Whitmer signs innovation bills in Detroit
Michigan businesses could get more help from the state with getting off the ground and with research and development under new laws signed Monday by Gov. Gretchen Whitmer.
One of the new policies allows companies to write off a portion of their R&D expenses on their taxes.
Businesses with at least 250 workers could receive a tax credit of up to $2 million per year. Smaller ones could claim a credit of up to $250,000 annually.
Michigan has been the only state in the Midwest that didn’t offer some sort of R&D tax credit.
State Rep. Alabas Farhat (D-Dearborn) said the new laws will help keep entrepreneurs from leaving the state.
“It’s causing a brain drain. It’s causing our best and brightest to start somewhere else. And what we’re doing is we’re creating an opportunity for our homegrown talent here in Michigan to stay in Michigan, to employ in Michigan, to invest in Michigan,” Farhat said during a bill signing in Detroit Monday.
Another new policy would form a new state fund to invest in other funds that, in turn, invest in start-up businesses.
$60 million in returns from those investments would then get funneled back toward the Michigan Innovation Fund Program each year to restart the cycle.
Whitmer called the Michigan Innovation Fund Program “fiscally responsible” and “great for taxpayers.”
“When we invest in an entrepreneur and their business makes money and creates jobs, it’s the people of Michigan who benefit. We’ll also put the money we invested right back into the innovation fund so we can help even more startups in a sustainable way,” Whitmer said.
Both policies received bipartisan support on their journey through the state Legislature. But they also received criticism from both sides of the aisle.
Critics argued the state shouldn’t be giving profitable companies money.
Monday also marked Whitmer’s first time taking questions from media at an event since the last legislative session sputtered out.
The messy end in the Michigan House left a handful of bills still waiting to be sent to her desk by the time Republicans took control of the chamber last week.
They deal with topics like retirement plan options for corrections officers, insurance premiums for state employee health plans, and tax millages for history museums.
Republican House Speaker Matt Hall (R-Richland Twp) told reporters last week that he instructed the House clerk to hold off on forwarding the bills to Whitmer once he took charge, saying he wanted to make sure there weren’t “technical problems” with them.
Whitmer, a Democrat, said she’ll wait to see what Hall decides what to do.
“I’m not going to prejudge what is happening with the bills. I know that Speaker Hall has said they’re doing a legal review that’s in his purview. He’s now the speaker of the House. But we’ll continue to wait and expect those bills shortly I would imagine,” Whitmer said.
The state constitution requires bills passed by the legislature go to the governor. But it doesn’t say anything about a timeline.
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