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Michigan Department of Treasury Attachment 21
4587 (Rev. 04-22)

2022 MICHIGAN Business Tax Schedule of Recapture
of Certain Business Tax Credits and Deductions
Issued under authority of Public Act 36 of 2007.
Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

Complete this schedule for any recapture in this tax year of previous tax credits and deductions listed on this schedule.
1. This recapture has expired. Leave this line blank and skip to line 2a .................................................................. 1. X X X X X X X X 00
2. a. Recapture of Michigan Business Tax MEGA Employment Tax Credit ............................................................. 2a. 00
b. This recapture has expired. Leave this line blank and skip to line 4 ............................................................... 2b. X X X X X X X X 00
c. This recapture has expired. Leave this line blank and skip to line 4 ............................................................... 2c. X X X X X X X X 00
3. This recapture has expired. Leave this line blank and skip to line 4 .................................................................... 3. X X X X X X X X 00
4. Recapture of MEGA Federal Contract Credit ........................................................................................................ 4. 00
5. Recapture of MEGA Photovoltaic Technology Credit ............................................................................................ 5. 00
6. This recpature has expired. Leave this line blank and skip to line 7 ..................................................................... 6. X X X X X X X X 00
7. Recapture of MBT Brownfield Redevelopment Credit. Enter the amount from Form 4584, line 47 ...................... 7. 00
8. Recapture of Film Infrastructure Credit
a. Enter all eligible depreciable tangible assets located in Michigan that were acquired in a tax year beginning after
December 31, 2007, and were sold or otherwise disposed of during the tax year. (Date format: MM-DD-YYYY)
A B C D E F
Description City Date Acquired Date Sold Gross Sales Price Gain/Loss

b. Total columns E and F. A loss in column F will increase recapture............................ 8b.
c. Adjusted Proceeds. If line 8b, column F, is a gain, subtract line 8b, column F, from line 8b, column E.
If line 8b, column F, is a loss, add line 8b, column E and F .............................................................................. 8c. 00

If taxable in another state, complete lines 8d and 8e; otherwise, skip to line 8f.
d. Apportioned gains (losses). Multiply line 8b, column F, by the percentage from Form 4567, line 11c ............. 8d. 00
e. Apportioned Adjusted Proceeds. If line 8d is a gain, subtract line 8d from line 8b, column E.
If line 8d is a loss, add line 8d and line 8b, column E ....................................................................................... 8e. 00
f. Recapture of Film Infrastructure Credit. Multiply line 8c or line 8e by 25% (0.25)........................................... 8f. 00
9. Recapture of Anchor Company Payroll Credit ....................................................................................................... 9. 00
10. Recapture of Anchor Company Taxable Value Credit ........................................................................................... 10. 00
11. Recapture of Qualified Affordable Housing deductions ......................................................................................... 11. 00
12. Recapture of Miscellaneous MEGA Battery Credits (for the recapture of the MEGA Battery Manufacturing Facility
Credit, MEGA Large Scale Battery Credit, and MEGA Advanced Lithium Ion Battery Credit; see instructions)
a. Total Recapture of Miscellaneous MEGA Battery Credits ................................................................................. 12a. 00
b. Battery Credit code ...................................................................................... 12b.
c. Second Battery Credit code......................................................................... 12c.
13. Total Recapture of Certain Business Tax Credits and Deductions. Add lines 2a, 4, 5, 7, 8f, 9, 10, 11
and 12a. Carry amount to Form 4567, line 56, Form 4588, line 26, or Form 4590, line 29 .................................. 13. 00

