LANSING, Mich. — The state Senate on Wednesday gave final approval to legislation sponsored by state Sen. Kevin Daley that would provide financial relief to businesses affected by the pandemic and associated shutdowns.
“We lost a lot of mom and pop businesses during the shutdowns,” said Daley, R-Lum. “I truly feel for the people who were forced to make that choice and the families who were affected. The Legislature has considered and approved several forms of relief over the last year — I introduced this bill to hold out another helping hand to try and help some businesses stay afloat.”
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 will still need to pay their property taxes; this legislation simply provides an avenue to recoup certain losses associated with the coronavirus pandemic.
“This legislation was designed to help small businesses keep their doors open,” Daley said. “It is important that we continue doing all we can legislatively to help the state recover from the pandemic and get people back into their jobs.”
The bill now goes to the House of Representatives for further consideration.