An act to amend 1967 PA 281, entitled “An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement by lien and otherwise of taxes on or measured by net income and on certain commercial, business, and financial activities; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits, rebates, and refunds of the taxes; to create certain funds; to provide for the expenditure of certain funds; to impose certain duties and requirements on certain officials, departments, and authorities of this state; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal acts and parts of acts,” (MCL 206.1 to 206.847) by adding section 677; and to repeal acts and parts of acts.
Enables authorized businesses to claim a tax credit for qualifying research and development expenses from January 1, 2024. The credit varies for businesses with 250 or more employees (up to $2,000,000) and those with fewer (up to $250,000) per tax year. An additional 5% credit is available for expenses over the base amount in collaboration with a Michigan research university, capped at $200,000 annually. Claims must be submitted by March 15 following the expense year, with the Department of Treasury adjusting claims if the total exceeds section limits. The aggregate credit amount across all taxpayers cannot exceed $100,000,000 annually.
Co-sponsored by Reps.
Referred to the Committee on Economic Development and Small Business
Reported without amendment
Substitute H-1 offered
by
The substitute passed by voice vote
1. Amend page 1, line 4, after “to” by inserting “the sum of an amount equal to 3% of the taxpayer’s qualifying research and development expenses incurred during the calendar year ending with or within the tax year up to the base amount and”.
The amendment passed by voice vote
Passed in the House 79 to 31 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee of the Whole
Reported with substitute S-1
Substitute S-1 concurred in by voice vote
Passed in the Senate 22 to 13 (details)
Substitute H-2 offered
by
The substitute passed by voice vote
Substitute H-2 concurred in 86 to 23 (details)
Substitute H-2 concurred in 20 to 18 (details)
