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, 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
- Base amount: $100,000
- Expense year MQREs: $2,000,000
- Michigan research university MQREs: $0
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