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.
Step 3: Claim the R&D Tax Credit
Before Claiming
The Research and Development (R&D) Tax Credit can be claimed on the annual return after completing the following:
- Submit R&D Credit Application
- Review Proration Notice and apply proration, if applicable
If the Proration Notice includes a proration percentage for the tax year being claimed, the adjusted credit must be calculated and used when filing.
When to Claim
The R&D Tax Credit is claimed when filing the business’s annual return:
- Corporate Income Tax (CIT) filers: File and claim by April 30 following the expense year (for full calendar year filers), plus extension if applicable.
- Withholding Tax filers: File and claim by February 28, two calendar years following the expense year.
The expense year is the calendar year when the Michigan Qualified R&D Expenses (MQREs) were incurred.
Where to Claim
- Corporate Income Tax (CIT):
- Form 4891
- Form 4905
- Form 4908
- Withholding Tax:
- Form 5081
Michigan Treasury Online MTO
Eligible Withholding Tax filers can file the annual return and claim the R&D Tax Credit through MTO.