A tax credit of up to $2,000 annually per apprentice is available to employers who, through registered apprenticeships, train young people under age 20 who are enrolled in high school or a GED test preparation program. Students are employed part-time with structured on-the-job training combined with classroom work. Wages are paid on a graduated scale leading to journeyman status. Continued employment with the firm is expected.

An employer, employer association, or the employer and the union, if applicable, are eligible to apply. A formal agreement is made between the business or industry, the educational facility, and the U.S. Department of Labor's Bureau of Apprenticeship and Training.

This program provides training funds for businesses that promote new job opportunities, advanced training for existing employees, skilled training for new workers, and strengthen the state's economic base.

Funds are released through a competitive application process. Once the company has defined its training needs, Bay Future, Inc. will pursue training funds through the appropriate eligible entity. Eligible course categories include: applied academics, equipment specific, process improvement (ISO/QS 9000) and technical training. The recent average training grant has been $900 per trainee.

Under the Brownfield Redevelopment program, buyers of contaminated sites can take title to environmentally impaired property without assuming liability for existing contamination, provided the buyer conducts a baseline environmental assessment (BEA) and discloses it to the state.

Municipalities may also create a Brownfield Redevelopment Authority to capture tax revenues generated by developer's projects to pay for eligible environmental costs, due care activities, and additional response activities. The mechanism for capturing these taxes is a Brownfield Plan that is approved by both the local unit of government and the Brownfield Redevelopment Authority. In addition, a Brownfield plan may also provide a Single Business Tax (SBT) Credit equal to 10/% of the costs of eligible investment (including building and equipment) on the Brownfield site up to a maximum credit of $30 million.

The Tax Increment Financing Authorities allows municipalities to develop districts with authority to capture taxes due to the increase in property values within a specific district that have resulted from project investments. The districts may be under the jurisdiction of a Downtown Development Authority (DDA), Local Development Finance Authority (LDFA), Tax Increment Finance Authority (TIFA) or Brownfield Redevelopment Authority (BRA).

Under the act, the authority may use the captured taxes to pay for water and sewer, roads, environmental testing and other public investments within the development district depending on type of authority. The funds may be used for either industrial or commercial projects.

High Tech companies may be eligible for tax credits against the Single Business Tax through the Michigan Economic Growth Authority. High Tech companies include businesses whose activity includes high-technology activity, and that use at least 25 percent of its total operating expenses for research and development. High-tech activity includes computing; advanced materials; biotechnology, but not cloning or stem cell research with embryonic tissue; electronic device technology; product research and development; advanced vehicle technology; and medical device technology.

Minimum eligibility for credit:

• Company must create 5 jobs initially, and 25 jobs over the five years.
• Company must spend at least 25% of operating budget on research and development.
• Company must have high-tech activity.
• The average wage for the jobs would have to be at least four times the federal minimum wage.

Companies that are financially sound and have solid project proposals may be eligible for a refundable Michigan Economic Growth Authority (MEGA) tax credit against the Michigan Single Business Tax. Companies engaged in manufacturing, R&D, wholesale and trade, and office operations are eligible. Retail facilities are not eligible. Each credit may be awarded for up to 20 years and up to 100% of the amount of the project.

Factors governing the amount and duration of MEGA Credits:

• Creation of 75 new jobs for in-state, 150 for out-of-state, companies. The new jobs must be in addition to those existing during the year preceding application for the credit.
• MEGA tax credits must address any competitive disadvantage of expanding or locating the business in Michigan, must be necessary for the expansion/location to be made in Michigan.
• A local organization must make a financial or economic commitment to the project.
• The project cannot be announced or work started before the MEGA award.
• The average wage must equal or exceed 150% of the federal minimum wage.
• Total Capital investment of the project.
• Impact of the project on Michigan's economy.

Public Act 328 allows communities to abate all new personal property taxes in certain geographic areas. Some Bay County municipalities are eligible to participate. New personal property is defined as property not previously subject to property taxes in any other jurisdiction in this state. The local community and the business negotiate the length of abatement for the new personal property tax. The law does not contain a maximum, nor a minimum number of years.

Eligible Facilities:

• Manufacturing, mining, research and development, wholesale and trade, and office operations.

Retail businesses are not eligible.

Most municipalities in Bay County are very favorable to offering tax abatements on new facilities and equipment purchases by manufacturers. The P.A. 198 tax abatement program provides a 50% abatement of real and personal property for up to 12 years on new plant and/or machinery and equipment. Instead of the property tax, the firm pays an Industrial Facilities Tax (IFT) that reflects the abatement savings.

Eligible Facilities:

• Industrial plants who primarily manufacture or process goods or materials by physical change.
  Related facilities of Michigan manufacturers such as offices, engineering, research and development, warehousing or parts distribution are also eligible for exemption.
• High technology companies.
• Exemption applies to buildings, building improvements, machinery, equipment, furniture, and fixtures. Land is specifically excluded from the benefits of the act and is fully taxable.