Government policy is vital in helping stimulate economic development throughout cities and states. One role that the government plays and that influences policies includes monitoring the quarterly GDP. According to IBISWorld, Michigan’s gross state product is more than $481 billion. This number helps drastically influence government policies. An economic development company can help you discover how policies impact your vision.
Targeting Spending
Fiscal policy drastically impacts economic development. This is seen in federal, state, and local governments. Local governments often receive monies from the federal and state governments for certain things, such as business development. This money is then made available to companies via grants. Many localities provide grants for new businesses to help them become an established part of the local community. The government may hire certain companies for infrastructure projects, further helping stimulate the local economy.
Taxation Policies
Tax policies play a crucial role in business spending. Many states and cities offer tax breaks for local businesses, encouraging them to stay and ensuring they have money for operations. Some policies include tax breaks for certain activities and encouraging firms to do various things. For example, a local or state government that wants to spur innovation may offer tax breaks for research and development projects.
Regulation Policies
Many local and state governments have various business regulations. For example, there are regulations regarding business grants and loans, ensuring the money is spent properly. Zoning requirements must be met to establish a commercial business in a specific location. All of these regulations help guide the city to being an economically healthy area. However, they can be challenging to navigate without help from an economic development company.
Various Other Policies
These are far from the only policies that impact economic development. Subsidies are available for businesses that invest in sustainable practices to support green energy. Local cities often have smaller tax incentives to support the federal initiative. Employment policies ensure everyone is fairly employed and treated correctly. Tax breaks are usually offered to specific businesses, such as healthcare or technological fields, to stimulate growth.
As an economic development company, we understand how challenging it can be to understand the various policies to help the economy. Our mission is to know how the local and federal policies will impact your business. Together, we can help transform Detroit while making your vision a reality. Contact us today to learn how we make it possible.