- change ups
Here are highlights of the Michigan Business Tax:
- A personal property tax credit of 35 percent and personal property tax exemptions from the 6-mill state education tax and the 18-mill local school property tax. These changes give manufacturers an effective personal property tax savings of 65 percent.
- A compensation credit of 0.37 percent and an investment tax credit of 2.9 percent. Both will be capped at 65 percent of a company’s tax liability.
- A 1.9 percent credit for research and development, capped at 75 percent of a company’s tax liability.
- A company’s gross receipts will be taxed at 0.8 percent, after tangible property is deducted.
- A company’s federal taxable income will be taxed in Michigan at 4.95 percent.
Source: Michigan Manufacturers Association, July 2007