Tax Credits & Incentives | Michigan
You're investing in people, equipment, buildings and new ideas. Somewhere in that growth there may be federal, state and local tax credits and incentives that no one has looked at. Our Michigan tax credit advisers help closely held and private companies identify what they may qualify for, quantify the benefit and claim it, from the Michigan R&D credit and historic tax credits to opportunity zone tax benefits.
Request a tax consultation to see whether your business qualifies.
The Opportunity
Credits and incentives rarely arrive on their own. They depend on what you built, hired, researched, renovated or invested in, and they come with documentation requirements and deadlines.
Developing new products, processes, software or improvements can qualify for the R&D tax credit, even if you do not think of your company as research-intensive. Michigan now has its own credit for tax years beginning on or after January 1, 2025.
Tax credits in Michigan are not only for large companies. A Michigan small business may qualify for credits and incentives, and we have helped companies claim credits from $5,000 in R&D tax credits to more than $20 million in Historic Tax Credits.
A new facility, a move or an expansion can open the door to state and local incentives, including industrial facilities tax exemptions in Michigan. Timing and documentation matter, so it helps to start the conversation early.
Historic tax credits can help fund the rehabilitation of qualifying historic buildings. The rules are technical, so it helps to bring in a historic tax credit adviser early in planning.
QOZ tax benefits let taxpayers defer tax on capital gains by investing in qualified opportunity funds. The rules should be understood before you invest.
Work Opportunity Tax Credits and renewable energy tax credits apply to specific hires and projects. Each has its own eligibility rules and filing steps, and recent federal legislation has changed them.
The Michigan R&D credit shows how much timing matters. Tentative claims based on 2026 expenses are due March 15, 2027, and Treasury does not accept late submissions. Total credits are capped at $100 million a year, and when 2025 claims exceeded the cap, large employers received 50.96% and small employers 59.88% of their tentative claims. An understated claim cannot be increased later.
Michigan at a Glance
$100M
Annual cap on total Michigan R&D credits across all claimants, which makes an accurate first claim matter.
3/15/2027
Deadline for tentative Michigan R&D credit claims based on 2026 expenses. Treasury does not accept late submissions.
$5K to $20M+
Range of credits we have helped companies claim, from R&D tax credits to Historic Tax Credits.
Our Services
One team across federal, Michigan and local credits and incentives, so the research credit, the real estate credit and the property tax exemption are planned together instead of one at a time.
R&D tax credit advisers for start-ups and manufacturers, covering federal and Michigan credits.
Opportunity zone tax benefit planning for taxpayers deferring capital gains.
Historic tax credit advisers for developers and owners rehabilitating qualifying historic buildings.
Michigan business incentives for expansions, relocations and new facilities.
Help claiming federal tax credits for renewable energy projects.
Credits tied to community investment and to hiring from targeted groups.
How We Work
You should not have to commit to a full engagement to find out whether a credit is worth pursuing. Here is how our process works:
We start with a conversation about what you build, hire, research, renovate and invest in. That is usually enough to tell you which credits and incentives are worth a closer look.
A written view of the credits and incentives that may apply, what each could be worth, the documentation required and the deadlines that set the order of work.
We prepare and support the claim, coordinate it with your other tax filings, and help you document it in case a state or the IRS asks questions.
Who We Work With
Our tax credits and incentives work spans industries, from start-ups commercializing an idea to developers building their capital stack with tax equity.
R&D credits for product and process development, and state and local incentives tied to new facilities and equipment.
Historic tax credits, opportunity zone tax benefits and other incentives that shape a project's capital stack.
R&D credits for software, product and process development, including start-ups commercializing an idea.
Renewable energy tax credits and the federal legislation behind them, including the Inflation Reduction Act and One Big Beautiful Bill Act.
Credit and incentive review during diligence and the hold period, including opportunity zone and state incentive considerations.
Hiring-related credits such as the Work Opportunity Tax Credit, and incentives tied to terminals, warehouses and expansion.
Why Cohen & Co®
Companies looking for tax credit consulting often have to choose between national reach and local attention. You don't have to.
Whitepaper
Planning items to consider, strategies for managing your company's 2026 tax burden, and a checklist to keep you on track with your advisers, including considerations from the One Big Beautiful Bill Act.
Read moreArticle
Planning areas to evaluate before year-end, including accounting methods, deductions, credits and incentives, transactions and state and local taxes.
Read moreArticle
How the Michigan R&D credit works, how it differs from the federal credit, and what to do now to claim the credit by March 2027.
Read moreFAQ
Tax credits and incentives are federal, state and local programs that reduce a company's tax burden or support specific activities, such as research, hiring, historic building rehabilitation and investment in distressed communities. Common examples include the research and development (R&D) tax credit, historic tax credits (HTCs), the New Markets Tax Credit (NMTC), the Work Opportunity Tax Credit (WOTC), renewable energy tax credits and qualified opportunity zone tax benefits.
Michigan created a refundable R&D credit through Public Acts 186 and 187 of 2024, available for tax years beginning on or after January 1, 2025. It is available to Corporate Income Tax filers and to flow-through entities, such as S corporations, partnerships and LLCs, that are subject to Michigan withholding but not to the Corporate Income Tax or the Michigan Business Tax.
Small employers, those with fewer than 250 employees, can earn 3% of qualifying Michigan expenses up to the base amount and 15% of expenses above it, up to $250,000 a year. Larger employers can earn 3% on base-level expenses and 10% above the base, up to $2 million a year. Companies that work with a Michigan research university under a written agreement can earn an additional 5% on those collaborative expenses, up to $200,000.
Tentative claims based on 2026 expenses are due March 15, 2027, and Treasury does not accept late submissions. That deadline usually comes well before companies prepare their tax returns, so companies that normally file on extension should begin their analysis during the year.
Total credits are capped at $100 million a year, so claims can be prorated. For 2025 expenses, large employers will receive 50.96% and small employers 59.88% of their tentative claims. An understated claim cannot be increased later, and an overstated claim must be reduced, which is why the first filing matters.
Qualified opportunity zones are designed to encourage long-term investment in low-income and economically distressed communities. They allow taxpayers to defer paying tax on capital gains by investing in qualified opportunity funds.
The rules are technical, so the details of your situation should be reviewed before you invest.
State and local incentives vary by project and location. Examples include industrial facilities tax exemptions in Michigan, along with federal programs such as historic tax credits and opportunity zone tax benefits. An eligibility review is how you find out which ones fit what you are building, hiring or investing in.
Our tax credits and incentives work spans companies from start-ups commercializing an idea to developers building their capital stack with tax equity. We have helped companies claim credits ranging from $5,000 in R&D tax credits to more than $20 million in Historic Tax Credits. If you are unsure whether a review makes sense for your company, that is exactly what the initial conversation is for.