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Business Tax 

         (MBT)

STANDARD TAXPAYERS

This booklet contains information on 
completing a Michigan Business Tax   
return for calendar year 2022 or   
         a fiscal year ending in 2023.

   E-filing your return is easy, fast, and secure!

   Visit Treasury’s Web site at  
www.MIfastfile.org for a list of e-file  
resources and how to find an e-file  
provider.

WWW.MIFASTFILE.ORG

         FILING DUE DATE: 
CALENDAR FILERS — APRIL 30, 2023
FISCAL FILERS — THE LAST DAY OF THE FOURTH 
MONTH AFTER THE END OF THE TAX YEAR.

WWW.MICHIGAN.GOV/TAXES
This booklet is intended as a guide to help complete your return. It does not take the place of the law.               MICHIGAN 2022 
Michigan Department of Treasury — 4600 (Rev. 01-23)

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Important Information for 2022 — Michigan Business Tax, Standard Taxpayer
Michigan Business Tax (MBT) Election                                  included for any taxpayer that is not an individual/fiduciary.
Only  those  taxpayers  that  have  been  approved  to  receive,      A UBG that is claiming an SBAC is required to attach Form 
have  received,  or  have  been  assigned  a  certificated  credit    4577 or 4578, whichever is applicable, for each member that is 
that has not yet fully been claimed or utilized may elect to be       not an individual/fiduciary.
MBT taxpayers. If a taxpayer files an MBT return for its first        MBT UBG Combined Filing Schedule for Standard 
tax  year  beginning  after  December  31,  2011,  the  taxpayer      Members (Form 4580)
makes  the  election  to  file  and  pay  under  the  MBT  until  the 
                                                                      Members of a UBG will report their data on Form 4580. Once 
certificated  credit  and  any  carryforward  of  that  credit  are 
                                                                      all member data is combined and eliminations are calculated, 
exhausted. Except for taxpayers with certain qualifying historic 
                                                                      these final figures will carry to Form 4567. All credits claimed 
preservation,  brownfield  redevelopment,  or  farmland  credits, 
                                                                      on Form 4580 must be supported by the applicable forms and 
the election must be made for the first tax year beginning after 
                                                                      these forms must be included when filing the return.
December 31, 2011. Once the election is made and the return is 
submitted, the taxpayer may not amend the return to revoke the        UBG  members  may  have  different  tax  year-ends.  The 
election. If the taxpayer is not subject to the Corporate Income      combined  return  must  include  each  member  whose  tax  year 
Tax (CIT) and does not have a certificated credit or does not         ends with or within the tax year of the designated member.
elect to remain under the MBT election, that taxpayer will not        Estimates/Extensions
have a business tax liability for the periods beginning on and 
                                                                      • All  estimated  payments,  extension  payments,  and  tax 
after January 1, 2012. Find a list of certificated credits in the 
                                                                        returns must be filed under the name and account number of 
General Information for Standard Taxpayers in the MBT Forms 
                                                                        the UBG’s designated member.
and Instructions for Standard Taxpayers (Form 4600).
                                                                      • If  making  estimated  or  extension  payments  by  EFT,  the 
Information for Completing an MBT Return                                associated vouchers are not required to be submitted.
MBT Annual Return (Form 4567)                                         Amended Returns
The definition of gross receipts is not the same as the definition    NOTE:  A  taxpayer  may  not  amend  to  revoke  the  election 
of  sales.  Refer  to  MCL  208.1111  for  the  definition  of  gross to  remain  taxable  under  the  MBT.  Once  the  taxpayer  makes 
receipts and MCL 208.1115 for the definition of sales.                a  valid  election  to  claim  a  certificated  credit,  the  taxpayer 
                                                                      must remain in the MBT until the certificated credit and any 
Taxpayers  claiming  the  deduction  for  contractors  must  be 
                                                                      carryforward  of  that  credit  are  exhausted.  Most  certificated 
persons  included  in  SIC  codes  15,  16,  or  17  and  the  entity 
                                                                      credits must be claimed for the taxpayer’s first tax year ending 
claiming  the  deduction  does  not  claim  the  SBAC.  Refer  to 
                                                                      after December 31, 2011.
https://www.osha.gov/data/sic-manual for a list of SIC codes.
The staffing company deduction is allowed for those taxpayers         When  amending,  complete      Michigan  Business Tax  Annual 
whose  business  activities  are  included  in  Industry  Group       Return (Form 4567) and check the “Amended” box in the upper-
736  under  the  SIC  Code.  This  deduction  is  not  available  for right corner of the return, and attach a separate sheet explaining 
professional  employer  organizations  (PEOs);  only  Staffing        the reason for  the changes.  Include  an  amended federal  return 
Companies are eligible for the deduction.                             or  a  signed  and  dated  Internal  Revenue  Service  (IRS)  audit 
                                                                      document. Include all schedules and forms filed with the original 
“Net  Earnings  from  Self  Employment”  for  purposes  of  the       return,  even  if  not  amending  that  schedule  or  form.  Do  not 
business  income  tax  base  deduction,  is  the  amount  properly    include a copy of the original return with your amended return.
reported  on  a  schedule  K-1  Form  1065  as  self-employment 
earnings for federal income tax purposes for the tax year.            To amend an annual return   for years prior to 2012, complete 
                                                                      either the MBT Annual Return (Form 4567) or MBT Simplified 
When  filing  a  return  for  a  Unitary  Business  Group  (UBG),     Return (Form 4583) that is applicable for that year, check the 
only one Form 4567 is required for the entire group. Separate         “Amended”  box  in  the  upper-right  corner  of  the  return,  and 
entity information will be included with the Michigan Business        attach the required documents.
Unitary Business Group Combined Filing Schedule for 
Standard Members, Form 4580.                                          Accelerated Credits
MBT Credits for Compensation, Investment, and                         A  taxpayer  with  a  certificated  credit  under  section  435 
Research and Development (Form 4570)                                  (Historic)  or  437  (Brownfield)  of  the  Michigan  Business  Tax 
When filling out Form 4570 to claim the ITC Credit, make sure         Act (MBTA), or any unused carryforward of such certificated 
to include the description, location, and date acquired for each      credit that may be claimed in a tax year ending after December 
asset listed. Use additional sheets if necessary; “See Attached”      31, 2011, may elect to pay the tax imposed by the MBTA in the 
is not acceptable.                                                    tax year in which that certificated credit may be claimed in lieu 
                                                                      of the CIT. If a person with a certificated credit under section 
MBT Schedule of Shareholders and Officers (Form 
                                                                      435 or 437 that elects to pay the MBT is a member of a UBG, 
4577) and MBT Schedule of Partners (Form 4578)
                                                                      the designated member of the UBG, and not the member, shall 
When claiming the Small Business Alternative Credit (SBAC),           file a UBG return and pay the tax, if any, under the MBTA and 
Form 4577 or 4578 (whichever is applicable) is required to be         claim that certificated credit.

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For  a  tax  year  beginning  after  December  31,  2011,  if  a         claim an accelerated  refund for the balance of the credit, but 
certificate of completion, assignment certificate, or component          the amount of that refund shall be equal to 86 percent of the 
completion certificate is issued under section 437 to a taxpayer,        amount of the credit.
or  if  a  certificate  of  completed  rehabilitation,  assignment 
                                                                         For  more  details,  see  the Request  for  Reduced  Refundable 
certificate,  or  reassignment  certificate  is  issued  under  section 
                                                                         Credit  Payout  for  the  Brownfield  Redevelopment  Credit  and 
435  to  a  taxpayer,  beginning  on  and  after  January  1,  2012, 
                                                                         Historic Preservation Credit (Form 4889). Michigan tax Forms 
the  taxpayer  may  elect  to  claim  an  accelerated  refund  for  90 
                                                                         are  online  at www.michigan.gov/taxes.  An  accelerated  credit 
percent of the amount of that certificate.
                                                                         refund will be paid within 60 days after Form 4889 is filed.
If section 437 or 435 provides that payment of a credit will be 
                                                                         If a taxpayer files Form 4889 and claims an accelerated credit, 
made over a period of years or limits the annual amount of a 
                                                                         the taxpayer makes the election to file and pay under the MBT 
payment,  an  accelerated  refund  may  only  be  claimed  for  the 
                                                                         until the certificated credit and any carryforward of that credit 
amount payable in the year claimed.
                                                                         are  exhausted.  A  taxpayer  claiming  an  accelerated  credit  on 
However,  a  taxpayer  claiming  the  Special  Consideration             Form 4889 must also file an annual MBT return.
Historic Preservation Credit under section 435(20) may elect to 

                   2022 General Information for Standard Taxpayers 
 Insurance Companies and Financial Institutions: See the Michigan Business Tax (MBT) Instruction Booklet for Insurance 
 Companies (Form 4592) or the MBT Instruction Booklet for Financial Institutions (Form 4599) at www.michigan.gov/taxes.
 This booklet is intended as a guide to help complete the MBT return. It does not take the place of the law.

