Advocacy News – Nov. 14, 2024
What’s new: Michigan will now be one of the many states that offer a state-level Research and Development (R&D) tax credit with house bills 5099-5102, and 4368. Part of the package passed earlier this year, but the bills that actually contained the credit remained on the House floor. This week, the final bills in the package, HB 5100-5101 were passed by the Michigan House with a vote of 86-23 and are on their way to the Senate for a concurrence vote.
Why it matters: If a business is eligible for the federal credit, then the business may claim the below credits based on the size of the business and collaboration with an eligible Michigan-based research university.
- With 250 or more employees: 10%, credit amount cannot exceed $2,000,000
- Less than 250 employees: 15%, credit cannot exceed $250,000
- May claim an additional 5% credit if working with a research university in the state, but the credit cannot exceed $200,000.
Go deeper: Learn more about eligibility and details on the credit. For questions or more information, please contact Leah Robinson.