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Unadjusted Credit Example: 250 or More Employees, Michigan Research University Credit

Unadjusted Credit Example: 250 or More Employees, Michigan Research University Credit

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% × $500,000) + (10% × ($1,200,000 − $500,000))
= $15,000 + (10% × $700,000)
= $15,000 + $70,000
= $85,000

Michigan research university credit = 5% × $200,000 = $10,000

Unadjusted credit = $85,000 + $10,000 = $95,000

Additional Examples

MQREs Exceed Base Amount

MQREs Do Not Exceed Base Amount

Standard Credit Reaches Maximum

Michigan Research University Credit Reaches Maximum

Base Amount is Zero (No Prior MQREs)