SENATE BILL NO. 473

June 26, 2025, Introduced by Senator SINGH and referred to Committee on Government Operations.

"Michigan strategic fund act,"

by amending sections 9 and 90j (MCL 125.2009 and 125.2090j), section 9 as amended by 2024 PA 117 and section 90j as added by 2017 PA 109, and by adding chapter 8F; and to repeal acts and parts of acts.

the people of the state of michigan enact:

Sec. 9. (1) The fund shall transmit to each member of the legislature, the governor, the clerk of the house of representatives, the secretary of the senate, and the senate and house fiscal agencies annually a report of its activities. The report must be transmitted not later than April 10 of each year for activities in the immediately preceding state fiscal year. The report must not include information exempt from disclosure under section 5. The report must include, but is not limited to, all of the following for each program operated under this act:

(a) A list of entities that received financial assistance.

(b) The type of project or product being financed.

(d) For each separate form of financial assistance, all of the following:

(i) The number of new jobs committed or projected when the financial assistance was applied for.

(ii) The number of retained jobs committed or projected when the financial assistance was applied for.

(iii) The actual number of new jobs created that are not temporary employees.

(iv) The actual number of retained jobs that are not temporary employees.

(v) The average annual salary of the new jobs created that are not temporary employees.

(vi) The average annual salary of the retained jobs that are not temporary employees.

(e) The duration of the financial assistance.

(f) The amount of financial support other than state resources.

(g) Money or other revenue or property returned to the fund, including any repayments through a clawback provision in the agreement.

(h) The status of all loans of the fund.

(i) A list of all entities that are in bankruptcy, of which the fund has received actual notice, filed by a direct recipient of an active single incentive of not less than $500,000.00. In addition, the fund shall, within not later than 120 days after the fund receives notice, provide a report of the notice of bankruptcy on its website and forward the report to each of the following:

(i) The senate majority leader and the senate minority leader.

(ii) The speaker of the house and the house minority leader.

(iii) The members of the house commerce and tourism economic competitiveness committee.

(iv) The members of the house appropriations subcommittee on general government.

(v) The members of the senate economic and small business community development committee.

(vi) The members of the senate appropriations subcommittee on general government.

(j) A summary of the approximate administrative costs used to administer the programs and activities authorized under this act.

(k) Any other information as required by this section.

(2) The auditor general or a certified public accountant appointed by the auditor general annually shall conduct and remit to the legislature an audit of the fund permitted under section 53 of article IV of the state constitution of 1963, and, in the conduct of the audit, shall have access to all records of the fund at any time, whether or not confidential. Each audit required by this section must include a determination of whether the fund is likely to be able to continue to meet its obligations, including a report on the status of outstanding loans and agreements made by the fund.

(3) The fund shall also transmit the audit described in subsection (2) to the chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government and the house of representatives appropriations subcommittee on general government. The fund shall make the report and audit available to the public on the fund's website.

(4) The report described in subsection (1) must also contain all of the following that are related to a 21st century investment made by the fund board under chapter 8A:

(a) The amount of qualified venture capital fund investments, qualified mezzanine fund investments, and qualified private equity fund investments under management in this state, including year-to-year growth.

(b) The value of loan enhancement program investments, qualified private equity fund investments, qualified mezzanine fund investments, and qualified venture capital investments in qualified businesses, including year-to-year growth.

(c) A statement of the amount of money in each loan reserve fund established under the small business capital access program required under chapter 8A.

(5) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 88r:

(a) The total actual amount of qualified investment attracted under section 88r as reported to the fund.

(b) The total actual number of new jobs created under section 88r as reported to the fund.

(c) The actual amount of the grant, loan, or other economic assistance made under section 88r separately for each qualified business verified by the fund.

(d) For each qualified business, whether it is a new business, whether it is an expansion of an existing business, or whether it relocated from outside of this state.

(e) An evaluation of the aggregate return on investment that this state realizes on the actual qualified new jobs and actual qualified investment made by qualified businesses.

(6) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under chapter 8B:

(a) For tourism promotion efforts, all of the following:

(i) An itemized list, by market, of how much was spent, types of media purchased, and target of the tourism promotion campaign.

(ii) The return on investment analysis that utilizes existing baseline data and compares results with prior outcome evaluations funded by Travel Michigan.

(b) For business development efforts, all of the following:

(i) An itemized list, by market, of how much was spent, types of media purchased, and target of the business promotion campaign.

(ii) A performance analysis that compares the program or campaign objectives and outcome of the campaign or program.

(7) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions under section 90d:

(a) The total actual amount of private investment attracted under section 90d as reported to the fund.

(b) The actual amount of the community revitalization incentives made under chapter 8C separately for each project.