Who Files a Standard Return?                                             • The Modified Gross Receipts Tax rate is 0.8 percent, and
Only  those  taxpayers  with  a  certificated  credit,  which  is        • The Business Income Tax rate is 4.95 percent.
awarded but not yet fully claimed or utilized, may elect to be           The statute then offers credits that reduce the initial calculation 
MBT taxpayers. If a taxpayer files an MBT return and claims              of tax.
a  certificated  credit,  the  taxpayer  makes  the  election  to  file 
                                                                         The  Modified  Gross  Receipts  Tax  base  consists  of 
and  pay  under  the  MBT  until  the  certificated  credit  and  any 
                                                                         gross  receipts  less  purchases  from  other  firms  and  other 
carryforward of that credit are exhausted. Once the election is 
                                                                         subtractions. Gross receipts are defined as the entire amount 
made and the return is submitted, the taxpayer may not amend 
                                                                         received by a taxpayer from any activity carried on for direct 
the return to revoke the election. For most certificated credits, 
                                                                         or  indirect  gain,  benefit,  or  advantage  to  the  taxpayer  or  to 
the  election  must  have  been  made  for  the  taxpayer’s  first  tax 
                                                                         others, with certain specific exceptions. (See the instructions 
year ending after December 31, 2011.
                                                                         for  the MBT Annual  Return  (Form  4567)  for  additional 
Insurance companies and financial institutions will calculate            guidance.)
tax liability using specialized tax bases and rules, which are           For most taxpayers, the Business Income Tax base is that part of 
covered  in  separate  booklets  (see  the Insurance Company             federal taxable income (as defined for MBT purposes) derived 
Annual Return for Michigan Business and Retaliatory Taxes                from business activity, with certain additions and subtractions.
(Form  4588)  and Annual Return  for Financial Institutions 
(Form 4590), respectively). A person that would be a standard            Required Corporate Income Tax Comparison
taxpayer  if  viewed  separately  is  defined  and  taxed  as  a 
financial institution if it is owned, directly or indirectly, by a       MBT liability is calculated as the higher of MBT or hypothetical 
financial institution and is unitary with that owner.                    CIT liability under the certificated credit election.  If both taxes 
                                                                         result in a refund, the taxpayer must take the lesser refund.
Using This Booklet                                                       Taxpayers calculate their business income and modified gross 
This  MBT  booklet  includes  forms  and  instructions  for  all         receipts tax bases, and MBT tax liability applying all credits, 
“standard  taxpayers”  (all  filers  except  insurance  companies        deductions,  and  exemptions  available  under  the  MBT  act. 
and  financial  institutions).  These  forms  are  designated  for  2022 Then,  as  if  they  were  subject  to  the  CIT,  taxpayers  calculate 
calendar year filers, and fiscal filers with tax years ending in 2023.   their business income tax base, and CIT liability applying all 
                                                                         credits and deductions available under the Income Tax Act. The 
Read  the  “General  Information”  section  first.  The  Michigan        hypothetical CIT liability is then reduced (not below zero) by 
Department of Treasury (Treasury) recommends taxpayers and               the amount of certificated nonrefundable credits used to offset 
tax preparers also briefly review the instructions for all forms.        the  MBT  liability.  The  hypothetical  CIT  liability  is  further 
A taxpayer might qualify for a credit and yet be unaware of it.          reduced by the total amount of certificated refundable credits 
                                                                         claimed  under  the  MBT  liability  calculation,  resulting  in  the 
Overview of MBT for Standard Taxpayers                                   taxpayers’  final  hypothetical  CIT  liability.  Taxpayers’  final 
MBT  imposes  both  a  Modified  Gross  Receipts  Tax  and               MBT liability consists of the higher of the calculated MBT and 
a  Business  Income  Tax  on  all  standard  taxpayers  with             hypothetical CIT liabilities. If both MBT and hypothetical CIT 
apportioned  or  allocated  gross  receipts  (annualized,  if            liabilities result in tax refunds (negative liability), taxpayers are 
applicable) equal to $350,000 or more, where:                            entitled to the lower refund amount. 

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Specific  forms  are  provided  to  perform  the  MBT  to  CIT         approximate the liability for the quarter.
comparison  and  determine  the  tax  liability  or  refund.  The      NOTE:   Your  debit  transaction  will  be  ineligible  for  EFT 
Michigan Schedule of Corporate Income Tax Liability for                if the bank account used for the electronic debit is funded or 
a Michigan Business Tax Filer  (Form  4946)  is  used  for  the        otherwise associated with a foreign account to the extent that 
standard  taxpayer  comparison.  The Michigan Schedule of              the payment transaction would qualify as an International ACH 
Corporate Income Tax Liability for a Michigan Business Tax             Transaction (IAT) under NACHA Rules. Contact your financial 
Insurance Filer (Form 4974) is used for the insurance company’s        institution  for  questions  about  the  status  of  your  account. 
comparison. The Michigan Schedule of Corporate Income Tax              Contact  Treasury  at  517-636-6925  for  alternate  payment 
Liability for a Michigan Business Tax Financial Filer  (Form           methods.
4975) is used for the financial institution’s comparison.
                                                                       The estimated payment made with each quarterly return must 
Certificated Credits                                                   be computed on the actual MBT for the quarter, or 25 percent 
                                                                       of the estimated total liability if paying an MBT liability.
Certificated credits are those listed at MCL 208.1107.
                                                                       To avoid interest and penalty charges, estimated payments must 
Nonrefundable Certificated Credits                                     equal  at  least  85  percent  of  the  total  liability  for  the  tax  year 
• Renaissance Zone Credit (Forms 4595 and 4573)                        and  the  amount  of  each  estimated  payment  must  reasonably 
• Historic Preservation Credit (Forms 4573 and 4584)                   approximate the tax liability for that quarter. If the prior year’s 
• MEGA Federal Contract Credit (Forms 4584 and 4573)                   tax under  the MBT Act is  $20,000 or  less,  estimated  tax may 
                                                                       be based on the prior year’s total tax liability paid in four equal 
• Brownfield Redevelopment Credit (Forms 4584 and  4573)
                                                                       installments. (“Four equal installments” describes the minimum 
• Film Infrastructure Credit (Form 4573)                               pace of payments that will satisfy this safe harbor.) If the prior 
• MEGA  Plug-In  Traction  Battery  Manufacturing  Credit              year’s tax liability was reported for a period less than 12 months, 
  (Form 4573)                                                          this amount must be annualized for purposes of both the $20,000 
• Anchor Company Payroll Credit (Forms 4584 and 4573)                  ceiling  and  calculating  the  quarterly  payments  due  under  this 
• Anchor  Company  Taxable  Value  Credit  (Forms  4584  and           method. Payments at a more accelerated pace also will qualify. If 
  4573)                                                                the year’s tax liability is $800 or less, estimates are not required.
• MEGA Poly-Silicon Energy cost Credit and Miscellaneous               NOTE:  For  those  continuing  to  file  MBT,  reliance  on  the 
  MEGA Battery Credits (Forms 4584 and 4573).                          tax liability of the prior year as a means to avoid interest and 
                                                                       penalty charges is only allowed if you had business activity in 
Certificated Refundable Credits                                        Michigan in that prior year. A return must be filed to establish 
• MEGA Employment Tax Credit (Form 4574)                               the tax liability for that prior year, even if gross receipts in the 
• Hybrid  Technology  Research  and  Development  Credit               prior year were less than $350,000. In addition, if your business 
  (Form 4574)                                                          was  not  in  existence  in  the  preceding  year,  no  safe  harbor 
• Farmland Preservation Credit (Forms 4594 and  4574)                  exists.  In  such  a  case,  estimates  must  be  based  on  the  MBT 
• MEGA Federal Contract Credit (Forms 4584 and 4574)                   liability for the current year. For those filing CIT, there is no 
                                                                       safe harbor in this first year of CIT filing. The estimates must 
• MEGA Photovoltaic Technology Credit (Form 4574)
                                                                       equal at least 85 percent of the total liability as stated above.
• Film Production Credit (Form 4574)
• Anchor Company Payroll Credit (Forms 4584 and 4574)                  Amending Estimates
• Anchor  Company  Taxable  Value  Credit  (Forms  4584  and           If,  after  making  payments,  the  estimated  tax  is  substantially 
  4574)                                                                different  than  originally  estimated,  recompute  the  tax  and 
                                                                       adjust the payment in the next quarter.
• MEGA Poly-Silicon Energy cost Credit and Miscellaneous 
  MEGA Battery Credits (Forms 4584 and 4574).
                                                                       Electronic Filing of MBT Returns
Filing MBT/CIT Quarterly Tax Estimates for 2022                        Michigan  has  an  enforced  MBT  e-file  mandate.  Software 
If  estimated  liability  for  the  year  is  reasonably  expected  to developers  producing  MBT  tax  preparation  software  and 
exceed $800, a taxpayer must file estimated returns. A taxpayer        computer-generated  forms  must  support  e-file  for  all  eligible 
may  remit  quarterly  estimated  payments  by  check  with  a         Michigan forms that are included in their software package. All 
Corporate Income Tax Quarterly Return (Form 4913) or may               eligible MBT returns prepared using tax preparation software 
remit  monthly  or  quarterly  estimated  payments  electronically     or computer-generated forms must be e-filed.
by Electronic Funds Transfer (EFT). When payments are made             Treasury  will  be  enforcing  the  MBT  e-file  mandate.  The 
by EFT, Form 4913 is not required.                                     enforcement includes not processing computer-generated paper 
Estimated  returns  and  payments  for  calendar  year  taxpayers      returns that are eligible to be e-filed. A notice will be mailed to 
are  due  to  Treasury  by  April  15,  July  15,  October  15,  and   the taxpayer, indicating that the taxpayer’s return was not filed 
January 15 of the following year. Fiscal year taxpayers should         in the proper form and content and must be e-filed. Payment 
make returns and payments by the appropriate due date which            received with a paper return will be processed and credited to 
is fifteen days after the end of each fiscal quarter. The sum of       the taxpayer’s account even when the return is not processed.
estimated  payments  for  each  quarter  must  always  reasonably 

