New R&D Tax Credit is Critical to Advancing Michigan’s Future

This article appeared in the February 2025 issue of MiMfg Magazine. Read the full issue and find past issues online.

Mike Johnston, pictured far left, and John Walsh, far right, joined Governor Gretchen Whitmer (along with Lt. Governor Garlin Gilchrist II) in Detroit for the signing of MMA-driven legislation to establish a state-based R&D Tax Credit.

Michigan’s rich history of innovation speaks volumes about our potential for economic prosperity. From Herbert Henry Dow’s groundbreaking work in chemical manufacturing to John Harvey Kellogg’s creation of a breakfast culture, the Great Lakes State has a legacy of transformative thinkers who propelled our economy forward.

The recent passage of Michigan’s robust Research & Development (R&D) Tax Credit is a strong step toward securing Michigan’s position as a leader in innovation, fostering economic growth and maintaining competitiveness on the national and global stage.

For years, Michigan had lagged behind other states in providing critical support for R&D activities. As one of just 13 states without an R&D Tax Credit, Michigan was hindered in its ability to attract and retain companies that rely on innovation as a cornerstone of their operations.

That’s why MMA took the lead in designing and advancing a broad-based R&D Tax Credit accessible to businesses of all sizes. While some advocated targeted and limited options, MMA fought for and achieved a refundable tax credit available to all companies, with definitions harmonized with federal standards to ensure simplicity in implementation. With the refundable nature of the tax credit and $100 million in funds secured, companies can be assured that they will maximize the value of their R&D expenditures.

The MMA team is proud to deliver this legislative achievement as a catalyst to even greater innovation in Michigan’s manufacturing sector and a strategic imperative for securing Michigan’s future as a hub of innovation and economic vitality.