Introduced
by
To exempt the owner of a "qualified start-up business" from paying state income tax on earnings from the enterprise for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation.
Referred to the Committee on Finance
Referred to the Committee on Economic Development, Small Business, and Regulatory Reform
Reported without amendment
With the recommendation that the bill pass.
Substitute offered
To replace the previous version of the bill with one that somewhat narrows the definition of qualified start up business to only include firms that did not have net income for two consecutive tax years.
The substitute passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one containing technical changes that do not affect its substance as previously described.
The substitute passed by voice vote
Amendment offered
by
To establish that if the qualified start-up business leaves Michigan within three years after getting the tax credit, it must pay a proportional amount of the taxes it would have paid without the credit.
The amendment passed by voice vote
Passed in the Senate 38 to 0 (details)
To exempt the owner of a "qualified start-up business" from paying state income tax on earnings from the enterprise for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation.
Referred to the Committee on Commerce
Referred to the Committee on Tax Policy
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that incorporates certain additional restrictions and requirements designed to more narrowly target the tax breaks at certain kinds of businesses, and make it harder for non-targeted firms to make themselves eligible by changing their business structure.
The substitute passed by voice vote
Amendment offered
by
To tie-bar the bill to House Bill 5331, meaning this bill cannot become law unless that one does also.
The amendment passed by voice vote
Passed in the House 81 to 26 (details)
To exempt the owner of a "qualified start-up business" from paying state income tax on earnings from the enterprise for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation.
Passed in the Senate 38 to 0 (details)
To concur with the House-passed version of the bill.
