On January 17, Michigan Gov. Gretchen Whitmer signed H.B. 5022 (Public Act 216 of 2024), a taxpayer-friendly bill that makes welcome changes to the state’s flow-through entity (FTE) tax rules. The new rules are effective retroactively to tax years beginning on or after January 1, 2024.

Michigan’s new R&D Tax Credit, effective January 1, 2025, offers incentives for businesses conducting R&D in the state. Large businesses can claim up to $2M, while small businesses can receive up to $250K. An additional credit is available for university collaborations.

As 2024 draws to a close, business leaders are gearing up for year-end audit preparation. Even for well-prepared organizations, audits can be a challenging process.

Effective planning and goal-setting are crucial for success—neglecting these steps can lead to failure. This insight highlights key points, best practices, and important reminders for leaders to consider as they begin their audit preparations.