October 16, 2002
Governor John Engler today in Kalamazoo signed two bills that provide tax incentives for pharmaceutical research and development in Michigan. The bills were introduced following an announcement this summer by Pfizer that it would acquire Pharmacia Corporation, Kalamazoo County’s biggest employer.
"Because of this legislative action, Michigan is well positioned to retain up to 2,000 important pharmaceutical jobs in Michigan, and Kalamazoo will remain a pharmaceutical research and development leader," said Governor Engler, who also noted that 22 other states offer research and development tax incentives.
"This is an important step in the effort to preserve local jobs and to ensure the future of the Kalamazoo area," said State Representative Tom George (R – Texas Township).
The Governor signed House Bill 6073, sponsored by State Representative Barbara Vander Veen (R – Allegan), and Senate Bill 1315, sponsored by State Senator Don Koivisto (D – Ironwood). The bills create a series of tax incentives targeted at pharmaceutical companies that employ at least 8,500 people in the state, and at least 5,000 of whom are engaged in research and development of pharmaceuticals.
House Bill 6073 amends the Single Business Tax Act to allow eligible taxpayers to claim a credit against the tax for qualified research expenses related to its pharmaceutical-based business activity in Michigan. The total tax credit may not exceed $10 million in any one tax year.
Senate Bill 1315 amends the Michigan Renaissance Zone Act to authorize the Michigan Strategic Fund to create a pharmaceutical renaissance zone. This new pharmaceutical renaissance zone will promote and increase the research, development and manufacturing of pharmaceutical products.