Review our new Government Relations Update - Caucus Call: Lansing

Pete Langley
Week of Jan. 24, 2022

Caucus Call Lansing

This Week's Updates

The Michigan House and Senate will be in session Tuesday, Wednesday and Thursday this week.

Corporate Income Tax Changes Proposed

  • Who needs to know: Michigan corporations that engage in extensive research and development activities
  • Potential impact: Proposed changes would allow corporations to deduct 15% of research and development expenses from their Michigan corporate income tax.

State Rep. Matt Hall has proposed legislation that would allow the 15% deduction in three specific industries in Michigan: semiconductors, automated driving technology and life sciences. If the amount of the credit were to exceed the corporation’s tax liability for that year, the credit could be carried forward to offset the liability for up to 15 years or whenever used up.

The specifics of the legislation allow credits within the three industries for the following activities:

    • Semiconductors: the design, development or improvement of semiconductors, semiconductor devices and equipment, and other related products and technology, such as integrated circuits, and to the processes, techniques, formulas, software or inventions to sustain the ability of the semiconductor industry to continually improve semiconductor performance and technology while decreasing the costs through technological innovation
    • Automated Driving: the design, engineering, testing or diagnostics of automated driving systems for automated motor vehicles, related to advanced automotive technology
    • Life Sciences: design, development or improvement related to life sciences technology

Three Ballot Proposals Approved – Including $15 Minimum Wage

  • Who needs to know: Citizens planning to vote in November, and businesses impacted by increased minimum wage
  • Potential impact: Women’s’ Reproductive Rights, 2020 General Election Audit and $15 Minimum Wage are all issues that November 2022 voters may have the opportunity to decide.

The Michigan State Board of Canvassers approved language for three separate ballot initiatives last week. The following summarizes the three ballot proposals:

    • Reproductive Freedom for All: the proposal would amend the Michigan Constitution to allow for legal abortions in the state. As a constitutional amendment, the group needs to collect 425,059 valid signatures by July 11.
    • Audit MI: the proposal would create changes to Michigan statute to create an independent election auditing team to review the results of the 2020 election. As a citizen-initiated law, the proposal would need 340,047 valid signatures by June 1.
    • Raise Michigan: the proposal would increase the minimum wage resulting in a $15 an hour wage by 2027. As a citizen-initiated law, the proposal would need 340,047 valid signatures by June 1.

There are other ballot proposals still being developed by various groups; however, these three are seen as having the highest likelihood of making the November 2022 ballot at this point.

The Week Ahead:

  • Monday, the Michigan Civil Rights Commission will be meeting.
  • Tuesday, the House Regulatory Reform Committee will be discussing changes to Michigan’s industrial hemp laws.
  • Tuesday, the Senate Energy and Technology Committee will be taking testimony on changes to Michigan’s cybersecurity laws.
  • Wednesday, the House Energy Committee will have a presentation on energy storage.
  • Wednesday, the Michigan Construction Code Commission will be meeting.
  • Wednesday, Gov. Gretchen Whitmer will deliver her State of the State Address.
  • Thursday, the Michigan Certificate of Need Commission will be meeting.

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