2023 House Bill 4368 / 2024 Public Act 118

Corporate income tax: credits; definitions for research and development tax credits; provide for.

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 716.

Official record

AI Analysis – Experimental

HB 4367 and 4368 propose an amendment to the Income Tax Act of 1967, specifically by adding section 672, which would allow Michigan taxpayers to claim a credit against their state income tax for qualified research and development expenses incurred within the state. The credit would be equal to 15% of the qualifying expenses, with a maximum credit of $2,000,000 per taxpayer per tax year. The total amount of credits available in a single tax year is capped at $500,000,000, and if claims exceed this limit, credits will be reduced proportionally. Unused credits can be carried forward for up to 15 years but are not refundable.

Introduced in the House

April 11, 2023

Introduced by Rep. Greg VanWoerkom (R-88) and 16 co-sponsors

Co-sponsored by Reps. Matt Hall (R-42), Robert Bezotte (R-50), Mark Tisdel (R-55), Doug Wozniak (R-59), Bill Schuette (R-95), Greg Markkanen (R-110), Nancy DeBoer (R-86), Matt Bierlein (R-97), Tom Kunse (R-100), David Martin (R-68), Graham Filler (R-93), Thomas Kuhn (R-57), Gregory Alexander (R-98), Jay DeBoyer (R-63), Mike Harris (R-52) and Pat Outman (R-91)

Referred to the Committee on Tax Policy

Oct. 31, 2023

Discharged from committee

Substitute H-1 offered by Rep. Jason Hoskins (D-18)

The substitute passed by voice vote

Passed in the House 80 to 30 (details)

Motion to reconsider by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Passed in the House 81 to 29 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Nov. 1, 2023

Referred to the Committee of the Whole

March 19, 2024

Reported without amendment

Passed in the Senate 23 to 12 (details)