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the Michigan Economic Development Corporation Treasurer may require the periodic averaging of values during
(MEDC) at (517) 373-9808 or visit their Web site at the tax year if reasonably required to reflect properly the
http://www.michiganadvantage.org/ . For information on the average value of a taxpayer’s property. Property owned by the
MBT credit, contact the Michigan Department of Treasury, taxpayer is valued at its original cost.
Customer Contact Division, MBT Unit, at (517) 636-6925.
Line 4: Property rented by the taxpayer is valued at eight (8)
times the net annual rental rate. Net annual rental rate is the
Special Instructions for Unitary Business Groups annual rental rate paid by the taxpayer less any annual rental
If the entity located and conducting business activity in the rate received by the taxpayer from subrentals.
Renaissance Zone is a member of a Unitary Business Group PERFORMED IN THE
ADJUSTED SERVICES
(UBG), the Renaissance Zone Credit must be calculated at
RENAISSANCE ZONE
the member entity level. Calculation of the Renaissance Zone
should be done before elimination of intercompany Line 17: Enter the amount deducted in arriving at federal
Credit
transactions, such as rent payments by the member claiming taxable
income (as defined for MBT purposes) for the tax
this credit to another member of the UBG. year
for depreciation, amortization, or accelerated write-
off for tangible property in a Zone exempt under Michigan
Include this form as part of the UBG’s combined annual return. Compiled Law (MCL) 211.7ff. Claim property exempt in
If more than one member is eligible for this credit, complete the tax year; also claim new property that will be exempt
one Form 4595 for each eligible member (or multiple forms for in the immediately following tax year (i.e., property that
a member that is located and has business activity in multiple has not been subject to, or exempt from, the collection of
Zones) and include all of them as part of the UBG’s annual taxes under the General Property Tax Act and has not been
return. If filing multiples of Form 4595, enter the total of line subject to, or exempt from, ad valorem property taxes levied
25b for all members on Form 4573, line 14. in another state, except that receiving an exemption as
When this form refers to “taxpayer,” it is referring to the UBG inventory
property does not disqualify property).
member completing this form. Line 19: Only a person reporting under an MBT organization
type of Individual, Partnership, or S Corporation should
Line-by-Line Instructions complete line 19. This includes a Limited Liability Company
(LLC) that files its federal return as a Partnership or S
Lines not listed are explained on the form. Corporation.
Name and Account Number: Enter name and account number NOTE: A person that is a disregarded entity for federal income
as reported on page the1 of annual return. tax purposes under the internal revenue code shall be classified
UBGs: Complete one form for each member for whom this as a disregarded entity for the purposes of filing the MBT annual
schedule applies (or multiple forms for member a that located is return. This means that a disregarded entity for federal tax
and has business activity in more than one Zone). Enter the purposes, including asingle member LLC or Q-Sub, must file as if
Designated Member (DM) name in the Taxpayer Name field, it were a sole proprietorship if owned by an individual, or a branch
followed by the DM’s Federal Employer Identification Number or division if owned by another business entity.
(FEIN), and the specific member of the UBG for which this Line 19a: UBGs: Enter the business income from the MBT
form is filed, and FEIN,its on the line below. On the copy filed UBG Combined Filing Schedule for Standard Members ,
to report the DM’s data (if applicable), enter the DM’s name Form 4580, Part 2A, line 30, for the member whose activity is
and account number on each line. reported on this copy of Form 4595.
Line 1: Enter the tax liability before the Renaissance Zone Insurance companies and financial institutions: These types
Credit. of taxpayers do not calculate business income as their tax base.
For Renaissance Zone credit purposes, however, they must
UBGs: This must be a pro forma tax liability of the member
calculate and enter here pro forma business income. Use the
whose activity is represented on the form. See guidance on
Business Income Worksheet (Worksheet 4746), in Form 4600,
pro forma calculations in the “Supplemental Instructions for
to calculate business income. Attach that worksheet to the
Standard Members in UBGs” section in the MBT Forms and
return. See MCL 208.1201 for further guidance.
Instructions for Standard Taxpayers (Form 4600).
Line 19b: UBGs: Enter the pro forma apportionment
Line 2: Enter the street address and parcel number of the
percentage from Form 4580, Part 2A, line 16a, for the member
property. Enter the name of the Zone or Subzone in which the
whose activity is reported on this copy of Form 4595.
property is included.
Insurance companies and financial institutions: Unlike
Check the certificated credit box if the Renaissance Zone standard taxpayers, these types of taxpayers do not apportion
designation is based on a Development Agreement or a their tax base by a sales factor. For Renaissance Zone credit
Qualified Collaboration Agreement. purposes, however, they must calculate pro forma sales in
BUSINESS ACTIVITY CONDUCTED WITHIN Michigan and sales everywhere, and enter here a pro forma
THE RENAISSANCE ZONE apportionment percentage based on those figures. See
instructions for Form 4567 for guidance on the definition of
Line 3: Determine the average value propertyof by averaging
sales and applicable sourcing provisions.
the values at the start and end of the tax period. The State
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