+ 0000 2022 81 01 27 4

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                   Instructions for Form 4587, Michigan Business Tax (MBT)  
        Schedule of Recapture of Certain Business Tax Credits and Deductions
Purpose                                                                      Line  2b:  The  SBT  MEGA  Employment  Tax  Credit  is  no 
                                                                             longer subject to recapture. Leave this line blank.
Complete  this  schedule  for  any  recapture  in  this  tax  year  of 
previously claimed tax credits listed on this schedule. Recapture            Line  2c:  The  SBT  MEGA  Business  Activity  Credit  is  no 
of  some  tax  credits  occurs  at  the  same  point  in  the  forms  as     longer subject to recapture. Leave this line blank.
the credit is calculated. The credits on this form, however, are             Line  3: The  Entrepreneurial  Credit  is  no  longer  subject  to 
required  by  statute  to  be  recaptured  at  a  later  point  in  the  tax recapture. Leave this line blank.
calculation process. This form is also used to report a required 
recapture of an Affordable Housing Deduction.                                Line  4:  Enter  the  total  amount  of  MEGA  Federal  Contract 
                                                                             Credit  claimed  on  previously  filed MBT Election  of  Refund 
Attachments  in  support  of  these  recapture  amounts  are  not            or Carryforward of Credits  forms  (Form  4584)  subject  to 
required.  Maintain  the  recapture  calculation  information  in            recapture.
your files for review during audit.
                                                                             NOTE: The MEGA Federal Contract Credit is claimed through 
Special Instructions for Unitary Business Groups                             an agreement with MEGA. If a taxpayer claims this credit and 
                                                                             subsequently  fails  to  meet  requirements  of  the  MBT  Act  or 
If  any  member  of  the  Unitary  Business  Group  (UBG)  is                conditions  of  the  agreement,  the  taxpayer  must  recapture  the 
reporting recapture, a statement must be attached to this form               entire amount of such credit previously claimed.
identifying the reporting member and the amount of recapture 
for  each  applicable  credit.  If  more  than  one  member  is              Line 5:  Enter  the  total  amount  of  the  MEGA  Photovoltaic 
reporting recapture, requested information should be provided                Technology  Credit  claimed  on  previously  filed  4574  forms 
in the statement on a per member basis. The total amount from                subject to recapture.
all reporting members will be entered on each corresponding                  Line 6: The Biofuel Infrastructure Credit is no longer subject to 
line on this form.                                                           recapture.
Line-by-Line Instructions                                                    Line  8: The Film Infrastructure Credit is available through an 
                                                                             agreement between the taxpayer and the Michigan Film Office, 
Lines not listed are explained on the form.
                                                                             with the concurrence of the State Treasurer. The credit amount 
Dates must be in MM-DD-YYYY format.                                          is  up  to  25  percent  of  the  base  investment  expenditures  in  a 
                                                                             qualified  film  and  digital  media  infrastructure  project.  If  the 
Name and Account Number: Enter name and account number 
                                                                             taxpayer sells or otherwise disposes of a tangible asset that was 
as  reported  on  page  1  of  the  applicable  MBT  annual  return 
                                                                             paid for or accrued after December 31, 2007, and whose cost 
(either  the MBT Annual Return  (Form  4567)  for  standard 
                                                                             is  included  in  the  base  investment,  the  taxpayer  must  report 
taxpayers,  the MBT Annual  Return for Financial  Institutions 
                                                                             recapture equal to 25 percent of the gross proceeds or benefit 
(Form  4590),  or  the Insurance  Company  Annual  Return  for 
                                                                             from the sale or disposition, adjusted by the apportioned gain 
Michigan Business and Retaliatory Taxes (Form 4588)). 
                                                                             or loss.
UBGs:  A  UBG  reporting  recapture  should  include  only 
                                                                             NOTE:  A  sale  of  qualifying  property  reported  on  the 
one  copy  of  this  form  as  part  of  its  annual  return.  Enter  the 
                                                                             installment  method  for  federal  income  tax  purposes  causes 
Designated  Member  (DM)  name  in  the  Taxpayer  Name 
                                                                             recapture of the entire gross proceeds (including the amount of 
field  and  the  DM  account  number  in  the  Federal  Employer 
                                                                             the note) in the year of sale, less any gain reflected in federal 
Identification Number (FEIN) field.
                                                                             taxable income (as defined for MBT purposes) in the year of 
Line  1: The Research and Development Credit that is certified               the sale. In each subsequent year of the installment note, enter 
by  Michigan  Economic  Growth  Authority  (MEGA)  is  no                    zero in line 8a, column E, and enter the gain reflected in federal 
longer subject to recapture. Leave this line blank.                          taxable  income  (as  defined  for  MBT  purposes)  in  column 
                                                                             F.  For  property  placed  in  service  prior  to  January  1,  2008, 
Line  2: If a taxpayer claims an MBT or Single Business Tax 
                                                                             gain  reflected  in  federal  taxable  income  (as  defined  for  MBT 
(SBT)  MEGA  Employment  Tax  Credit  or  an  SBT  MEGA 
                                                                             purposes) is equal to the gain reported for federal purposes.
Business  Activity  Credit  for  a  previous  tax  period  under  an 
agreement with MEGA based on qualified new jobs, and then                    Line  8a: Enter  all  dispositions  of  depreciable  tangible  assets 
removes 51 percent or more of those qualified new jobs from                  included  in  base  investment  expenditures  that  were  paid  or 
Michigan  within  three  years  after  the  first  year  in  which  the      accrued after December 31, 2007, and were sold or otherwise 
taxpayer claims such a credit, the taxpayer must recapture an                disposed of during the tax year.
amount equal to the total of all such credits claimed on prior 
                                                                             • Columns  A through D:  Enter  a  brief  description  of  the 
returns.
                                                                               asset, the city or township in which the asset is located, and 
Line  2a:  Enter  the  total  amount  of  the  MBT  MEGA                       the dates that the asset was paid for or accrued and disposed 
Employment Tax Credit claimed on previously filed 4574 forms                   of  or  sold.  To  list  multiple  disposition  as  one  entry,  the 
subject to recapture.                                                          date  the  assets  were  acquired  and  sold  must  be  the  same; 
                                                                               dispositions with variable dates must be listed separately.

