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Unadjusted Credit Example: 250 or More Employees, Standard Credit Reaches Maximum

Unadjusted Credit Example: 250 or More Employees, Standard Credit Reaches Maximum

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% × $1,000,000) + (10% × ($22,000,000 − $1,000,000))
= $30,000 + (10% × 21,000,000)
= $30,000 + $2,100,000
= $2,130,000
Maximum standard credit for large employers: $2,000,000

Michigan research university credit = N/A

Unadjusted credit = $2,000,000

Additional Examples

MQREs Exceed Base Amount

MQREs Do Not Exceed Base Amount

Michigan Research University Credit

Michigan Research University Credit Reaches Maximum

Base Amount is Zero (No Prior MQREs)