Businesses would get a cut in the single business tax in 2009 and manufacturers would get an immediate credit on the tax they pay for equipment under an agreement announced Friday by Gov. Jennifer Granholm and Republican legislative leaders.
The plan also creates a $1 billion investment fund to encourage the growth of high-tech businesses in the state. Granholm and legislative leaders released the details of the plan during an afternoon news conference in the Capitol rotunda.
Although the agreement doesn't reduce the single business tax rate until 2009, it does help manufacturers by giving them a 100 percent credit in 2006 and 2007 on the personal property tax they pay on equipment if they bring jobs or equipment into Michigan from another state or country.
They also will get an immediate 15 percent credit on the personal property tax they pay on computers and other equipment.