Similar credit was in place between 2010 and 2012
By Elena Durnbaugh
Gongwer News Service
A House panel discussed legislation that would provide tax credits for people investing in their local community and legislation that would align Michigan’s requirements for certified public accountants with national standards on Tuesday.
Rep. Nancy Jenkins Arno, R- Clayton, testified on HB 4816 , which would create a tax break for investing in local businesses, before the House Finance Committee .
“It’s another opportunity for Michiganders to invest in Michigan businesses and allow us to take care of our own,” Jenkins Arno said.
The bill would allow taxpayers to claim a credit against tax liability equal to 50% of their investment in certain Michigan-based businesses as certified by the Michigan Strategic Fund. Total credits would be capped at $3,000 per taxpayer per business and $3,000 per taxpayer per year.
Investment would qualify as long as a family member of the investor is not an employee or owner of the business, and businesses would qualify if they are headquartered in Michigan, have a majority of their employees working in Michigan, its transactions are limited to residents of Michigan under the federal intrastate offering exemption, the business receives at least 80% of its revenue from operating in Michigan and the business has at least 80% of its assets in Michigan.
The bill would require MSF to develop an application and approval process to certify investments under the bill and adopt a program describing parameters and criteria to be used to approve investments. It also includes an enacting section stating that the legislature intends to annually appropriate sufficient funds to hold the School Aid Fund harmless from any lost revenue.
About 25% of gross income tax revenue is earmarked to the School Aid Fund, and the rest accrues to the General Fund.
A similar credit was in place between 2010 and 2012, which was known as the venture investment credit, and HB 4816 is identical to HB 4691 of 2023, which was reported from the House Tax Policy Committee.
“This incentive will build local economic wealth and hire Michigan workers,” Jenkins Arno said. “This is the kind of economic development we need in Michigan.”
Chris Miller, an economic development consultant at PlaneWave in Lenawee County, also testified in support of the bill on behalf of the National Coalition for Community Capital.
“We want to go backwards in time when all of the folks who lived in those communities participated in that economy by putting their money in a local bank account– local savings and checking accounts– and those dollars were then reinvested in the community,” he said. “We’ve seen a lot of individual investments happening, but not the community impact kind of thing that we’re really interested in, and that’s why we want to create this incentive.”
Brent Forsberg, a Lansing developer, also testified in support of the bill. He said the point of the legislation was to open investment to general members of the population.
“This is about building agency in our communities,” he said. “We want people to be able to invest at, even down to a couple $100 and being able to take that in incrementally, in growing the community.”
The bill was reported unanimously by the committee.
HB 4892 , sponsored by Rep. Steve Frisbie, R-Battle Creek, would eliminate the duplicative licensing requirement for CPAs that operate as sole proprietorships.
“This is just another regulatory burden that CPAs must go through,” Frisbie said. “Let’s continue to work to make every day easier for Michiganders by eliminating unnecessary financial burdens in their way.”
HB 4893 is sponsored by Rep. Mark Tisdel, R-Rochester Hills, and would align Michigan’s licensing requirements for certified public accountants with other states and expands acceptance of out-of-state licenses.
“It is really very simple,” Tisdel said. “The idea being that it makes it more attractive for CPA candidates to come into the state of Michigan to get their license and to practice.”
Under the legislation, CPAs would not be required to complete 150 credit hours of higher education before licensure.
Michielle Randall, a CPA and recently retired professor of accounting at Schoolcraft College and a member of the American Institute of CPAs Board of Directors testified in support of the bills.
“For years, Michigan has required CPA candidates to complete 150 credit hours of higher education before licensure. While this was well intentioned, this requirement has proven costly and rigid. It often delays entry into the workforce. Disproportionately affects candidates from economically disadvantaged or underrepresented background and limits opportunities for those who might otherwise excel through professional experience and examination,” Randall said. “House Bill 4893 provides a modernized solution. It focuses on the core components of licensure: a bachelor’s degree, two years of qualifying professional experience and passage of the CPA exam.”
The changes would align Michigan with national standards, Randall said.
“Many of my students are highly capable and eager to enter the workforce, yet they face financial and logistic hurdles in completing that additional coursework,” she said.
Bob Doyle, president of the Michigan CPA Association, also testified in support of the bill.
“This legislation makes it possible for a greater number of qualified candidates to become CPAs by removing outdated barriers,” he said.
