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Michigan R&D Tax Credits

R&D Tax Credits

Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

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This post was last updated on April 23rd, 2023 by Casey Barka.

Michigan R&D Tax Credits R&D Tax Credit

Find out if you qualify for R&D tax credits in Michigan R&D Tax Credits and recharge your business.

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years
Total tax credit can be carried forward

Michigan R&D Tax Credits R&D Tax Credit Eligibility Summary:

Is the R&D Tax Credit Available?:
Yes
No
Eligible Entities:
Deadline for Tax Filing:
Data Required to Compute Credit:
What Information is needed?:

Michigan R&D Tax Credits R&D Tax Credit Guidelines:

Michigan R&D Tax Credits R&D Tax Credit Case Study

A Nebaraska-based manufacturing company recovered $304K from the R&D tax credits.

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Amount earned in Arizona state tax credits

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Amount of wages qualifed for a Arizona based manufacturer

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Total R&D tax credit earned

Key Michigan R&D Tax Credits R&D Tax Rules Changes

2019' - 22
22' and after
2019' - 22
22' and after

Resources

There are many other considerations and exemptions, including what documentation the IRS requires for the R&D tax credits. Stay updated to navigate the new tax laws with confidence.

Michigan R&D Tax Credits

Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

Ready to Maximize Your State Credits?

With just a little info, our Strike Experts can help you start your R&D tax credit journey.

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Michigan R&D Tax Credits

Find out if you qualify for R&D tax credits in Michigan and recharge your business.

Michigan’s research and development (R&D) tax credit historically has closely followed the federal R&D tax credit. If a company qualified for the federal credit, then it would qualify for the Michigan credit. However, the R&D activities and expenditures must have occurred within the state of Michigan. The current credit equals 1.9% of Michigan QREs, is limited to 75% of a taxpayer's tax liability, and is claimed on Form 4570, Part 4.

Lawmakers continue to introduce legislation that would reinstate the Michigan R&D Tax Credit. Currently under bipartisan consideration at the capitol building (January 2022), H.B. 5601 would permit innovating companies to claim a 15% credit on the state’s corporate income tax. Specifically directed at the advanced automotive, semiconductor, and life sciences industries, H.B. 5601 would place Michigan innovators who are involved in improving products and processes ahead of the competition.

State lawmakers acknowledge that the proposed bill may have unintended consequences on Michigan’s state budget. Additional proposals include capping the amount of R&D Tax Credits for the state on an annual basis. Lawmakers are also concerned about equitable R&D access for small and startup life science companies. Stay tuned to see if Michigan lawmakers pass a final, updated version of an R&D bill.

Learn more about Michigan's R&D Tax Credit law here

R&D Tax Credit Available:

Yes

Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

Deadline for Tax Filing:

Due with Michigan Tax Return

Data Required to Compute Credit:

Claim Period Qualified R&D Expenses (QREs)

Credit Carryforward:

None

The R&D state tax credit equals:

  • 1.9% of the Michigan QREs during the tax year.
  • Credits are limited to 75% of a taxpayer's tax liability, before credits.

Specific Items to Note:

  • The R&D credit, along with two other tax credits, cannot exceed 75% of the taxpayer's tax liability in a given year.

Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

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