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following format: MM-DD-YYYY. Use dashes (-) rather
Treasury will continue to accept certain Portable Document
than slashes (/).
Format (PDF) attachments with MBT e-filed returns. A current
list of defined attachments is available in the CIT “Michigan Tax • Enter phone numbers using dashes (e.g., 517-555-5555); do
Preparer Handbook for Electronic Filing Programs” at www. not use parentheses.
MIfastfile.org. Follow your software instructions for submitting
• Stay within the lines when entering information in boxes.
attachments with an e-filed return.
• Report losses and negative amounts with a negative sign in
If the MBT return includes supporting documentation or front of the number (do not use parentheses). For example, a
attachments that are not on the predefined list of attachments, the loss in the amount of $22,459 should be reported as -22,459.
return can still be e-filed. Follow your software instructions for
including additional attachments. The tax preparer or taxpayer • Percentages should be carried out four digits to the
should retain file copies of all documentation or attachments. right of the decimal point. Do not round percentages. For
example, 24.154266 percent becomes 24.1542 percent.
For more information and program updates, including When converting a percentage to a decimal number, carry
exclusions from e-file, visit www.MIfastfile.org. numbers out six digits to the right of the decimal point. For
example, 24.154266 percent becomes 0.241542.
Complete Federal Tax Forms First
• Report all amounts in whole dollars. Round down
Before preparing MBT returns, complete all federal tax forms. amounts of 49 cents or less. Round up amounts of 50 cents
These forms may include: or more. If cents are entered on the form, they will be
• Individuals, Partnerships, or Fiduciaries — U.S. Form 1040, treated as whole dollar amounts.
1041, 1065 and related Schedules C, C-EZ, D, E, K, 4797,
and 8825. Suggested Order of Analysis and Preparation of
an MBT Annual Return
• Corporations — U.S. Form 1120, 1120-S, and Schedules D,
K, 851, 940, 4562, 4797, and 8825. First, determine whether the taxpayer has a certificated credit.
If the taxpayer does not have a certificated credit, it may not
• Limited Liability Companies (LLCs) — Federal forms listed
file MBT and may be subject to the CIT. Additionally, for all
above, depending on how federal returns have been filed.
certificated credits other than qualifying historic preservation,
Reference these federal forms to complete Form 4567. brownfield redevelopment, or farmland credits, the taxpayer
must have made the election for its first tax year ending after
Copies of certain pages from these federal forms must also be
December 31, 2011, in order to continue under the MBT.
attached to the annual return filed. See the instructions for the
annual return for further details. If the taxpayer determines it is eligible and wishes to file an
MBT return, then standard taxpayers will use Form 4567. It
Completing Michigan Forms is available to all standard taxpayers, and allows for the
calculation of all credits, including credits that can be claimed
Treasury captures the information from paper MBT returns
only by using this form. To calculate gross receipts (Part 1 of
using an Intelligent Character Recognition process. If
the form) and business income (Part 2), use Gross Receipts
completing a paper return, avoid unnecessary delays caused
Worksheet (Form 4700) and the Business Income Worksheet
by manual processing by following the guidelines below so the
(Form 4746), based on organization type of the taxpayer.
return is processed quickly and accurately.
For a taxpayer using Form 4567, first complete lines 1 through
• Use black or blue ink. Do not use pencil, red ink, or felt tip
53 to calculate total liability before all credits. At that point,
pens. Do not highlight information.
if any nonrefundable credits will be claimed, begin the MBT
• Print using capital letters (UPPER CASE). Capital letters Nonrefundable Credits Summary (Form 4568), which serves
are easier to recognize. several important functions:
• Print numbers like this: 0123456789. Do not put a • Acts as a checklist of nonrefundable credits
slash through the zero ( ) or seven ( ).7
• Identifies the order in which nonrefundable credits must be
• Fill check boxes with an [X]. Do not use a check mark claimed
[a]. • Identifies the form on which each nonrefundable credit is
• Leave lines/boxes blank if they do not apply or if the calculated
amount is zero, unless otherwise instructed. • Tracks tax liability as it is reduced by each credit in proper
• Do not enter data in boxes filled with Xs. order
• Identifies (where applicable) the point at which tax liability
• Do not write extra numbers, symbols, or notes on the
reaches zero and no further nonrefundable credits may be
return, such as cents, dashes, decimal points (excluding
claimed in the current filing period.
percentages), or dollar signs, unless otherwise instructed.
Enclose any explanations on a separate sheet unless Complete Form 4568 from top to bottom. For each credit the
instructed to write explanations on the return. taxpayer qualifies for, calculate the credit on the corresponding
• Date format, unless otherwise specified, should be in the form and record the result on the appropriate line on Form 4568.

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After  total  nonrefundable  credits  are  determined  on  Form         of business income or loss from Form 4577, column N. 
4568, line 40, carry the figure to Form 4567, line 54. The lines 
                                                                      If either (a) or (b) is greater than $160,000, the Corporation is 
following  are  straightforward,  but  take  care  to  consider  any 
                                                                      not eligible to use the simplified calculation.
available refundable credits on Form 4567, Part 4.
                                                                      Allocated  income  for  an  S  Corporation  is  shareholder 
The MBT Simplified Return (Form 4583) is no longer provided 
                                                                      compensation, director fees, and share of business  income or 
as  the  simplified  return  to  calculate  the  Small  Business 
                                                                      loss from Form 4577, column N.
Alternative  Credit  and  the  Gross  Receipts  Filing  Threshold 
Credit.  Instead,  the  simplified  calculation  can  be  computed    Tax Period Less Than 12 Months:  If a business operates less 
using Form 4567.  Eligibility requirements to use the simplified      than  12  months,  annualize  gross  receipts,  business  income, 
calculation  on  Form  4567  are  described  below  under  the        and  all  income  of  shareholders,  officers,  and  partners  to 
heading “Eligibility for the Simplified Calculation.”                 determine  the  eligibility  for  the  Small  Business  Alternative 
                                                                      Credit.  Do not use annualized numbers on the return, unless 
Eligibility for the Simplified Calculation                            requested; use them only to determine filing requirements and 
                                                                      qualifications for credits.
The  simplified  calculation  for  qualified  standard  taxpayers 
can only be calculated on Form 4567.  Standard taxpayers are          Computing the Simplified Calculation  
eligible to use the simplified calculation if all of the following    on Form 4567
requirements are met:
                                                                      Eligible standard taxpayer may use Form 4567 to compute the 
• Gross receipts do not exceed $19,000,000.
                                                                      Simplified Calculation by using the following instructions:
• Adjusted business income does not exceed $1,440,400.
• Adjusted  business  income  does  not  exceed  $160,000  for        • Complete  lines  1  through  10  of  Form  4567,  leave  line  11 
  Individuals or Fiduciaries.                                           blank. 
• Filer is not a UBG or member of a UBG.                              • Complete  only  lines  12  and  28,  and  leave  blank  lines  13 
                                                                        through 27, and lines 29 through 50 on Form 4567.
• Filer  does  not  have  to  complete  the MBT  Schedule of 
                                                                      • Complete  Form  4577  if  the  taxpayer  is  either  an  S 
  Recapture of Certain Business Tax Credits and Deductions 
                                                                        Corporation or a C Corporation and complete Form 4578 if 
  (Form  4587),  and  does  not  have  net  investment  tax  credit 
                                                                        the taxpayer is a Partnership. 
  recapture  from  the        MBT Credits for Compensation, 
  Investment, and Research and Development (Form 4570).               • Complete  lines  2  through  9  on  Form  4571.    Carry  the 
                                                                        amount from line 9 to line 14, line 20, and line 21 on Form 
• Filer is not apportioning business activity.
                                                                        4571.  Leave blank lines 10 through 13 and 15 through 19 on 
• No partner has distributive income of more than $160,000.             Form 4571.
  Partnership  must  include  the MBT Schedule  of  Partners 
                                                                      • Complete lines 22 through 28 on Form 4571 to calculate the 
  (Form 4578).
                                                                        Gross Receipts Filing Threshold Credit. 
• No  individual,  shareholder,  or  officer  has  allocated  income 
                                                                      • Carry the amount on line 28 of Form 4571 to line 9 and line 
  over $160,000.  Corporations must include the MBT Schedule 
                                                                        41 of Form 4568.  Carry the same amount to line 55 of Form 
  of Shareholders and Officers (Form 4577).  (Does not apply 
                                                                        4567.  This is the total tax after the Gross Receipts Filing 
  to individuals and fiduciaries filing as individuals.)
                                                                        Threshold Credit based on the Simplified Calculation.
• Filer is not a fiscal filer.
                                                                      • Leave  line  56  blank,  and  complete  lines  57  through  73  as 
NOTE:  Taxpayers  leasing  employees  from  professional                applicable on form 4567.
employer  organizations  must  include  the  compensation 
of  officers  and  shareholders  (of  the  operating  company)        Further General Guidance
who  receive  compensation  from  the  professional  employer 
                                                                      For purposes of MBT, person means an individual, firm, bank, 
organizations  in  determining  the  taxpayers’  eligibility  for 
                                                                      financial  institution,  insurance  company,  limited  partnership, 
Small Business Alternative Credit. 
                                                                      limited  liability  partnership,  copartnership,  partnership, 
NOTE:  A member of a Limited Liability Company (LLC) is               joint  venture,  association,  corporation,  S  Corporation,  LLC, 
characterized for MBT purposes as a partner, shareholder, or          receiver,  Estate,  Trust,  or  any  other  group  or  combination  of 
owner based on the federal tax classification of the LLC.  An         groups acting as a unit.
LLC  taxed  as  a  Partnership  for  federal  purposes  must  file    A taxpayer includes a single person or a UBG liable for tax, 
as  a  Partnership  for  MBT.    Similarly,  an  LLC  taxed  as  a  C interest, or penalty. A UBG must file a combined MBT return. 
Corporation  or  S  Corporation  for  federal  purposes  must  file   (For  a  definition  of  UBG,  and  details  on  filing  a  combined 
under that same status for MBT.                                       MBT return, see “UBGs and Combined Filing” in this General 
Corporations:    Allocated  income  in  the  case  of  a  C           Information.)
Corporation is either:                                                Businesses reporting less than 12 months  must  annualize 
  a)  Shareholder  or  officer  compensation  and  director  fees     gross  receipts  to  determine  which  forms  to  file,  and  the 
    from Form 4577, column L, or                                      eligibility  for  a  Small  Business  Alternative  Credit.  (See 
                                                                      “Filing if Tax Year Is Less Than 12 Months” in this “General 
  b) Shareholder or officer compensation, director fees, and share    Information” section for more guidance on annualization.)

