House Republican Leader Matt Hall, R-Richland Township, on Tuesday issued the following statement after the Michigan House of Representatives passed a landmark plan to create a research and development tax credit:
“After weeks of the divided House Democrat caucus going it alone and hitting a dead end on their partisan agenda, Speaker Tate finally decided to work with Republicans, and we achieved a huge bipartisan win that will transform Michigan into the national leader in innovation and engineering. This legislation originally called for an unfair, convoluted grant program at the whim of Gov. Whitmer’s political allies. Because of House Republican efforts, the final plan creates a fair, streamlined tax credit to incentivize businesses to invest in Michigan-based research. The new plan will not only help businesses launch new research projects and create high-paying careers, but thanks to House Republicans, it will also help keep ongoing research and development here in Michigan.”
The House-approved bills will create a research and development tax credit for Michigan businesses and research institutions. House Republicans secured amendments to arrange a simple, objective tax credit process, instead of a complicated, subjective grant program run by the Michigan Strategic Fund, which the original bill proposed. The caucus also secured a provision to help retain jobs by adding in a tax credit for existing research and development projects.
Hall has long been a leading proponent of a research and development tax credit, introducing legislation last term and again this year.
“As Michigan struggles to grow, the governor just wants to slap a Band-Aid on our economy while ignoring the deep-seated problems that Democrat policies have exacerbated,” Hall said. “Our state needs to strengthen our economy by lowering our taxes and fostering a fair, reasonable regulatory environment that makes sense for Michigan workers and small businesses.”
“Speaker Tate still refuses to admit that the House is in shared power, but he’s feeling its effects as House Republicans rack up wins each time Democrats move our way. But even as Republicans secure victories, Democrats are blocking progress on the pressing issues facing Michiganders.”