Michigan House Bill HB5979

Michigan 2023-2024 Regular Session

• Introduced: 9/26/24
• Refer: 9/26/24

Caption

Economic development: Michigan strategic fund; approval and certification of certain research and development tax credits; authorize. Amends title & secs. 7 & 9 of 1984 PA 270 (MCL 125.2007 & 125.2009).

Impact

If enacted, HB5979 would empower the Michigan Strategic Fund to administer additional forms of financial assistance, including loans, grants, and tax credit certifications. It significantly alters how the MSF operates by allowing it to approve tax credits that encourage research and development activities. This may lead to increased investment in innovative sectors within the state, amplifying Michigan's competitiveness in attracting businesses that prioritize research and development efforts.

Summary

House Bill 5979 aims to amend the Michigan Strategic Fund Act of 1984 to enhance the powers and responsibilities of the Michigan Strategic Fund (MSF). The bill focuses on promoting economic development by enabling the MSF to certify and approve certain research and development tax credits. This legislative change is intended to streamline processes related to financial assistance for businesses and support job creation initiatives across the state.

Contention

Despite its intentions, HB5979 may lead to concerns regarding transparency and accountability in the distribution of financial assistance. Some advocates for small businesses argue that the focus on larger entities or projects, which often align with tax credits, might overshadow the needs of local businesses. There may be debates about the efficacy of such economic incentives and whether they yield a substantial return on investment regarding job creation and community benefits.