MEDC Presentation — HIRE MI, HB 5413, 5414, 5415 (February 13, 2024)

Summary

MEDC slide presentation titled HIRE MI, for the House Economic Development and Small Business Committee and dated February 13, 2024, on HB 5413, 5414 and 5415. The slides state that projects under the Make It In Michigan economic development framework would be significantly increased by passage of HIRE MI, and that the tool is more likely to be requested by companies in R&D, design and professional services sectors. They cite potential opportunities leading to $1.8B in anticipated CAPEX and 6,100 new jobs. Examples list incentive totals of $9.0M, $14.6M and $5.7M.

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Full text

      HIRE MI
HB 5413, 5414, 5415
  House Economic Development
  and Small Business Committee
       February 13, 2024
      Business Expansion & Attraction Focus Sectors –
Winning More Knowledge Sector, Higher Wage Jobs Through
      Anticipated New Economic Development Tools




         Life Sciences &                     Professional and                     Engineering Design &
         Medical Devices                    Corporate Services                       Development

•   Michigan’s competitive ability to win more headquarters, professional services Projects under the ‘Make It In
    Michigan’ economic development framework would be significantly increased by passage of HIRE MI

•   This tool is more likely to be requested by companies in R&D, design, professional services sectors that are
    very knowledge capital intensive vs. requiring intensive physical capital.
                 Glimpse Into The Pipeline:
        Examples of Hire MI Eligible Attraction Projects
   Strong pipeline of potential opportunities: 17 projects leading to $1.8B in anticipated CAPEX and 6,100
   new jobs. Importantly, along with the R&D tax incentive, this tool would relieve budgetary pressure
           on the appropriation to MEDC for Business Attraction and Community Revitalization


        Example:                           Example:                               Example:
       EV Company                     European Company                       Engineering Project
• Growing U.S.–based EV               • Automotive Components
                                                                             • Major South Asian
  Engineering & Design company        • 400 qualified new jobs,                manufacturing company in
• Potential for R&D Tax Credit          wages $41/hr.                          automotive & aerospace
• 250 qualified new jobs, wages       • $20 million private                  • 100 qualified new jobs,
  $40/hr.                               investment                             wages $64/hr.
• $5 million private investment       • Southeast Michigan target            • $30 million private
• Southeast Michigan target site        site                                   investment
                                                                             • West Michigan target site
   INCENTIVE TOTAL: $9.0M             INCENTIVE TOTAL: $14.6M                 INCENTIVE TOTAL: $5.7M
        over 10 years                      over 10 years                           over 10 years
A
Missing
Piece
         Illustration of Project Tax Flow Under HIRE MI




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