The last days of the 102nd Legislature were crucial for legislative activity. Several key priorities and threats were addressed, which had significant implications for Michigan’s business community.
Throughout the process, the Detroit Regional Chamber’s Public Policy and Business Advocacy team has monitored, engaged, and fought on behalf of the business community to ensure that Michigan remains a great place to do business.
Below is a list of key legislation as they currently stand.
R&D Tax Credit: HB 5100 and 5101 provide a tax credit for research and development that occurs in the state of Michigan. The two qualified types of businesses that may receive credits are entities subject to corporate income tax or any flow-through entity subject to tax withholding requirements under the Income Tax Act. Businesses that employ over 250 people are eligible for up to $2 million, and businesses under 250 people are eligible for up to $250,000. There are also bonuses for working with Michigan’s research universities. This legislation now awaits the Governor’s signature.
The Michigan Innovation Fund: HB 5651–53 provides support in the State for investments in qualified evergreen venture funds, qualified emerging evergreen funds, qualified venture capital funds, and qualified start-up support services, which will help bolster the state’s innovation economy. This legislation now awaits the Governor’s signature.
Public Transit in Wayne County: HB 6088 will allow Wayne County to exceed its millage cap and put a county-wide transit millage on the ballot to have SMART services in all its localities, similar to Macomb and Oakland Counties. This legislation now awaits the Governor’s signature.
Local Preemption: SB 1173 would have allowed municipalities to create their own local labor laws, such as minimum wages and mandatory family medical leave, resulting in a patchwork of labor laws across the state.
Polluter Pay: SB 605–611 would have overturned the standard for Michigan’s environmental cleanup and a nationwide framework for fair industry standards.
Price Gouging: HB 5895–97 would have severely overstepped government regulatory powers, leaving small businesses to foot the bill for supply chain challenges.
Tax Evaluation Changes: HB 5865-66 called for the exclusion of abandoned properties and storefronts from tax evaluations, which would result in higher tax bills in economically challenged areas.
Bad Faith Legislation: SB 329 would have forced insurance companies to pay claims first and ask questions later. It would have opened the litigation floodgates and forced unnecessarily high settlements, benefiting attorneys but increasing the cost of insurance for consumers and businesses.
Data Privacy: SB 659 would have instituted a data privacy law in Michigan. While this legislation went through many iterations, it was inconsistent with other statutes being considered nationwide and would have made implementation nearly impossible.
TENORM Ban: SB 1052 would have removed Michigan from the list of five states that accept TENORM, which is commonly created in manufacturing processes. This would have resulted in higher costs for manufacturers needing to ship their waste out of state.
Michigan Consumer Protection Act: SB 1022 would completely change the Michigan Consumer Protection Act, opening most businesses up to lawsuits, including class action lawsuits. However, this issue is still pending before the Michigan Supreme Court.
Road funding: The Chamber will urge the legislature to examine its existing budget to find room for redirecting funding to roads and caution against policies that will make the business climate less competitive.
SOAR Extension: As an economic investment tool, SOAR allows the state to pursue transformational projects that have lasting impacts on the Michigan economy.
Extensions of the SOAR program (HB 5768, 5769, and 5770; SB 559 and 562) would have included investments in local communities surrounding transformational projects, such as historic transit investment and placemaking grants.
Earned Sick Time Changes: HB 6056–57 would have resolved key issues with the Earned Sick Time Act (ESTA) and Tipped Minimum Wage, including correcting a loophole that included independent contractors as employees, allowing frontloading of earned sick time, retaining the tipped minimum wage, and fixing the minor worker training wage.
Because these bills were not addressed, your business’s sick time policy and overall salary budget will be majorly affected starting Feb. 21, 2025. Therefore, Michigan businesses must adjust their policies as ESTA currently stands, with regular minimum wage increases, a tipped wage credit phase-out, and extreme changes to earned sick time.
The Chamber’s Public Policy and Business Advocacy team will continue to work with the new legislature in 2025 to find a solution to this issue. The next Speaker of the House, Matt Hall, has shared with the Chamber that this will be a top priority.
Learn how the Chamber is advocating for business in Detroit and Southeast Michigan.