Michigan Votes Forum

Introduced in the Senate on December 2, 2003, to exempt the owner of a "qualified start-up business" from paying state income tax on earnings from the enterprise for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation

The vote was 38 in favor, 0 opposed and 0 not voting

(Senate Roll Call 39 at Senate Journal 13)

Click here to view bill details.

Rep. Jamnick, having reserved the right to explain her protest against the passage of the bill, made the following statement: "Mr. Speaker and members of the House: I voted no on this package of bills (SB 863, 865, 867, 872, 875 and HB 5335, 5341, 5342, 5343, 5345) because they have the potential to continue to reduce revenues in the School Aid Fund as well as State and local governments. It also creates another opportunity where our communities will be competing against one another for business locations."

Rep. Accavitti, having reserved the right to explain his protest against the passage of the bill, made the following statement: "Mr. Speaker and members of the House: I voted no on the companion package of bills to HB 5331 which were deemed to assist 'start-up' businesses (HB 5335, 5341-43, 5345; SB 863, 865, 867, 872, 875) because they will actually amount to very little in terms of tax relief to business but will cost the state treasury up to $15 million at a time when, if revenues are not increased, significant reductions will have to take place in programs to seniors, education and health care. The bills also have the potential of undermining existing economic development programs and incentives and pitting local units against each other in the race to land businesses. Local units will again be forced to choose."