Tax Incentives for Michigan Businesses

There are many incentives and tax credits to Michigan businesses if you know where to look.

Michigan businesses can benefit greatly from rebates and incentives from Consumers Energy for upgrading to efficient lighting, kitchen appliances, refrigeration, laundry, HVAC equipment and insulation. They also offer a variety of specialty programs custom solutions that may just be the perfect fit more unique businesses. For instance, businesses can receive a $1.80 tax deduction for each square foot for those who install lighting, heating, cooling, ventilation and hot water systems that reduce the building total energy and power cost by 50 percent.

Many businesses in Michigan believe that they don’t qualify for the Research and Development tax credit because they don’t do business in a lab or work with patents, but many architects, engineers and software developers will often qualify. Some companies are also afraid to apply for fear that they will be stuck with an audit, but those fears can be calmed if you work with a company that will document everything. Tax Point Advisors can show you how to take advantage of Michigan’s R&D tax credit.

Business owners in Huron Township, MI. can get a break for giving what many would call high-risk employees a chance to earn a living. The Work Opportunity Tax Credit Program is for employers who will hire from “targeted groups of people that have in the past experienced difficulty in securing employment in the past.” The WOTC allows a maximum credit of $4,800 to $9,600 for disabled veterans, $4,000 for recipients of Temporary Assistance to Needy Families and $2,400 for other targeted groups.

Being a small business is an incentive on its own in Michigan. A Small Business Alternative Credit “is available to any taxpayer, other than insurance companies and financial institutions, with gross receipts that do not exceed $20,000,000 and with adjusted business income minus the loss adjustment that does not exceed $1,300,000 as adjusted annually for inflation and subject to certain additional disqualifiers,” according to the IRS.

In Huron Township Michigan, The Local Development Finance Authority exists to provide public improvements necessary or desirable to facilitate, promote and sustain industrial development within the established district

The Local Development Financing Act (LDFA), allows eligible entities to establish area boundaries, create and implement a development plan, acquire and dispose of interest in real and personal property, issue bonds and use tax increment financing to fund public infrastructure improvements for eligible property.  The tool is designed to promote economic growth and job creation.  The group has used these tools to support companies in manufacturing, agricultural processing, and high technology operations.

Call 734-753-4466 Ex. 115 for more information about the LDFA tax benefits.

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