1. Public Act 186 and 187 of 2024
  2. Michigan Compiled Laws (MCL) $\S 206.677$ (Corporate Income Tax Credit)
  3. MCL $\S 206.716$ (Flow-Through Entity Credit)
  4. Corporate Income Tax (CIT)
  5. Flow-Through Entity (FTE)
  6. Withholding Tax (for FTEs)
  7. Authorized Business
  8. Research and Development Credit (R&D Credit)
  9. Qualified Research Expenses (QREs) in Michigan
  10. IRC Section 41 (Federal Definition Alignment)
  11. Base Amount (Michigan Specific)
  12. Average Annual QREs (3 Preceding Calendar Years)
  13. Excess QREs (QREs over Base Amount)
  14. Small Business (Fewer than 250 Employees)
  15. Large Business (250 or More Employees)
  16. Small Business Credit Rate (15% on Excess)
  17. Large Business Credit Rate (10% on Excess)
  18. Up to Base Amount Credit Rate (3%)
  19. Small Business Annual Cap ($\$250,000$)
  20. Large Business Annual Cap ($\$2,000,000$)
  21. Additional Credit (University Collaboration)
  22. Michigan Research University
  23. Research University Collaboration Credit Rate (5%)
  24. Research University Collaboration Cap ($\$200,000$)
  25. Written Agreement (Required for University Collaboration)
  26. Aggregate Annual Cap ($\$100$ Million Statewide)
  27. Small Business Set-Aside ($\$25$ Million Portion)
  28. Refundable Credit (for Excess over Tax Liability)
  29. Nonrefundable Credits (Claimed before R&D Credit)
  30. Tentative Claim (Mandatory Pre-Filing)
  31. Tentative Claim Deadline (April 1, 2026 for 2025)
  32. Tentative Claim Deadline (March 15 for Subsequent Years)
  33. Proration (Reduction if Aggregate Cap is Exceeded)
  34. Pro Rata Share (of Available Credit)
  35. Not Assignable or Transferable (Credit Restriction)
  36. Calendar Year Basis (for QRE Calculation)
  37. Taxable Year (The year the credit is claimed)
  38. Wages for Qualified Services (in Michigan)
  39. Supplies Used or Consumed (in Michigan)
  40. Contract Research Expenses (3rd party research in Michigan)
  41. Michigan Department of Treasury (Administering Agency)
  42. Unitary Business Group (UBG)
  43. Single Business Tax (SBT) (Prior R&D Credit Context)
  44. Michigan Business Tax (MBT) (Prior R&D Credit Context)
  45. House Bill 5100 and 5101 (Enacting Legislation)
  46. Public Act 148 of 2022 (Implementation Notice)
  47. Decoupling (from Federal IRC $\S 174$ Amortization)
  48. Short Taxable Year (Base Amount Treatment)
  49. No Prior QREs (Base Amount = $\$0$)
  50. Claim on Annual Tax Return