Chamber Supports HB 4816 to Fuel Startups, Opposes New Water and Energy Fees

Small businesses are the engine of Michigan’s economy, employing nearly half of the state’s private workforce and accounting for approximately 1.9 million jobs. Yet, for all their importance, these businesses consistently face one primary barrier to growth: access to capital.

This week, the Detroit Regional Chamber submitted support for Michigan House Bill 4816, legislation that directly tackles this challenge by unlocking private capital to fuel Michigan’s entrepreneurs.

The bill, introduced by Rep. Nancy Jenkins-Arno (R-Clayton), amends the state’s income tax act to create a new, non-refundable tax credit for individuals who invest in a small, Michigan-based company.

For tax years beginning in 2025, an investor can claim a credit equal to 50% of their qualified investment in a qualified business, capped at $3,000 per taxpayer per year. To ensure the benefit remains in the state, the qualified business must be certified by the Michigan Strategic Fund (MSF) and be thoroughly Michigan-centric. This includes having its headquarters in the state, having a majority of its employees in Michigan, and deriving at least 80% of its gross revenues and assets from within the state.

This incentive is designed to spark new, community-level “angel” investments, encouraging individuals to move capital off the sidelines and into promising local startups. By encouraging private investment in Main Street, HB 4816 will help new and growing businesses hire, expand, and innovate, thereby contributing to the economic vitality of the entire region.

The Chamber thanks Jenkins-Arno for introducing this important legislation and Rep. Mark Tisdel (R-Rochester Hills) for recognizing its importance and bringing it to the committee’s attention.

Additionally, the Chamber opposed a myriad of legislation that would impact the cost of doing business in the state.

On Tuesday, the Chamber’s Public Policy and Business Advocacy team submitted opposition to SB 248-252 in the Senate Housing and Human Services Committee. This package would increase water rates for all users in the state and could result in water systems taking on millions of dollars in debt. Following that, the Senate Natural Resources Committee heard testimony on SB 140-141, which would increase fees on oil and natural gas wells in the state, potentially leading to a less stable energy grid and higher costs for consumers. The Chamber also opposes this package.

Lastly, on Thursday, the Chamber submitted opposition to SB 305, a bill that would redirect pollution penalties to the affected communities. Fees and penalties should always be directed back towards the general fund and never to the enforcement agency. When penalties are directed back to the penalizing department, they have an incentive to issue more tickets rather than work with the private industry to remediate mistakes before they become risks to community health.

The Chamber will continue to monitor these issues as they develop.