The Small Business Association of Michigan has a dedicated Legislative Action Council who weighs in on legislative matters and receives quarterly updates on the latest information in Lansing and Washington, D.C. An overview of the February 2022 meeting is below.
Growing MI Business Grant Program
Applications for businesses open March 1st at 8 AM through March 31st. Nine categories of businesses are eligible to demonstrate the financial hardship they endured through the pandemic and receive grants based off the decline of their sales from 2019 to 2020. To learn more and find out if you qualify, visit michigan.gov/abr.
Tax Relief Discussions
Legislation was voted out of the Senate that would:
- Reduce the individual income tax rate from 4.25% to 3.9%
- Reduce the corporate income tax rate from 6% to 3.9%
- Allow a $500 credit for each qualified dependent
- For those 67 years and older, allow for a deduction against all types of income of $30,000 for a single individual income tax return or $60,000 for a joint return
The House unveiled their tax relief plan as well, which would cut the individual tax from 4.25 to 3.9%. House Republicans also proposed lowering the personal exemption on the first $20,000 or $40,000 from age 67 to 62. Additionally, those over 62 years old with retirement income would be exemption an additional $20,000 or $40,000.
$1.5 billion of surplus funds would go towards pension funds for cities, counties, townships, villages, road commissions and the Michigan State Police.
Funds for Businesses and Unemployment Insurance Trust Fund Deposit
Legislation was passed out of the House that would appropriate more COVID-19 relief for businesses and would deposit $250M into the unemployment insurance trust fund.
Delivery and Installation Fees Exemption
Legislation was passed out of the House that would exempt delivery and installation fees from the sales and use tax. These bills sit in the Senate Finance Committee and are currently awaiting a second hearing.
Pharmacy Benefit Manager
Reforms to increase transparency and lower prescription costs was voted out of the House and Senate and signed by the Governor on Wednesday, February 23. This was a bi-partisan priority for the Senate Health Policy and Human Services Committee and the Governor’s Prescription Drug Task Force.
Executive Budget Recommendation Overview
Chris Harkins, State Budget Director, joined the Legislative Action Council to give an overview of the Governor’s $74.1B executive recommendation for FY 2023. Our team gave a rundown of the budget on a previous Small Business Briefing episode, but for the full overview visit https://www.michigan.gov/budget/fiscal-pages/budget.
Supreme Court Rulings: Vaccine Mandate and What’s Next
Former Justice Kurtis Wilder gave an overview of SBAM’s rule in putting together an amicus brief on the Supreme Court vaccine mandate case. The Small Business Association of Michigan was proud to represent our members on this important issue.
Michigan Reconnect Next Steps
Representative Ben Fredrick and Doug Ross, partner at the Diploma Equity Project, talked about the future of the Michigan Reconnect Program and how this program can support employers in getting them the talent they need. SBAM remains committed to this program and is working with stakeholders to continue to improve this valuable tool.
Going Pro Talent Fund Expansions
Stephanie Beckhorn, Deputy Director of Employment and Training at Michigan’s Department of Labor and Economic Opportunity gave an overview of the Going Pro Talent Fund and goals that the Administration has on making this program larger and better suited for small business owners.
To find out more about how you can lend your voice to this conversation, please reach out to Alexa Kramer at alexa.kramer@sbam.org.