LANSING, MI (WKZO AM/FM) – State Representative and House Republican Leader Matt Hall (R-Richland Twp) Wednesday called for a research and development tax credit to incentivize businesses of any size to invest in innovation in Michigan.
Hall says is proposal would support research and development at Michigan businesses.
“Michigan should lead the nation in innovation — researching complex issues, developing creative new technologies, and building the economy of the future with high-paying, high-tech careers,” said Hall, R-Richland Township. “With a strong research and development tax credit, Michigan can be first in the country for investments in cutting-edge engineering and research.”
Under Hall’s plan, a business would be eligible for a tax credit on any new research and development in Michigan or on any increased expenses above the company’s preceding three-year average for Michigan-based research and development.
The plan would provide a credit worth 15% of a business’s federal research and development tax credit, up to a $2 million credit in a year. If a business’s tax liability exceeds its eligible credit, the credit would carry forward up to 15 years.
The plan would provide up to $500 million in research and development tax credits each year. Hall said investing in wide-ranging development at local businesses is a far better plan than the unaccountable $500 million fund for large corporate projects expected to be pushed by the governor in a tax bill that could go to a vote as soon as Wednesday.
Hall says legislation to create the new research and development tax credit will be introduced soon.
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