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Taxes and Incentives

Business Taxes

Lower taxes for the majority of Michigan businesses - that's the bottom line of the newly implemented Michigan Business Tax (MBT). Implemented in 2008, the new tax provides credits for small business, entrepreneurs and others, while crediting expenditures on:

  • capital investment
  • research & development
  • compensation
  • industrial personal property taxes
  • a myriad of other expenditures

Nearly 7 out of 10 Michigan businesses will receive a tax cut under this new business tax system.

The Details

The Michigan Business Tax (MBT) taxes apportioned business income at 4.95% and apportioned gross receipts (minus purchases from other firms) at 0.8%. A surcharge of 21.99% is applied to the income tax and gross receipts tax prior to credits. The MBT is apportioned to Michigan on a single sales factor. When applicable, companies are required to file as a unitary group.

For more information on the MBT:

 

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