up to a 20-year tax
    credit for job creation and business
    investment.
  • Industrial Facilities Tax Exemption
    (P.A. 198) which provides for up to a 50%
    abatement on property taxes for industrial
    development projects, including new
    construction and the purchase of new
    machinery/equipment. The maximum
    exemption period is 12 years for real
    property and 6 years for personal property,
    subject to local government approval which
    has been very supportive.
  • Tax Exempt Bonds available to eligible
   businesses who bring job development.
  • Economic Development Job Training (EDJT),
    which provides grants for job training.
  • For other community benefits and support
    contact: Michigan Economic Development
    Corporation

In addition to tax abatements, local community and state governments offer outstanding support and cooperation. Committed to job creation, they’re solidly behind the project and eager to facilitate bringing jobs to Southwest Michigan.