Skip to main content
Unadjusted Credit Example: Fewer Than 250 Employees, Base Amount Is Zero (No Prior MQREs)

Unadjusted Credit Example: Fewer Than 250 Employees, Base Amount Is Zero (No Prior MQREs)

An eligible business with fewer 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% × $0) + (15% × ($40,000 − $0))
= $0 + $6,000
= $6,000

Michigan research university credit = N/A

Unadjusted credit = $6,000

Additional Examples

MQREs Exceed Base Amount

MQREs Do Not Exceed Base Amount

Standard Credit Reaches Maximum

Michigan Research University Credit

Standard Credit & Michigan Research University Credit Reach Maximums