Michigan offers a tax credit for businesses involved in alternative energy research, development, and manufacturing. Eligible business activity to claim credit for must be approved by the Michigan Next Energy Authority. In 2019, Michigan repealed this program and set it to expire for January 1, 2032. Additionally, the Michigan Next Energy Authority Act allows qualified businesses involved in the alternative energy industry to claim a credit equal to their relevant payroll amount multiplied by their year’s income tax rate. Relevant payroll is limited to employees working on alternative energy research, development or manufacturing, who work in a NextEnergy Zone.
