Advocacy News – Nov. 19, 2025
What’s new: Over the past week, both the House (led by Rep. Mike Hoadley) and Senate (led by Sen. Sam Singh) have introduced and begun debating new job creation proposals aimed at boosting economic development before year-end.
Why it matters: It has been widely reported that an economic development/incentive program was agreed upon as part of the budget negotiations, however the form of the program was not necessarily specified. The two proposals being discussed share some basic similarities but diverge significantly in implementation and potential cost.
The House plan offers a 50% payroll tax capture starting with the first job created. The program is capped at $50 million annually through 2036, divided as follows:
- $10 million for small businesses (under 100 employees)
- $15 million for mid-sized businesses (100–999 employees)
- $25 million for large businesses (1,000+ employees)
In all cases, the new job must pay 150% of the prosperity region’s median wage.
Alternatively, the Senate proposal requires businesses to invest $100,000 in the state per job created to receive a credit or tax capture. It emphasizes job retention and targets growth in emerging sectors. Eligibility begins at 25 new jobs, with wage requirements ranging from 135% to 175% of the regional median, depending on specific criteria.
What we’re saying: The Michigan Chamber believes that any job creation program should be balanced, demonstrate real results and accountable to the Michigan tax payers.
Go deeper: Review HBs 5292/5293 and SBs 472/473 and let us know your thoughts.
For questions or comments on the proposals, contact Randy Gross.