Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
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
- Base amount: $0
- Expense year MQREs: $40,000
- Michigan research university MQREs: $0
Calculation
Standard credit = (3% × $0) + (15% × ($40,000 − $0))
= $0 + $6,000
= $6,000
Michigan research university credit = N/A
Unadjusted credit = $6,000