LANSING – Tax breaks for start-up businesses and defined limits on how long the state has to issue licenses and permits to a wide variety of businesses were among the bills signed by Gov. Jennifer Granholm late last week before she jetted off to Boston for the Democratic National Convention.

In all, Granholm signed some 60 bills, which were filed with Secretary of State Terri Land (who will be acting governor as both Granholm and Lt. Governor John Cherry will be at the convention) on Friday. All have immediate effect.

Under HB 6025, PA 252, defined start-up businesses would be exempt from the state’s personal property tax, and under HB 6026, PA 251, they would be exempt from the state’s obsolete property tax.

Rep. Scott Hummel (R-DeWitt), sponsor of HB 6026, said the measure will send “a green light to companies that want to move forward.”
Tax breaks for tenants in so-called “smart parks” that focus on technological development will also be exempt from taxes under HB 5824, PA 244, and HB 5823, PA 245.

Another tax break comes under SB 1116, PA 258, which exempts research grants awarded to technology companies for research and development from the base of the company’s single business tax.

“We’re pleased that the governor, after vetoing a previous version of the tax exemption legislation, was able to work in a bipartisan fashion with lawmakers and come to an agreement on this important package of bills,” said Small Business Association of Michigan Vice President Government Relations Barry Cargill.

“Our small business economy remains stuck in neutral and badly needs a tax-cutting jump start,” he said. “The economic future of our state depends on further nurturing the employment-creating energies of small business owners, so we’re especially pleased to see the approval of this new law that’s crafted to support a vibrant, small business-friendly, job-creating entrepreneurial economic climate.”

SBAM is also pleased at the enactment of new laws to exempt certain start-ups from the state’s personal property tax.

“Personal property tax is especially burdensome to small business start-ups that have a potential to grow and provide new employment in Michigan’s hard-pressed communities,” he said. “Likely, some of these start-ups are going to be launched by people who have been laid off from their corporate jobs. While we recognize that local units of government are impacted by a personal property tax exemption, the short-term pain is an appropriate trade-off to help unleash the entrepreneurial energies that may someday result in a new Microsoft, Intel or Electrolux.”