Michigan Based Tax Incentives Firm Wants You To Know About Michigan’s New Tax Credit

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Michigan businesses now have access to an exciting opportunity to reduce tax liability and boost cash flow with the newly available Research & Development (R&D) tax credit. If your company is involved in software development, manufacturing, product innovation, process improvements, or technical research, you may qualify for significant tax savings.

What Is the R&D Tax Credit?

The R&D tax credit is designed to reward businesses that invest in innovation and development. Eligible activities include:

Developing or improving software applications
Creating new products or enhancing existing ones
Enhancing manufacturing or operational processes
Conducting technical research and experimentation

This new Michigan state credit complements the Federal R&D tax credit, allowing businesses to claim both credits and maximize their benefits.

Who Can Benefit?

Many industries can take advantage of this credit, including:

Technology & Software Development
Manufacturing & Engineering
Pharmaceutical & Biotech
Automotive & Aerospace Innovation
Agricultural & Food Science

If your business is engaged in solving technical challenges or improving products and processes, you may be eligible.

Availability & Deadlines

The Michigan R&D tax credit is available for tax years beginning January 1, 2025, and applies to qualified research expenses incurred within the state. Businesses must submit a tentative claim for the credit by April 1, 2026, for the 2025 tax year. For subsequent years, the deadline moves to March 15 of the following year.

To ensure you maximize your claim, it's recommended to start gathering necessary documentation well in advance of the filing deadline.

Why This Matters for Your Business

The cost of innovation continues to rise, but this tax credit offers valuable financial relief, allowing you to reinvest in growth, hire top talent, and stay ahead of the competition. Whether you’re a startup or an established company, this credit can provide a significant boost to your bottom line.

Get Expert Guidance

Navigating R&D tax credits can be complex—but that’s where we come in. At Monetek, headquartered in Michigan, we have been helping businesses claim the R&D tax credit and other tax incentives, for over 20years. We specialize in identifying qualified activities, maximizing tax savings, and ensuring compliance with both Michigan and federal regulations. Our team will handle the process from start to finish—so you can focus on innovation while we secure your tax benefits.

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