Pontiac, MI - Oakland County Executive Dave Coulter announced Friday, February 2, 2024 his support of tax credits for research and development, saying they are essential to the attraction and retention of engineers, researchers, and technicians.
In her recent State of the State address, Gov. Gretchen Whitmer said these tax credits - which passed the Michigan House of Representatives with bipartisan support - will “unleash innovation.” Coulter agrees.
“The R&D tax credits will indeed unleash innovation throughout Southeast Michigan, but especially here in Oakland County, and will be vital to the attraction and retention of engineering talent throughout our region,” Coulter said. “There is no question Oakland County, our region, and Michigan will reap great rewards when the R&D tax credits become law.”
Oakland County has more than 4,100 companies employing nearly 76,000 people in R&D. This robust R&D is attracting foreign firms to Oakland County, which ranks third in the United States for foreign direct investment.
State Rep. Jason Hoskins (D-18th District) joined Coulter for the announcement at DENSO Technical Center in Southfield. As chairman of the Economic Development and Small Business Committee in the Michigan House of Representatives, he shepherded House Bills 4368 and 5099-5102 to a floor vote in the Michigan House where legislators approved them in a bipartisan vote.
“I’ve been proud of the work we’ve gotten done in the legislature to make Michigan the premier place to do business. Having target incentives like R&D tax credits is critical if we want Michigan to cement that premiere business status,” Hoskins said. “The R&D tax credits passed by the House are necessary to keep our state competitive both nationally and internationally and are a pivotal tool in our toolbox to drive economic development and create high-wage jobs for our communities."
DENSO invests millions of dollars a year in North American R&D, of which significant portions are allocated for research conducted at their Technical Center in Southfield. Andy Clemence, senior vice president at DENSO, said R&D tax credits will enable the auto supplier to boost its innovation, especially in the electrification of vehicles.
“DENSO is committed to developing green and safe technologies that contribute to a brighter future for all,” said Clemence. “This is a long-term, resource-intensive effort, so we are encouraged to see Michigan leaders back bipartisan legislation that we believe will help DENSO and other local companies continue to innovate for a new era of cleaner, more seamless mobility – all right here in the Great Lake State.”
The R&D tax credits will advance Oakland County’s strategic goals of a Thriving and Inclusive Economy, a Skilled and Educated Workforce, and Environmental Sustainability. R&D is an essential component of building a thriving and inclusive economy because it employs tens of thousands of residents and attracts foreign direct investment. It enhances a skilled and educated workforce by attracting and retaining engineers, researchers, and technicians. Also, it promotes environmental sustainability because companies like DENSO are investing in the electrification of the future.
“Oakland County welcomes R&D tax credits and the innovation they will unleash,” Coulter said.