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4589, Page 2
Instructions for Form 4589
Michigan Business Tax (MBT) Film Credit Assignment
Purpose Film Infrastructure Credit
To allow MBT filers to assign the Film Production and Film An eligible taxpayer may claim a credit for investment in a
Infrastructure Credits. These credits provide tax incentives qualified film and digital media infrastructure project up to
to encourage the production of motion pictures, television 25 percent of the base investment expenditures for the project,
programs, music videos, and similar productions in Michigan. provided the taxpayer has entered into an agreement with the
Michigan Film & Digital Media Office concurred in by the
Credit Assignments State Treasurer.
A taxpayer eligible to claim a Film Production or Film If the credit exceeds the taxpayer’s tax liability for the tax year, the
Infrastructure Credit may assign all or a portion of its credit to excess may be carried forward to offset tax liability in subsequent
any assignee. The credit assignment cannot be revoked, but an years for a maximum of ten years.
assignee may subsequently reassign a credit, or any portion of
Once the Michigan Film & Digital Media Office finds
an assigned credit, to one or more assignees.
the taxpayer has complied with the agreement terms and
The MBT assignor must complete Form 4589 after the date is satisfied that investment expenditures and eligibility
the Michigan Film & Digital Media Office (formerly the requirements are met, the Michigan Film & Digital Media
Michigan Film Office) issues the Post-Production Certificate Office will issue an Investment Expenditure Certificate stating
of Completion or Investment Expenditure Certificate. For the amount of the credit. The certificate received must be
the taxpayer that generated the credit, the deadline to attached to a completed Form 4589 for the original assignment.
claim or assign all or a portion of the credit is the end of the
taxpayer’s tax year in which the original Certificate is issued NOTE: To qualify for the credit, a taxpayer must not be
delinquent in a tax or other obligation owed to this State nor
by the Michigan Film & Digital Media Office. The deadline for
be owned or controlled by an entity that is delinquent. A
reassignment is the end of the taxpayer’s (previous assignee,
credit cannot be claimed for any direct production or qualified
now assignor’s) tax year in which it received its credit through
personnel expenditures for which a Film Production Credit was
assignment.
claimed against either an MBT or withholding tax liability. The
An assigned credit amount must be claimed against the credit shall be reduced by any credit claimed under section 437
assignee’s MBT liability during the assignee’s tax year in (Brownfield) for the same base investment.
which the credit was assigned.
The agreement requires a recapture if assets whose cost
Once the assignment is approved, Form 4589 will be returned is included in the base investment are sold or disposed of.
to the assignor with an authorized Michigan Department of This recapture is the responsibility of the taxpayer who was
Treasury (Treasury) signature. The assignor must furnish each originally awarded the credit even if the credit was assigned
assignee with a copy of the approved form to attach to the to someone else. Recapture is reported on the MBT Schedule
assignee’s tax return. A separate Form 4589 must be completed of Recapture of Certain Business Tax Credits and Deductions
for each project and each assignee. (Form 4587).
Film Production Credit Line-by-Line Instructions
The Michigan Film & Digital Media Office, with the Lines not listed are explained on the form.
concurrence of the State Treasurer, may enter into an
Dates must be entered in MM-DD-YYYY format.
agreement with an eligible production company providing the
company with a refundable credit against MBT. PART 1: ASSIGNOR IDENTIFICATION
To qualify for the credit, an eligible production company Line 1: Enter the name and address of the taxpayer who is
must spend at least $50,000 in Michigan for the development, assigning the credit(s).
preproduction, production, or postproduction costs of a State- Country Code: If other than the United States, enter the
certified qualified production and must not be delinquent in a country code. See the list of country codes on the Web at
tax or other obligation owed to this State nor be owned by or www.michigan.gov/taxes.
under common control of an entity that is delinquent.
Line 2: Enter the assignor’s account number.
Once the Michigan Film & Digital Media Office is satisfied
that company expenditures and eligibility requirements Line 3: Enter the project number assigned by the Michigan
are met, a Post-Production Certificate of Completion will Film & Digital Media Office.
be issued verifying the amount of the credit to be claimed. Line 5: Enter the date the Michigan Film & Digital Media
The certificate received must be submitted by the eligible Office issued the Post-Production Certificate of Completion.
production company with a completed Form 4589 for the
original assignment.
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