As the most comprehensive resource available for those involved in technology-based economic development, SSTI offers the services that are needed to help build tech-based economies. Learn more about membership...
Michigan Creates $150M VC Fund and Broadens Mfg Tax Credits
Last Thursday, Gov. Jennifer Granholm signed bills to aid Michigan’s tool and die industry and to promote new venture capital investment in the state’s high-tech industries.
One of Granholm’s key themes in last year’s State of the State address was the importance of leveraging Michigan’s financial power to bring investment capital to the state. The venture capital bills signed today – Senate Bill 834, Senate Bill 835 and House Bill 5322 – create the Michigan Early Stage Venture Capital Investment Fund and provide tax credits for investors in the fund. Money in the fund could be invested in venture capital companies to promote investment in qualified businesses.
The $150 million Michigan Early Stage Venture Capital Investment Corporation (MVIC) will be directed by a seven-member board which will include the state treasurer, the chief executive officer of the Michigan Economic Development Corporation, two governor appointees, and one appointee each from the Michigan Senate, House, and the the Michigan Venture Capital Association.
MVIC will provide money to venture capital firms in Michigan that invest in Michigan companies in selected industry sectors, including information technology, life sciences, advanced manufacturing and alternative energy.
The governor also signed Senate Bill 811 to amend the General Property Tax Act by expanding the definition of ‘special tools’ for the purpose of a personal property tax exemption.
"The tool and die industry in Michigan has been hit particularly hard by the downturn in the national economy," said Granholm. "Providing a tax exemption for special tools was something suggested at our manufacturing summit last month to help this industry remain competitive and keep their shops open. Tool and die businesses are the backbone of manufacturing in our state. They not only create jobs in their own businesses, but they also create opportunities throughout the manufacturing sector."
Copies of each bill are available at: http://www.michiganlegislature.org/