SOTS 2024
8
We’re showing the world that we make a lot more than just cars. In the decades ahead,
we will dominate the manufacturing of batteries, chips, and clean energy too.
To keep winning, we must upgrade our economic development toolkit. We can and must
outcompete our neighbors. Tonight, I want to talk about some new tools.
We know Michigan is home to a lot of research and development—or R&D—thanks to
our leading universities and businesses. Unfortunately, we are one of just a handful of
states without a tax credit to incentivize R&D. Every other Midwestern state has one. An
R&D tax credit will unleash innovation while lowering costs for businesses. Let’s get it
done.
Our current toolkit limits our ability to attract small and second stage businesses. Let’s
start the HIRE Michigan Fund to lower overall payroll taxes for these firms. The value
here is simple: the more you hire in Michigan, the more you should save in Michigan.
We had a similar, bipartisan program years ago that worked well. So, let’s bring it
back—because everyone loves a throwback.
We also need to uplift regions that have too often been left out or left behind.
Renaissance Zones are strategically selected areas with lower taxes for businesses and
entrepreneurs so we can drive investment and create local jobs. We already have
several of these statewide, but there are strict categories that define eligible projects
within them. Let’s simplify these into a single, flexible category to incentivize growth.
Finally, let’s establish an Innovation Fund to invest in high-growth startups that will
create the future, right here in Michigan. Right now, we have no state-level mechanism
to attract and retain promising young companies. With the new Innovation Fund, we can
launch hundreds of new Michigan-based startups and create thousands of jobs.
Together, we’re going to build the infrastructure for innovation so founders can start and
build their companies here in Michigan.
As we win all these projects, our infrastructure must keep up. The Growing Michigan
Together Council identified infrastructure as one of the keys to growing our population.
That’s why we are fixing the damn roads, bridges, pipes, and everything in between.
Since I took office, we have fixed 20,000 lane miles of road and 1,400 bridges,
supporting 118,000 good-paying jobs. I know you saw it last year. Our state flower—
the orange barrel—was in full bloom. And the hardworking men and women who fix our
roads were out in force, getting the job done.
4 years ago, I stood at this rostrum and rolled out the Rebuilding Michigan Plan, a $3.5
billion investment to fix our roads while supporting over 45,000 jobs without raising
taxes by a dime. It focused on vital economic corridors including 96 and 275 in Metro
Detroit… the 475-69 interchange in Flint… 94 in Jackson… 196 between Holland and
Saugatuck… and 496 a few blocks away. We made progress on them all.