Legislation Introduced Encouraging New Job Creation

Liz Gullett

Oct 22, 2021

Bipartisan legislation was introduced creating the Michigan Employment Opportunity Program, which provides incentives for business development that includes substantial job creation. The plan, introduced by Representative Mark Tisdel (R-Rochester Hills) and Representative Angela Witwer (D-Delta Township), is similar to the Good Jobs for Michigan program, which expired in 2019. The proposed program would encourage businesses to create good-paying jobs by allowing them to keep a portion of income tax withholdings from the added employees for a limited period of time. The duration and amount of the incentive would vary based on the population of the county, the number of jobs created, and the level of wages.

Counties would be divided into three population tiers for determining program eligibility:

- Tier one – 250,000 or more residents,
- Tier two – Between 90,000 and 250,000 residents
- Tier three – Fewer than 90,000 residents.

Businesses would be eligible for up to 100% of income tax withholdings for up to 10 years for developments that create at least 3,000 jobs in tier one counties, at least 500 jobs in tier two counties, or at least 250 jobs in tier three counties, if the average annual wage is at least equal to the average wage in that region. However, if the annual wage is at least 125% of the average regional wage, to be eligible a business would need to create at least 250 jobs in a tier one county, at least 100 jobs in a tier two county, or at least 50 jobs in a tier three county.

The bills were referred to the House Commerce and Tourism Committee for consideration.

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