(c) The total actual amount of square footage revitalized or added for each project approved under section 90d as reported to the fund. When reporting square footage, the person must report the square footage by category, including, but not limited to, commercial, residential, or retail.

(d) The aggregate increase in taxable value of all property subject to a written agreement under chapter 8C when established and recorded by the local units of government and as reported to the fund.

(e) The total actual number of residential units revitalized or added for each project approved under section 90d as reported to the fund.

(f) Each project that received a community revitalization incentive outside the fund program standards and guidelines and why the variance was given.

(8) Beginning on and after January 1, 2012, on a monthly basis the fund shall provide exact copies of all information regarding all actions under chapter 8C that is provided to board members of the fund for the purpose of monthly board meetings, subject to confidentiality under section 5, to each of the following and post that information on the fund's website:

(a) The chairperson and minority vice-chairperson of the house commerce and tourism economic competitiveness committee.

(b) The chairperson and minority vice-chairperson of the house appropriations subcommittee on general government.

(c) The chairperson and minority vice-chairperson of the senate economic and small business community development committee.

(d) The chairperson and minority vice-chairperson of the senate appropriations subcommittee on general government.

(9) The report described in subsection (1) must also include a summary of the approximate administrative costs used to administer the programs and activities authorized in the following sections:

(a) Section 88b.

(b) Section 88h.

(10) The report described in subsection (1) must also include, but is not limited to, all of the following for all actions for business incubators approved by the fund after January 14, 2015:

(a) The number of new jobs created and projected new job growth by current clients of the business incubator.

(b) Amounts of other funds leveraged by current clients of the business incubator.

(11) The report described in subsection (1) must also include the actual repayments received by the fund for failure to comply with clawback provisions of the written agreement under all of the following:

(a) Section 78.

(b) Section 88d.

(d) Section 88q.

(e) Section 88r.

(f) Section 90b.

(g) Chapter 8F.

(12) Beginning on July 1, 2015, the fund shall post on the fund's website a list of each contract, agreement, or other written loan or grant documentation for financial assistance under sections 88r and 90b that the fund entered into or modified in the immediately preceding fiscal year.

(13) Beginning on July 1, 2015, the fund shall post and update periodically all of the following on its website for all loans made under sections 88r and 90b:

(a) A description of the project for which the loan was made.

(b) The total amount of the loan.

(d) The interest rate of the loan.

(14) Beginning July 1, 2015, the report described in subsection (1) must also contain all of the following for each program that provides financial assistance under this act that requires a site visit:

(a) A copy of the site visit guidelines for that program.

(b) The number of site visits conducted under that program.

(15) The fund shall post on its website and update periodically all of the information described in subsection (14).

(16) The report described in subsection (1) must also include, but is not limited to, all of the following for all written agreements related to the good jobs for Michigan program created under chapter 8D or the more jobs for Michigan program created under chapter 8F:

(a) The name of the authorized business or authorized employer.

(b) The number of certified new jobs or protected jobs required to be created or maintained.

(17) The report described in subsection (1) must also include the activities of the critical industry program described in section 88s.

(18) The report described in subsection (1) must also include the activities of the Michigan strategic site readiness program described in section 88t.

(19) The fund shall cooperate with the department of treasury and assist in preparing the report required under section 718 of the income tax act of 1967, 1967 PA 281, MCL 206.718.

(20) The MEDC may perform the administrative functions of the fund under this section on behalf of the fund.

(21) (20) As used in this section, "financial assistance" means grants, loans, other economic assistance, and any other incentives or assistance under this act.

Sec. 90j. (1) The good jobs for Michigan fund is created within the state treasury. The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit all amounts deposited pursuant to section 51f 51f(1) of the income tax act of 1967, 1967 PA 281, MCL 206.51f, to the fund and shall credit to the fund any interest and earnings from fund investments. Money in the fund at the close of the fiscal year shall remain remains in the fund and shall does not lapse to the general fund.

(2) The good jobs for Michigan fund may be used only for 1 or more of the following purposes:

(a) To make withholding tax capture revenue payments in accordance with a written agreement to an authorized business within not later than 90 days after receipt of a request for payment and a copy of the withholding certificate issued under section 90i.

(b) To distribute an amount equal to 5% of the withholding tax capture revenue payments certified under section 90i to the Michigan strategic fund to pay for administration administrative expenses.

CHAPTER 8F

Sec. 90t. As used in this chapter:

(a) "Affiliated business" means a person that is at least 50% owned and controlled, directly or indirectly, by an associated business.

(b) "Associated business" means a person that is at least 50% owned and controlled, directly or indirectly, by an eligible business.

(c) "Authorized employer" means an eligible business that has met the requirements under section 90w, 90x, or 90y, as applicable, and that has entered into a written agreement with the fund for withholding tax capture revenues under this chapter and section 51f of the income tax act of 1967, 1967 PA 281, MCL 206.51f, and any related business that also has entered into the written agreement with the fund.

