Throughout the week, we highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons. Read the recent alerts below or visit the archive.
Michigan establishes an R&D tax credit for certain authorized businesses
Michigan recently enacted legislation establishing a Research and Development (“R&D”) credit for certain authorized businesses. Authorized businesses with 250 or more employees may be eligible for up to $2,000,000 annually in R&D credits and those with fewer than 250 employees may be eligible for up to $250,000 annually. These authorized businesses are also entitled to an additional credit for R&D expenses incurred in collaboration with a Michigan research university of up to $200,000 annually. No more than $100 million of R&D credits in the aggregate may be claimed by authorized businesses in a single calendar year.
This Multistate Tax Alert summarizes some of the relevant provisions related to these R&D credits in House Bills (“H.B.”) 4368, H.B. 5099, H.B. 5100, H.B. 5101, and H.B. 5102 and also highlights a newly created program, the Michigan Innovation Fund Program.
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