Thousand Oaks, CA, January 16, 2025 –(PR.com)– Governor Gretchen Whitmer, J.D. has signed legislation that will provide a powerful boost to businesses: a new Research and Development (R&D) tax credit. This refundable tax credit, effective for tax years beginning on or after January 1, 2024, was implemented to incentivize innovation and invigorate the job market in the state of Michigan.
“Michigan is a leader in manufacturing and innovation globally and this credit provides the competitive edge Michigan manufacturing needs to continue to compete on the global stage. We are excited to see this investment by the state of Michigan in its future and business community.” – Randy Eickhoff, Founder, Acena Consulting, LLC
While eligible businesses should still claim the R&D tax credit at the federal level, this state-level tax credit provides further incentives to offset qualified research expenses incurred within the state. These expenses may include wages, supplies, and costs for contract research.
Michigan businesses should know the R&D tax credit’s key features:
Refundable credit: A company with zero tax liability can still receive a cash refund for qualified research expenses incurred in the state.
Small-business focus: Smaller companies enjoy a greater credit rate, rendering the R&D credit especially helpful to small businesses and startups.
Businesses with fewer than 250 employees are eligible for a 15% credit, capped annually at $250,000.
Businesses with more than or equal to 250 employees are eligible for a 10% credit, capped annually at $2 million.
Incentivized collaboration: Businesses that partner with Michigan’s research universities can receive an additional 5% credit, capped annually at $200,000.
About Acena Consulting
Acena Consulting is a multidimensional tax consultancy specializing in R&D tax credits. Our approach is hands-on, conservative, and technically driven, and our experienced team of tax professionals includes former Big Four national office partners, CPAs, and engineers.
We will provide peace of mind – keeping you informed of all tax deadlines and updates – and promise accelerated, accurate, and timely delivery of your documentation. Schedule a free consultation today at www.acenaconsulting.com.
