Corporate income tax: credits; research and development credit for certain businesses located in an aerospace defense zone; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill creates a new tax credit for businesses located in aerospace defense zones in Michigan. It offers two types of credits: one for research and development expenses (up to 30% of those expenses, with limitations) and another for the storage and maintenance of finished goods inventory (up to 20% of those expenses). To qualify, businesses must be designated by the Michigan Strategic Fund and receive a certificate from the fund. The credits are available through 2029 and are subject to annual spending limits.
Key provisions
- Provides a 30% tax credit for qualified businesses’ research and development expenses in aerospace defense zones.
- Offers a 20% tax credit for qualified businesses’ expenses related to storing finished goods inventory in aerospace defense zones.
- The Michigan Strategic Fund will certify eligible businesses and limit total annual credit spending.
- The maximum credit amount per taxpayer is capped at $10 million per year.
- Businesses must receive a certificate from the Michigan Strategic Fund to claim the credit.
- Credits can be carried forward for up to five years.
- The base amount for research and development expenses is calculated over the previous three tax years.
- Businesses with less than $5 million in annual gross revenue are eligible.
Who is affected
- Businesses operating in aerospace defense zones in Michigan
- The Michigan Strategic Fund
Bill text
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Document of record
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- Senate Introduced Bill
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