Emergency-related state tax relief available for taxpayers located in two counties of Michigan impacted by severe weather.
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
- Base amount: $50,000
- Expense year MQREs: $110,000
- Michigan research university MQREs: $25,000
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