Bill package would create financial incentives for businesses to invest, expand
LANSING, Mich., Nov. 1, 2023 — The Michigan House of Representatives passed R&D tax credit legislation yesterday, sponsored by state Reps. Rachel Hood (D-Grand Rapids), Jasper Martus (D-Flushing), Ranjeev Puri (D-Canton) and Julie M. Rogers (D-Kalamazoo). House Bills 5099, 5100, 5101 and 5102 would create and administer a state-level tax credit incentive to offset the costs of research and development (R&D), encouraging businesses of all sizes to explore new technologies and create jobs for hardworking Michiganders.
“Michigan has a long, successful history of businesses leading innovation. I am pleased to reflect and further this history by contributing to our comprehensive R&D bill package that prioritizes small businesses and our amazing research universities,” said Puri, sponsor of HB 5102. “We need to rapidly evolve our business incentives to ensure Michigan is competitive in the 21st-century economy.”
“The economic development bill package that House Democrats are delivering on is well-structured and comprehensive. R&D tax credits are a critical tool for stimulating innovation. This bill will ensure cities like Grand Rapids are a hub for high quality jobs, technological advancement and long-term economic growth,” said Hood, sponsor of HB 5099.
The proposed R&D tax credits outlined in the bill package, patterned after federal credits, would support projects on the cutting edge of innovation with a high return on investment for a positive economic impact. Thirty-seven states currently have their own version of an R&D tax credit. Michigan is the only midwestern state without such a program. The bill package creates a refundable tax credit, which makes it usable for companies with no tax liability, for businesses that conduct R&D on promising products and processes. The legislation also recognizes the important role of our research universities.
“The R&D tax credits passed by the House are necessary to keep our state competitive both nationally and internationally. Small businesses conducting innovative research will drive economic development and create high wage jobs,” said Rogers, sponsor of HB 5101. “This package is forward-thinking and designed to provide the support necessary for long-term investments in rewarding, but often cost-prohibitive, research into new science and engineering projects. As co-chair of the Biosciences Caucus, I will continue to advocate that Michigan is an attractive environment for entrepreneurs and smaller companies and encourages the investments that will lead to the products and processes of our future.”
“Investing in research and development is not just an investment in innovation — it’s an investment in the future prosperity of our state,” said Martus, sponsor of HB 5100. “This legislation will fuel the engine of progress, drive economic growth and ensure that tomorrow’s breakthroughs are nurtured today. This can be cutting edge advancements in technology, life saving medicine, the future of the automotive industry and will touch nearly every sector of our economy and it will happen right here in Michigan which creates jobs for our friends and neighbors”
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