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Instructions for the Michigan Business Tax Financial Institution Worksheet A
Purpose Lines 1 through 3: If less than zero, enter zero.
Line 1: For the purpose of this worksheet, total equity capital
To help calculate equity capital for the purpose of completing
is defined as the amount reported by the financial institution
the “Schedule of Corporate Income Tax (CIT) Liability for a
or, in the case of a unitary business group of financial
Michigan Business Tax (MBT) Financial Filer” (Form 4975).
institutions the top-tiered parent entity, on certain regulatory
Effects of Public Act 460 of 2018 forms designated by the FFIEC and filed with the office of
the comptroller of currency, the FDIC, or the Federal Reserve
Effective with tax years beginning in 2019, PA 460 of 2018 The appropriate regulatory form from which total
System.
alters the definition of total equity capital for a financial capital is reported depends on the size and nature of the
equity
institution filing a CIT return. PA 460 did not alter the entity. The forms currently designated by the FFIEC
reporting
definition of equity capital for an MBT filer. However, to required by the CIT are:
and
complete Form 4975, an MBT taxpayer must calculate it’s
equity capital as if it was a CIT filer. • The consolidated financial statement for holding companies,
FR Y-9C.
For the purposes of Worksheet A, line 1, total equity capital
is the amount reported by the financial instituion, or in the case • The parent company only financial statements for small
of a Unitary Business Group (UBG) of financial instituions, holding companies, FR Y-9SP.
the top-tiered parenty entity, on certain regulatory forms • To the extent that FR Y-9C or FR Y-9SP are not filed for the
designated by the Federal Financial Institutions Examination tax year, the consolidated reports of condition and income, call
Council (FFIEC) and filed with the office of the comptroller of reports, FFIEC 031, 041, or 051.
currency, the Federal Deposit Insurance Corporation (FDIC),
If any of these reports is no longer designated by FFIEC for
or the Federal Reserve System.
filing, a financial institution will report that amount of total
A financial institution will use the FFIEC regulatory report for equity capital reported on a successor form or a report similar
the period ending with the financial institution’s fiscal year end. in content and designated by the FFIEC.
Likewise, for a unitary business group of financial institutions,
Line 2: Michigan obligations means a bond, note, or other
the taxpayer uses the FFIEC regulatory report for the period
obligation issued by a governmental unit described in Section 3
ending with the top-tiered-parent entity’s fiscal year end. If the
of the Shared Credit Rating Act, Public Act 227 of 1985, MCL
financial institution or top-tiered parent entity does not submit
141.1053.
a report for the period ending that coincides with its fiscal year
end, the taxpayer should use the last FFIEC regulatory report UBGs: For each column, sum the entries of all UBG members
issued during its fiscal year. from the corresponding columns on Worksheet B, line 1, and
enter the totals here.
If a UBG, the taxpayer must complete the “Michigan Business
Tax Financial Instituion Worksheet B” before completing Line 3: United States obligations means all obligations of
Worksheet A. the United States exempt from taxation under 31 USC 3124(a)
or exempt under the United States constitution or any federal
Line-by-Line Instructions statute, including the obligations of any instrumentality or
Lines not listed are explained on the form. agency of the United States that are exempt from state or local
taxation under the United States Constitution or any statute of
Enter the name and Federal Employment Identification Number United States.
the
(FEIN) of the taxpayer listed on the “Michigan Business Tax
Annual Return for Financial Institutions” (Form 4590), line 2 and UBGs: For each column, sum the entries of all UBG members
line 7. from the corresponding columns on Worksheet B, line 2, and
enter the totals here.
Also enter the name of the top-tiered parenty entity filing the
FFIEC report, and that entity’s FEIN. This may be different Line 6a: Enter the equity capital included in the financial
from the entity named in the previous field if the top-tiered institution equity capital (and included in line 1) of an
entity does not have nexus with Michigan. insurance company owned by the taxpayer, to the extent that
the equity capital (the financial institution’s investment) is
The following calculation involves a five-year average of net in line 1. Consider only insurance companies as
included
capital. Enter data from the current year and four most recent in MCL 206.607 and subject to the Michigan’s CIT
defined
tax years to complete the five-year table. For purposes of this tax, which does not include captive insurance
premiums
table, treat a partial year as a full year. If the current and four For purposes of this deduction, equity capital is
companies.
preceding tax years include any short periods, the years printed in accordance with Generally Accepted Accounting
calculated
in column headings for this part will not apply accurately. For
Principles.
example, a financial institution has a fiscal year-end of June
30 and its current tax year is a short year ending September UBGs: For each column, sum the entries of all UBG members
30, 2019. That financial institution reports the periods ending from the corresponding columns on Worksheet B, line 3a, and
September 30, 2019, June 30, 2019, June 30, 2018, June 30, enter the totals here.
2017, and June 30, 2016. Enter the minimum regulatory capitalization
Line 6b:
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