Governor Whitmer Signs Legislation To Innovate Michigan Business

Signed into law this week, five bipartisan bills create the Michigan Innovation Fund and R&D Tax Credit.

Governor Gretchen Whitmer signed five bipartisan bills to establish the Michigan Innovation Fund and an R&D Tax Credit. These new tools will lower costs for businesses, support innovators and entrepreneurs, and create and support good-paying jobs by ensuring businesses of all sizes have the tools and resources they need to reinvest in Michigan. The bills also attract investments in our state by incentivizing research and innovation, growing Michigan’s economy, and creating thousands of jobs in counties across our state.

“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,” said Governor Whitmer. “I’m proud that we worked across the aisle on these commonsense bills to grow our economy and ensure more people can make it in Michigan. We still have more work to do to make Michigan the best state to build your big idea, and I’ll have more to say later this week during my Road Ahead Address.”

“Throughout our history, Michigan minds and muscle have pushed boundaries, made a difference, and driven our state forward,” said Lt. Governor Garlin Gilchrist II. “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.”

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Governor Gretchen Whitmer signed five bipartisan bills to establish the Michigan Innovation Fund and R&D Tax Credit. (Photo: Michigan Economic Development Corporation)

“I’m thrilled to start 2025 off strong by celebrating this historic new investment in Michigan’s innovation economy,” said Ben Marchionna, Chief Innovation Ecosystem Officer at the Michigan Economic Development Corporation. “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. I’m grateful to the legislature, Governor Whitmer and Lt. Governor Gilchrist for supporting this as the largest state appropriation for entrepreneurship and innovation in nearly two decades. 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.”

The Research and Development (R&D) Tax Credit (House Bills 5100 and 5101), sponsored by state Representatives Jasper Martus (D-Flushing) and Julie Rogers (D-Kalamazoo), supports economic development and innovation within Michigan by establishing a Research and Development (R&D) tax credit for eligible taxpayers and employers. Taxpayers and authorized businesses with 250 or more employees could claim up to $2 million per taxpayer or business, respectively, per year. Companies with fewer than 250 employers can claim up to $250,000 per taxpayer or business, respectively, per year. The credit also allows taxpayers or employers to claim up to $200,000 in an additional credit for expenses if they collaborate with a research university. These bills will help leverage our universities, making Michigan a hub for innovation and providing a vital boost to local economies across the state.

The Michigan Innovation Fund (House Bills 5651, 5652, and 5653), sponsored by state Representatives Greg VanWoerkom (R- Norton Shores), Jason Hoskins (D-Southfield), and Alabas Farhat (D-Dearborn), support Michigan businesses and help attract potential investments to the state by establishing a Michigan Innovation Fund Program, allocating $60 million to fuel Michigan innovation. Currently, entrepreneurs and business startups face difficulties in Michigan due to a lack of early-stage capital.

The Michigan Innovation Fund is a step to attract high-tech entrepreneurs and grow our economy and population – consistent with the Governor’s Grow Michigan Together Council report of 2024,” said Sandy K. Baruah, President and Chief Executive Officer of the Detroit Regional Chamber. “Michigan was built by high-flying entrepreneurs, and the Fund will be a valuable tool as we build our next generation of groundbreaking companies.”

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