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Legislative Updates: Bill Introduced to Support Automotive Research, CODER Act Passes Out of Committee

Last week, Sen. Ken Horn introduced legislation that would encourage companies to conduct automotive research and development in Michigan and invest in communities. Senate Bill 378 would create a research and development tax credit that can be claimed under Michigan’s Corporate Income Tax. Businesses conducting research and development related to the design, engineering, testing, or diagnostics of automated driving systems would be eligible for the credit, expanding the automotive footprint of the state and next-generation mobility.

“Michigan remains the global center of automotive ingenuity, but we continue to face increasing competition both domestically and abroad,” said Glenn Stevens, executive director of MICHauto and vice president of automotive and mobility initiatives for the Detroit Regional Chamber. “I applaud Sen. Horn for his efforts to ensure that the next generation of the automobile is designed, tested, and built in Michigan.”

Rep. Elissa Slotkin’s bipartisan Creating Opportunities through Defense Engineering Requirements (CODER) Act, was incorporated into the National Defense Authorization Act (NDAA), the annual bill that funds the Department of Defense (DoD). The NDAA passed out of the House Armed Services Committee on Thursday, June 13.

“The CODER Act will provide new opportunities to small- and medium-sized software firms in Michigan, while supporting the goal of a new acquisition pathway for the Department of Defense,” said Tammy Carnrike, chief operating officer of the Chamber.

Currently, defense software-acquisition is a lengthy and one-size-fits-all process. It also poses as a risk for service members. The CODER Act would overhaul and modernize the way the DoD acquires the software it relies on to carry out missions, manage weapons systems and personnel, communicate with allies, and expand opportunities for small and medium-sized businesses.