MI HB6237

Allows qualified start-up businesses with no business income for 2 consecutive tax years to claim a tax credit equal to their tax liability for those years and each subsequent year with no income.

Limits the credit to a maximum of 5 total tax years, reduced by years previously claimed under the former 1975 PA 228 credit.

Requires businesses claiming the credit to cap compensation, directors' fees, and distributive shares to shareholders, officers, partners, and members at $135,000.00 per individual.

Eliminates the 15% research and development expense requirement for tax years beginning on or after January 1, 2010, while retaining it for earlier tax years.

Implements recapture provisions requiring businesses to repay a percentage of claimed credits (100%, 67%, or 33%) if they cease Michigan business activity within 3 years after claiming the last credit, effective January 1, 2010.