                                                                                                                                 5

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Individual.  If  a  person  owns  more  than  one  business  that  is      is  found  in  the  “Supplemental  Instructions  for  Standard 
registered  as  Individual  (e.g.,  a  convenience  store  and  rental     Members in UBGs” section in Form 4600.
property), file one MBT return.
                                                                           Determining the Existence and Membership of a UBG
A husband and wife  who  file  their  U.S.  1040  as  “married             Unitary Business Group  means  a  group  of  United  States 
filing jointly” but own separate businesses, maintain separate             persons, other than a foreign operating entity, that satisfies the 
records  and  file  separate  federal  Schedule  C  forms,  will  file     control test and relationship test.
separate MBT returns if they do not meet the definition of a 
UBG  (as  defined  in  “UBGs  and  Combined  Filing”  in  this             United States person is defined in Internal Revenue Code (IRC) 
“General Information” section).                                            § 7701(a)(30). A foreign operating entity is defined by statute in 
                                                                           Michigan Compiled Laws (MCL) 208.1109(5).
Limited Liability Company.     An  LLC  is  classified  for  MBT 
purposes  according  to  its  federal  tax  classification.  The           Control Test.  The  control  test  is  satisfied  when  one  person 
following  terms,  whenever  used  in  MBT  forms,  instructions,          owns or controls, directly or indirectly, more than 50 percent 
and statute, include LLCs as indicated:                                    of the ownership interest with voting or comparable rights of 
                                                                           the other person or persons. A person owns or controls more 
Partnership includes an LLC federally taxed as a Partnership,              than  50  percent  of  the  ownership  interest  with  voting  rights 
and a member of this LLC is a partner.                                     or  ownership  interest  that  confer  comparable  rights  to  voting 
S  Corporation  includes  an  LLC  federally  taxed  as  an  S             rights of another person if that person owns or controls:
Corporation, and a member of this LLC is a shareholder.                    More than 50 percent of the total combined voting power of all 
C Corporation  includes  an  LLC  federally  taxed  as  a  C               ownership interests with voting (or comparable) rights, or 
Corporation,  and  a  member  of  this  LLC  is  a  shareholder.  A        More  than  50  percent  of  the  total  value  of  all  ownership 
member or other person performing duties similar to those of               interests with voting (or comparable) rights.
an officer in an incorporated entity is an “officer” in this LLC.
                                                                           Relationship  Tests.  The  definition  of  a  Unitary  Business 
NOTE: In this booklet, the term “corporation,” used without a              Group  requires  that  the  group  of  persons  have  business 
C or S, generally refers to both types.                                    activities or operations that either:
                                                                              1) Result in a flow of value between or among persons in the 
Disregarded Entity.  A  person  that  is  a  disregarded  entity 
                                                                              group, or
for  federal  income  tax  purposes  under  the  internal  revenue 
code  must  file  as  a  disregarded  entity  for  MBT  purposes.             2)  Are  integrated  with,  dependent  upon,  or  contribute  to 
This means that a disregarded entity for federal tax purposes,                each other.
including  a  single  member  LLC  or  Q-Sub,  must  file  as  if  it      A taxpayer need only meet one of the two alternative tests to 
were  a  sole  proprietorship  if  owned  by  an  individual,  or  a       satisfy the relationship test.
branch or division if owned by another business entity. 
                                                                           1) Flow  of  value  is  established  when  members  of  the  group 
REMINDER:  Partners  and  S  Corporation  shareholders                     demonstrate one or more of functional integration, centralized 
(including  LLC  members  treated  as  such)  may  have  to                management, and economies of scale. Examples of functional 
pay  tax  on  their  share  of  income  from  a  Partnership  or  S        integration  include  common  programs  or  systems  and  shared 
Corporation. For a partner or S Corporation shareholder who                information or property. Examples of centralized management 
is an individual, this share of business income is taxed under             include  common  management  or  directors,  shared  staff 
the  Michigan  Individual  Income  Tax  Act.  For  a  partner  or  S       functions,  and  business  decisions  made  for  the  UBG  rather 
Corporation shareholder that is subject to MBT (individual or              than  separately  by  each  member.  Examples  of  economies 
entity), this income must be included in the Business Income               of  scale  include  centralized  business  functions  and  pooled 
Tax base, but then is subtracted (a loss will be added) on the             benefits or insurance. Groups that commonly exhibit a flow of 
MBT  annual  return  filed  for  the  partner  or  shareholder  to         value  include  vertically  or  horizontally  integrated  businesses, 
the  extent  that  it  was  included  in  arriving  at  the  partner’s  or conglomerates,  parent  companies  with  their  wholly  owned 
shareholder’s business income.                                             subsidiaries, and entities in the same general line of business. 
EXCEPTION: If this partner or shareholder does not have a                  Flow of value must be more than the mere flow of funds arising 
certificated credit, the partner or shareholder is not permitted           out of passive investment.
to file the MBT (unless the partner or shareholder is a member             2)  The  alternate “contribution/dependency”  relationship  test 
of a UBG that has elected to file MBT). However, the partner               asks whether business activities are integrated with, dependent 
or  shareholder,  if  an  individual,  may  be  subject  to  Michigan      upon,  or  contributed  to  each  other.  Businesses  are  integrated 
Individual Income Tax.                                                     with,  are  dependent  upon,  or  contribute  to  each  other  under 
                                                                           many  of  the  same  circumstances  that  establish  flow  of  value. 
UBGs and Combined Filing                                                   However,  this  alternate  relationship  test  is  also  commonly 
NOTE:  UBGs  are  addressed  here,  in  general.  In  the                  satisfied when one entity finances the operations of another or 
instructions  for  each  form,  “Special  Instructions  for  Unitary       when there exist intercompany transactions, including financing.
Business  Groups”  are  located  directly  before  “Line-by-Line 
                                                                           For more information on the control and relationship tests for 
Instructions.” The areas in the “Line-by-Line Instructions” that 
                                                                           UBGs,  see  Revenue  Administrative  Bulletin  (RAB)  2010-
apply only to UBGs are labeled “UBGs.” Additional direction 
                                                                           1,  MBT—Unitary  Business  Group  Control  Test,  and  RAB 

