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We take “business-friendly” to a whole new level.

Many people define “business friendly” in terms of affordability. And while affordability is definitely one of the key benefits of a Greater Lansing location, our definition of “business friendly” goes beyond that to include resources, connections, innovation and more.

Business-centric tax structure

Recent changes to our state and local tax structures are designed to make our area an even more cost-effective place to do business.

State Taxes

The State of Michigan is extremely committed to building business partnerships and recent tax changes reflect that commitment.

Michigan Business Tax (MBT)

• Implemented in 2008

• Includes tax credits and significantly lowered the business tax burden

• Businesses with gross receipts under $350,000 do not have to file a tax return or pay any tax

MBT Highlights

Business Income Tax	4.95%
Gross Receipts Tax	0.8%
Surcharge: applied to apportioned income and gross receipts tax before credits	21.99%
Apportionment Factor	100% Sales
Filing Threshold	$350,000
Investment Tax Credit*	2.9%
Compensation Credit	0.37%
R&D Credit*	1.9%
Industrial Personal Property Tax Credit**	35%

*Combined ITC and Compensation Credit cannot exceed 50% of tax liability in 2008 and 52% in tax years thereafter. The combined ITC, Compensation Credit and R&D credit cannot exceed 65% of liability in 2008 and beyond.

**Not available on leased property.

MBT has saved Michigan businesses billions of dollars

Aggregate value of MBT:

• $635 million in savings from Personal Property Tax Credit & Exemption

• $389 million in savings from Small Business Alternative Credit

• $288 million in savings from Compensation Credit

• $266 million in savings from Investment Tax Credit

• $73 million in savings from R&D Credit

• $54 million in savings from Filing Phase-In Credit

• $34 million in savings from other Nonrefundable Credits

A lower-than-average cost of doing business

Don’t take it from us! Here’s what some of the country’s top business resources have to say.

Forbes Best Places for Business and Careers

The Greater Lansing area held a strong “middle of the pack” position in this survey of the country’s 200 largest metro regions with a ranking of 103. This rating is based on the cost of labor, energy, taxes and office space.

Milken Institute

This national cost-of-doing business index ranked the State of Michigan as 20^th in the country:

	Michigan stats	Index score*
Wage and salary cost per employee	$41,697	99.5
State tax revenue as a share of personal income	69.4	106 .7
Cost of commercial/industrial electricity in cents per kilowatt-hour	7.1	95 .9
Square-foot cost of industrial space	4.3	87 .9
Square-foot cost of office space	18.6	92 .7
Cost of doing business index		98.9

*An index score of 100 means the state is equal to the US average; a number lower than 100 means the state’s cost is less than the national average

A range of available incentives

Your business is critical to the future of the Lansing area and government leaders at the state, regional and local levels have worked hard to deliver incentive programs that prove it.

Incentives are available to new, expanding and relocating companies in a wide variety of categories.

Brownfield incentives

Helps to encourage reuse of contaminated, functionally obsolete or blighted buildings.

Capital Access programs

Help provide small Michigan businesses with access to bank financing.

Film tax credit programs

Michigan has become a film making hub! Incentives available for production, infrastructure development, financing and workforce development.

Industrial Development Revenue Bonds

Extremely low-interest financing for fixed assets; can be used for manufacturing and not-for-profit projects.

Michigan Economic Growth Authority (MEGA) Tax Credits

This credit can make it more affordable for your company to expand or relocate in Michigan. May provide a refundable tax credit against the Single Business Tax to companies in select industries.

Michigan Entrepreneurial Credit

Rewards entrepreneurs that create jobs in Michigan.

Renaissance Zone credits

Companies who locate in a designated Renaissance Zone can virtually eliminate taxes in a variety of categories.

SBA 7 (a) Loan programs

In the event of borrower default, this program will repay the bank that made the loan. Helps to decrease bank risk and increase small business access to affordable loans.

Tax abatement

Available in a wide variety of categories.

Tax-exempt bond project financing

These bonds are used to finance qualified development projects and can help to reduce the cost of project financing.

Tax incremental financing

This tool can make your development project more affordable.

Training assistance and grants

These resources provide an affordable way to help your employees gain the skills they need to compete in today’s global marketplace.

The Leap team has an excellent knowledge of incentives at every level and will help your team connect with the incentive programs that are right for you.

Contact us today at info@leapinc.biz

A commitment to innovation

In today’s dynamic business environment, innovation and flexibility aren’t “nice to have”—they’re necessities. Locate your business in Greater Lansing and you’ll be in the heart of an innovation hub with ready access to the fresh ideas, support resources and connections you need to succeed in the long term.

• #4 state in business patents. 17,017 business patents granted in Michigan from 2004-2008—or 4% of all U.S. Patents.

• Inc. Magazine and Entrepreneur call us one of the country’s best areas for start-ups.

• Michigan State University is an extremely committed economic development partner and offers a wide variety of business programs and resources.

• Nearly 20% of residents in professional/scientific/technical fields are entrepreneurs

Our area offers a variety of resources for both new and existing businesses. Go to Business Resources to learn more!