State Rep. Matt Hall has testified, before the Michigan Legislature, on his legislation to make Michigan more competitive in attracting cutting-edge jobs.

In a recent release, Representative Hall states that House Bill 5601, “creates a research and development tax credit for certain industries, including electric battery technology, advanced automotive projects, semiconductors, and life sciences. Surrounding states such as Ohio, Indiana, Wisconsin, and Pennsylvania all offer this type of credit, while Michigan is one of only 13 states in the country that doesn’t.”

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Hall notes “We had a really great moment in December where the Legislature came together, in a bipartisan way, to begin the process of putting Michigan in place to compete for major manufacturing projects.” He hopes that a second wave of bipartisan support will continue in the spirit of working together and putting politics aside to put Michigan in the best possible position to land the jobs of tomorrow.

Hall and the House Tax Policy Committee heard testimony from many experts and professionals across southwest Michigan and the state. Joe Sobieralski, CEO of Battle Creek Unlimited, told the committee that none of the 85 companies, which comprise the Fort Custer Industrial Park in Battle Creek, currently conduct research and development on-site, and the tax credit would be “tremendous” in efforts to diversify Michigan’s economy. Brooke Oosterman, who serves as director of the regional economic development group Southwest Michigan First in Kalamazoo, added, “Other states are prioritizing these investments in a way that Michigan is not. In our area, we compete directly with Indiana. Indiana offers a similar tool for companies looking to locate or expand in their region and state and not having that in southwest Michigan really puts us at a disadvantage.”

Hall said discussions will continue regarding capping the credit and what sectors are eligible, and that the list of eligible industries could likely expand. HB 5601 remains under consideration in the House Tax Policy Committee.

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