6

- 9 -

2010-2,  MBT—Unitary  Business  Group  Relationship  Tests  at        • the  taxpayer  has  claimed  a  certificated  credit  using  the 
www.michigan.gov/treasury/ under “Reports and Legal.”                   2014  Request  for  Accelerated  Payment  for  the  Brownfield 
                                                                        Redevelopment Credit and the Historic Preservation Credit 
Exemption Guidelines for MBT                                            (Form 4889).
Certain  exemptions  may  exist  for  those  taxpayers  electing  to  If  the  taxpayer  does  not  satisfy  one  or  both  criteria,  the 
remain in the MBT. They may include:                                  taxpayer cannot file the MBT.
• Most  persons  who  are  exempt  from  federal  income  tax 
                                                                      Different  primary  returns  and  instruction  booklets  are 
  under the IRC
                                                                      available  for  insurance  companies  (Form  4588)  and  financial 
• Nonprofit cooperative housing corporations                          institutions  (Form  4590).  The  tax  base  for  each  of  these 
• Foreign  persons  domiciled  in  a  subnational  jurisdiction  that special taxpayer categories is fundamentally different than for 
  does not impose an income or other business tax on a similarly      standard taxpayers.
  situated person domiciled in  Michigan. For  purposes  of  this 
  provision, foreign person is defined in MCL 208.1207(8).            Filing if Tax Year Is Less Than 12 Months
• If a taxpayer is exempt under either of the first two bullets       In most cases, annual returns must be filed for the same period 
  above, but has unrelated business taxable income as defined         as federal income tax returns. If the filing period is less than 
  in the IRC, that business activity is subject to the MBT and        12  months,  annualize  to  determine  which  forms  to  file,  and 
  a  return  will  be  required  if  the  apportioned  or  allocated  the eligibility for a Small Business Alternative Credit. Do not 
  gross  receipts  are  $350,000  or  more  from  the  unrelated      use annualized numbers on a return unless specified; use them 
  business activity.                                                  only  to  determine  filing  requirements  and  qualifications  for 
• Receipts  from  the  production  of  agricultural  goods            credits. 
  constitute  gross  receipts  for  MBT  purposes,  including  the    Tax  year  means  the  calendar  year,  or  the  fiscal  year  ending 
  gross receipts filing threshold of $350,000. Farmers whose          during the calendar year, upon the basis of which the tax base of 
  primary  activity  is  the  production  of  agricultural  goods     a taxpayer is computed. If a return is made for a fractional part 
  must  combine  the  apportioned  or  allocated  gross  receipts     of a year, tax year means the period for which the return is made.
  from agricultural activity and any other activities other than 
  agricultural production to determine the filing requirement         A taxpayer that has a 52- or 53-week tax year beginning not 
  based on the gross receipts threshold. MBT filing is required       more  than  seven  days  before  December  31  of  any  year  is 
  if the total combined allocated or apportioned gross receipts       considered to have a tax year beginning after December of that 
  are  over  $350,000.  Total  combined  gross  receipts  must  be    tax year.
  included in line 12 of Form 4567. A subtraction from gross          Example 1: A taxpayer with a federal tax year beginning on 
  receipts  for  the  total  gross  receipts  from  the  agricultural Monday, December 26, 2022, will be treated as follows: 
  activity of a person whose primary activity (i.e., more than 
                                                                      • 2022 tax year end of December 31, 2022.
  50 percent of gross receipts) is the production of agricultural 
  goods is allowed in determining modified gross receipts for         • Due date of April 30, 2023.
  the tax base.                                                       • 2023 tax year beginning January 1, 2023.
Foreign  persons  that  are  not  exempt  from  the  MBT  must        Example 2:  A  taxpayer  with  a  federal  tax  year  ending  on 
calculate business income, gross receipts, the Business Income        Friday, January 6, 2023, will be treated as follows:
and  Modified  Gross  Receipts  Tax  bases,  and  the  sales  factor  • 2022 tax year end of December 31, 2022. 
differently than domestic taxpayers. Refer to MCL 208.1207(4)-
                                                                      • Due date of April 30, 2023. 
(8) for details.
                                                                      • 2023 tax year beginning on January 1, 2023.
For a complete list of exemptions, consult the MBT Act (PA 36 
of 2007, as amended) at www.legislature.mi.gov. If a taxpayer         Example 3:  A  52-  or  53-week  year  closing  near  the  end  of 
is  exempt  and  has  no  unrelated  business  taxable  income,       January is common in the retail industry. Such a taxpayer will 
filing an MBT return is not required unless filing to utilize a       be treated as follows: 
certificated credit.                                                  • 2022-23 fiscal year end will be January 31, 2023. 
                                                                      • Due date will be May 31, 2023. 
Filing the Correct Form
                                                                      • 2023-24 fiscal year will begin on February 1, 2023.
The MBT Simplified Return (Form 4583) is no longer provided 
for filing the simplified return to calculate the Small Business      Annualizing
Alternative  Credit  and  the  Gross  Receipts  Filing  Threshold 
Credit.    Instead,  the  simplified  calculation  can  be  computed  Multiply  each  amount  required,  including  gross  receipts, 
using Form 4567.  Eligibility to use the simplified calculation       business income, and prior year’s tax liability, by 12 and divide 
on Form 4567 are described under the heading “Eligibility for         the  result  by  the  number  of  months  the  business  operated. 
the Simplified Calculation.”                                          Generally, a business is considered in business for one month if 
                                                                      the business operated for more than half the days of the month. 
Only file the MBT using Form 4567 if::                                A business whose entire tax year is 15 days or less, however, is 
• the taxpayer has a qualified certificated credit and elects to      considered in business for one month.
  remain taxed under the MBT; or 
                                                                                                                             7

- 10 -

Annualize  prior  year’s  tax  liability  to  determine  whether        If  an  MBT  extension  is  filed  on  time  but  the  total  payments 
estimates  may  be  based  on  that  liability.  If  the  prior  year’s received by the original due date are less than 90 percent of the 
annualized liability is $20,000 or less, estimates may be based         tax liability, a 10 percent negligence penalty may apply.
on the annualized amount if paid in four equal installments.
                                                                        An  extension  of  time  to  file  will  also  extend  the  statute  of 
Example:  A  fiscal  year  taxpayer  with  a  tax  year  ending  in     limitations.
June files a six-month return ending June 2010 reporting a tax 
liability of $9,000. Estimates for the tax year ending June 2011        Amending a Return
may be based on the annualized liability of $18,000. Estimates          NOTE:  A  taxpayer  may  not  amend  to  revoke  the  election  to 
must be paid in four equal installments of $4,500.                      remain  taxable  under  the  MBT.  Once  the  taxpayer  makes  a 
See  appropriate  forms  (MBT  Common  Credits for Small                valid election to claim a certificated credit, the taxpayer must 
Business  (Form  4571); MBT Schedule of Shareholders and                remain  in  the  MBT  until  the  credit  and  any  carryforward  of 
Officers  (Form  4577);  and MBT Schedule of Partners  (Form            that credit are exhausted.
4578))  for  annualization  instructions  pertaining  to  the  Small    If  amending  the  2021  tax  year,  complete MBT Annual Return 
Business Alternative Credit.                                            (Form  4567)  and  check  the  “Amended”  box  in  the  upper-right 
Individuals and Fiduciaries:  A  business  registered  as  an           corner  of  the  return,  and  attach  a  separate  sheet  explaining 
Individual or Fiduciary that is in business less than 12 months         the reason for  the changes.  Include  an  amended federal  return 
is not required to annualize.                                           or  a  signed  and  dated  Internal  Revenue  Service  (IRS)  audit 
                                                                        document. Include all schedules and forms filed with the original 
Due Dates of Annual Returns                                             return,  even  if  not  amending  that  schedule  or  form.  Do  not 
                                                                        include a copy of the original return with your amended return.
Annual returns are due on or before the last day of the fourth 
month after the end of the tax year.  For example, a return for         To amend a return to claim a refund, file within four years of 
calendar year 2021 is due April 30, 2022. A return for a fiscal         the due date of the original return (including valid extensions). 
year ending June 30, 2022, is due October 31, 2022.                     Interest will be paid beginning 45 days after the claim is filed 
                                                                        or  the  due  date,  whichever  is  later.  Most  certificated  credits 
Additional Filing Time                                                  must be claimed for the taxpayer’s first tax year ending after 
                                                                        December 31, 2011.
If additional time is needed to file an annual tax return, request 
a Michigan extension by filing an Application for Extension of          If amending a return to report a deficiency, penalty and interest 
Time to File Michigan Tax Returns (Form 4).                             may apply from the due date of the original return.
UBG NOTE: Extension requests must be filed under the name               If  any  changes  are  made  to  a  federal  income  tax  return  that 
and  account  number  of  a  UBG’s  designated  member  to  be  a       affect an MBT tax base, filing an amended return is required. 
valid request for extension.                                            To avoid penalty, file the amended return within 120 days after 
                                                                        the final determination by the IRS.
Filing  a  federal  extension  request  with  the  IRS  does  not 
automatically  grant  an  MBT  extension.  The  IRS  does  not 
notify state governments of extensions.                                 Computing Penalty and Interest
                                                                        Annual  and  estimated  returns  filed  late  or  without  sufficient 
Extension  applications  must  be  postmarked  on  or  before  the 
                                                                        payment of the tax due are subject to a penalty of 5 percent of 
due date of an annual return.
                                                                        the tax due, for the first two months. Penalty increases by an 
Although  Treasury  may  grant  extensions  for  filing  MBT            additional  5  percent  per  month,  or  fraction  thereof,  after  the 
returns,  it  will  not  extend  the  time  to  pay.  Extension         second month, to a maximum of 25 percent. 
applications  received  without  proper  payment  will  not  be 
                                                                        Compute  penalty  and  interest  for  underpaid  estimates  using 
processed. Penalty and interest will accrue on the unpaid tax 
                                                                        the MBT Penalty and Interest Computation for Underpaid 
from the original due date of the return.
                                                                        Estimated Tax (Form 4582). If a taxpayer prefers not to file this 
Properly filed and paid estimates along with the amount included        form, Treasury will compute the penalty and interest and send 
on the extension application will be accepted as payment on a           a bill.
tentative return, and an extension may be granted. It is important 
                                                                        The following chart shows the interest rate that applies to each 
that the application is completed correctly.
                                                                        filing period. A new interest rate is set at 1 percent above the 
Once  a  properly  prepared  and  timely  filed  application  along     adjusted prime rate for each six-month period.
with appropriate estimated tax payments is received, Treasury 
will grant an extension of eight months to file the tax return.         Beginning Date            Rate                Daily Rate
Any  estimated  tax  that  may  be  due  with  the  request  should     January 1, 2022           4.25%               0.0001164
be paid in the same manner as estimated payments were paid                  July 1, 2022          4.27%               0.0001170
during the year.
                                                                        January 1, 2023           5.65%               0.0001548
A  written  response  will  be  sent  to  the  legal  address  on  file 
when a valid extension application is received.                         For  a  complete  list  of  interest  rates,  see  the  Revenue 
                                                                        Administrative  Bulletins  on  Treasury’s  Web  site  at 

