Senate approves Richardville legislation to provide economic assistance for Michigan tool and die firms
LANSING - The Senate today approved legislation that will provide increased economic assistance for tool and die firms in Michigan by making more businesses eligible for tax-free status, said Sen. Randy Richardville, sponsor of the measure.
"Michigan's tool and die industry is the foundation of our state's manufacturing economy," said Richardville, R-Monroe. "The industry provides high paying jobs for state residents. We must expand incentives that will encourage tool and die firms to continue operating in Michigan."
The legislation focuses on tool and die firms with more than 75 employees. Under Senate Bill 680, they will qualify for participation in the renaissance zone program, which grants tax-free status for up to 15 years for firms that are part of a collaborative. The purpose of the collaborative is to harness the strengths of each business for the benefit of the group to help each firm survive. Currently, only firms with less than 75 employees are eligible to gain the tax-free status.
The legislation will also increase the number of renaissance zones from 25 to 35.
"Although Michigan's tool and die industry dominates all other states, it faces many challenges while struggling to compete in today's global market," Richardville said. "This legislation will allow more firms to become eligible for tax credits, which is a great way to help them deal with these challenges."
The bill will now go to the House for consideration.
Posted: Thursday, February 28, 2008
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