Income/Franchise:
Michigan: New Law Creates Research and Development Corporate Income Tax Credit
H.B. 5100, signed by gov. 1/13/25; H.B. 5101, signed by gov. 1/13/25. Applicable for tax years beginning on and after January 1, 2025, recently signed legislation establishes a research and development (R&D) corporate income tax credit and withholding tax credit for certain authorized businesses under Michigan’s Income Tax Act. Other companion Michigan bills enacted in 2024 [see H.B. 4368, H.B. 5099, and H.B. 5102, signed by gov. 7/23/24, for details on these other bills] provide various underlying definitions clarifying the new R&D tax credit and related annual reporting requirements.
See forthcoming Multistate Tax Alert for more details on the new Michigan R&D credits, and please contact us with any questions in the meantime.
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