8

- 11 -

www.michigan.gov/treasury/  under  “Reports  and  Legal                    Mailing Addresses
Resources.”
                                                                           Mail the annual return and all necessary schedules to:
Signing the Return                                                         With payment:
                                                                           Michigan Department of Treasury
All  returns  must  be  signed  and  dated  by  the  taxpayer  or  the 
                                                                           PO Box 30113
taxpayer’s  authorized  agent.  This  may  be  the  owner,  partner, 
corporate  officer,  or  association  member.  The  corporate  officer     Lansing MI 48909
may be the president, vice president, treasurer, assistant treasurer,      Without payment:
chief  accounting  officer,  or  other  corporate  officer  (such  as  tax Michigan Department of Treasury
officer) authorized to sign the corporation’s tax return.                  PO Box 30783
If  someone  other  than  the  above  prepared  the  return,  the          Lansing MI 48909
preparer must give his or her business address and telephone               Mail an extension application (Form 4) to:
number.
                                                                           Michigan Department of Treasury
Print  the  name  of  the  authorized  signer  and  preparer  in  the      PO Box 30774
appropriate area on the return.                                            Lansing MI 48909-8274
Assemble  the  returns  and  attachments  (in  sequence  order)            Mail MBT quarterly estimate payments (Form 4913) to:
and  staple  in  the  upper-left  corner.  (Do  not  staple  a  check  to  Michigan Department of Treasury
the  return.)  In  an  e-filed  return  the  preparation  software  will   PO Box 30774
assemble the forms and PDF attachments in the proper order                 Lansing MI 48909-8274
automatically.
                                                                           Courier delivery service mail should be sent to:
IMPORTANT REMINDER:  Failure  to  include  all  the 
                                                                           Michigan Department of Treasury
required forms and attachments will delay processing and may 
                                                                           7285 Parsons Dr.
result in reduced or denied refund or credit forward or a bill for 
tax due.                                                                   Dimondale MI 48821
SIGNING AN E-FILED RETURN: As with any tax return                          Make  all  checks  payable  to  “State  of  Michigan.”  Print 
submitted to Treasury on paper, an electronic tax return must              taxpayer’s Federal Employer Identification Number (FEIN) or 
be  signed  by  an  authorized  tax  return  signer,  the  Electronic      Michigan  Treasury  (TR)  assigned  number,  the  tax  year,  and 
Return  Originator  (ERO),  if  applicable,  and  the  paid  tax           “MBT” on the front of the check. Do not staple the check to the 
preparer,  if  applicable.  NOTE:  If  the  return  meets  one  of  the    return.
exceptions  to  the  e-file  mandate  and  is  being  filed  on  paper, 
                                                                           Correspondence
it  must  be  manually  signed  and  dated  by  the  taxpayer  or  the 
taxpayer’s authorized agent.                                               An address change or business discontinuance can be reported online 
                                                                           by  using  Michigan  Treasury  Online  (MTO),  Business  Tax  Services. 
The MBT Fed/State e-file signature process is as follows:                  See www.michigan.gov/mtobusiness for  information.  In  the 
                                                                           alternative, Notice of Change or Discontinuance (Form 163), can be 
Fed/State Returns: Michigan will accept the federal signature              found online at www.michigan.gov/treasuryforms.
method.  Michigan  does  not  require  any  additional  signature 
documentation.                                                             Mail correspondence to:
                                                                           Business Tax Division, MBT Unit
State Stand Alone Returns: State Stand Alone returns must 
be  signed  using  Form  MI-8879  (also  called  the      Michigan         Michigan Department of Treasury
e-file  Authorization  for  Business  Taxes  MI-8879,  Form                PO Box 30059
4763). Returns are signed by entering the taxpayer PIN in the              Lansing MI 48909
software  after  reading  the  perjury  statement  displayed  in  the 
software. The taxpayer PIN will be selected by the taxpayer, or            To Request Forms
the taxpayer may authorize his or her tax preparer to select the           Internet
taxpayer PIN.                                                              Current and past year forms are available at   www.michigan.
Form MI-8879 will be printed and contain the taxpayer PIN.                 gov/treasuryforms.
The tax preparer will retain Form MI-8879 in his or her records            Alternate Format
as part of the taxpayer’s printed return. MBT State Stand Alone 
e-filings submitted without a taxpayer PIN will be rejected by             Printed  material  in  an  alternate  format  may  be  obtained  by 
Treasury. Do not mail Form MI-8879 to Treasury and do not                  calling (517) 636-6925.
include Form MI-8879 as an attachment with the e-file return.              TTY
                                                                           Assistance is available using TTY through the Michigan Relay 
                                                                           Service by calling 711.

                                                                                                                                 9

- 12 -

- 13 -

Michigan Department of Treasury
4567 (Rev. 04-22), Page 1 of 3 Check if this is an
amended return.
See instructions.
2022 MICHIGAN Business Tax Annual Return
Issued under authority of Public Act 36 of 2007. MM-DD-YYYY MM-DD-YYYY

1. Return is for calendar year 2022 or for tax year beginning: and ending:
2. Taxpayer Name (print or type) 7. Federal Employer Identification Number (FEIN) or TR Number

Doing Business As (DBA) 8. Organization Type (LLC or Trust, see instructions)

Street Address Check if Individual C Corporation /
LLC C Corporation
new address.
(See instructions)
City State ZIP/Postal Code Country Code Fiduciary S Corporation /
LLC S Corporation
3. Principal Business Activity 4. Business Start Date in Michigan
Partnership / LLC Partnership

5. NAICS (North American Industry Classification System) Code 6. If Discontinued, Effective Date 9. Check if Filing Michigan Unitary Business Group Return.
(Include Form 4580.)
10. Check if line 11 includes sales of transportation services.

