MCI in one paragraph
Microsoft Commerce Incentives (MCI) is Microsoft's unified incentives program for partners transacting through the Cloud Solution Provider (CSP) and Enterprise motions. It replaced the older, fragmented incentives programs and now pays partners across two levers: a rebate paid in cash, and co-op funds earmarked for marketing and customer readiness.
For US partners, MCI is the mechanism behind most of the funding you can put behind campaigns, events and demand programs. Understanding the split - and what each half is actually for - is the difference between a fully-utilized incentive and a balance that quietly expires.
What MCI actually pays
Rebate (cash)
A percentage of qualifying billed revenue paid to the partner as cash, usually deposited monthly. This is unrestricted - you can spend it however you want, including reinvesting into growth.
Co-op (earmarked)
A percentage of qualifying revenue accrued into a co-op balance in Partner Center. Restricted to Microsoft's approved marketing and customer-readiness categories, and must be pre-approved and claimed with proof of execution.
Solution area accelerators
Uplifts on the base rate for revenue in strategic solution areas Microsoft is pushing that fiscal - historically things like Copilot for Microsoft 365, Azure migration and modernization, and security workloads.
Customer segment adjustments
Rate differences by customer segment (SMB, mid-market, enterprise) and by whether the workload is a new or expansion motion. US partners should model this to focus growth where the incentive math is best.
How MCI is calculated for a US partner
Microsoft publishes an MCI guide each fiscal year with the specific rates by engagement (CSP Direct, CSP Indirect Provider, CSP Indirect Reseller, EA), by product family, and by solution area. The rate applies to your qualifying billed revenue and splits into rebate and co-op based on the program rules for your motion.
In practice, US partners should model MCI at three levels: total earn (rebate + co-op combined), rebate cash flow into the P&L, and co-op available for marketing. Those three views drive three different decisions - what to sell, how to price, and what to spend co-op on.
The MCI-adjacent programs US partners forget about
MCI is the main event but it's not the only funding lever. US partners should also line up: MDF (market development funds) allocated by Microsoft sales teams for specific solution pushes, Azure Migrate & Modernize (AMM) and Innovate offers that fund customer engagements, Cloud Accelerator Factory support, ECIF (End Customer Investment Funds) for larger enterprise deals, and Solutions Partner benefits tied to your designations.
Each has its own rules, but they stack. A US partner running a Copilot demand campaign might fund the top of funnel with co-op, the executive brief with MDF, and a customer's Copilot rollout with an AMM engagement - all in the same quarter.
Five ways US partners get more from MCI
Read the fiscal year guide the week it drops
Microsoft updates MCI rates and solution area accelerators each July. Partners who plan against the new rates in Q1 outperform those who react in Q4.
Sell into the accelerator lanes
Where MCI pays an uplift, focus new-business motions there. The economics of a Copilot or Azure security deal are materially different once accelerators are stacked.
Split rebate and co-op planning
Rebate is a P&L input. Co-op is a marketing budget. Treat them as separate lines with separate owners so neither gets under-used.
Pre-approve co-op activities in bulk
US partners who submit a half-year plan up front spend more of their co-op than those who pre-approve activity by activity.
Layer MDF and ECIF where they fit
Ask your PDM which solution areas have live MDF and ECIF this half. The answer changes every quarter and shapes what's fundable.