Communities and businesses working hand in hand for positive growth
: Northern Michigan company expanding business and hiring additional employees takes advantage of tax exemption opportunity.
Communities have a special tool to encourage businesses in their area to grow and expand thanks to Public Act 198 of 1974. With the strong Michigan economy, more and more businesses are finding a perfect opportunity to expand their product lines and production. Tax exemptions are a primary tool local units of government can offer as an incentive for manufacturing companies to stay or locate in their municipality while retaining and/or creating base jobs. Michigan State University Extension partner Northern Lakes Economic Alliance (NLEA) has assisted many companies in applying for Industrial Facilities Exemption Certificates. Most recently, NLEA assisted a company in a rural part of Northern Michigan.
This company recently received local approval for a 12-year tax abatement on the 18,000 square foot, $825,000 building expansion they plan to break ground on in November.
The expansion to their current facility creates additional space to accommodate new processing equipment to increase the total output of concrete products from this facility. The company currently employs 17 people at this facility and expects to hire at least an additional three full time employees once the expansion is complete.
Approval of this tax abatement will enable the company to fund the expansion while keeping the current local, state and federal taxes whole and adding more than an estimated $110,000 in new taxes over the next 12 years.
This is a prime example of the exponential positive effect of supporting existing companies. NLEA staff worked with the company and township to facilitate the application process.