Governor Urged To Sign Exemption

LANSING — The Michigan Legislature yesterday handed the governor a bill that would exempt small businesses from state taxes upon government grants they receive to conduct research.

The sponsor of the legislation, Sen. Gerald Van Woerkom, R-Norton Shores, took the bill to Gov. Jennifer Granholm’s office urging her in a written statement to sign it as a way to encourage long-term strategies for economic development.

He stressed that the tax exemption would apply only to grants, not ordinary business revenue, that the companies receive to conduct research.

The measure was one of several that were presented to the governor yesterday.

Others included legislation to exempt small start-up businesses from certain taxes during their first five years of operation, expanding the use of private labs for state business and speeding up and simplifying the permit process for businesses.

Explaining the bill he sponsored, Van Woerkom said, “In order to secure the future of our families and communities, we must consider long-term strategies for economic development. Exempting research grants from state taxes will help keep Michigan workers and resources in the forefront of the research industry.”

He said the measure, Senate Bill 1116, is a key component of the JOBS Action Plan, a package of GOP-sponsored legislation designed to spur economic growth and promote a healthier business climate in Michigan.