Skip to main content
Unadjusted Credit Example: 250 or More Employees, MQREs Exceed Base Amount

Unadjusted Credit Example: 250 or More Employees, MQREs Exceed Base Amount

An eligible business with more than 250 employees is claiming the Research and Development (R&D) Tax Credit and needs to calculate its unadjusted credit for the current expense year.

Inputs

Calculation

Standard credit = (3% × $80,000) + (10% × ($200,000 − $80,000))
= $2,400 + (10% × $120,000)
= $2,400 + $12,000
= $14,400

Michigan research university credit = N/A

Unadjusted credit = $14,400

Additional Examples

MQREs Do Not Exceed Base Amount

Standard Credit Reaches Maximum

Michigan Research University Credit

Michigan Research University Credit Reaches Maximum

Base Amount is Zero (No Prior MQREs)