(d) "Base employment level" means the number of full-time jobs in this state of an eligible business and any related business when the eligible business or related business enters into a written agreement under this chapter, as determined by the fund.

(e) "Casino" means a casino regulated by this state under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, a casino at which gaming is conducted under the Indian gaming regulatory act, Public Law 100-497, or property associated or affiliated with the operation of either type of casino described in this subdivision, including, but not limited to, a parking lot, hotel, or motel.

(f) "Certified new job" means a full-time job created by an authorized employer or connected employer pursuant to a written agreement under section 90w or 90x at a facility that is in excess of any base employment level or qualifying employment level applicable under the written agreement.

(g) "Collocated employer" means a person that has entered into a contract with an authorized employer to employ individuals at the location of the facility of the authorized employer for a period of 1 or more years.

(h) "Connected employer" means a collocated employer or a qualified supplier.

(i) "Eligible business" means a person other than a retail establishment, professional sports stadium, casino, or that portion of an eligible business used exclusively for retail sales that proposes to create certified new jobs in this state under section 90w or 90x or maintain protected jobs in this state under section 90y and that, as determined by the fund, satisfies all of the following:

(i) Is located in or plans to locate in this state.

(ii) Is organized pursuant to and in good standing under the laws of the state in which the person was formed.

(iii) Is registered to conduct business in this state and is in good standing under the laws of this state.

(iv) Has the power to enter into an agreement with the fund under this chapter.

(j) "Eligible distressed area" means that term as defined in section 11 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1411.

(k) "Facility" means a site or sites within this state in which an authorized employer, connected employer, eligible business, or related business creates or proposes to create certified new jobs under section 90w or 90x or maintains or proposes to maintain protected jobs under section 90y, as determined by the fund.

(l) "Full-time job" means a job based in this state that is performed by an individual who is employed for consideration for not less than 35 hours of work each week and for whom an employer withholds income taxes under the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.847, and United States Social Security taxes.

(m) "Geographically disadvantaged area" means a geographic area in this state that includes 1 or more of the following:

(i) A qualified opportunity zone as that term is defined in 26 USC 1400Z-1.

(ii) A HUBZone as that term is defined in 13 CFR 126.103.

(n) "More jobs for Michigan fund" means the more jobs for Michigan fund created in section 90v.

(o) "Prosperity region" means that term as defined in section 90g.

(p) "Prosperity region median wage" means the median annual wage for the prosperity region where a facility is or will be located based on the most recent data made available by the Michigan bureau of labor market information and strategic initiatives.

(q) "Protected jobs" means the number of full-time jobs at a facility of an authorized employer maintained in this state on a specific date as that date and number of full-time jobs are determined by the fund.

(r) "Qualified supplier" means a person located or operating in this state that meets all of the following requirements:

(i) Creates 25 or more new full-time jobs in this state as a result of a new or increased business activity in this state between the person and an authorized employer, eligible business, or related business, as determined by the fund.

(ii) Provides both of the following to an authorized employer, eligible business, or related business pursuant to a contract between the person and the authorized employer, eligible business, or related business:

(A) $5,000,000.00 or more of tangible personal property or services to the authorized employer, eligible business, or related business in a calendar year, as determined by the fund.

(B) 10% or more of the total tangible personal property or services provided to the authorized employer, eligible business, or related business in a calendar year, as determined by the fund.

(s) "Qualifying employment level" means not less than 3,000 full-time jobs in this state with a median annual wage of 150% or more of the prosperity region median wage as of a date provided in a written agreement under section 90x.

(t) "Related business" means an affiliated business, an associated business, or a subsidiary business.

(u) "Subsidiary business" means a person that is directly or indirectly controlled or at least 80% owned by an eligible business.

(v) "United States Consumer Price Index" means the United States Consumer Price Index for All Urban Consumers as defined and reported by the United States Department of Labor, Bureau of Labor Statistics, including any successor index.

(w) "Withholding tax capture revenues" means the amount of income tax withheld under chapter 17 of the income tax act of 1967, 1967 PA 281, MCL 206.701 to 206.718, each calendar year that is attributable to individuals employed in certified new jobs under section 90w or 90x or protected jobs under section 90y pursuant to a written agreement.

(x) "Written agreement" means a written agreement made between the fund and an eligible business under section 90w, 90x, or 90y and any related business.

