Has Michigan got a deal for you
Click on any of the categories below to see how many tax breaks are out there, and how much they cost the state treasury. The numbers were taken from the state’s executive budget for 2013 and 2014.
Tax breaks for manufacturers, heavy industry
| Type of tax | Category | 2014 tax break value | Description |
|---|---|---|---|
| Sales and Use Tax Expenditures | Industrial Processing | $1,108,000,000 | Exempts sales to persons for use or consumption in industrial processing. This tax expenditure estimate excludes raw materials used in production. This estimate includes exemptions for durable and non-durable manufacturing equipment and utility expenses. |
| Property and Other Local Tax Expenditures | Personal Property Indust./Commercial Ad Valorem | $368,000,000 | Exempts industrial personal property from the 18-mill property tax for local schools and the state education tax (6 mills). Commercial personal property is exempt from 12 of the 18 mills for schools. |
| Michigan Business Tax Certificated Credits | MEGA Vehicle Battery Credit | $285,000,000 | Provides for MEGA credits for the mass production of certain plug-in traction battery packs for electrical motor vehicles that qualify for a federal tax credit. The maximum amount of these credits that may be claimed in calendar 2011 (impact seen in fiscal year 2012) is $40 million. The credit is refundable, but may also be carried forward for up to 10 years. |
| Property and Other Local Tax Expenditures | Industrial Facilities Development | $228,800,000 | Allows local governments to grant property tax exemptions for up to 12 years to encourage the establishment of new industrial facilities and the creation, restoration, or replacement of obsolete facilities. In lieu of property tax, an industrial facilities tax is levied on industrial property (building, machinery, and equipment, but not land). |
| Property and Other Local Tax Expenditures | Air and Water Pollution Control | $120,000,000 | Exempts air and water pollution control equipment from the property tax after approval and certification by the State Tax Commission |
| Property and Other Local Tax Expenditures | Personal Property Industrial Facilities | $68,500,000 | Provides an exemption from the industrial facilities tax equal to the portion of the tax attributable to the 6 mills for state education tax and the 18 mills for school operations. |
| Sales and Use Tax Expenditures | Air and Water Pollution | $57,000,000 | Exempts the sale of personal property purchased or installed as part of air or water pollution control facilities. |
In some cases, the state does not estimate the value of a tax break, leaving the tax break value empty in its tables.
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