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$1,000,000 in SBT ITC credit carryforward. The group • Line 9, column J: Enter amount of ITC credit
consisted of Company 1, Company 2, Company 3, and used provided by the webtool that corresponds
Company 4. Company 4’s tax year ended after the tax to each taxable year displayed on line 9, column
year of the group’s Designated Member, so Company I. Access the Michigan Department of Treasury
4’s data was not included in group ABC’s 2008 MBT (Treasury) Web tool by going to the Treasury site
return, even though Company 4 was part of the UBG. (www.michigan.gov/mbt4585tool ), and enter the
The total $1,000,000 in SBT ITC credit carryforward necessary information instructed). as
resulted from the sum of $200,000 in SBT ITC credit
• Line 9, column M: For each taxable year on line
carryforward from Company 1, $300,000 from Company
9, column I, multiply line 7, column C by line 9,
2, and $500,000 from Company 3. In the current year,
column L. Enter results here. Match the taxable
Companies 2, 3, and 4 dispose of capital investment
year on line 9, column I with the taxable year on
outside of the UBG, which triggers SBT ITC credit
line 4, column A, and carry amount from line 9,
recapture. In the current year, group ABC files MBT
column Mlineto 4, column E for each appropriated
returns. The UBG fills one MBT Form 4585 for each
tax year line.
Company 2, Company 3, and Company 4, in which is
reported the SBT ITC credit recapture from each member. • Method C:
When filling Form 4585,line 5, column B for Company ○ Line 4, columns A through D: Fill column A, and
2, report $200,000 – which represents the portion of the leave all others blank.
total SBT ITC credit carryforward claimed by the group
○ Line 5, columns A and B: Leave lines blank.
in 2008 that corresponds only to Company 2’s SBT ITC
credit carryforward in 2008. When filling Form 4585, ○ Line 4, column E: Enter results from the taxpayer’s
line 5, column forB Company report3, $500,000 which– own software of choice (that is, a non-Treasury Web
represents Company 3’s portion the of total SBT ITC credit tool) orthe taxpayer’s own calculation that reflects the
carryforward claimed by the group 2008.in When filling MBT statute. Retain records to substantiate figures
Form 4585, line 5B for Company 4, report $0 – which entered the in filed return.
represents Company 4’s portion of the total SBT ITC credit PART 3: CALCULATION OF SBT ITC RECAPTURE AMOUNTS
carryforward claimed by the group in 2008.
Line 6: Follow the instructions below:
○ Line 4, column E: For each taxable year, enter the rates
calculated on Table I,line 9, column M. Column A:
Enter in chronological order, beginning with
the earliest, the tax year end date of each acquisition year of
○ Filling Table I at the end of these Instructions (lines assets that triggered SBT ITC recapture from lines 1-3.
disposed
and columns not listed are explained on the table):
• Line 7, column A: Enter only taxable years in Column B: Separately for each acquisition year listed in
which SBT ITC disposed assets were acquired. column A, combine the corresponding amounts in line 1,
Dates should match those listed on lines 1, 2,and 3, column F, line 2, column F, and line 3, column B for all
columns List A. each date only once. disposed assets that triggered SBT ITC recapture.
• Line 7, column C: For each taxable year on line 6, Column C: For each acquisition year listed in column A, enter
column A, find the corresponding SBT ITC amount the corresponding SBT ITC effective rate from line 4, column
reported on line 4, column C, and Net Capital E. Match the acquisition year in line 6, column A, with the
Investment amount reported on line 4, column B. corresponding acquisition year in line 4, column A.
Divide amounts from line 4,column C by amounts Column D: Multiply column B by column C for each
from line 4, column B for each taxable year and acquisition year.
enter results here. If the quotient of that division
for a particular tax year listed equals zero, and the Line 7: Add figures in each row of line 6, column D, and
amount on line 7, column B is positive, instead of enter the total here.
zero, enter the following on line 7, column C as
appropriate: If no assets purchased in MBT years were disposed of or
transferred out of Michigan this year, carry the amount
1) Taxpayer used the straight method to calculate the reported on this line to Form 4570, line 19.
SBT liability for that taxable years: calculated the
credit rate on C-8000ITC, line 26 for that taxable If any assets purchased in MBT years were disposed of
year, and enter the result here; or transferred out of Michigan this year, add the amount
reported on line 7 of this form to the sum of amounts
2) Taxpayer used the excess compensation reduction calculated on Column U of Worksheet 2 in the instructions
method calculate to the SBT liability for that taxable of Form 4570. Report the sum of those two figures on
year: calculate the credit rate on C-8000ITC, line Form 4570, line 19. This calculation change implements a
26, for that taxable year; subtract the percentage requirement of Public Act 282 of 2014.
found on C-8000S ( SBT Deductions to Adjusted Tax
Base ), line 6, from 100%, and multiply the result
of that subtraction by the calculated credit rate on Include completed Form 4585 as part of the tax return filing.
C-8000ITC, line 26. Enter the result here.
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