Gov. Gretchen Whitmer (L) and Lt. Gov. Garlin Gilchrist (R) at the bill signings at Michigan Central in Detroit, Jan. 13, 2025 | Whitmer office photo
In the Newlab workspace at the newly renovated Michigan Central technology and innovation complex in Detroit, Gov. Gretchen Whitmer stood amongst machinery and tools Monday to showcase new laws aimed to support entrepreneurship and job growth in Michigan.
By signing five bipartisan bills, Whitmer said in a news release Monday Michigan is taking a leap towards a positive future in shepherding invention and development. The bills establish the Michigan Innovation Fund and create research and development (R&D) tax credits to offset the costs of innovative projects and support new ideas.
“Our brand-new, bipartisan Innovation Fund and R&D Tax Credit will empower Michigan entrepreneurs, lower costs for Michigan businesses, and create good-paying Michigan jobs,” Whitmer said. “I’m proud that we worked across the aisle on these common sense bills to grow our economy and ensure more people can make it in Michigan.”
Research and development were headlining issues for Whitmer in 2024 as she announced new innovation infrastructure in Michigan during her Mackinac Policy Conference keynote address, unveiling plans for the PitchMI startup idea competition and a new chief innovation ecosystem officer.
Michigan was built through innovation, Whitmer and other officials often say as a point of pride, as the birthplace of the American automotive industry. Signing these bills builds on that legacy, Lt. Governor Garlin Gilchrist said in the news release.
“Throughout our history, Michigan minds and muscle have pushed boundaries, made a difference, and driven our state forward,” Gilchrist said. “These new tools will make it easier for countless innovators and entrepreneurs across Michigan to grow our economy, pioneer exciting tech, and make their next big idea a reality. Let us continue to stand tall, tell Michigan’s story, and show the world that Michigan is the best place to build the future.”
House Bills 5100 and 5101 establish research and development tax credits for eligible taxpayers and business owners. Companies with 250 or more employees could claim up to $2 million in tax credits each year for creating roots in Michigan’s economy. Businesses with less than 250 employees could claim up to $250,000 per year. Partnerships with research universities can compound credits and add an additional $200,000 in eligible credits for expenses incurred in the partnership. More than 30 states have some similar programs.
Whitmer signing the bills is a great start to 2025, marking it as a year dedicated to Michigan’s innovation economy, Michigan Economic Development Corp. (MEDC) Chief Innovation Ecosystem Officer Ben Marchionna said in the news release. Annually, $100 million is to be set aside for those who elect to claim the tax credit, marking a historic investment by the state legislature and governor in the state’s future, Marchionna said.
“By establishing the Michigan Innovation Fund alongside the new R&D Tax Credit, we’re declaring the grit, creativity, and enduring prowess of our entrepreneurs and innovators deserve to be supported and showcased. Equitable, accessible funding and an R&D-friendly tax environment is how we’ll transform today’s big ideas into tomorrow’s growth industries,” Marchionna said. “This bold move shows the world that Michigan is serious about building a thriving innovation ecosystem – one where founders can truly ‘Make it’ in Michigan.”
House Bills 5651, 5652 and 5653, establish a $60 million Michigan Innovation Fund Program to invest in startups around the state by providing grants to empower new businesses in their early stages.
The Michigan Innovation Fund will particularly help communities that have been historically underserved and lead to long term growth in communities that have lost entrepreneurial endeavors due to lack of capital early in the process, state Rep. Alabas Farhat (D-Dearborn), who sponsored legislation has said throughout the legislative process.
“This legislation will uplift small businesses across the state, creating more jobs and more family-supporting paychecks for workers,” Farhat said. “Michigan has an immense amount of homegrown entrepreneurial talent — we’re tapping into that resource to move our economy forward and keep establishing Michigan as a hub for innovation.”
Whitmer said in the news release she’ll have more to say about Michigan’s trajectory towards being a go-to destination to make big ideas become reality at her “Road Ahead Address” at the Detroit Auto Show on Wednesday.
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