Corporate income tax: credits; research and development credit for certain employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677 & repeals sec. 716 of 1967 PA 281 (MCL 206.716).

This bill creates a new research and development tax credit for Michigan businesses starting in 2025, allowing eligible companies to reduce their corporate income tax based on qualifying R&D expenses. The credit rate varies by company size, offering up to 10% for larger employers with 250 or more employees and up to 15% for smaller businesses with fewer than 250 workers, with separate maximum limits of $2 million and $250,000 respectively. Companies that collaborate with in-state research universities can claim an additional 5% credit on their R&D expenses, capped at $200,000, provided they submit written agreements to the state department. To manage the total cost, the bill sets a statewide spending cap of $100 million per year, which triggers a pro-rating system to distribute credits evenly if total claims exceed this limit.