Gov. Gretchen Whitmer signed five bipartisan bills on Monday to establish the Michigan Innovation Fund and an R&D Tax Credit.
These new tools. the governor said, will lower costs for businesses, support innovators and entrepreneurs, and create and support good-paying jobs by ensuring businesses of all sizes have the tools and resources they need to reinvest in Michigan.
House Bills 5100 and 5101, sponsored by state Representatives Jasper Martus (D-Flushing) and Julie Rogers (D-Kalamazoo), supports economic development and innovation within Michigan by establishing a Research and Development (R&D) tax credit for eligible taxpayers and employers.
Taxpayers and authorized businesses with 250 or more employees could claim up to $2 million per taxpayer or business, respectively, per year.
Companies with fewer than 250 employers can claim up to $250,000 per taxpayer or business, respectively, per year.
The credit also allows taxpayers or employers to claim up to $200,000 in an additional credit for expenses if they collaborate with a research university.
These bills will help leverage our universities, making Michigan a hub for innovation and providing a vital boost to local economies across the state. This change will join Michigan with 36 other states who already have an R&D tax credit, helping make our state a frontrunner in innovation by incentivizing more companies to invest in the state and attracting employees looking for high-paying jobs in these industries.
House Bills 5651, 5652, and 5653, sponsored by state Representatives Greg VanWoerkom (R- Norton Shores), Jason Hoskins (D-Southfield), and Alabas Farhat (D-Dearborn), support Michigan businesses and help attract potential investments by establishing a Michigan Innovation Fund Program, allocating $60 million to fuel Michigan innovation.
Currently, entrepreneurs and business startups face difficulties in Michigan due to a lack of early-stage capital.
“These bills align Michigan with our Midwest neighbors by creating an innovation fund that provides financial support for entrepreneurs and companies,” Whitmer said. “Not only will existing businesses be able to thrive, but companies will be incentivized to locate to our state, expanding Michigan’s talent pool and fostering innovation and economic development across our communities.
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