Zorn bill would encourage investments in local businesses

LANSING, Mich. — Sen. Dale Zorn has reintroduced legislation to provide an incentive for Michigan residents to invest in a Michigan business to help them succeed and support local communities.

“Encouraging people to invest in Michigan businesses is a great way to help support our local job providers — especially those struggling to stay afloat during the state’s ongoing shutdowns,” said Zorn, R-Ida. “The COVID-19 pandemic has illustrated the importance of local businesses in our lives. They understand what makes our communities unique; they provide jobs and opportunities for our people, and they support our schools and local services.

“By incentivizing local investments, we can help our small businesses and put local resources to use in building better and stronger communities.”

Senate Bill 13 would allow Michigan residents to claim a tax credit for up to 50% of a qualified investment into a Michigan business.

Under the bill, a qualified business would need to be located and headquartered in Michigan, have a majority of its employees working in Michigan and receive at least 80% of its gross revenues from operations in Michigan.

To be eligible for the credit, no one in the investor’s family could be an employee or owner of the business or have a preexisting financial relationship with the business.

SB 13 has been referred to the Senate Finance Committee for consideration.

###