LANSING, Michigan – The state Senate on Wednesday finally approved a bill sponsored by Senator Kevin Daley that will give financial relief to businesses hit by the pandemic and associated closings.
“We lost a lot of mom and pop stores during the closings,” said Daley, R-Lum. “I really feel for the people who made this decision and the families affected. Legislators have considered and approved several forms of relief over the past year – I tabled this bill to offer another helping hand to help some companies stay afloat. “
Senate Bill 393 would provide companies with additional wealth tax breaks for tax years 2020 and 2021.
The law provides a two-year refundable tax credit for companies that have been closed for at least six weeks and have lost at least 25% of their sales due to the pandemic. This is an income tax credit that would enable the eligible company to claim a credit equal to the property tax payable on the company in the same calendar year.
The property on which the loan is based must be used in connection with the business concerned. It does not apply to property owned by a company that is used for other purposes. Companies still have to pay their property taxes; This legislation only provides a way to offset certain losses related to the coronavirus pandemic.
“This legislation was designed to help small businesses keep their doors open,” said Daley. “It is important that we continue to do all we can legislatively to help the state recover from the pandemic and get people back into their jobs.”
The bill is now going to the House of Representatives for further consideration.