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The Manufacturers Investment Credit or MIC is similar to the
Enterprise Zone Sales Tax Credit, but limited to 6
percent of the cost of the equipment invested in by a business that is classified as a
manufacturer under SIC codes 2000 to 3999. Qualified Property
New or used tangible personal property used primarily in a manufacturing or other related
activity such as manufacturing, processing, refining, fabricating, recycling; research
and development; maintaining, repairing, testing, or measuring other qualified property;
or pollution control. Qualified property also includes special purpose buildings and
foundations used by computer manufacturers, biotech, and biopharmaceutical firms.
Maximum Credit
There is no yearly dollar limitation to the amount of MIC that can be accrued. Any
MIC exceeding the tax liability for the current year may be carried over to future years
for a maximum of 8 years. Some small businesses may qualify for a 10-year carryover.
Example
A
business purchases manufacturing equipment that cost $100,000. The sales tax paid at
7.25 percent amounts to $7,250. Under the enterprise zone sales and use tax credit,
the amount of credit allowed is $7,250. Then, applying the MIC at the maximum 6
percent or 46,000 on this SAME equipment, earns total credits allowed of $13,250.
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