Corporate income tax: credits; aerospace and defense technology related research and development credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 277 & 677.

This bill creates a new state tax credit program for Michigan companies working in aerospace and defense technology, effective from 2025 through 2028. Eligible businesses, which include defense contractors and their suppliers, can receive a tax credit equal to 20% of their qualified research and development expenses that exceed a specific baseline amount. The program also offers a separate credit for smaller aerospace and defense firms to offset costs related to storing and maintaining finished goods inventory. To claim these credits, companies must be officially designated by the Michigan Strategic Fund, which will manage a total annual budget of $100 million for research credits and $25 million for inventory credits.