Each of these bills invests in our state’s economy and workforce, ensuring Michigan is a leader in technology and innovation
LANSING, Mich. – Today, Governor Gretchen Whitmer signed five bipartisan bills to create 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 sustain good-paying jobs by ensuring that businesses of all sizes have the tools and resources they need to reinvest in Michigan . The bills also attract investment to our state by spurring research and innovation, growing Michigan’s economy and creating thousands of jobs in counties across our state. Including today’s legislation, Governor Whitmer has signed a record 1,436 bipartisan bills into law since taking office.
“Our new, bipartisan Innovation Fund and R&D Tax Credit will empower Michigan entrepreneurs, lower costs for Michigan businesses and create good-paying jobs in Michigan,” he said. Governor Whitmer. “I’m proud to have worked across the aisle on these common-sense bills to grow our economy and ensure more people can succeed in Michigan. We still have more work to do to make Michigan the state better to build your big idea and I’ll have more to say later this week during my Way Ahead Address.”
“Throughout our history, Michigan minds and brawn have pushed the boundaries, made a difference and moved our state forward,” he 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 technology and make their next big idea a reality. Let’s continue to persevere, tell Michigan’s story and show the world that Michigan is the best place to build the future.”
“I’m excited to start 2025 off strong by celebrating this historic new investment in Michigan’s innovation economy,” said Ben Marchionna, Chief Innovation Ecosystem Officer at MEDC. “By establishing the Michigan Innovation Fund along with the new R&D Tax Credit, we are declaring that the grit, creativity and enduring ability of our entrepreneurs and innovators deserve to be supported and showcased. Equitable, accessible funding and a friendly tax environment for R&D is how we will transform today’s big ideas into tomorrow’s growth industries. I am 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 – a system where founders can truly ‘make it’ in Michigan.”
House bills 5100 and 5101sponsored by State Representatives Jasper Martus (D-Flushing) and Julie Rogers (D-Kalamazoo), supports economic development and innovation within Michigan by creating a Research and Development (R&D) tax credit for eligible taxpayers and employers. Taxpayers and authorized businesses with 250 or more employees can claim up to $2 million per taxpayer or business, per year, respectively. 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 spending credit if they partner 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. This change will join Michigan with 36 other states that already have an R&D tax credit, helping our state be a leader in innovation by encouraging more companies to invest in the state and attracting workers who seek high-paying jobs in these industries.
“I am excited to see these bipartisan bills signed into law. This legislation brings Michigan into line with over 30 states that already benefit from research and development tax credits, which strengthen their economies,” said State Representative Julie Rogers (D-Kalamazoo). “My bill aims to add strong incentives to grow and attract small businesses with fewer than 250 employees and foster an environment to foster innovation and economic growth in many sectors, including life sciences and advanced manufacturing, by ensuring for our state to feel positive economic impacts for generations to come.”
“I’m really excited that the governor has signed this package of bills into law,” he said State Representative Jasper R. Martus (D-Flushing). “First and foremost, it is important that Michigan continues to encourage innovation and productive economic development in our state. This package of bills will help continue to build our state’s reputation as ‘the place’ to start and grow a business – which then grows people, job opportunities and strengthens our economy.”
“Innovation is the key to growth for manufacturing, the largest and most critical sector of the state,” he said Mike Johnston, Executive Vice President of Government Affairs and Workforce Development, Michigan Manufacturers Association. “Establishing a research and development credit increases our competitiveness and will attract new jobs and investment opportunities to Michigan.”
“The enactment of a new R&D tax credit in Michigan is a tremendous win for the state’s life sciences and other high-tech industries that will drive company formation and economic growth,” said Dr. Stephen Rapundalo, President and CEO of MichBio. “This reestablishment, especially with its dedicated fund for early-stage ventures and an increased award for undergraduate research collaborations, is a major step toward raising Michigan’s overall level of competitiveness in the life sciences and for help drive the development of the next generation of medical breakthroughs. and products while creating high-paying jobs.”
House Bills 5651, 5652, and 5653sponsored by State Representatives Greg VanWoerkom (R-Norton Shores), Jason Hoskins (D-Southfield) and Alabas Farhat (D-Dearborn), support Michigan businesses and help attract potential investment to our state by creating a Program of the Michigan Innovation Fund, allocating $60 million to spur Michigan innovation. Currently, entrepreneurs and business startups are struggling in Michigan due to a lack of early stage capital. These bills connect Michigan to our Midwest neighbors by creating an innovation fund that provides financial support to entrepreneurs and companies. Not only will existing businesses be able to thrive, but companies will be incentivized to locate in our state, expanding Michigan’s talent pool and driving innovation and economic development throughout our communities.
“By passing this bill into law, we are creating a cycle of opportunity that will generate good-paying jobs and uplift Michiganders. We are creating stronger entrepreneurs and building a foundation for local businesses,” he said State Rep. Jason Hoskins (D-Southfield). “Today, we’ve made sure Michigan remains a place where great ideas can thrive. The Michigan Innovation Fund will provide direct support to startups and job creators here at home.”
“I’m proud to see the Michigan Innovation Fund cross the finish line, paving a better path forward for our state’s startups to thrive,” said Alabama State Rep. Farhat (D-Dearborn). “This legislation will grow small businesses across the state, creating more jobs and more pay for family-supporting workers. Michigan has a wealth of entrepreneurial talent in the country – we’re tapping into that resource to drive our economy forward and continue to establish Michigan as a hub for innovation.”
“I truly believe the next big business is here in Michigan, and the Michigan Innovation Fund will play a vital role in advancing our state’s economic ecosystem and helping our entrepreneurs thrive,” said COUNTRY Representative Greg VanWoerkom (R-Norton Shores).
“We are very grateful for the vision and leadership shown by Governor Whitmer and members of the Michigan Legislature in establishing the Michigan Innovation Fund,” said Santa J. Ono, President of the University of Michigan. “UM is proudly a leader in research and innovation, but we can do much more. Through this support, we will foster new collaborations between researchers and businesses, accelerating discovery and innovation, and driving economic growth and creation of jobs like never before.”
“The Michigan Innovation Fund is a step toward attracting high-tech entrepreneurs and growing our economy and population — consistent with the Governor’s Grow Michigan Together Council 2024 report,” said Sandy K. Baruah, President and Chief Executive Officer of the Detroit Regional Chamber.
“Michigan was built by top entrepreneurs, and the Fund will be a valuable tool as we build our next generation of innovative companies.”
“This investment in Michigan’s innovation economy would not be possible without the support of leaders like Governor Whitmer, Lt. Governor Gilchrist, Representatives Alabas Farhat, Jason Hoskins, Greg VanWoerkom and our coalition partners,” said Dave Blaszkiewicz, President and CEO of Invest Detroit. “As the home of ID Ventures, one of five evergreen funds supported by this program, Invest Detroit is proud to contribute to this effort. The Michigan Innovation Fund is a vital step in strengthening our startup ecosystem, empowering entrepreneurs, and positioning Michigan as a leader in innovation and economic growth. This fund demonstrates Michigan’s commitment to compete globally as a hub for talent and innovation and shows what is possible when we come together around a shared vision for our future.”
“The Michigan Innovation Fund will bring historic support to Michigan’s startup economy, including Northwest Michigan’s nationally recognized community of startups and entrepreneurs,” said. Warren Call, president and CEO of Traverse Connect. “Michigan’s innovative startups are developing scalable businesses that will thrive and grow thanks to this important investment.”
About Michigan Development Economic Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s leading marketing arm and advocate for business development, job awareness and community development with a focus on growing Michigan’s economy. For more information on MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your journey begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