Sec. 90u. (1) The fund shall create the more jobs for Michigan program to authorize the transfer of a dedicated portion of withholding tax capture revenues to authorized employers that provide certified new jobs in this state in excess of a base employment level under section 90w, provide certified new jobs in connection with a transformational job creation project in excess of any base employment level or qualifying employment level under section 90x, or maintain protected jobs in this state under section 90y. The program shall be operated and administered in compliance with this chapter by the authorized employees, officers, and agents of the fund, which may include employees of the MEDC. The board may delegate to its president, its vice president, employees of the fund, or employees or officers of the MEDC, the functions and responsibilities under this chapter that the board considers necessary or appropriate to administer this chapter. The fund shall adopt program guidelines and use a detailed application, approval, and compliance process that is published and available on the fund's website.

(2) An eligible business and 1 or more related businesses may apply to the fund under section 90w, 90x, or 90y to enter into a written agreement that authorizes the payment of withholding tax capture revenues under this chapter. Each applicant shall submit with the application a certified schedule listing all violations within the 3-year period immediately preceding the date of the application. The schedule must include any information required by the fund to comply with this subdivision. For any violation that is not a resolved violation, the schedule must include an action plan on resolving the violation. If the schedule or other information available to the fund indicates that an applicant has a violation that is not a resolved violation, the fund shall not enter into a written agreement with the applicant unless the applicant submits evidence, to the satisfaction of the fund, that there is a sufficient action plan to resolve the violation or the violation is in the process of being resolved. The fund shall not enter into a written agreement with the applicant if the schedule or other information available to the fund indicates that either of the following applies:

(a) In the 3-year period immediately preceding the date of application, the applicant has been issued 5 or more notices of violation of environmental regulations, or has an administrative consent order or a consent judgment involving environmental regulations that includes stipulated penalties, unless the department of environment, Great Lakes, and energy finds the applicant has made improvements in operations to come into compliance with this state's environmental regulations, or other demonstrated ability to comply with this state's environmental regulations.

(b) In the 3-year period immediately preceding the date of application, the applicant was subject to any of the following:

(i) A criminal penalty under section 35(4) or 35a(4) of the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1035 and 408.1035a, for a willful or repeated violation of the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094, an order issued under that act, or a rule or standard promulgated under that act.

(ii) A criminal conviction under section 35(5) or 35a(5) of the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1035 and 408.1035a, for a willful violation of the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094, an order issued under that act, or a rule or standard promulgated under that act that causes the death of an employee.

(iii) Inclusion in the Michigan occupational safety and health administration's severe violator enforcement program.

(3) The fund may request information, in addition to that contained in an application and the schedule as the fund determines necessary to permit the fund to discharge its responsibilities under this chapter.

(4) The amount of withholding tax capture revenues certified by the department of treasury to be paid to an authorized employer may be reduced by not more than 4%, as determined by the fund and provided in a written agreement, and that amount must be retained by the fund or the MEDC for administrative expenses incurred by the fund or the MEDC under this chapter. The fund may enter into an agreement with the MEDC and the department of treasury regarding the administration of this chapter and related administrative expenses.

(5) A written agreement must include, without limitation, information required under section 90w, 90x, or 90y, and all of the following, as applicable:

(a) A description of any expansion, development, facility, or location that is the subject of the written agreement.

(b) Conditions on which the designation as an authorized employer is made.

(c) A statement from the authorized employer that the authorized employer would not otherwise add certified new jobs under section 90w or 90x or retain protected jobs under section 90y as provided for under the written agreement without the withholding tax capture revenue payments authorized under this chapter.

(d) A provision indicating that misrepresentation in an application under this chapter may result in the revocation of the designation as an authorized employer and the repayment of some or all of the withholding tax capture revenues received under this chapter, which may include a penalty equal to 10% of the withholding tax capture revenue payments received under this chapter.

(e) A method for measuring and verifying certified new jobs required pursuant to the written agreement.

(f) A method for measuring and verifying protected jobs maintained pursuant to the written agreement.

(g) A provision requiring the authorized employer that is certified under this chapter for a payment from the more jobs for Michigan fund to do both of the following:

(i) File the information, returns, or reports required under this chapter and chapter 17 of the income tax act of 1967, 1967 PA 281, MCL 206.701 to 206.718, with the department of treasury.

(ii) Provide any other information reasonably requested by the fund, the MEDC, or the department of treasury.

(h) A maximum amount of withholding tax capture revenues that an authorized employer may claim before reduction of the not more than 4% payment for administrative expenses under subsection (4), as provided in the written agreement.

(i) Specific penalties for noncompliance with the written agreement, including, but not limited to, provisions for a clawback of disbursements to the authorized employer under the written agreement, as provided in the written agreement.

(j) A provision for the termination of the written agreement.

(k) An audit provision requiring the fund to verify that the authorized employer has satisfied the requirements of the written agreement.

(l) A provision requiring the authorized employer to disclose to the fund whether, to the knowledge of the authorized employer, there are any pending legal proceedings that could have a materially adverse effect on the authorized employer, a facility that is the subject of the written agreement, or the performance of the obligations of the authorized employer under the written agreement.