11. Apportionment Calculation
a. Michigan Sales (if no Michigan sales, enter zero) ................................................................. 11a. 00
b. Total Sales ............................................................................................................................. 11b. 00
c. Apportionment Percentage. Divide line 11a by line 11b ........................................................ 11c. %

PART 1: MODIFIED GROSS RECEIPTS TAX
12. Gross Receipts (see instructions)...................................................................................................................... 12. 00
Subtractions from Gross Receipts
13. Inventory acquired during the tax year .............................................................................................................. 13. 00
14. Depreciable assets acquired during the tax year .............................................................................................. 14. 00
15. Materials and supplies not included in inventory or depreciable property ......................................................... 15. 00
16. Staffing Company: Compensation of personnel supplied to customers ............................................................ 16. 00
If claiming the Small Business Alternative Credit, skip to line 18.
17. Deduction for contractors in SIC Codes 15, 16 and 17 ..................................................................................... 17. 00
SIC Code:
18. Film rental or royalty payments paid by a theater owner to a film distributor and/or film producer ................... 18. 00
19. Qualified Affordable Housing Project (QAHP) Deduction
a. Gross receipts attributable to residential rentals in Michigan ........... 19a. 00
b. Number of residential rent restricted units in Michigan owned
by the QAHP ..................................................................................... 19b.
c. Total number of residential rental units in MI owned by the QAHP .. 19c.
d. Divide line 19b by line 19c and enter as a percentage .................... 19d. %
e. Multiply line 19a by line 19d ............................................................. 19e. 00
f. Limited dividends or other distributions made to owners of the QAHP 19f. 00
g. QAHP Deduction. Subtract line 19f from line 19e ....................................................................................... 19g. 00
20. Payments made by taxpayers licensed under Article 25 or Article 26 of the Occupational Code
to independent contractors licensed under Article 25 or Article 26 .................................................................... 20. 00
21. Miscellaneous (see instructions) ....................................................................................................................... 21. 00
22. Total Subtractions from Gross Receipts. Add lines 13 through 18 and 19g through 21 .................................... 22. 00
23. Modified Gross Receipts. Subtract line 22 from line 12. If less than zero, enter zero ....................................... 23. 00
24. Apportioned Modified Gross Receipts Tax Base. Multiply line 23 by percentage on line 11c ........................... 24. 00
25. Multiply line 24 by 0.8% (0.008) ....................................................................................................................... 25. 00
26. Enrichment Prohibition for dealers of personal watercraft or new motor vehicles. Enter amount collected
during tax year ................................................................................................................................................... 26. 00
27. Modified Gross Receipts Tax Before All Credits. Enter the greater of line 25 or line 26 ............................. 27. 00

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2022 Form 4567, Page 2 of 3 FEIN or TR Number

PART 2: BUSINESS INCOME TAX

28. Business Income. If negative, enter as negative. (If business activity protected under PL 86-272, complete
and attach Form 4586 and/or 4581, as applicable; see instructions) ................................................................ 28. 00

Additions to Income
29. Interest income and dividends derived from obligations or securities of states other than Michigan ................. 29. 00
30. Taxes on or measured by net income ................................................................................................................ 30. 00
31. Tax imposed under MBT .................................................................................................................................... 31. 00
32. Any carryback or carryover of a federal net operating loss ................................................................................ 32. 00
33. Losses attributable to other flow-through entities that are taxed under the MBT ............................................... 33. 00
Account No.
34. Royalty, interest, and other expenses paid to a related person .......................................................................... 34. 00
35. Miscellaneous (see instructions) ....................................................................................................................... 35. 00
36. Total Additions to Income. Add lines 29 through 35........................................................................................... 36. 00
37. Business Income Tax Base After Additions. Add lines 28 and 36. If negative, enter as negative .............. 37. 00

Subtractions from Income
38. Dividends and royalties received from persons other than U.S. persons and foreign operating entities .......... 38. 00
39. Income attributable to other flow-through entities that are taxed under the MBT .............................................. 39. 00
Account No.
40. Interest income derived from United States obligations .................................................................................... 40. 00
41. Net earnings from self-employment. If less than zero, enter zero .................................................................... 41. 00
42. Miscellaneous (see instructions) ....................................................................................................................... 42. 00
43. Total Subtractions from Income. Add lines 38 through 42 ................................................................................ 43. 00

44. Business Income Tax Base. Subtract line 43 from line 37. If negative, enter as negative ..................................... 44. 00
45. Apportioned Business Income Tax Base. Multiply line 44 by percentage on line 11c ....................................... 45. 00
46. Available MBT business loss carryforward from previous MBT return. Enter as a positive number.................. 46. 00
47. Subtract line 46 from line 45. If negative, enter here as negative, skip line 48, and enter zero on line 49. A
negative number here is the available business loss carryforward to the next MBT filing period (see instr.) ..... 47. 00

48. Qualified Affordable Housing Deduction. If line 47 is positive, complete lines 48a through 48i as follows:
(1) If taking the QAHP deduction only, complete lines 48a through 48i. (UBGs, see instructions.) (2) If
taking the seller’s deduction only, skip lines 48a through 48h and carry the amount from Form 4579, line
5, to line 48i. (3) If taking both deductions, complete the QAHP deduction calculation on lines 48a through
48h, and add to the total at line 48i the amount from Form 4579, line 5.
a. Gross rental receipts attributable to residential units in
Michigan ........................................................................................... 48a. 00
b. Rental expenses attributable to residential rental units in Michigan ... 48b. 00
c. Taxable income attributable to residential rental units. Subtract line
48b from line 48a .............................................................................. 48c. 00
d. Number of residential rent restricted units in Michigan owned by
the Qualified Affordable Housing Project .......................................... 48d.
e. Total number of residential rental units in Michigan owned by the
Qualified Affordable Housing Project ................................................ 48e.
f. Divide line 48d by line 48e and enter as a percentage..................... 48f. %
g. Multiply line 48c by line 48f............................................................... 48g. 00
h. Limited dividends or other distributions made to the owners of
the QAHP ......................................................................................... 48h. 00
i. Qualified Affordable Housing Deduction. Subtract line 48h from line 48g. (See instructions.) .................... 48i. 00
49. Subtract line 48i from line 47. If less than zero, enter zero ............................................................................... 49. 00
50. Business Income Tax Before All Credits. Multiply line 49 by 4.95% (0.0495)....................................................... 50. 00

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2022 Form 4567, Page 3 of 3                                                                   FEIN or TR Number

PART 3: TOTAL MICHIGAN BUSINESS TAX 
51.   Total Michigan Business Tax Before Credits.  Add lines 27 and 50 .............................................................                              51.                    00
52.   The annual surcharge is no longer applicable. There is no amount to be entered on this line .........................                                       52.  X X X X X X X X X 00

53.   Enter amount from line 51. If apportioned or allocated gross receipts are less than $350,000, enter zero ......                                             53.                    00
54.   Nonrefundable credits from Form 4568, line 40 ................................................................................................              54.                    00
55.   Total Tax After Nonrefundable Credits.  Subtract line 54 from line 53. If less than zero, enter zero .............                                          55.                    00
56.   Recapture of Certain Business Tax Credits and Deductions from Form 4587, line 13 ......................................                                     56.                    00
57.   Total MBT Tax Liability. Add lines 55 and 56...................................................................................................             57.                    00
58.   Corporate Income Tax adjustment from Form 4946, line 39 .............................................................................                       58.                    00
59.   Total Tax Liability. Add lines 57 and 58 ...........................................................................................................        59.                    00

PART 4: PAYMENTS, REFUNDABLE CREDITS AND TAX DUE
60.   Overpayment credited from prior MBT return ....................................................................................................             60.                    00
61.   Estimated tax payments .................................................................................................................................... 61.                    00
62.   There is no amount to be entered on this line. Skip to line 63...........................................................................                   62.  X X X X X X X X X 00
63.   Tax paid with request for extension ...................................................................................................................     63.                    00
64.   Refundable credits from Form 4574, line 23 .....................................................................................................            64.                    00
65.   Payment and credit total.  Add lines 60 through 64. (If not amending, then skip to line 67.) .............................                                  65.                    00
                a. Payments made with original and/or amended returns                    66a.                        00
      AMENDED 
66.   RETURN    b. Overpayment from original and/or amended returns .                    66b.                        00
      ONLY      c. Add lines 65 and 66a and subtract line 66b
                   from the sum.............................................................. ........................................................            66c.                   00
67.   TAX DUE. Subtract line 65 (or line 66c, if amending) from line 59. If less than zero, leave blank ....................                                      67.                    00
68.   Underpaid estimate penalty and interest from Form 4582, line 38 ....................................................................                        68.                    00

69.   Annual return penalty (a)          % =  (b)                        00 plus interest (c)   00 .  Total ...... 69d.                                                                  00
70.   PAYMENT DUE.  If line 67 is blank, go to line 71. Otherwise, add lines 67, 68 and 69d ..................................                                    70.                    00

PART 5: REFUND OR CREDIT FORWARD
71.   Overpayment. Subtract lines 59, 68 and 69d from line 65 (or line 66c, if amending). 
      If less than zero, leave blank (see instructions) .................................................................................................         71.                    00
72.   CREDIT FORWARD. Amount on line 71 to be credited forward and used as an estimate for next tax year ....                                                     72.                    00
73.   REFUND. Amount on line 71 to be refunded.....................................................................................................               73.                    00

Taxpayer Certification.  I declare under penalty of perjury that the information in this Preparer Certification.  I declare under penalty of perjury that this
return and attachments is true and complete to the best of my knowledge.                 return is based on all information of which I have any knowledge.
                                                                                         Preparer’s PTIN, FEIN or SSN
      By checking this box, I authorize Treasury to discuss my return with my preparer.
Authorized Signature for Tax Matters                                                     Preparer’s Business Name (print or type)

Authorized Signer’s Name (print or type)               Date                              Preparer’s Business Address and Telephone Number (print or type)

Title                                    Telephone Number

                Return is due April 30 or on or before the last day of the 4th month after the close of the tax year.
WITHOUT PAYMENT. Mail return to:                                            WITH PAYMENT. Pay amount on line 70. Mail check and return to:
  Michigan Department of Treasury, PO Box 30783, Lansing MI  48909             Michigan Department of Treasury, PO Box 30113, Lansing MI  48909
                                                                            Make check payable to “State of Michigan.” Print taxpayer’s FEIN or TR 
                                                                            Number, the tax year, and “MBT” on the front of the check. Do not staple the 
                                                                            check to the return.

