Bill > SB1017

This bill amends the Income Tax Act of 1967 to provide two new corporate income tax credits related to aerospace and defense technology. The first credit allows qualified taxpayers (businesses primarily engaged in defense contracting, aerospace defense, or other aerospace and defense technology activities) to claim a 20% credit on research and development expenses incurred in Michigan, up to $5 million per year. The second credit allows qualified taxpayers with less than $5 million in annual gross revenue to claim a 20% credit on expenses for storing and maintaining finished goods inventory, up to $1 million per year. The Michigan Strategic Fund is responsible for certifying qualified taxpayers and the amount of credits. The bill also requires an annual report on the effectiveness of these tax credits.