(m) A provision requiring an authorized employer and any general contractor or subcontractor of the authorized employer to comply with any requirements applicable under laws specified in the written agreement.

(n) A projected schedule of withholding tax capture revenues permitted under the written agreement, which may be updated by the fund to ensure an accurate projection of withholding tax capture revenues and compliance with this chapter during the term of the written agreement.

(6) On execution of a written agreement under this chapter, an eligible business and any related business is an authorized employer. The fund shall provide a copy of each written agreement to the department of treasury. On execution of the written agreement, the transfer and payment of withholding tax capture revenues as specified in this chapter and in the written agreement is binding on this state and the authorized employer. The state treasurer shall calculate, based on this chapter and the written agreements received under this subsection, the amount of withholding tax capture revenues collected as a result of the certified new jobs created or protected jobs maintained pursuant to this chapter and those written agreements for each calendar year and the percentage of that amount that needs to be transferred from the general fund and deposited, in accordance with section 51f of the income tax act of 1967, 1967 PA 281, MCL 206.51f, into the more jobs for Michigan fund. The fund shall issue payments to the authorized employer in a manner consistent with this chapter and retain money for administration of this chapter as permitted by this chapter.

(7) The state treasurer shall develop methods and processes that are necessary for the authorized employer to report the amount of withholding under chapter 17 of the income tax act of 1967, 1967 PA 281, MCL 206.701 to 206.718, from individuals employed in certified new jobs or protected jobs and for the determination of withholding tax capture revenues under this chapter and the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.847.

(8) The fund may enter into agreements with an eligible business other than an authorized employer, including, but not limited to, a connected employer, as the fund determines necessary for the implementation and enforcement of this chapter and a written agreement with an authorized employer under this chapter.

(9) Subject to any limits applicable under this section or section 90w, 90x, or 90y, an authorized employer is eligible to receive withholding tax capture revenue payments under this chapter as provided in this chapter.

(10) Except as otherwise provided under subsection (11), the fund shall issue a withholding certificate each calendar year to an authorized employer pursuant to the written agreement that states all of the following:

(a) That the authorized employer is an authorized employer under this chapter.

(b) The amount of withholding tax capture revenues to be paid to the authorized employer from the more jobs for Michigan fund for the designated calendar year.

(c) The authorized employer's federal employer identification number or the Michigan treasury number assigned to the authorized employer, or both.

(11) The fund shall provide the department of treasury with a copy of each withholding certificate issued under this section. On receipt of a withholding certificate, an authorized employer may request a payment from the more jobs for Michigan fund by filing a copy of the withholding certificate with the fund. The fund shall issue the withholding tax capture revenue payment from the more jobs for Michigan fund not later than 90 days after receipt of the request for payment from the authorized employer.

(12) The fund may retain an amount that is not more than 4% of the withholding tax capture revenue payments authorized for that year for the fund and the MEDC as provided in written agreements. The fund may use the amount described in this subsection to pay for the administrative expenses under this chapter. The fund may use application fees or administrative fees received for activities authorized under this chapter and for the administrative activities of the fund and the MEDC authorized under this chapter.

(13) As a condition of being an authorized employer, an authorized employer authorizes the fund to identify the authorized employer and disclose the amount and duration of the withholding tax capture revenue payments. The fund shall publish the information described in this subsection on the fund's website and include this information in the report required under section 9.

(14) The legislature finds and declares that activity under this chapter to promote economic development and support job creation and protection in this state is for a public purpose.

(15) The fund may not enter into a new agreement under this chapter after December 31, 2032.

(16) As used in subsection (2):

(a) "Resolved violation" means a violation where the terms of a settlement, consent agreement, conviction, decision, or other final determination has been fully satisfied.

(b) "Violation" means a formal enforcement action issued by this state, a political subdivision of this state, or the federal government in response to a violation of environmental, occupational safety, or public health regulations that has occurred in this state, including, but not limited to, a violation notice, enforcement notice, order to correct, licensing violation notice, and stop work order.

Sec. 90v. (1) The more jobs for Michigan fund is created in the state treasury.

(2) The state treasurer shall deposit money and assets received under section 51f(2) of the income tax act of 1967, 1967 PA 281, MCL 206.51f, or from any other source in the more jobs for Michigan fund. The state treasurer shall direct the investment of money in the more jobs for Michigan fund and credit interest and earnings from the investments to the more jobs for Michigan fund.

(3) Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.

(4) The fund is the administrator of the more jobs for Michigan fund for audits of the more jobs for Michigan fund.

(5) The fund shall expend money from the more jobs for Michigan fund, on appropriation, only to make withholding tax capture revenue payments in accordance with a written agreement within 90 days after receipt of a request for payment and a copy of the withholding certificate issued under this chapter.

