LANSING, Mich. — State Sen. Kevin Daley on Tuesday introduced legislation aimed at helping businesses that were shuttered during the pandemic.
“My colleagues and I have supported relief in many forms throughout this pandemic and we are continuing to look at ways we can help those who are still facing tough times,” said Daley, R-Lum. “My bill would provide businesses with some relief to their pocketbooks to help offset some of the losses they were forced to take due to the shutdown.”
Senate Bill 393 would provide businesses with additional property tax relief for tax years 2020 and 2021.
The legislation includes a two-year refundable tax credit for businesses that were shut down due to the pandemic for at least six weeks and lost at least 25% of their sales. This is an income tax credit that would allow the eligible business to claim a credit equal to the amount of property taxes attributable to the business during the same calendar year.
The property on which the credit is based must be used in connection with the afflicted business. It would not apply to property held by a business that is used for other purposes.
“Businesses have been forced to play by changing rules for over a year; they made bank-breaking investments to keep their employees and customers safe, and many were still forced to close their doors during the pandemic — and some unfortunately for good,” Daley said. “This bill creates another source of relief to help businesses who were hit by the governor’s shutdown orders stay afloat and hopefully keep their doors open.
“Businesses will still need to pay their property taxes; this just gives them a way to recoup losses through their income tax return.”
The bill has been referred to the Senate Committee on Finance for consideration.