Annual Impact Report Shows SmartZone Startups Raised More Than $20 for Every Tax Capture Dollar Invested
Numbers Make Strong Case for Continued SmartZone Work as Legislature Considers HB 5031
LANSING, Mich. — (Oct. 29, 2026) — The Lansing Regional SmartZone (SmartZone) has released its 2026 Impact Report, showing continued growth in mid-Michigan’s high-tech sector. Over the past year, companies supported by the SmartZone raised $17.5 million in public and private funding, while the SmartZone supported 139 companies and had more than 2,900 touchpoints with them.
With a goal of increasing the East Lansing and Lansing region’s high-tech economy, the SmartZone focuses on attracting, creating, and expanding businesses in the fields of life sciences, advanced manufacturing and information technology, and other tech-adjacent sectors. In a region known for its manufacturing sector, high-tech is quickly becoming a new pillar of economic expansion. With this focus, more small ventures are being encouraged to start and scale using resources provided by the SmartZone.
SmartZones are funded by capturing a portion of new property tax growth within the district. For every dollar of tax capture invested in supporting local high-growth companies, those companies go on to secure many times that amount in outside investment, grants, and follow-on funding. In 2022, $479,000 in tax capture helped SmartZone companies secure $4.7 million in additional funding, roughly a 10-to-1 return. By 2026, $857,347 helped leverage $17.5 million, more than 20 times the invested amount.
“This year showed what real momentum looks like. The SmartZone’s support is proving critical to the ongoing success of many young ventures, and momentum like this doesn’t happen by accident” said Jillian Winn, executive director of the SmartZone at the Lansing Economic Area Partnership (LEAP), which manages the SmartZone via a service contract.
New ventures coming out of the SmartZone include MSU spin-out Sit Sense, developer of patented technology for its automated medical chair to support patients with limited mobility, as well as BRCĒ, a patented shoelace that does not come untied, created by MSU student entrepreneurs Madhav Aggarwal and Tanvi Gadamsetti, who landed a two-Shark deal on Shark Tank just two years after launch.
Sit Sense won last year’s Innovation of the Year Award from the MSU Innovation Center and recently earned a $1.55 million SBIR award.
“All the support from the SmartZone has been really great, especially as we’ve been in the process of raising funds,” said Sit Sense co-founder Justin Scott.
2026 Impact Highlights:
- $17.5 million in funding raised
- 2,936 client touchpoints
- 139 businesses supported
- 36 Technology Innovation Center incubator tenants
“The SmartZone plays a crucial role in sustaining our vibrant tech and innovation community,” said Bob Trezise, president and CEO of LEAP. “Together with the SmartZone’s Board, LEAP is bringing important resources to bear in support of these ventures, helping to build a knowledge-based economy for our region and state. Shepherding this process is the outstanding coalition of East Lansing, MSU Research Foundation, MSU Spartan Innovations, Lansing, Lansing Community College and many others working diligently to support this growth—growth that could not occur without the support of the MEDC, Governor and state legislature.”
“Over the last few years, SmartZone-supported companies have seen tremendous growth,” said SmartZone board chair Abbie Tykocki. “The reason for the SmartZone’s existence is more apparent than ever. Local and MSU-originated, high-tech, high-growth startups are finding their footing through the resources the SmartZone provides. In turn, these companies are providing much-needed services and jobs and bringing tax revenue back into the cities.”
“To keep building on that momentum, we need the Legislature to pass HB 5031 and extend the SmartZone tax capture,” said Winn. House Bill 5031 (HB 5031), sponsored by Rep. Ron Robinson with bipartisan cosponsors, would extend the SmartZone tax capture period by 15 years. The bill was reported out of the House Economic Competitiveness Committee in February 2026 and awaits action by the full House.
For more information and to see the full report please visit: 2026 Impact Report – Lansing Regional SmartZone.
About LEAP
The Lansing Economic Area Partnership (LEAP) is a coalition of area leaders partnering to build a stronger community for all—working every day to grow, retain and attract business to the Lansing, Michigan, region.
About the Lansing Regional SmartZone
The Lansing Regional SmartZone, established by the Cities of East Lansing and Lansing, supports high-tech, high-growth companies looking to start, scale, and succeed in the Greater Lansing region.