(6) For any future state fiscal year that the fund, after consultation with the department of treasury, projects that withholding tax capture revenue payments will be required to be paid to an authorized employer under this chapter, the fund shall notify the state budget director of that required activity for inclusion in annual proposals developed by the state budget director under section 344 of the management and budget act, 1984 PA 431, MCL 18.1344. In preparing an executive budget for that fiscal year for submission to the legislature as provided in section 348 of the management and budget act, 1984 PA 431, MCL 18.1348, the state budget director shall include an appropriation from the more jobs for Michigan fund for the purpose of making withholding tax capture revenue payments from the more jobs for Michigan fund required under this chapter. The legislature shall appropriate money from the more jobs for Michigan fund for the purpose of making payments from the more jobs for Michigan fund required under this chapter.

Sec. 90w. (1) After receipt of an application in a form determined by the fund, the fund may enter into an agreement with the applicant for withholding tax capture revenues under this chapter if the fund determines that all of the following requirements are or will be satisfied:

(a) Subject to subdivisions (b) and (c), the applicant proposes to create at a facility 1 or more of the following:

(i) 25 or more certified new jobs that pay at least 175% of the prosperity region median wage.

(ii) 25 or more certified new jobs at a facility in a county with a population of 50,000 or less that pay at least 135% of the prosperity region median wage.

(iii) 250 or more certified new jobs that pay at least 150% of the prosperity region median wage.

(iv) 1,000 or more certified new jobs that pay at least 150% of the prosperity region median wage, if the applicant also proposes investments in the facility that exceed $1,000,000,000.00.

(b) Except as otherwise provided in subdivision (c), an applicant must meet 1 of the following timelines, as applicable, or both the applicant and the fund are released from the written agreement:

(i) For an applicant whose location or expansion in this state requires construction, including renovations or new construction, the following timeline:

(A) The applicant must begin construction not later than 3 years after the date the written agreement is executed.

(B) The applicant must complete its first hire of an individual to fill a certified new job not later than 2 years after the start of construction.

(C) The applicant must create the certified new jobs as provided in the written agreement and begin receiving withholding tax capture revenues not later than 3 years after its first hire as described in sub-subparagraph (B).

(ii) For an applicant whose location or expansion in this state does not require construction, the following timeline:

(A) The applicant must complete its first hire of an individual to fill a certified new job not later than 3 years after the date the written agreement is executed.

(B) The applicant must create the certified new jobs as provided in the written agreement and begin receiving withholding tax capture revenues not later than 3 years after its first hire as described in sub-subparagraph (A).

(c) The fund shall notify an applicant of an applicable deadline under subdivision (b) not less than 90 days before the deadline. The fund may extend an applicable deadline under subdivision (b) for 1 year if the fund determines that the applicant has proceeded in good faith with a location or expansion in this state and there is good cause for the applicant's delay in meeting the deadline. The fund may request, and the applicant shall provide, any information the fund considers necessary to make the determination under this subdivision.

(d) In addition to the certified new jobs specified in subdivision (a), the applicant, if already located within this state, agrees to a base employment level, as determined by the fund.

(e) The plans for the creation of certified new jobs and any renovation or new construction of a facility are economically sound.

(f) The investment by the applicant and the creation of certified new jobs in this state will serve the public purpose of benefiting the people of this state by increasing opportunities for employment and by strengthening the economy of this state as determined by the fund.

(g) The withholding tax capture revenues offered under this section and paid from the more jobs for Michigan fund are an incentive to expand or locate the applicant in this state, including, but not limited to, addressing a need for additional assistance for deal closing or second stage company gap financing.

(h) A regional economic model cost benefit analysis recognized by economic development professionals indicates that the proposed payment of withholding tax capture revenues under this section to the applicant will result in an overall positive fiscal impact to this state.

(i) The applicant will create the requisite number of certified new jobs within the time period provided in a written agreement, as determined by the fund.

(j) The applicant will maintain the base employment level and not less than the requisite number of certified new jobs throughout the duration of the period of time that the applicant receives withholding tax capture revenues paid from the more jobs for Michigan fund. However, if the applicant fails to maintain the base employment level and the requisite number of certified new jobs as provided in the written agreement, the applicant will forfeit withholding tax capture revenues for the period of time provided in the written agreement.

(k) The applicant demonstrates to the satisfaction of the fund that the applicant has paid taxes levied by the federal government, this state, another state, or a political subdivision of this state or another state that are due and payable by the applicant before any penalty for nonpayment of the tax has attached, except for taxes contested in good faith and pursuant to proceedings authorized by law.

(l) The governing body of the municipality in which the facility or proposed facility is located indicates its support for the proposed expansion or new location.

