Payroll Tax Cuts For New Jobs May Become Michigan's Next Big Business Incentive Tool

(Source: MIRS.news, Published 10/08/2025) House Speaker Matt Hall (R-Richland Township) said Tuesday he's open to working with the Governor on something that's been a part of her economic development wishlist since early 2024: the "HIRE Michigan" program. The plan would be to give away payroll tax exemptions to businesses creating new jobs in Michigan.

Hall's goal is to repeal the defunded Strategic Outreach and Attraction Reserve (SOAR) Fund law and eliminate the Michigan Economic Growth Authority (MEGA) program once and for all. That's where the HIRE Michigan Program steps in, as far as Hall is concerned.

“I'm committed to working with the Governor and trying to do something before the end of the year that eliminates MEGA and comes up with something that can help Michigan compete with other states,” he said. “We can't do this anymore where we're just writing checks to people up front."

Hall said he is committed to working with Whitmer to try doing something in terms of economic development before the end of the year. He imagines it as both discontinuing the MEGA tax credit program – which committed long-term refundable tax credits during the Great Recession to keep auto jobs in the state – and still helping "Michigan compete with other states."

"But it allows us to make great deals that actually perform with jobs for the taxpayers," Hall said.

"HIRE Michigan" would stand for the High-Wage Incentive for Regional Employment program, rebranding Republican Gov. Rick Snyder's "Good Jobs for Michigan" program.

The Snyder-era program was first used in July 2018, awarding Pfizer Inc. – the major biopharmaceutical company – up to $10.5 million in payroll tax exemptions to develop new jobs in Kalamazoo. The program sunset at the end of 2019.

Whitmer brought up the idea of reigniting the "Good Jobs for Michigan" business incentives during her State of the State address in January 2024.

Snyder's version allowed tax dollars to be captured by major corporate players, like the KLA Corporation, a semiconductor manufacturer, and the Ford Motor Company. However, Whitmer instead suggested it should target second stage businesses, those that survived their start-up phase and are now ready to hire more folks.

She called for companies to be able to keep payroll taxes for new employees again in January of this year, when addressing the Detroit Auto Show.

The address came as a pleasant surprise to Senate Majority Floor Leader Sam Singh (D-East Lansing), who sponsored a payroll tax cut program last term with Sen. Mary Cavanagh (D-Redford Twp.).

Under their bills, incentives would be offered to companies creating at least 250 new jobs at or above 150 percent of the Prosperity Region's median wage, or at least 25 jobs above 175 percent of the Prosperity Region's median wage. The maximum award would be capped at 10 years, with the state designating $125 million in total to be captured annually (See "Payroll Tax Capture Incentives Pass Senate By Party-Line Vote," 3/19/2024).

However, the designated amount of money for HIRE Michigan could grow if $125 million isn't reached, with what's leftover of the designated amount rolling over.

"Well, our state is in a very different place now that we have done a robust roads plan. We've trimmed back many of the state programs and our workforce," said Senate Appropriations Chair Sarah Anthony (D-Lansing) when asked if doing a HIRE Michigan program is possible now. "It has to work for our financial realities."

She said she wants to make sure people continue to know Michigan is a competitive state for businesses, "but it has to work for everyday Michiganders as well."

Someone who wasn't thrilled about the return of the HIRE Michigan proposal was Brian Calley, Snyder's lieutenant governor and the current president of the Small Business Association of Michigan (SBAM).

Calley spoke on today's Michigan's Big Show radio program, expressing frustration that Michigan will not be matching the federal tax incentives – in the form of large deductions for eligible expenses – provided in the One Big Beautiful Bill Act (OBBBA). In order to ensure Michigan has money for the new $1.85 billion road funding plan, legislators approved decoupling the state from the new OBBBA tax incentives, instead of mirroring them.

"There's nothing to take a look at other than comments that were made in the press conference," Calley said. "There really isn't a proposal on the table for anybody to review. But I think if we were to go back, I think if you're really interested in effective economic development . . . a good place to start is to re-couple with the federal tax code."

Around 3:50 a.m. on Friday, after the budgets were passed, Senate Majority Leader Winnie Brinks (D-Grand Rapids) said she would like the Legislature – with a Republican-led House and Democratic-controlled Senate – to become more productive.

In remarks featured on this week's episode of the MIRS Monday Podcast, she said there hasn't been much of an appetite for trying to pass more of each other's bills, "but there's certainly a willingness to give that a go again."

"I think we've proven that there are times that we can work together, but it can be a difficult process. So I'm not going to hold my breath, but I will cross my fingers," Brinks said.

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