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State program

Michigan Research and Development Tax Credit

A newly enacted credit that restored a state-level research incentive to Michigan, with a bonus for university collaboration.

Run a mock audit for MichiganOfficial source (opens in a new tab)
  • Refundable
  • Pre-approval required

Last reviewed October 2026

Program overview

Michigan reintroduced a research and development credit through legislation that took effect for tax years beginning in 2025, ending a long period during which the state had no research incentive. The credit is tiered by employer size, with separate caps for businesses above and below 250 employees, and offers an additional credit for research conducted in collaboration with a Michigan research university. The program operates under an annual statewide allocation administered by the Michigan Department of Treasury, with an early-year claim notification requirement.

Eligibility

Businesses with qualified research expenses in Michigan that file the required claim notification with the Department of Treasury by the statutory deadline.

Benefits

Refundable credit against Michigan income tax, subject to per-taxpayer and statewide annual caps.

Caps, deadlines and forms

Caps and limits

  • The credit is tiered by employer size, with separate caps for businesses above and below 250 employees, and offers an additional credit for research conducted in collaboration with a Michigan research university.
  • The program operates under an annual statewide allocation administered by the Michigan Department of Treasury, with an early-year claim notification requirement.
  • Refundable credit against Michigan income tax, subject to per-taxpayer and statewide annual caps.

Deadlines

  • The program operates under an annual statewide allocation administered by the Michigan Department of Treasury, with an early-year claim notification requirement.
  • Businesses with qualified research expenses in Michigan that file the required claim notification with the Department of Treasury by the statutory deadline.

Forms

Filing forms are listed by the revenue authority: official source (opens in a new tab).

Michigan IDR questions

What an examiner is likely to ask about this credit. S1–S7 apply to every state claim; the rest come from this program's own rules.

  1. S1Confirm the research was physically performed within Michigan.
  2. S2Provide the Michigan qualified research expense calculation and base amount.
  3. S3Reconcile Michigan expenses to the federal Form 6765.
  4. S4Show how wages and supplies were apportioned between Michigan and other locations.
  5. S5Provide the Michigan return and credit schedule for each year claimed.
  6. S6Show the carryforward schedule for unused Michigan credits.
  7. S7Confirm the entity claiming the credit is the entity subject to Michigan tax.
  8. MI-1Provide the pre-approval, certification or application filed for the Michigan credit, with its filing date.
  9. MI-2Show the Michigan refund eligibility tests (such as small business status) were met in each year refunded.

Draft questions for illustration, reviewed by a specialist before any engagement.

Common weak spots

  • Expenses for research performed outside Michigan included in the Michigan claim.
  • Missing or late pre-approval: the application or certification was not in place when required.
  • Caps and proration not modelled, so the expected benefit is overstated.
  • Refund claimed without evidence that the eligibility tests were met.
  • Base amount computed from incomplete historical records.

See how your claim holds up

The mock audit drafts these questions for your own claim and scores the evidence behind each answer.

Run a mock audit for Michigan

Information on this page is general in nature, not tax advice. Program details change frequently; always confirm current rules with the relevant revenue authority or engage a specialist before acting. Last reviewed October 2026.

Find out what your research actually qualifies for

A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.

Free R&D mock audit: completely free. Book a call or email hello@creditarmor.ai for a login.

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