(m) The applicant provides detailed hiring and training plans, including any registered apprenticeships or certifications provided, and agrees to coordinate with local workforce development agencies, including local Michigan Works! Agencies, to attract and train, if needed, a qualified workforce. As used in this subdivision, "local Michigan Works! Agency" means a Michigan works agency as that term is defined in section 3 of the Michigan works one-stop service center system act, 2006 PA 491, MCL 408.113.

(2) If the fund determines that all of the requirements under subsection (1) are or will be satisfied, subject to subsections (3) and (4), the fund shall determine the amount and duration of the withholding tax capture revenues to be authorized for the applicant and shall enter into a written agreement as provided in this chapter for a duration determined by the fund. Subject to subsections (3) and (4), in determining the maximum amount and maximum duration of the withholding tax capture revenues authorized, the fund shall consider the following factors, if applicable:

(a) The number of certified new jobs to be created.

(b) The degree to which the median annual wage of the certified new jobs exceeds the prosperity region median wage.

(c) Whether providing an incentive for the creation of the certified new jobs in this state aligns with any strategic plan for state economic development applicable to the fund.

(d) Whether the certified new jobs created would be located in an eligible distressed area or a geographically disadvantaged area.

(e) The level of investment by the applicant in relation to the number of certified new jobs the applicant proposes to create.

(f) The potential impact of a proposed expansion, development, or location on the economy of this state and the overall positive return to this state.

(g) Whether the applicant has made a written commitment to fund some portion of costs for applicable training of the individuals who will perform the certified new jobs that will lead to a professional or technical certification for these individuals.

(h) Whether the applicant will make a good-faith effort to employ, if qualified, residents of this state at a facility.

(i) Whether the expansion or location of the applicant will support or enable progress toward the following goals:

(i) Community enhancement or engagement opportunities.

(ii) Investing in this state's labor and workforce.

(iii) Enacting a workforce plan that includes recruitment, hiring, training strategies, and advancement strategies for employees.

(3) Subject to subsection (4), the fund may allow an applicant to receive up to 100% of withholding tax capture revenues for certified new jobs for a period of not more than 10 years.

(4) The fund may extend the period for payment of withholding tax capture revenues by not more than an additional 10 years if the applicant proposes to create not less than 1,000 certified new jobs and also proposes investments in the facility that exceed $1,000,000,000.00, as determined by the fund.

(5) As used in this section, "applicant" means the eligible business that submits an application to enter into a written agreement under this section and any related business that also will be a party to the written agreement.

Sec. 90x. (1) After receipt of an application in a form determined by the fund, the fund may enter into a written agreement with an applicant for withholding tax capture revenues under this chapter if the fund determines that all of the following requirements are or will be met:

(a) The applicant proposes a transformational job creation project that will do both of the following:

(i) Create or provide for the creation of 3,000 or more certified new jobs, in excess of any applicable base employment level and the qualifying employment level, with a median annual wage of 150% or more of the prosperity region median wage by a date provided in the written agreement.

(ii) Invest $20,000,000,000.00 or more in excess of the qualifying investment level in a proposed facility by a date to be included in the written agreement with the applicant.

(b) The applicant proposes to create the certified new jobs specified in subdivision (a) not more than 10 years after achieving the qualifying employment level.

(c) The facility and the creation of the certified new jobs are determined by the fund to be in the economic interests of this state.

(d) The facility and the creation of certified new jobs will benefit the people of this state by increasing activities for employment and strengthening the economy of this state, as determined by the fund.

(e) The withholding tax capture revenues available under this chapter and paid from the more jobs for Michigan fund are an incentive to expand or locate the applicant in this state and address the economic competitiveness of this state, as determined by the fund.

(f) The qualifying employment level and qualifying investment level will be reached within not more than 10 years as provided in the written agreement.

(g) Any applicable base employment level and the qualifying employment level will be maintained throughout the duration of the period of time that the applicant receives withholding tax capture revenues paid from the more jobs for Michigan fund.

(h) The applicant demonstrates to the satisfaction of the fund that the applicant has paid taxes levied by the federal government, this state, another state, or a political subdivision of this state or another state that are due and payable by the applicant before any penalty for nonpayment of the tax has attached, except for taxes contested in good faith and pursuant to proceedings authorized by law.

(2) If the fund determines that all of the requirements under subsection (1) are or will be met, subject to subsection (3), the fund shall determine the amount and duration of the withholding tax capture revenues to be authorized under this section and shall enter into a written agreement as provided in this section for a duration determined by the fund. Subject to subsection (3), in determining the maximum amount and maximum duration of the withholding tax capture revenues authorized in the written agreement, the fund shall consider the following factors, if applicable:

(a) The number of certified new jobs to be created.

(b) The degree to which the median annual wage of the certified new jobs exceeds the median annual wage in the prosperity region in which the proposed facility would be located.

