GRAND RAPIDS ? Michigan Senate Republicans unveiled a plan Monday to create a $50 million technology commercialization fund ? a direct response to technology-friendly tax changes proposed last week by Gov. Jennifer Granholm.
The Seed Capital Fund is aimed at helping start up life sciences company, the reason why Van Andel Institute served as the backdrop for the announcement.
The proposed plan also would provide angel investors a $5,000 income tax credit against losses incurred in investing in technology start ups, regardless of the technology specialty.
A third provision would let workers save pretax wages in Lifetime Learning Account that could be spent on community college tuition and other retraining.
Sen. Majority Leader Ken Sikkema (R-Wyoming) said Michigan needs to offer stronger incentives than those now available to create more knowledge-based jobs.
The state would issue a $50 million state revenue bond to create the Seed Capital Fund. The state also would use about $4 million a year in federal tobacco settlement funds for the first few years to repay the bond.
Michigan would become part owner in companies that get money from the fund. The Seed Capital Fund also would provide business and technical expertise to businesses it funds. Revenues received by the state from successful companies would be used in future years to repay the bond.
The Seed Capital Fund was developed in conjunction with officials at the Van Andel Institute, which also is incubating life sciences companies within its campus in downtown Grand Rapids.
