Oppose House Bills 5099-5102 — Marcus Keech, Director of Government Affairs (October 17, 2023)

Summary

Memo from Marcus Keech, Director of Government Affairs at the Grand Rapids Chamber, to Members of the House Economic Development and Small Business Committee, dated October 17, 2023, opposing House Bills 5099-5102. The memo states that establishing a research and development tax credit in Michigan is important because Michigan is only 1 of 14 states without an R&D tax credit built into the tax code. The Chamber says a broader approach implemented within the Michigan Department of Treasury would be more beneficial, with credits automatic and available to all companies, and looks forward to supporting such a credit.

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“Oppose House Bills 5099-5102 — Marcus Keech, Director of Government Affairs (October 17, 2023).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-10-17-testimony-hecon-2023-hb-5099-5102-grand-rapids-chamber-3931-5abc1a8b92/, SHA-256 70112fc6fd2f4ea72c0a4b9088d3c1bef91aa371ea03d3fa37278e716f12e2d4.

Full text

To:           Members of the House Economic Development and Small Business
              Committee
From:         Marcus Keech, Director of Government Affairs
Subject:      Oppose House Bills 5099-5102
Date:         October 17, 2023

On behalf of the Grand Rapids Chamber and our nearly 2,600, we oppose House Bills
5099-5102.

First and foremost, we appreciate the work of the sponsors of this legislation and the
willingness of the committee to engage in this important topic. Establishing a research
and development tax credit in Michigan is important to erase a competitive
disadvantage that we currently experience due to being only 1 of 14 states that do not
have an R&D tax credit built into our tax code.

However, we believe that there is a more beneficial system that can be implemented
that can turn our disadvantage into an advantage. A broader approach implemented
within the Michigan Department of Treasury will provide certainty for businesses when
determining long-term investments, such as R&D investments. These credits should be
automatic and available to all companies in Michigan, and those considering investing in
Michigan.

With an R&D tax credit built into our tax code, not just will it create a predictable and
reliable system, but also administratively it is efficient that the credit will be automatically
implemented through annual tax filings to Treasury. It is important that an R&D tax credit
is available to all large and small businesses regardless of their field of expertise.

We look forward to supporting an R&D tax credit that gives Michigan a competitive
advantage with the above mentioned recommendations.

If you have any questions, please do not hesitate to contact me at 616.771.0311.

File and source

File: 2023-10-17_testimony_hecon-2023-hb-5099-5102-grand-rapids-chamber_39310.pdf
Size: 110,686 bytes
SHA-256: 70112fc6fd2f4ea72c0a4b9088d3c1bef91aa371ea03d3fa37278e716f12e2d4
Our copy: 2023-10-17_testimony_hecon-2023-hb-5099-5102-grand-rapids-chamber_39310.pdf
Original: No public link identified.