TD Recovery Zones Expand
LANSING — The Michigan Economic Development Corp. (MEDC) is now accepting applications for the second round of Tool and Die Recovery Zones. The zones are intended to help struggling tool and die companies compete against global competition by absolving them of virtually all state and local taxes for up to 15 years.
In 2004, amendments to the Michigan Renaissance Zone Act allowed the MEDC to designate up to 20 tax-free Tool and Die Recovery Zones, of which 12 remain.
“We are doing everything we can to deliver on Gov. (Jennifer) Granholm’s goal of making Michigan a global economic powerhouse in the 21st century,” MEDC President and CEO Don Jakeway said. “Fighting for every job means doing all we can to make our business climate more attractive to employers.”
In December 2004, the MEDC announced eight zones comprised of tool and die firms and/or coalitions representing 33 companies statewide. The second round of recipients will be announced in November or December.
To qualify, the property designated must be leased or owned by a tool and die business and used primarily for tool and die operations. The company must have fewer than 50 full-time employees and the local government board must agree by resolution to abate the business’ local taxes.
In addition, the business must enter into a collaborative agreement that designates synergistic opportunities with other qualified tool and die shops, including collaborative marketing and the development of standardized processes and management methods.
The Ren Zone program was established in 1996 and now includes 166 zones and sub-zones throughout the state.
To date, the zones have led to more than $2.4 billion of private investment in over 400 projects and the creation of more than 8,200 jobs, according to the MEDC.
“Michigan Renaissance Zones have a proven track record for securing new investment and jobs in the state,” Jakeway said. “The Tool and Die Recovery Zones mirror the same successful model, and I encourage Michigan tool and die companies to take advantage of this tremendous resource.”