New law will cut down energy and supply chain costs, help Michigan continue improving permitting processes
LANSING, Mich. – Yesterday, on September 8, Governor Gretchen Whitmer signed an executive directive, the third of three, to ensure Michigan takes advantage of tax credits and other opportunities in the recently passed Inflation Reduction Act (IRA) as effectively as possible. The governor is focused on lowering the cost of doing business, and this directive will ensure state departments and agencies use every tool in their toolboxes to support Michigan’s innovative companies.
“Today, I am building on my actions to lower the cost of doing business in Michigan by signing an executive directive to ensure that our hardworking entrepreneurs and business owners have the information and resources they need to fully harness the benefits of the Inflation Reduction Act,” said Whitmer. “The executive directive will mobilize state departments to assist businesses in reducing energy and supply chain costs by helping companies reduce emissions, retrofit facilities, and use clean energy to power operations. Additionally, the directive will build on my efforts to cut red tape and streamline government processes, helping businesses grow right here in Michigan even faster. These provisions to lower the cost of doing business are a great step forward and we will work hard to make sure Michiganders can see and feel the benefits of the Inflation Reduction Act.”
“The Inflation Reduction Act is a transformational opportunity for to lower the cost of doing business and grow Michigan’s economy,” said Lt. Governor Garlin Gilchrist II. “I am proud to stand alongside Governor Whitmer as we institute an across-government approach to help companies take full advantage of the IRA’s resources and savings. Governor Whitmer and I will continue our work to lower costs for Michiganders, grow our economy and build prosperity in our communities.”
Lower Cost of Doing Business Executive Directive
With this executive directive, Governor Whitmer is ensuring Michigan businesses are positioned to take full advantage of the IRA to lower the cost of doing business. Right now, Michigan’s economy is on the move with strong job growth and low unemployment. In December, the governor worked across the aisle and signed bipartisan economic development legislation that empowered the state to compete for transformational projects, bring billions in investment to Michigan, and create thousands of good-paying jobs. She has also cut taxes for small business owners, slashed red tape for child care businesses and signed executive directives to streamline permitting and prioritize Michigan-based businesses for state contracts.
The executive directive includes the following provisions:
- Departments should identify affected stakeholder communities and conduct outreach to ensure that they are aware of the opportunities to apply for federal funds and where appropriate coordinate such applications and opportunities. The Michigan Economic Development Corporation (MEDC) and other departments and agencies should identify opportunities to connect state resources with IRA’s resources to lower costs for businesses.
- Departments and agencies must supply information about federal funding opportunities to partners that will utilize these dollars to lower their production costs.
- To reduce energy and supply chain costs, state departments and agencies should support efforts to reduce on-site emissions; retrofit industrial facilities to maximize energy efficiency; build up emerging clean energy technologies, such as hydrogen; and continue Michigan manufacturers’ leading efforts to decarbonize their supply chains.
- Departments must review and act upon permits, licenses, approvals, or applications quickly and efficiently. They should use the processes for streamlining permitting set forth in the governor’s executive directive 2022-06. Departments and agencies must make information available about processes and timelines easily accessible to applicants and take steps to avoid duplication, improve efficiency, and share information to expedite review.
The full executive directive can be found here.
Inflation Reduction Act Background
- Lowers prescription drug costs for seniors: Out-of-pocket costs for seniors on Medicare will be capped at $2,000 a year, saving roughly 1 million people about $1,00 each year. Insulin costs for Medicare are capped at $35 per month.
- Lowers health care costs: Extends subsidies under the Affordable Care Act for 13 million people, saving them an average of $800 per year on premiums. It also prevents 3 million people from losing their insurance.
- Lowers energy costs: Helps American families switch to cheaper, cleaner electricity, cutting their bills by $500 a year. All homes, even those who do not make the switch to clean energy, will see lower prices. Offers middle-class Americans tax credits for buying electric vehicles made in North America.
- Creates American jobs: Builds and refurbishes factories, creates millions of good-paying manufacturing jobs, and helps America build electric vehicles, batteries, solar panels and so much more.
- Cuts the deficit by $300 billion: A fiscally-responsible investment to secure America’s financial future.
- Ensures billion-dollar-corporations pay more than $0 in income taxes: Enacts a 15% minimum tax for corporations that make over $1 billion in annual profits, many of whom currently pay 0%.
- Invests in communities: Funds infrastructure improvements and projects to reduce air and water pollution, protect natural resources.
