Michigan Research and Development Tax Credit
Michigan Department of Treasury
N/A — Discontinued
Michigan R&D credit — discontinued (MBT repealed)
Michigan's R&D tax credit existed under the Michigan Business Tax (MBT) at 1.90% of qualified research expenses (1.52% in the first year). The credit is effectively defunct: Michigan replaced the MBT with the Corporate Income Tax (CIT) in 2012, and virtually all new businesses are now on CIT, which has no R&D credit. The credit statute (MCL §208.1405) was formally repealed by Act 90 of 2019, effective for tax years beginning after December 31, 2031 — but the practical repeal occurred a decade earlier when the MBT was phased out. Michigan does not currently offer a state R&D tax credit.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Discontinued — see deadlineNotes
- Deadline
- Discontinued — see deadlineNotes
- Status
- discontinued
- States
- MI
- Payment model
- tax offset
Who qualifies
- DISCONTINUED — no new claims possible under the current Corporate Income Tax (CIT) structure
- Historically available to businesses subject to the Michigan Business Tax (MBT) with qualified research expenses in Michigan
- The MBT was effectively replaced by the CIT effective January 1, 2012 for most taxpayers
- MCL §208.1405 formally repealed by Act 90 of 2019 for tax years beginning after December 31, 2031
Hard requirements
- Must be incorporated
Michigan eliminated this credit when it replaced the Business Tax with the Corporate Income Tax in 2012. No state R&D credit currently exists in Michigan — stack federal §41 only.
Deadline & timing
Program is discontinued. No application process exists. The Michigan Business Tax (MBT) under which this credit operated was effectively replaced by the Corporate Income Tax (CIT) in 2012. MCL §208.1405 formally repealed by Act 90 of 2019 effective for tax years beginning after December 31, 2031.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.