MichBio, a local non-profit advocate of the biosciences industry, is pushing an action plan to reform state legislation that will make Michigan more competitive in the bio-tech and life sciences sectors.
"What we need to assess is what we have in our tool box and how that compares to other states," says Stephen Rapundalo, president & CEO of MichBio.
The biosciences industry has emerged on top in Michigan's new economy, garnering $325 million in direct state investment. MichBio's Biosciences Action Plan, a living document, aims to map out Michigan's strengths in this realm (higher education, talent, etc.) and define the Great Lakes State's needs and opportunities for growth.
Amidst this is recognition from local leaders that a favorable business climate is necessary; bio-industry start-ups often need 15 years and millions of dollars of investment before bringing their first product to market.
Many of the reforms mentioned in the action plan combined together could have an impact similar to the recently approved Angel Tax Credit. That incentive provides a state tax credit to angel investors who make investments in start-ups, bringing Michigan in line with the leaders of early investment.
"That was something the state really needed," Rapundalo says. "It's not just our sector but every sector. It's a great tool that will bring investors here."
However, the future of that credit and legislative reform mentioned in MichBio's Biosciences Action Plan are in flux as state legislators rework the state's business tax formula. Specifically, Gov. Rick Snyder's plan to eliminate all tax credits could directly impact the angel tax credit and MichBio's initiative. "It's really up in the air," Rapundalo says.
Source: Stephen Rapundalo, president & CEO of MichBio
Writer: Jon Zemke
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