Tool and Die Recovery Zones

Michigan Economic Development Corporation
2011 Tool & Die Renaissance Recovery Zone Policy

The Michigan Tool & Die Renaissance Recovery Zones (TDRZ), enacted by PA 376 of 1996, allowing 35 zones renaissance zone benefits. The companies had to have a NAICS of 333511, 333512,333513, 333514, 333515, or 332997, have approval of their local unit of government and join a TDRZ collaboration where they would focus on best practices for the tool & die industry.

As of June 2011, 29 collaborations have been created encompassing 298 companies. The number of employees at these companies range from 1 to 300. The Michigan Economic Development Corporation (MEDC) is currently researching the success of the TDRZ companies compared to companies in the same industry in Michigan that are not in a TDRZ. The research being conducted will examine job creation, job retention, new contracts and business, profitability, whether this program has assisted in maintaining a strong tool and die industry in Michigan.

For this reason, the Michigan Economic Development Corporation initiates the following for 2011:

• Allow time extensions of no more than 5 years for any company currently in a TDRZ collaborative as long as the statutory requirements are met;
• Defer the addition of new collaborative TDRZs until the research has been completed and the results have been reviewed by the MEDC leadership;
• Defer the addition of tool and die companies into an existing collaborative TDRZ until the research has been completed and the results have been reviewed by the MEDC leadership.

With the change from a Michigan Business Tax to the Corporate Income Tax beginning in January 1, 2012, any new companies that operate a TDRZ will receive the property tax benefits but the state business income tax benefit will end. Questions regarding the program can be directed to (517) 373-9808, MEDC’s customer assistance.

Resources:

• Portion of Act relating to Tool and Die Recovery Zones
  (MCL 125.2688d)
• List of Recovery Zone Contacts
• Tool & Die Recovery Zones FAQs
• Tool & Die Recovery Zones fact sheet
• 75+ employees Sample Template Written Agreement

NOTE: Tool & Die Recovery Zones are not eligible for Residential Tax Benefits.