Corporate income tax: credits; aerospace and defense technology related research and development credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 277 & 677.
Impact
The implementation of HB 5978 is expected to enhance Michigan's attractiveness for industries focused on aerospace and defense technology, encouraging investment in innovation and advanced manufacturing sectors. This supports the state's broader economic development goals and aims to foster local businesses by providing financial relief through tax credits. It also stipulates the involvement of the Michigan strategic fund in certifying and administering these credits, ensuring a regulated process is in place for oversight and effectiveness.
Summary
House Bill 5978 proposes amendments to the Income Tax Act of 1967 in Michigan, specifically adding sections 277 and 677. The bill introduces tax credits aimed at incentivizing research and development (R&D) activities within the state from January 1, 2025, to December 31, 2028. Under the provisions, qualified taxpayers can claim a tax credit of 20% for R&D expenses incurred, with a cap of $5 million per tax year per taxpayer. Additionally, it outlines provisions for a credit relating to expenses for the storage and maintenance of finished goods inventory, capped at $1 million annually for qualifying entities.
Contention
Although the bill focuses on stimulating economic growth through tax incentives, it may lead to contention regarding the allocation of limited tax credits, as the total credits are constrained to $100 million annually for R&D purposes. Critics may argue that such tax incentives could disproportionately benefit larger companies or specific sectors, particularly those involved in government contracts, potentially sidelining smaller businesses or other innovative sectors. This creates a discussion on the balance of economic support across diverse industries in Michigan.
Same As
Economic development: Michigan strategic fund; approval and certification of certain research and development tax credits; authorize. Amends title & secs. 7 & 9 of 1984 PA 270 (MCL 125.2007 & 125.2009).
Corporate income tax: credits; aerospace and defense technology related research and development credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 277 & 677. TIE BAR WITH: SB 1018'24
Corporate income tax: credits; research and development credit for certain employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677 & repeals sec. 716 of 1967 PA 281 (MCL 206.716).
Corporate income tax: credits; annual report on research and development tax credits; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 718.
Corporate income tax: credits; definitions for research and development tax credits; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 716.
Corporate income tax: credits; credit for advanced small modular reactors research and development expenses; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 677a & 717a. TIE BAR WITH: HB 4127'25, HB 4129'25, HB 4125'25, HB 4126'25, HB 4128'25
Corporate income tax: credits; credit for advanced small modular reactors research and development expenses; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 672.
Individual income tax: credit; research and development credit for certain small employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 717.
Corporate income tax: credits; credit for qualified research and development expenses; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 672. TIE BAR WITH: HB 4368'23
Corporate income tax: credits; aerospace and defense technology related research and development credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 277 & 677. TIE BAR WITH: SB 1018'24
A resolution honoring the 106th anniversary of Selfridge Air National Guard Base and the contributions of Selfridge Air National Guard Base to the military and national security of the United States.
Honoring the 106th anniversary of Selfridge Air National Guard Base and the contributions of Selfridge Air National Guard Base to the military and national security of the United States.
Honoring the 108th anniversary of Selfridge Air National Guard Base and the contributions of Selfridge Air National Guard Base to the military and national security of the United States.
A resolution honoring the 108th anniversary of Selfridge Air National Guard Base and the contributions of Selfridge Air National Guard Base to the Armed Forces and national security of the United States.
Corporate income tax: credits; research and development credit for certain employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677 & repeals sec. 716 of 1967 PA 281 (MCL 206.716).
Individual income tax: credit; research and development credit for certain small employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 717.