Incentives & Taxes

Incentives

St. Clair County and the State of Michigan offer various incentives and resources for businesses starting, relocating or expanding operations. 

Border County Incentives are available to eligible business locating in St. Clair County (as we border Canada). 

Incentives are available to new warehousing, distribution and logistics facilities in border counties and may provide a 50% reduction in property taxes through PA 198 of 1974 (as amended). The local unit of government is responsible for approving this incentive for one to twelve years.  In order to qualify, at least 90% of the facility, excluding surrounding green space, must be used for warehousing, distribution or logistics purposes and occupy a building or structure of at least 100,000 square feet in size.    

Brownfield Redevelopment Authority (BRA) can be used to develop and implement Brownfield projects.  A BRA is a resource that may use Tax Increment Financing (TIF) as a toll for property redevelopment.  Financial assistance is available to help offset the cost of redeveloping contaminated, blighted or functionally obsolete property. Utilizing tax increment financing, which captures the new property taxes generated by a development project, a business can be reimbursed on a dollar for dollar basis over time for certain Eligible Activities. Eligible Activities may include environmental site assessment & remediation, demolition, lead & asbestos abatement, site preparation and public infrastructure improvements. Property must be contaminated, blighted, functionally obsolete, or owned by the County Land Bank.

Community Development Block Grant (CDBG) program is a federal program utilzing funds received from the U.S. Department of Housing and Urban Development (HUD).  Each year, Michigan receives millions in federal CDBG funds, out of which various projects are funded throughout the
state.  

Emerging Technologies Sector Fund (ETF) expands funding opportunities for Michigan technology companies in federal research and development by providing matching dollars to support commercialization of Small Business Innovation Research (SBIR) and Small Business Technology Transfer projects (STTR).  Applicant must be a Michigan company or have it's principal place of business in Michigan prior to the disbursement of an ETF grant and must meet one of the following four technology sectors:  

• Life Sciences
• Homeland Security and Defense
• Advance Automotive, Manufacturing and Materials
• Alternative Energy 

Foreign Trade Zone, St. Clair County #210 
Foreign Trade Zones (FTZs) are special economic zones in the United States where imported goods can be stored, distributed, processed and used without being subject to customs duty. FTZs provide customs-related advantages and significant cost savings to help U.S. companies compete in the global marketplace.

Going Pro Talent Fund
The Going PRO Talent Fund (Talent Fund), formerly known as the Skilled Trades Training Fund, makes competitive awards to employers to assist in training, developing and retaining current and newly hired employees. Training funded by the Talent Fund must be short-term and fill a demonstrated talent need experienced by the employer. Training must lead to a credential for a skill that is transferable and recognized by industry.

Good Jobs For Michigan
The Good Jobs for Michigan legislation created new tools that encourages transformational, large-scale projects in Michigan.  Through this program, the Michigan Strategic Fund (MSF) may authorize state withholding tax capture revenues of up to 50 or 100 percent for up to five or 10 years, depending on the average annual wage and the umber of certified new jobs created by the authorized business.  

Industrial Property Tax Abatemements provide incentives for eligible businesses to make new investments in Michigan.  These abatements encourage Michigan manufacturers to build new plants, expanding existing plants or renovate aging plants.  High technology operations are also eligible for the abatement.  

Jobs Ready Michigan
The Jobs Ready Michigan program is designed to meet the talent needs of companies expanding or relocating to Michigan.  The program is flexible and responsive to the specific talent needs of companies and to address the costs associated with recruting and training individuals for occupations that are high-wage, high-skill or high-demand.  Program awards may be used for a varity of activities related to talent recruitment and job training.  

Michigan Business Development Program is an incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC).  The program is designed to provide grants, loans or other economic assistance to businesses for highly competitive projects in Michigan that create quality jobs and/or provide investment. 

Michigan Community Revitalization Program (CRP Program) is designed to promote community revitalization that will accelerate private investment in areas of historical declining values, contribute to Michigan's reinvention as a vital, job generating state, foster redevelopment of functionally obsolete or historic properties, reduce blight, and protect natural resources of this state.  The program is designed to provide grants, loans, or economic assistance for eligible investment projects in Michigan.    

Michigan Loan Participation Program participates with lenders to finance diversification project when faced with eligible borrower companies whose projected cash flows are considered speculative by the lender. 

MichiganWorks! 
To retain the state’s current workforce, MichiganWorks! offers several workforce assistance programs, including Employee Enhancement Training through the Incumbent Worker Program. This program allows companies to spend up to $3,500 to train each employee, depending on the training program. MichiganWorks! also provides screening and hiring services, funding to complete on-the-job training, Worker Opportunity Tax Credits and ongoing training strategies. Past training programs have included computer skills, LEAN manufacturing, ISO and trade apprenticeships.

Private Activity Bond Financing Program
Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan.  They provide profitable firms with capital costs savings stemming from the difference between taxable and tax-exempt interest rates.  The Michigan Strategic Fund (MSF) issues private activity bonds on behalf of the borrower and lends the bond proceeds to the borrower.  These loans can be made for manufacturing projects, not-for-profit corporation projects and solid or hazardous waste disposal facilities.  For manufacturing projects, 95% of the the bond process must be used to acquire land, building and equipment directly related to the manufacturing process. 

Taxes

Michigan’s provides a fair and efficient corporate tax rate of 6%.  
Michigan's Personal Income Tax is one of the lowest in the nation at a flat 4.25%. 
The state sales tax is 6% on sales of tangible goods. No local sales taxes are allowed. Additionally, there is no state sales tax charged on:

• manufacturing machinery and equipment
• electricity and natural gas used in production
• pollution control equipment

For more in-depth tax information, as well as unemployment and Worker’s Compensation visit the Michigan Economic Development Corporation website.  

Property Tax NonHomestead Millage Rates

• City of Port Huron - 62.4020
• City of Marysville – 61.7616
• City of St.Clair- 57.6686
• Fort Gratiot Township – 45.7042
• Port Huron Township - 51.0826