BREAKING NEWS
UI Tax Savings for Employers
The Michigan Unemployment Insurance Agency
(UIA) recently announced the early retirement of bonds
issued in 2012 to stabilize Michigan’s unemployment
program. The early payoff of the bonds means the
early elimination of the Obligation Assessment (OA),
presenting significant savings for employers on their
unemployment tax obligations.
The OA was part of a legislative solution supported
by MMA to avoid hundreds of millions in annual
federal tax penalties on employers through a long-
term refinancing of more than $3 billion in state
unemployment debt. The debt was incurred when the
employer-financed unemployment system experienced
an unprecedented increase in unemployment claims
following the Great Recession.
Applications for fiscal year 2020
MI-STEP grants are now open to
eligible small business concerns
(ESBCs). For complete details,
go to www.michiganbusiness.org/
services/international-trade.
Michigan Rises Five Spots
in State-by-State Business
Tax Climate Index
Thanks to continued efforts
by MMA and its partners in the
business community, Michigan
continues to rise up the ranks of
business-friendly locations with a
five spot jump to 12 th overall in
the Tax Foundation’s 2020 State
Business Tax Climate Index.
Designed to show how well
states structure their tax systems,
the Tax Climate Index is based
on five components including
individual income tax, sales tax,
corporate income tax, property tax
and unemployment insurance tax.
“The business environment we
have created here in Michigan,
including a favorable tax climate,
provides a recipe for success as
companies are looking to expand
their operations here in the state,”
said Josh Hundt, executive vice
president and chief business
development officer for the Michigan
Economic Development Corpo-
ration. “From a competitive cost
of doing business — reaffirmed
by this most recent Business Tax
Climate Index ranking — to a
The OA adds about $455 million each year to
contributing employer UI costs. Its elimination will
reduce aggregate employer tax payments by 37
percent. “Long-term financing was absolutely the
right solution to address the crisis-level financial
insolvency in Michigan’s unemployment program
and resulted in long-term savings for employers,” said
MMA’s Delaney McKinley. “But, make no mistake,
the OA has added significantly to employer unem-
ployment costs. The early retirement of these bonds
will help reduce employer overhead and improve
competitiveness.”
See mimfg.org for details or contact McKinley, at
517-487-8530 or [email protected].
high quality of life that still costs
10 percent less than the national
average, Michigan is making a
compelling case for growth.”
Michigan is one of only two
states in the Midwest to be in the
top half of the rankings. Compared
to 2019, Michigan showed the most
improvement in the unemployment
insurance tax component, moving
up 32 spots to #17. The state also
rose up 10 spots in the rankings
for sales tax from #19 to #9.
Loc Performance
Products Acquires New
Machining Operations
MMA member Loc Performance
Products Inc. — a leading provider
of mobility systems, vehicle hulls,
armored cabs and armor kits for
military and industrial applications —
recently announced its acquisitions
of machining operations from Lapeer
Industries Inc., an integrated
defense and aerospace firm. The
acquisition will strengthen Loc’s
existing technology capabilities
and allow for a broader range of
military and commercial solutions.
“During the last two years, Loc
has expanded its manufacturing
footprint five times, increasing
from 240,000 square feet to
940,000 square feet,” said Lou
Burr, CEO for Loc Performance.
“This has not been a build it and
they will come approach. We
have the business and we need the
additional space to execute. In
fact, I think we will add another
two hundred thousand or more
square feet in 2020.”
Loc has been ranked one of
Southeast Michigan’s fastest
growing companies the past three
years and this move will help extend
this growth strategy to Lapeer.
6
Your Support is Critical
Contributing to the MMA-PAC
is an investment in Michigan’s
future and one of the most
affordable and effective ways
to support pro-manufacturing
legislators and candidates.
Donate at mimfg.org or
contact Brianna Mills at 517-
487-8523 or [email protected].
“Our ability to support pro-manufacturing
candidates is imperative as anti-
manufacturing voices are working
strategically against our industry.”
— Patrick Curry, MMA-PAC
Chair and President of
Fullerton Tool
MMA-PAC can accept personal contributions or contributions from sole-proprietorships, partnerships
or limited liability companies (LLCs). State Law prohibits acceptance of corporate checks.