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Unadjusted Credit Example: Fewer Than 250 Employees, Michigan Research University Credit

Unadjusted Credit Example: Fewer Than 250 Employees, Michigan Research University Credit

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% × $50,000) + (15% × ($110,000 − $50,000))
= $1,500 + (15% × $60,000)
= $1,500 + $9,000
= $10,500

Michigan research university credit = 5% × $25,000 = $1,250

Unadjusted credit = $10,500 + $1,250 = $11,750

Additional Examples

MQREs Exceed Base Amount

MQREs Do Not Exceed Base Amount

Standard Credit Reaches Maximum

Standard Credit & Michigan Research University Credit Reach Maximums

Base Amount is Zero (No Prior MQREs)