MACKINAC ISLAND – Governor Rick Snyder, Sen. Jim Stamas and several top business leaders called on the House on Thursday to act on legislation that would set up a new tax incentive to attract large businesses bringing new jobs to the state, warning without passage in the next month, the state would miss on some major new employers.

Rep. Jim Tedder (R-Clarkston), chair of the House Tax Policy Committee, where the bills have sat for the past two months, said he appreciates the urgency, but the committee already has several other bills teed up for action in June and the tax incentive bills would likely have to wait until the fall.

Under SB 242, SB 243 and SB 244, eligible businesses creating at least 500 new qualified jobs that pay the average wage or higher for the prosperity region in which the business is located would receive up to a five-year, 50 percent abatement on the personal income tax withholdings of new employees. Companies creating at least 250 qualified new jobs paying wages at 125 percent or more of the prosperity region average would be eligible to receive up to a 10-year, 100 percent abatement.

Snyder, who historically has opposed targeted business tax incentives and was tepid about the bills when the Senate passed them in the previous term, has fully embraced them and passionately called for the House to pass them.

The state has had success with bringing smaller companies to the state, but needs “a closer” to convince larger businesses to locate here, Snyder said.

“It does it in a smart way. This is not just about giving away money. This is about people earning opportunity. This is about performance. This is about new jobs. This is about accountability. This package delivers on all those counts,” he said at a news conference on the Grand Hotel’s porch. “Let’s get with those House members and let’s get it through the House, let’s get it to my desk and let’s get it done and let’s get these big companies growing in Michigan.”

Stamas (R-Midland) said he “is working extremely well” with House members to advance the legislation.

Snyder said there are projects the state will miss out on unless the state enacts these tax incentives. He said he has spoken to companies or consultants for companies, two in the 2,000-plus job range and two in the 300-plus job range, though he could not name them.

“I can look you straight in the eye and say these are real things,” he said. “We could lose opportunities if this doesn’t take place in the next month or so.”

As to his embrace of tax incentives, Snyder said the old Michigan Economic Growth Authority incentives were expanded to the point of being “dumb” and now it is time to recalibrate and start over.

Tedder said he is neutral on the legislation.

“In broad scope, I’ve maintained an open perspective to this and basically acknowledged at some point we would have a hearing and give them an opportunity to tell their story,” he said. “I’ve been openly hesitant. I’m always cautious when we’re talking about bringing on new economic development proposals.”

Tedder said he has had several meetings with supporters. Tedder said he knows Snyder and backers want action soon, but the committee has a considerable agenda now. He said it would be helpful to have some examples of projects that went to other states and why.

“We have the disadvantage of time or lack thereof right now,” he said. “That’s a substantial plan that warrants substantial vetting and proper time to be heard. And I think time is our enemy.”

This story was published by Gongwer News Service.