Bill > HB5852

This bill, titled the "Helping Opportunity Prosper Everywhere (HOPE) Zone Act," establishes a program to revitalize impoverished areas by creating designated "HOPE zones" and offering incentives for neighborhood preservation and economic development. Local governments can designate these zones, which have a duration of up to 15 years, and businesses and residents within them may receive tax exemptions and deductions on certain properties and income. The bill also introduces a "HOPE zone tax" on homestead facilities (defined as a primary residence) within designated neighborhoods, with a portion of these taxes directed to a "neighborhood HOPE zone fund" to support community projects like recreation facilities, beautification, and infrastructure improvements. Additionally, the bill creates a "workforce development HOPE zone program" where businesses can agree to have a portion of their employee withholding taxes (income tax withheld by employers) captured and directed to qualified workforce development organizations. These organizations can then use these funds to provide training grants to individuals for skills needed by businesses in the HOPE zone, aiming to foster economic opportunities and workforce development. The Michigan Strategic Fund (a state entity supporting economic development) oversees this workforce development aspect, entering into agreements with organizations and businesses, and a separate fund, the "workforce development HOPE zone fund," is established to manage these captured taxes. The bill outlines reporting requirements for both neighborhood and workforce development initiatives, and grants the Department of Treasury the authority to create rules to implement the act.