(d) The estimated amount of withholding tax capture revenues under this section and the value of assistance provided by persons or entities other than this state.

(e) Whether the proposed expansion, development, or location will occur in this state without the payment of withholding tax capture revenues offered under this section.

(f) Whether the applicant has approval for a grant, loan, or other financial assistance for the investment in the facility from the federal government or would be eligible to claim a federal investment tax credit for the investment in the facility.

(3) The fund may allow an applicant to receive up to 100% of withholding tax capture revenues for certified new jobs for a period of not more than 30 years.

(4) As used in this section:

(a) "Applicant" means the eligible business that submits an application to enter into a written agreement under this section and any related business that also will be a party to the written agreement.

(b) "Qualifying investment level" means an investment of not less than $20,000,000,000.00 made at a facility as of a date provided in a written agreement.

Sec. 90y. (1) After receipt of an application in a form determined by the fund, the fund may enter into a written agreement under this chapter with an eligible business located in this state for withholding tax capture revenues as provided under this section if the fund determines that all of the following requirements are or will be satisfied:

(a) The eligible business satisfies 1 or more of the following:

(i) The eligible business maintains its North American headquarters or global headquarters in this state.

(ii) The eligible business has at least 30% of its business activity in this state engaged in nonmanufacturing activities.

(iii) The principal business operations of the eligible business are located in this state.

(b) The eligible business proposes to maintain at a facility 50 or more full-time jobs within this state that otherwise are at risk of transfer to another state or elimination.

(c) The eligible business proposes to maintain during the term of a written agreement with the fund a base employment level, including any protected jobs.

(d) The eligible business proposes to maintain during the term of a written agreement with the fund annual payroll payments for its full-time employees in this state at an amount equal to or greater than annual payroll payments of the eligible business during the calendar year immediately preceding the date the written agreement is executed.

(e) The eligible business proposes to make new investments in this state not later than 5 years after the date the written agreement is executed equal to not less than $100,000.00 for each protected job maintained under subdivision (b).

(f) The eligible business proposes to make additional investment in this state during the term of the written agreement.

(g) The investment by the eligible business and the maintenance of a base employment level, including any protected jobs in this state, will serve the public purpose of benefiting the people of this state by maintaining opportunities for employment and by strengthening the economy of this state, as determined by the fund.

(h) The withholding tax capture revenues offered under this section and paid from the more jobs for Michigan fund are an incentive to maintain the protected jobs in this state.

(i) A regional economic model cost benefit analysis recognized by economic development professionals indicates that the proposed payment of withholding tax capture revenues under this section to an eligible business will avoid an overall negative fiscal impact to this state.

(j) The eligible business will maintain the base employment level and the payroll for the protected jobs throughout the duration of the written agreement. However, if the eligible business fails to maintain the base employment level, including the requisite number of protected jobs as provided in the written agreement, the eligible business will forfeit withholding tax capture revenues as provided in the written agreement.

(k) The eligible business demonstrates to the satisfaction of the fund that the eligible business has paid taxes levied by the federal government, this state, another state, or a political subdivision of this state or another state that are due and payable by the eligible business before any penalty for nonpayment of the tax has attached, except for taxes contested in good faith and pursuant to proceedings authorized by law.

(2) If the fund determines that all of the requirements under subsection (1) are or will be satisfied, subject to subsection (3), the fund shall determine the amount and duration of the withholding tax capture revenues to be authorized under this section and shall enter into a written agreement as provided in this section for a duration determined by the fund. Subject to subsection (3), in determining the maximum amount and maximum duration of the withholding tax capture revenues authorized, the fund shall consider the following factors, if applicable:

(a) The base employment level and the number of protected jobs to be maintained.

(b) Whether providing an incentive for the maintenance of the protected jobs in this state aligns with any strategic plan for state economic development applicable to the fund.

(c) Whether the protected jobs maintained are located in an eligible distressed area or a geographically disadvantaged area.

(d) The impact of maintaining the protected jobs on the supply chain in this state.

(e) The level of investment by the eligible business in relation to the number of protected jobs the eligible business proposes to maintain.

(f) The potential impact of maintenance of the protected jobs on the economy of this state and the overall positive return to this state.

(3) The fund may allow an eligible business to receive up to 100% of withholding tax capture revenues for protected jobs for a period of not more than 20 years.

(4) As used in this section, "principal business operations" means the location or locations of a person where not less than 60% of its employees work or where employees of the person paid not less than 60% of the person's total payroll expenditures perform work for the person.

Enacting section 1. The Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1519, is repealed effective for tax years that begin after December 31, 2030.

Enacting section 2. The Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to 207.810, is repealed effective December 31, 2030.

Enacting section 3. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S00973'25 a) or House Bill No. ____ (request no. H00973'25 a) of the 103rd Legislature is enacted into law.