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Instructions for Form 4974
Schedule of Corporate Income Tax Liability
for a Michigan Business Tax Insurance Filer
the checkbox on line 2 of Form 4595. Enter credit amount from
Purpose
Form 4595, line 25b, for which certificated status is properly
The purpose of this form is to determine the Corporate Income claimed on Form 4595, line 2.
Tax (CIT) liability of an insurance company that files under
the Michigan Business Tax (MBT). The CIT liability will If a taxpayer has activity in more than one certificated
be compared against the MBT liability in order to determine Renaissance Zone, a separate Form 4595 will be filed for each
which liability is greater. Zone. In that case, report here the combined total of credits
claimed on all Forms 4595, line 25b, for which certificated
NOTE: A credit or recapture should not be reported on this status is properly claimed on Form 4595, line 2.
form if it is not reported on one of the following forms:
DO NOT use the Renaissance Zone credit amount from Form
• Miscellaneous Credits for Insurance Companies (Form 4573 or Form 4596 to complete this line.
4596).
Line 6: Subtract line 5 from line 3 and enter amount in field.
• Schedule of Recapture of Certain Business Tax Credits and
This figure represents the MBT liability after applying the
Deductions (Form 4587).
Renaissance Zone Credit.
NOTE: Beginning January 1, 2012, only those taxpayers with
a certificated credit, which is awarded but not yet fully claimed Line 9:
Subtract line 8 from line 6 and enter amount in field.
This figure represents the MBT liability after applying the
or utilized, may elect to be MBT taxpayers.
Historic Preservation Credit Net of Recapture.
Line-by-Line Instructions Subtract line 11 from line 9 and enter amount in field.
Line 12:
Lines not listed are explained on the form. This figure represents the MBT liability after applying the
Enter the taxpayer’s name and Federal Employer Identification Brownfield
Redevelopment Credit.
Number (FEIN) the in appropriate field. Line 14: Add lines 5, 8, 11 and 13. This is the total amount of
Certificated Nonrefundable Credits for CIT.
PART 1: CERTIFICATED NONREFUNDABLE CREDITS
Line 2: Combine the total amount of noncertificated PART 2: CIT LIABILITY
nonrefundable credits from Form 4596, line 6, and the Line 15: Effective with tax years beginning in 2019, Public Act
amounts from Form 4596, lines 13 and 15. Enter the total 222 of 2018 amends MCL 206.635, which alters the tax liability
combined amount, as this represents the allowable amount of calculation of a Corporate Income Tax (CIT) filer. Beginning
noncertificated nonrefundable credits. Jan. 1, 2019, for a CIT filer, gross direct premiums attributable
Line 3: Subtract line from 2 line less 1. If than zero, enter zero. to
qualified health insurance premiums are taxed at 0.95%. The
This is the MBT liability after noncertificated nonrefundable remaining
portion of the tax base is still taxed at 1.25%.
credits. To calculate CIT tax liability for the purpose of completing
Line 4: Not all Renaissance Zone credits are Form
4974, the taxpayer must complete the “Michigan
certificated credits tobe reported on this form. See special Business
Tax Insurance Worksheet A” in these instructions.
Carry the amount from Worksheet A, line 24, to Form 4974,
instructions on the MBT Renaissance Zone Credit Schedule
(Form 4595) to determine which Renaissance Zone credits line
15.
are certificated. A certificated Renaissance Zone credit will Include a copy of Worksheet A with the MBT return.
be identified by the checkbox on line 2 of Form 4595. Only a
credit ofthat type may be reported here. Enter credit amount Line 16:
Subtract line 14 from line 15. This is the amount of
from Form 4595, line 25b, for which certificated status is the
CIT liability after Certificated Nonrefundable Credits.
properly claimed on Form 4595, line 2. Line 18: Add lines 16 and 17. This is the amount of CIT
If a taxpayer has activity in more than one certificated liability
after the Recapture of Certain Business Tax Credits.
Renaissance Zone, separate a Form 4595 will be filed for each PART 3: MBT TAX COMPARED AGAINST CIT FOR
Zone. In that case, report here the combined total of credits INSURANCE FILERS
claimed on all Forms 4595, line 25b, for which certificated Line 20: Carry the amount on this line to the Insurance
status is properly claimed on Form 4595, line 2. Company Annual Return for Michigan Business and
DO NOT use the Renaissance Zone credit amount from Form Retaliatory Taxes (Form 4588), line 28. This amount is used to
4596 complete to this form. calculate the tax liability for an MBT filer.
Enter the available Certificated Renaissance Zone Credit. Include completed Form 4596 as part of the tax return filing.
Not all Renaissance Zone credits are certificated credits to be
reported on this form. See special instructions on Form 4595
to determine which Renaissance Zone credits are certificated.
A certificated Renaissance Zone credit will be identified by
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