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Instructions for Form 4889,
2020 Request for Accelerated Payment
for the Brownfield Redevelopment Credit and the Historic Preservation Credit
Purpose This election may be made in each year that a credit is payable
under section 437 or 435.
To claim an accelerated payment of a credit, and an accelerated
payment of multiyear credit, for qualified Michigan Business However, a taxpayer claiming the Special Consideration Historic
Tax (MBT) Brownfield Redevelopment or MBT Historic Preservation Credit under section 435(20) may elect to claim
Preservation projects that received a certificate for a tax year an accelerated payment of the total balance of unused credit
beginning after December 31, 2011. A person using this form issued for a tax year(s) beginning after December 31, 2011,
to claim a credit or payment must still file an MBT Annual notwithstanding the 3 million dollar annual cap provided for in
return by that return’s due date. section 435(20). The amount of the accelerated payment is equal
to 86 percent of the total amount of remaining credit, and the
Refund Requirements taxpayer shall forgo 14 percent of the credit. As with the other
credits eligible for an accelerated payment, to be eligible the
A taxpayer with a certificated credit under section 435 or 437 of taxpayer must receive a certificate of completed rehabilitation,
the Michigan Business Tax Act (MBTA) may claim that credit assignment certificate, or reassignment certificate issued under
in a tax year ending after December 31, 2011, by electing to section 435 for a tax year(s) beginning after December 31, 2011.
pay the tax imposed by the MBTA in the tax year in which that
certificated credit may be claimed in lieu of the tax imposed NOTE: A taxpayer is still entitled to claim 90% of the Special
under Part 2 of the income tax act of 1967, the Corporate Consideration Credit allowed. However, this claim would
Income Tax (CIT). If this form is filed, the taxpayer is be limited to the amount payable in the tax year claimed as
required to file an annual return and pay the tax imposed described above.
by the MBTA for the same tax year for which this form is For tax years ending after December 31, 2011, a taxpayer may
filed. If a unitary business group (UBG) member claims not claim a refundable credit under section 437(18) or section
a credit using this form, the UBG (not only the member) 435(9) of the MBTA and may only claim a refundable credit
must file an annual return and pay the tax, if any, under issued under sections 437 or 435 of the MBTA under section
the MBTA. A taxpayer is required to remain in the MBT until 510 of the MBTA on this form.
the certificated credit and any carryforward of that credit are
exhausted. A taxpayer may instead claim a brownfield or historic
preservation credit as nonrefundable on the MBT Annual
To be eligible to claim a credit, the taxpayer must have a Return (Form 4567).
preapproval for a Brownfield credit or a Part 2 approval,
approved rehabilitation plan or approved high community Special Instructions for Unitary Business
impact rehabilitation plan for an historic preservation credit Groups
before January 1, 2012, or have been assigned a credit meeting
this criteria in the hands of the assignor. If the person with the certificated credit under section 435
or 437 of the MBTA is part of a UBG as defined under the
If a certificate of completion, assignment certificate, or MBTA, the UBG is required to make the election for the group
component completion certificate is issued under section 437 to claiming the credit. To do this, the Designated Member will file
a taxpayer for a tax year beginning after December 31, 2011, this form on behalf of the UBG member that is entitled to claim
or, if a certificate of completed rehabilitation, assignment the credit. If the UBG makes this election, then the entire UBG
certificate, or reassignment certificate is issued under section — which would include all members that satisfy the definition
435 to a taxpayer for a tax year beginning after December 31, of UBG under the MBTA — will be taxed under the MBTA.
2011, then beginning after December 31, 2011, that taxpayer Because of this, in the year this form is filed the UBG must file
may elect to claim a refundable credit for 90 percent of the under the MBTA and pay the tax due under the MBTA, and
amount of that certificate. must continue to file under the MBTA until the balance of any
The claim for an accelerated payment of one of these credits is certificated credits is exhausted.
made on Form 4889. This form may be filed before the end of
The designated member is required to file this form on
the tax year, and the department shall pay the refundable credit
behalf of the UBG even if the person with the credit is a
within 60 days after receiving the claim. A taxpayer claiming a
different member of the UBG. If a member of a UBG other
credit under this reduced refundable payout option shall forgo
than the Designated Member files this form, then the UBG will
the remaining 10 percent of the credit. If a taxpayer is claiming
be treated as having elected to be taxed under the MBTA. If this
more than one credit, a separate form must be completed for
is the case, the entire UBG — which would include all members
each credit.
that satisfy the definition of UBG under the MBTA — will be
If section 437 or 435 provides that payment of a credit will be taxed under the MBTA.
made over a period of years or limits the annual amount of a
payment, an accelerated payment of this refundable credit may
only be claimed for the amount payable in the year claimed.
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