MichBio Backs Renewal of Michigan's SmartZone TIF Authority

MichBio is proud to voice strong support for HB 5031, legislation that would renew the Tax Increment Financing (TIF) authority underpinning Michigan’s nationally recognized SmartZone network. As outlined in MichBio’s February 12 letter of support to the House Committee on Economic Competitiveness, continuation of the SmartZone model is essential to sustaining Michigan’s innovation-driven economy.

For more than two decades, SmartZones have served as foundational pillars of the state’s entrepreneurial ecosystem. Through the strategic use of TIF revenues, SmartZones provide early-stage companies with critical support for startup formation, commercialization of university research, talent attraction, infrastructure development, and access to capital. These targeted investments have yielded measurable returns, including new company creation, high-wage job growth, and increased private-sector investment 

Michigan’s SmartZone program is widely regarded as a national best-practice model for place-based economic development. As noted in MichBio’s testimony, economic development leaders from across the country look to Michigan’s framework as an innovative approach that aligns local tax capture with university research commercialization and high-growth industry development 

At a time when other states are aggressively investing in innovation districts and research commercialization infrastructure, maintaining Michigan’s competitive edge is more important than ever.

The Ann Arbor–Ypsilanti SmartZone illustrates the model’s impact. In partnership with universities, research institutions, and private industry, the SmartZone has helped launch and grow hundreds of technology-driven companies, creating thousands of high-skilled jobs and attracting substantial follow-on investment 

Similar success stories can be found across the state, including in life sciences, mobility, advanced manufacturing, and information technology.

For Michigan’s life sciences sector in particular—where commercialization timelines are long and capital requirements are significant - SmartZone-backed resources can mean the difference between a company scaling in Michigan or relocating to another state. SmartZones serve as the connective tissue of the broader innovation ecosystem, aligning regional efforts with statewide economic development strategies and supporting entrepreneurs at critical inflection points .

Renewal of the SmartZone TIF authority through HB 5031 will ensure that communities retain a proven, highly leveraged economic development tool. Without it, Michigan risks weakening a program that has helped define its leadership in innovation-based growth.

MichBio urges passage of HB 5031 and stands ready to continue partnering with SmartZones and legislative leaders to maximize the impact of these investments for residents, businesses, and the state’s economy