High-Wage Incentive for Regional Employment (H.I.R.E.) Program

Businesses that create 25 or more jobs could be eligible for 100% wage withholding tax capture for up to 10 years under the new H.I.R.E. program proposed by the Michigan Legislature.

• The previous Good Jobs for Michigan program permitted the Michigan Strategic Fund (“MSF”) to incentivize eligible employers to create good jobs (meaning jobs that pay more than threshold amounts relative to average wages within a prosperity district). Authorization for this program ended January 1, 2020.
• HB5413, HB5414, and HB5415 (the “legislative package”) were introduced in early 2024 to restore and modify the Good Jobs for Michigan program. The new program is called the “High-Wage Incentive for Regional Employment” program, or H.I.R.E.
• Eligible businesses who benefit from the H.I.R.E program could receive up to 100% of wage withholding tax capture revenues for up to 10 years.
• These bills are similar to SB579, SB580, and SB581 which were introduced in the Senate.
• Under the new legislative package, several modifications exist, including:
  • Authorization for up to $200 million in annual state general fund revenue capture from income tax withholding during the H.I.R.E. program. There is also a carry forward provision that could increase the revenue ceiling in future years if unspent funds are available.
  • The H.I.R.E program authorizes the MSF to engage in multi-year agreements to provide incentives to eligible businesses.
  • The legislative package includes a more inclusive definition of “eligible business” as a business that is not a retail establishment, casino, or professional sports stadium, and which proposes to create A) 250 new jobs in Michigan with a median annual wage of 125% of the prosperity region’s median wage; or B) 25 new jobs with a median annual wage of 150% of the prosperity region’s median wage. Specific wage data for Michigan’s 10 prosperity regions is included on the next page.

These bills are not final and are subject to revision as the legislative process occurs. Dykema’s Government Policy Advocacy team is closely monitoring the progress of these bills and has the ability to engage lawmakers about potential amendments or to discuss any questions you may have.

If you are exploring participation in H.I.R.E. or any of the State’s new employee training incentive programs (such as the New Jobs Training Program or Going Pro Talent Fund), you are encouraged to contact a member of our team who can help advise you on the pros and cons of each, especially related to the timing of applications and signing of new agreements.

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2022 Michigan Prosperity Region Median Wage Rates