A bill 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 717.
Enables authorized businesses to claim a tax credit for qualifying research and development expenses from the tax year 2024. Businesses with 250 or more employees can claim a 3% credit for expenses up to a base amount and 10% for expenses above this base, with a $2 million annual cap. Smaller businesses with fewer than 250 employees are eligible for a 3% credit on expenses up to the base amount and 15% on the excess, capped at $250,000 annually. An additional 5% credit is available for expenses involving collaboration with a Michigan research university, with a $200,000 annual cap, contingent on presenting a written agreement upon request.
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 5, after “to” by inserting “the sum of an amount equal to 3% of the employer’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 not concurred in 18 to 19 (details)
Motion to reconsider substitute
by
The motion prevailed by voice vote
The substitute concurred in 20 to 18 (details)
