MI HB5100

Establishes a research and development tax credit for "authorized businesses" beginning January 1, 2025, providing 3% credit on qualifying R&D expenses up to a base amount and 10-15% on expenses exceeding the base amount, with maximum annual credits of $2,000,000 for businesses with 250+ employees and $250,000 for businesses with fewer than 250 employees.

Allows an additional 5% credit (capped at $200,000 annually) for qualifying R&D expenses incurred through written collaboration agreements with Michigan research universities, which are defined as public universities under the 1963 state constitution or independent nonprofit colleges/universities in the state.

Limits aggregate credits claimed by all taxpayers under this section and section 717 to $100,000,000 per calendar year, with proration requirements if tentative claims exceed this amount, prioritizing smaller businesses (under 250 employees) for up to $25,000,000 of available credits.

Requires taxpayers to submit tentative claims to the Department of Treasury by April 1, 2026 for 2025 expenses and by March 15 annually thereafter, with final credits claimed on annual tax returns; excess credits above tax liability are refunded.

Repeals section 716 of the 1967 Income Tax Act and specifies that credits are non-assignable and non-transferable.