Advocacy News – Jan. 16, 2025
This week, Michigan’s governor signed two bipartisan bills, House Bills 5100 and 5101, into law, establishing a state-level research and development (R&D) tax credit. The legislation, a priority for the Michigan Chamber, aims to enhance the state’s business environment. With this move, Michigan aligns with other states offering similar incentives, strengthening its appeal to new and existing businesses. The initiative is expected to foster economic growth and innovation within the state.
The introduction of the R&D tax credit addresses Michigan’s previous outlier status, as it was one of the few states without such a program. The tax credit is intended to make Michigan a more attractive destination for businesses, thereby encouraging economic expansion and innovation. The measure is also designed to support existing businesses within the state, promoting ongoing development and competitiveness in the market.
One key aspect of the legislation is its inclusivity towards smaller businesses. Companies with fewer than 250 employees are eligible for a 15% credit, with an annual cap of $250,000. This provision is aimed at supporting small businesses, which are often vital contributors to the state’s economy and innovation landscape. The tax credit will be available starting with the 2025 tax year, offering businesses the opportunity to plan and integrate this benefit into their financial strategies.
For further information on the legislation, readers are encouraged to view the official announcement or review the detailed bill information at the Michigan Legislature’s website for HB 5100 and HB 5101.
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