Photo Credit: MLive
Chamber Perspective on the 2025 State of the State Address
February 27, 2025
Top Takeaways
- Whitmer’s speech focused on cutting permitting fees, speeding up processing times, and refunding fees on development where feasible.
- Costs for working families in Michigan have been lowered thanks to the Earned Income Tax Credit, which the Chamber supported.
- The Governor has not ruled out raising the corporate income tax to fund roads.
Gov. Gretchen Whitmer delivered her seventh State of the State address on Feb. 26, where she introduced proposals to “lower costs, create jobs, and deliver results.” The Detroit Regional Chamber compiled the most relevant proposals and takeaways for the business community.
On the Earned Income Tax Credit Expansion
Opening her speech, Whitmer discussed some of the most recent wins for Michigan, its businesses, and its residents, including expanding the Michigan Earned Income Tax Credit for Working Families to match the federal rate of 30%. She reported that 650,000 families — including half the kids in Michigan — will get an average tax refund of $3,200.
Chamber Perspective: The Chamber has been an advocate for the Earned Income Tax Credit for many years and will continue to support this direct credit for working families. In addition to the state credit, Congress needs to extend the current federal credit that President Donald Trump created in his first term.
On Michigan’s Permitting and Licensing Processes
Whitmer also addressed the need to make Michigan’s permitting process more efficient by cutting redundancies and waiving or refunding fees when possible. Along with revamping brownfield redevelopment, she said her team reviewed all 401 state permits and found “plenty of overlaps and obsolete processes.”
“This year, I’ll instruct all state departments and agencies who’ve missed their deadlines to refund any permitting fees that we can under the law,” she said. “But the reality is that I can only refund a handful through executive action alone. To really speed up permitting and save people a lot of time and money, we need to change state law.”
Whitmer also said she directed the Department of Licensing and Regulatory Affairs (LARA) to review all of Michigan’s licensing regulations to find redundant rules. They proposed eliminating duplicative exams, honoring trade licenses, giving entrepreneurs more flexibility, and streamlining reporting requirements.
Chamber Perspective: Other states can offer faster permitting approval time than Michigan, leaving developers to look elsewhere for new projects if that means breaking ground sooner.
By speeding up permitting, removing redundancies and bureaucracy, and refunding fees where applicable, Michigan will have one more tool in its economic development toolbox that can be offered outside of financial incentives and make the state a better place to do business. Additionally, more housing projects will be able to move forward, creating more affordable options for first-time homebuyers.
On Road Funding
Whitmer continued her mission of fixing the roads and began to make her pitch to fund the roads. In her State of the State address in 2020, she announced $3.5 billion in road bonding that was able to pay for the roads through 2025.
“There’s a lot left to do, and with Rebuilding Michigan phasing out soon, we’re facing a serious funding cliff. I’m hearing from construction companies who are expecting layoffs because of the uncertainty,” said Whitmer, “To the business community, we can’t put this [funding mechanism] on the backs of the middle class.”
Chamber Perspective: Increasing the corporate income tax (CIT) is a non-starter for the business community to fund the roads issue. CIT payers are a majority of small businesses, meaning a direct increase in their costs and another shrinking of their overhead.
Both the Governor and the House Republicans are interested in raising the CIT to pay for their projects. But the Chamber will oppose raising taxes on businesses. User fees and a rework of the road funding model are the only ways Michigan rebuilds its roads and prevents further damage to the major roadways.
On Post-high School Education Attainment
Whitmer also noted the progress of Michigan Reconnect, an initiative inspired by the Chamber’s Detroit Reconnect, to help adults ages 21 and older pursue or return to higher education to complete a degree or credential. Within the successes is a stark gender gap of women outnumbering men in the program two to one. She plans to call on the legislature via an executive directive to reach more young men and boost their enrollment in higher education and skills training programs.
Chamber Perspective: Workforce shortages continue to plague the business community, and the need for employees with skills to enter the workforce will continue to be a priority for the Chamber. With many of these new programs that the Chamber has championed, there should be a focus on attracting students of all genders and ages.
On Michigan’s Defense Industry
After speaking with U.S. Defense Secretary Pete Hegseth in Washington D.C. last weekend, Whitmer also called for U.S. President Donald Trump’s support for a new fighter mission at Selfridge Air National Guard Base to support military families and good-paying jobs for the Detroit Region.
Chamber Perspective: In addition to the investment Whitmer has proposed in her budget to expand the airbase’s runway to attract a new mission, this continued support from the Governor is critical in maintaining the “Arsenal of Democracy.” The Chamber continues to advocate for the defense industry in Southeast Michigan and the entire state, recognizing the economic impact that an active Department of Defense presence gives a state.
Learn how the Chamber is advocating for business in Detroit and Southeast Michigan.