LANSING, Mich. — Legislation sponsored by state Sen. Kevin Daley that was introduced to provide financial relief to businesses that were shuttered during the pandemic was approved by the Senate Committee on Finance Wednesday afternoon.
“Many businesses were forced to permanently shut their doors as a result of the heavy-handed shutdown orders and countless more are still facing tough times,” said Daley, R-Lum. “I introduced this legislation simply to help offset some of the losses businesses have been forced to take during the last year.”
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 just gives them a way to recoup losses through their annual income tax return,” Daley said. “We need Michigan businesses to thrive or we’ll never be able to build a strong economy. This bill will help businesses get back on their feet and get us one step closer to normal.”
The bill will now go to the Senate floor for a vote.