Michigan Treasury Announces Proration of 2025 Research, Development Credits

The Michigan Treasury has issued a proration notice for refundable Research and Development (R&D) credits based on 2025 Michigan qualifying research and development expenses (MQREs) under MCL 206.677 and 206.717. The statute caps total annual credits at $100 million. Based on tentative claims submitted by April 1, 2026, total claims exceeded the cap, with small-employer claims exceeding $25 million but not exceeding 25 percent of total claims. Accordingly, large-employer claims must be prorated to 50.96 percent of the tentative claim, and small-employer claims must be prorated to 59.88 percent. The adjusted credit must be reported on the applicable corporate income ...