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Unadjusted Credit Example: Fewer Than 250 Employees, Standard Credit Reaches Maximum

Unadjusted Credit Example: Fewer Than 250 Employees, Standard Credit Reaches Maximum

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% × $100,000) + (15% × ($2,000,000 − $100,000))
= $3,000 + (15% × $1,900,000)
= $3,000 + $285,000
= $288,000
Maximum standard credit for small employers: $250,000

Michigan research university credit = N/A

Unadjusted credit = $250,000

Additional Examples

MQREs Exceed Base Amount

MQREs Do Not Exceed Base Amount

Michigan Research University Credit

Standard Credit & Michigan Research University Credit Reach Maximums

Base Amount is Zero (No Prior MQREs)