Michigan: tax incentives, credits and advisors
Michigan's state incentives include an assignable 25% historic tax credit (including owner-occupied homes) and a refundable research and development credit starting in 2025.
Facts checked 2026-10-26 against the official sources linked below.
Below are the major Michigan incentives we could verify against an official source, grouped by type. This is not an exhaustive list of every state program. Credits flagged Transferable can be sold or assigned to another taxpayer under state rules; see transferable state tax credits. Each row shows the date we last checked it.
Michigan historic and building rehabilitation incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| State historic tax credit | Credit | Owners of historic resources (National or State Register or local district), including owner-occupied homes | 25% of qualified rehabilitation expenditures; $5 million a year statewide; certificates issued 2021-2030 | Transferable: Yes; may be assigned in whole or part, with SHPO certification | Not stated | Active | Michigan SHPO, State Historic Tax Credit FAQ; MCL 206.266a Last verified 2026-10-26 |
Michigan brownfield and redevelopment incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Transformational Brownfield Plans | Tax increment financing | Developers of large transformational projects approved by a brownfield authority, the municipality and the Michigan Strategic Fund | Capture of incremental construction-period, property, income and withholding taxes, plus a construction-period sales and use tax exemption; up to five plans a year | No (tax increment financing) | Not stated | Active through Dec. 31, 2027 | MEDC, Transformational Brownfield Plans fact sheet Last verified 2026-10-26 |
Michigan research and development incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Research and development credit | Credit | CIT taxpayers and certain flow-through entities with Michigan R&D expenses (from 2025) | 3% of R&D expenses up to base plus 15% above base (10% for 250+ employees); capped at $250,000 ($2 million for large) | Not stated | Yes; excess may be refunded | Active | Michigan Treasury, New Research and Development Credit (Apr. 2, 2025) Last verified 2026-10-26 |
Advisors located in Michigan
No advisors in our directory list a Michigan location yet. Browse all advisors, or list your firm.
Related strategies
- Solar Investment Credits IRS scrutiny: Yellow/Orange
- Donor-Advised Funds IRS scrutiny: Green
- Roth Conversions IRS scrutiny: Green
Related guides
- How to reduce taxes on W-2 income in 2026: what works, what usually does not
- The solar investment tax credit in 2026: what current law says after the 2025 tax act
- How to find and vet a tax mitigation advisor: credentials, questions and red flags
- How state tax credit transfers work: minimum prices, notices, buyer limits and state examples
Common questions
Can Michigan historic credits be assigned?
Yes. Credits may be assigned in whole or in part, and the program covers owner-occupied homes as well as commercial buildings.
What is Michigan's new R&D credit?
From 2025, 3% of R&D spending up to a base plus 15% above it (10% for companies with 250+ employees), refundable, capped at $250,000 or $2 million.
Find my tax savings All states