November 30, 2010
FOR IMMEDIATE RELEASE
November 30, 2010
Will help spur investment and growth in small business
LANSING - Governor Jennifer M. Granholm today applauded Senate passage of legislation that will create a new tax incentive to spur greater investment in small businesses. The initiative, announced in Granholm's 2010 State of the State Address in February, adds to the state's aggressive economic development efforts to foster job creation through greater small business growth in Michigan.
"Increasing access to capital is a much-needed development and a major component of our strategy to diversify our economy and create jobs," Granholm said. "This bill moves Michigan forward by encouraging new investment in companies that are critical to our economic growth. We must create an environment where entrepreneurs and innovators can thrive, and the legislature deserves praise for taking swift action to help us do that."
House Bill 5921, sponsored by Representative Ellen Cogen Lipton (D-Huntington Woods) passed with overwhelming bipartisan support. The bill creates an investment credit that would allow a taxpayer to claim an income tax credit worth 25 percent of a qualified investment in a qualified small business. In order to receive the credit, the investment would have to be at least $20,000 and certified by the Michigan Strategic Fund (MSF). The MSF can certify up to $9 million in credits in a single year, with up to $250,000 for each single business.
Additional small business initiatives announced in the governor's State of the State Address include: expanded funding for FastTrac NewVenture, a program for entrepreneurs to learn how to successfully launch and grow a small business, and the Michigan Small Business Financing Alliance, a new partnership launched this year with the MCUL and the MI-SBTDC to provide an initial $43 million for eligible small business loans.
The House, which has previously passed the bill, is expected to concur with Senate amendments.
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