DETROIT (WXYZ) — Governor Gretchen Whitmer today signed two bipartisan pieces of legislation: the Research and Development (R&D) Tax Credit and the Innovation Fund Bills. These bipartisan initiatives aim to create and support well-paying jobs while minimizing costs for businesses throughout Michigan.
“I am excited to be signing these bipartisan bills establishing Michigan's Innovation Fund and R&D tax credit,” Whitmer announced during the signing ceremony.
The new laws are anticipated to have a substantial impact on Michigan's business environment, driving growth across various sectors.
Crystal Brown, CEO of CircNova, a Michigan-based biotechnology company, expressed her support for the new measures.
“This bill shows Michigan-based start-ups that Michigan has our backs, ensuring that we have access to capital and that we need to build our big ideas and do it here,” said Brown.
Brown further highlighted the potential benefits of the tax initiatives for her startup, saying, “When I first got the business off the ground, I was able to see the pathway. To stand here today and see this bill signed into law so Michiganders like myself and across the state can have access to this incredible resource means more to me than I can ever explain.”
The R&D Tax Credit is designed to provide financial incentives for research and development activities conducted within Michigan. The program categorizes businesses into two groups: those subject to corporate income tax and flow-through entities that meet tax withholding requirements under the Income Tax Act.
Companies with 250 employees or more can qualify for up to $2,000,000 in tax credits, while smaller businesses with fewer than 250 employees may receive up to $250,000.
In addition to the R&D Tax Credit, the Michigan Innovation Fund aims to encourage investments and provide support for start-up businesses, allowing entrepreneurs to reinvest in the state’s economy and continue their innovative efforts.
Rep. Jasper Martus (D-Flushing), who was one of the Bill's creators, said, “This is going to give us a competitive edge not only bringing in new businesses but also building up companies, businesses, and investors who are already here.”
Rep. Alabas Farhat (D-Dearborn) emphasized the long-term benefits of the funding.
“We're taking that first step as a state by putting $60 million in an evergreen system," Farhat says. "Like evergreen trees, whether a Michigan winter or summer, the trees are there, and the money will be there.”
COO of Michigan Central Carolina Pluszczynski said these two new bills will help accelerate business and opportunity growth.
“Our mission is to help shape Michigan's future by attracting these new companies, spurring economic development and jobs, and organizing investments in new technology,” she says.