The committee took no further action on the bills.
Gongwer News Service
A House panel discussed legislation that would provide tax credits for people investing in their local community and legislation that would align Michigan’s requirements for certified public accountants with national standards on Tuesday.
Rep. Nancy Jenkins Arno, R- Clayton, testified on HB 4816 , which would create a tax break for investing in local businesses, before the House Finance Committee .
“It’s another opportunity for Michiganders to invest in Michigan businesses and allow us to take care of our own,” Jenkins Arno said.
The bill would allow taxpayers to claim a credit against tax liability equal to 50% of their investment in certain Michigan-based businesses as certified by the Michigan Strategic Fund. Total credits would be capped at $3,000 per taxpayer per business and $3,000 per taxpayer per year.
Investment would qualify as long as a family member of the investor is not an employee or owner of the business, and businesses would qualify if they are headquartered in Michigan, have a majority of their employees working in Michigan, its transactions are limited to residents of Michigan under the federal intrastate offering exemption, the business receives at least 80% of its revenue from operating in Michigan and the business has at least 80% of its assets in Michigan.
The bill would require MSF to develop an application and approval process to certify investments under the bill and adopt a program describing parameters and criteria to be used to approve investments. It also includes an enacting section stating that the legislature intends to annually appropriate sufficient funds to hold the School Aid Fund harmless from any lost revenue.
About 25% of gross income tax revenue is earmarked to the School Aid Fund, and the rest accrues to the General Fund.
A similar credit was in place between 2010 and 2012, which was known as the venture investment credit, and HB 4816 is identical to HB 4691 of 2023, which was reported from the House Tax Policy Committee.
“This incentive will build local economic wealth and hire Michigan workers,” Jenkins Arno said. “This is the kind of economic development we need in Michigan.”
Chris Miller, an economic development consultant at PlaneWave in Lenawee County, also testified in support of the bill on behalf of the National Coalition for Community Capital.
“We want to go backwards in time when all of the folks who lived in those communities participated in that economy by putting their money in a local bank account– local savings and checking accounts– and those dollars were then reinvested in the community,” he said. “We’ve seen a lot of individual investments happening, but not the community impact kind of thing that we’re really interested in, and that’s why we want to create this incentive.”
Brent Forsberg, a Lansing developer, also testified in support of the bill. He said the point of the legislation was to open investment to general members of the population.
“This is about building agency in our communities,” he said. “We want people to be able to invest at, even down to a couple $100 and being able to take that in incrementally, in growing the community.”
The bill was reported unanimously by the committee.
HB 4892 , sponsored by Rep. Steve Frisbie, R-Battle Creek, would eliminate the duplicative licensing requirement for CPAs that operate as sole proprietorships.
“This is just another regulatory burden that CPAs must go through,” Frisbie said. “Let’s continue to work to make every day easier for Michiganders by eliminating unnecessary financial burdens in their way.”
HB 4893 is sponsored by Rep. Mark Tisdel, R-Rochester Hills, and would align Michigan’s licensing requirements for certified public accountants with other states and expands acceptance of out-of-state licenses.
“It is really very simple,” Tisdel said. “The idea being that it makes it more attractive for CPA candidates to come into the state of Michigan to get their license and to practice.”
Under the legislation, CPAs would not be required to complete 150 credit hours of higher education before licensure.
Michielle Randall, a CPA and recently retired professor of accounting at Schoolcraft College and a member of the American Institute of CPAs Board of Directors testified in support of the bills.
“For years, Michigan has required CPA candidates to complete 150 credit hours of higher education before licensure. While this was well intentioned, this requirement has proven costly and rigid. It often delays entry into the workforce. Disproportionately affects candidates from economically disadvantaged or underrepresented background and limits opportunities for those who might otherwise excel through professional experience and examination,” Randall said. “House Bill 4893 provides a modernized solution. It focuses on the core components of licensure: a bachelor’s degree, two years of qualifying professional experience and passage of the CPA exam.”
The changes would align Michigan with national standards, Randall said.
“Many of my students are highly capable and eager to enter the workforce, yet they face financial and logistic hurdles in completing that additional coursework,” she said.
Bob Doyle, president of the Michigan CPA Association, also testified in support of the bill.
“This legislation makes it possible for a greater number of qualified candidates to become CPAs by removing outdated barriers,” he said.
The committee took no further action on the bills.
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