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Eligible Businesses

Eligible Businesses

Which Businesses Can Claim the Credit?

To be eligible for the Research and Development (R&D) Tax Credit, a business must have incurred Michigan Qualified R&D Expenses (MQREs) during the calendar year that exceed its base amount.

Once this requirement is met, businesses can determine their eligibility and key deadlines based on their tax type.

Note: A business does not need to qualify for or claim the federal credit to be eligible for the Michigan R&D Tax Credit.

Corporate Income Tax (CIT) Filers

CIT filers have relatively straightforward eligibility criteria and timelines for the R&D Tax Credit. However, Unitary Business Groups (UBGs) and fiscal year filers have additional considerations.

CIT Filers
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Withholding Tax Filers

Withholding Tax filers must be flow-through entities, employers, and not subject to CIT or Michigan Business Tax (MBT) to be eligible for the R&D Tax Credit.

Withholding Tax Filers
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