LANSING – State Representative Jeff Mayes (D-Bay City) today voted in favor of a plan to create a state-level New Markets Tax Credit program to supplement the federal program and encourage investment in underserved areas in the state.
"I am working everyday to bring good-paying jobs and economic development to our state," Mayes said. "This plan will give a break to those who want to invest in low-income areas and help boost our economy. It's a step in the right direction toward moving Michigan forward."
The plan will create a credit for individuals or businesses that invest in Community Development Entities (CDEs) – organizations that manage and facilitate investments in federally approved low-income communities. The low-income areas must have either a 20 percent poverty rate or a median income of less than 80 percent of the state average income.
The New Markets Tax Credit program is a federal program that was created in 2000 to encourage more investment in low-income and underserved communities. To date, the program has authorized up to $19.5 billion in credits and has been widely acclaimed for its impact in low-income communities. Missouri, Oklahoma, Mississippi, and Louisiana already have state credits, and several other states are considering them.
"Michigan needs to be rebuilt from the ground up," Mayes said. "This plan encourages more investment in low-income and underserved communities across the state. It will also make it easier and more profitable for businesses to invest in Michigan."