Michigan Boasts the 3rd Lowest Cost of Living in the U.S. - CNBC's Top States for Business, 2017 

The I&M Michigan Region

Indiana Michigan Power, AEP’s operating company in Michigan, provides electricity to 46 cities in 6 counties in southwestern Michigan. Our local economic development experts work with our community partners to attract and retain business in the region.

Property Search

Find the best site in I&M’s Michigan territory to grow your business. Search our portfolio of certified sites, or all available sites and buildings.

Contact us if you’d like assistance with your search.

Advantages of Doing Business in Michigan

Location & Infrastructure

  • One-day round-trip truck drive to 15 states and Ontario, Canada; access to 37 million of the U.S. population and 13.6 million of the Ontario population
  • Excellent interstate and four-lane highway service – I-94, I-80, I-90, and US 31
  • SW Michigan is only 90 interstate miles to Chicago; 180 interstate miles to Detroit
  • Served by CSX and Norfolk Southern railways
  • Seven international airports within a 200-mile radius
  • Two deepwater freight ports; and one within 90 miles – Burns Harbor, IN; St. Joseph, MI; and Chicago, IL


Business Climate

  • With a 6% corporate income tax rate, 4.25% personal (flat) income tax rate, and 6% sales tax (+ no local sales tax), the Tax Foundation ranks it among the best in the nation.
  • Sales tax exemptions are available for manufacturing machinery and equipment, electricity, and natural gas used in production and pollution control equipment
  • Property tax rates vary by location, but Michigan’s system provides automatic exemptions that effectively cut personal property taxes by 65% for industrial businesses, plus there’s no personal property tax on machinery and equipment
  • Michigan businesses pay unemployment insurance on the first $9,500 of wages paid to each worker in a calendar year – Established employers may pay as little as 0.06%
  • Michigan’s “open competition” workers’ compensation insurance system allows insurance rates to be set by the market – Companies can shop nearly 250 insurance carriers for the best, lowest-cost options
  • No inventory tax
  • Right-to-work legislation passed in 2012
  • Michigan provides millions of dollars in support of business expansion and growth through resources, incentives, and loans

Workforce & Education

Pie Chart of Michigan's Sectors of Employment

  • Michigan is home to 15 four-year public colleges and universities, as well as a large network of community colleges and private institutions
  • The University of Michigan-Ann Arbor was ranked the fourth best public school in the nation in US News and World Report’s “2017 Top Public Schools” rankings
  • Worker availability in key occupations:
Table of Workers (2015)
Jobs  Average Hourly Earnings
STEM 277,921  $35.14
Engineers 104,938  $40.86
Business 209,032  $29.86
Automotive Production 305,917  $15.87
Source: EMSI 2017.2

Electric Service

  • Competitive industrial rates in line with state and national averages


  • I&M offers an Economic Development Rider (EDR) incentive to new and expanding businesses in Michigan.
    • I&M’s EDR in Michigan is available to new or existing customers who: a) will be adding at least 300kW of new load, b) receive an incentive from a state or local organization, and c) are in a competitive situation where the EDR is a deciding factor in the site location process.
    • Based on actual demand and load factor criteria, this EDR could equal a credit of $12.00 per kilowatt for a period of up to 60 consecutive months.
  • I&M owns 3,539 MW of generation
    • Coal: 47.2%
    • Nuclear: 43.2%
    • Hydro, Wind & Solar: 9.6%
  • I&M operates 919 transmission miles and 5,351 distribution miles in Michigan

Michigan is a recognized leader in economic development.

  • #1 in Automotive Manufacturing Strength – Business Facilities Magazine, 2017
  • #3 in Manufacturing (Percentage of Workforce) – Business Facilities Magazine, 2017
  • #3 for Cost of Living – CNBC Top States for Business, 2017
  • #4 in Manufacturing (Employment) – Business Facilities Magazine, 2017
  • #9 for Economy – CNBC Top States for Business, 2017
  • #9 for Technology and Innovation – CNBC Top States for Business, 2017
  • #10 Most Economic Development Projects Overall,= – Site Selection Magazine’s Governor’s Cup, 2016

Our key customers include:

  • American Axle and Manufacturing Company, Inc.
  • Dock Foundry
  • Guardian Industries Corporation
  • The Minute Maid Company
  • Whirlpool Corporation
  • White Pigeon Paper Company

The principal industries we support are:

  • Chemical Manufacturing
  • Fabricated Metal Products
  • Plastics
  • Primary Metals
  • Rubber Products
  • Transportation Equipment

For details about bringing your business to Michigan:


Shelley Klug, CEcD

Shelley Klug, CEcD

Manager of Economic and Business Development

Indiana Michigan Power


Email Me

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