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• Column E: Enter the total gross proceeds from the sale or eligible battery credits, enter the appropriate two-digit code
disposition of depreciable tangible assets listed in column A. from the list below in line 12b. If reporting recapture for two
• Column F: Enter total gain or loss included in calculating credits, enter the appropriate code for one of the recaptured
federal taxable income (as defined for MBT purposes). credits on line 12b, and the other on line 12c.

Lines 9-10: NOTE: The Anchor Company Payroll Credit Miscellaneous MEGA Battery Credit Codes
and the Anchor Company Taxable Value Credit are claimed
CREDIT CODE
through an agreement with MEGA. If a taxpayer claimed one
of these credits and subsequently fails to meet requirements of MEGA Battery Manufacturing Facility Credit ..................11
the MBT Act or conditions of the agreement, the taxpayer must
MEGA Large Scale Battery Credit ................................... 12
recapture the entire amount of such credit previously claimed.
MEGA Advanced Lithium Ion Battery Credit .................. 13
Line 9: Enter the total amount of the Anchor Company Payroll
Credit claimed on previously filed 4584 forms subject to
Line 13: Add lines 1, 2a, 3, 4, 5, 7, 8f, 9, 10, 11, and 12a.
recapture.
Standard taxpayers carry this amount to Form 4567, line 56.
Line 10: Enter the total amount of the Anchor Company Insurance companies carry this amount to the Form 4588, line
Taxable Value Credit claimed on previously filed 4584 forms 26. Financial Institutions carry this amount to the Form 4590,
subject to recapture. line 29.
Line 11: Under Michigan Compiled Laws 208.1201(6), the Include completed Form 4587 as part of the tax return filing.
seller of residential rental units may take a deduction from its
Business Income Tax base, after apportionment, of the gain
from the sale of the residential rental units to a buyer who is a
Qualified Affordable Housing Project (QAHP). To qualify for
a deduction, the seller and buyer must enter into an “operation
agreement” in which the buyer agrees to operate a specific
number of the residential rental units sold as rent restricted
units for a minimum of 15 years. The Department of Treasury
(Treasury) will record a lien against the property subject to
the operation agreement, to enforce the possibility of future
recapture of this deduction.
When the buyer fails to qualify as a QAHP or fails to operate
any of the residential rental units as rent restricted units in
accordance with the operation agreement within 15 years after
the date of purchase, the lien recorded by Treasury becomes
payable to the State. Failure to operate even one residential rental
unit in accordance with an operation agreement constitutes
failure to operate all or some of the residential rental units as rent
restricted units in accordance with the operation agreement, and
therefore is a recapture event. The lien is payable in the year the
recapture event occurs. This recapture is mandatory even if a
taxpayer is otherwise not required to file a return because it does
not meet the filing threshold of $350,000.
Enter a recapture amount equal to the full amount of the
deduction allowed to the seller multiplied by a fraction, the
numerator of which is the difference between 15 and the years
the affordable housing project qualified and complied with the
terms of the agreement and the denominator of which is 15.
Line 12 NOTE: There are three different MEGA battery
credits that are eligible for recapture and are reported on this
line. If the taxpayer has more than one of these credits, enter
the combined amount of those credits on line 12a.
Line 12a: Enter the total amount of the MEGA Battery
Manufacturing Facility Credit, MEGA Large Scale Battery
Credit and MEGA Advanced Lithium Ion Battery Credit
deemed to be added back to the tax liability by the Michigan
Economic Growth Authority.
Line 12b-c: If reporting recapture for only one of the three

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