+ 0000 2022 11 03 27 7

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No text to extract.

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                                             Instructions for Form 4567 
                          Michigan Business Tax (MBT) Annual Return
                                                                        of the DM.
Purpose
To  calculate  the  Modified  Gross  Receipts  Tax  and  Business       NOTE on Designated Members:  If  the  UBG  filed  MBT  in 
Income  Tax  for  standard  taxpayers.  Insurance  companies            2011 and elected to file MBT in 2012, then the UBG must use 
should  file  the MBT Insurance Company Annual Return for               the same DM if the DM still has nexus and is still a member of 
Michigan Business and Retaliatory Taxes  (Form  4588)  and              the UBG in 2012. If the DM no longer has nexus or is no longer 
Financial  Institutions  should  file  the MBT Annual Return for        a member of the UBG, then the UBG must select a new DM. 
Financial Institutions (Form 4590).                                     See  the  “Supplemental  Instructions  for  Standard  Members  in 
                                                                        UBGs” in Form 4600 for the rules on selecting a new DM.
NOTE: Beginning January 1, 2012, only those taxpayers with 
a certificated credit, which is awarded but not yet fully claimed       NOTE  on  Certificated  Credits  and  the  UBG:  If  a  member 
or utilized, may elect to be MBT taxpayers.  If a taxpayer files        of a UBG holds a certificated credit and wishes  to claim that 
an  MBT  return  and  claims  a  certificated  credit,  the  taxpayer   credit  then  the  entire  UBG,  and  not  only  the  member,  must 
makes the election to continue to file and pay under the MBT            make the election to remain taxable under the MBT.  The UBG 
until the certificated credit and any carryforward of that credit       must file and pay under the MBT until the certificated credit 
are exhausted.                                                          and any carryforward of that credit are extinguished. 
                                                                        For  MBT, taxpayer  means  a  person  or  a  UBG  liable  for  tax, 
Special Instructions for Unitary Business Groups
                                                                        interest,  or  penalty.  Beginning  January  1,  2012,  only  those 
A Unitary Business Group (UBG) is a group of United States              taxpayers with a certificated credit, which is awarded but not 
persons, other than a foreign operating entity, that satisfies the      yet fully claimed or utilized, may elect to be MBT taxpayers.  
following criteria:                                                     If  a  taxpayer  files  an  MBT  return  and  claims  a  certificated 
                                                                        credit, the taxpayer makes the election to file and pay under the 
• One of the persons owns or controls, directly or indirectly, 
                                                                        MBT until the certificated credit and any carryforward of that 
  more than 50 percent of the ownership interest with voting 
                                                                        credit are exhausted.
  rights  (or  rights  comparable  to  voting  rights)  of  the  other 
  United States persons; AND                                            For  more  information  on  UBGs,  see  the  instructions  for  the 
• The  UBG  has  operations  which  result  in  a  flow  of  value      MBT Unitary Business Group Combined Filing Schedule       
  between  persons  in  the  UBG  or  has  operations  that  are        (Form 4580), and the “Supplemental Instructions for Standard 
  integrated with, are dependent upon, or contribute to each            Members  in  UBGs”  in  the MBT  Forms and  Instructions for 
  other. Flow of value is determined by reviewing the totality          Standard Taxpayers (Form 4600).
  of  facts  and  circumstances  of  business  activities  and          The gross receipts of a UBG is the sum of the gross receipts 
  operations.                                                           of  each  person  included  in  the  UBG,  other  than  a  foreign 
For more information on the control and relationship tests for          operating entity or a person subject to the tax as an insurance 
UBGs,  see  Revenue  Administrative  Bulletin  (RAB)  2010-1            company or financial institution, less any gross receipts arising 
Michigan  Business  Tax-Unitary  Business  Group  Control  Test         from transactions between persons included in the UBG. Gross 
and  RAB  2010-2  Michigan  Business  Tax-Unitary  Business             receipts of each member should reflect the accounting method 
Group Relationship Tests on the Department of Treasury Web              that member used to compute its federal taxable income.
site  at www.michigan.gov/taxes.  (Click  on  the  “Reference           The  business  income  of  a  UBG  is  the  sum  of  the  business 
Library” link on the left side of the page.)                            income  of  each  person  included  in  the  UBG,  other  than  a 
A foreign operating entity  means  a  United  States  person            foreign  operating  entity  or  a  person  subject  to  the  tax  as  an 
that  would  otherwise  be  a  part  of  a  UBG  that  is  taxable  in  insurance  company  or  financial  institution,  less  any  items 
Michigan; has substantial operations outside the United States,         of  income  and  related  deductions  arising  from  transactions, 
the  District  of  Columbia,  any  territory  or  possession  of  the   including  dividends,  between  persons  included  in  the  UBG. 
United States except for the commonwealth of Puerto Rico, or            Business income of each member should reflect the accounting 
a political subdivision of the foregoing; and at least 80 percent       method  that  member  used  to  compute  its  federal  taxable 
of  its  income  is  active  foreign  business  income  as  defined  in income.
Internal Revenue Code (IRC) § 871(l)(1)(B)(ii).
                                                                        In  general,  phase-ins,  thresholds,  credit  limits,  and  other 
In  Michigan,  a  UBG  with  standard  members  must  file  Form        components used to determine tax liability relate to the group 
4567.  A  Designated  Member  (DM)  must  file  the  return  on         as a single taxpayer, not to individual persons that comprise the 
behalf  of  the  standard  members  of  the  group.  In  a  parent-     group. Exceptions to this general rule are noted in instructions 
subsidiary controlled group, the controlling member must serve          to the applicable forms. The group of persons on the combined 
as DM if it has nexus with Michigan. If it does not have nexus,         return is treated as the taxpayer (a distinct entity) for purposes 
the controlling member may appoint any member with nexus                of the MBT Act.
to serve as DM. The tax year of the DM determines the filing 
period  for  the  UBG.  The  combined  return  must  include  each      Taxpayer Certification
tax year of each member that ends with or within the tax year           A  return  filed  by  a  UBG  must  be  signed  by  an  individual 

                                                                                                                               15

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authorized  to  sign  on  behalf  of  the  DM.  Provide  a  telephone   Revenue Service (IRS) audit document, if applicable. Include 
number for that individual at the DM’s office.                          all forms filed with the original return, even if not amending 
                                                                        each  form.  Enter  the  figures  on  the  amended  return  as  they 
General Instructions                                                    should be.
Dates must be entered in MM-DD-YYYY format.                             Do not include a copy of the original return with the 
For periods less than 12 months, see the “General Information           amended return.
for Standard Taxpayers” section in Form 4600.                           NOTE:  A  taxpayer  may  not  amend  a  return  to  revoke  the 
                                                                        election to remain taxable under the MBT.  Once the taxpayer 
A  person  that  is  a  disregarded  entity  for  federal  income  tax 
                                                                        makes  a  valid  election  to  claim  a  certificated  credit,  the 
purposes under the internal revenue code shall be classified as 
                                                                        taxpayer  must  remain  in  the  MBT  until  the  credit  and  any 
a disregarded entity for the purposes of filing the MBT annual 
                                                                        carryforward of that credit are exhausted.
return.
                                                                        Refund Only:  If  apportioned  or  allocated  gross  receipts  are 
A  taxpayer,  other  than  a  UBG,  that  does  not  file  a  separate  less than $350,000 and there is no recapture, and the taxpayer 
federal  return  must  prepare  a  pro  forma  federal  return  or      is  filing  Form  4567  to  claim  a  refund  of  estimates  paid,  skip 
equivalent  schedule  and  use  it  as  the  basis  for  preparing  its lines 13 through 57 and lines 64 through 67.
MBT return. For standard members of a UBG, this pro forma 
requirement  is  addressed  in  Form  4580,  Part  2A,  and  its        UBGs: If combined apportioned or allocated gross receipts of 
instructions.                                                           all members (before eliminations) are less than $350,000 and 
                                                                        there  is  no  recapture,  and  the  taxpayer  is  filing  Form  4567 
UBGs:  Complete  Form  4580  before  beginning  Form  4567.             solely to claim a refund of estimates paid, Form 4580 must also 
Answer lines 1 through 8 of Form 4567 as they apply to the              be included. The designated member must complete Part 1A, 
DM.                                                                     Part 2B (skip lines 18 through 65), Part 3, and Part 4 of Form 
MBT Liability: Beginning  January  1,  2012,  a  taxpayer               4580. For each member listed in Part 1A, complete Part 1B and 
calculates MBT liability as the greater of MBT liability after          2A (skip lines 18 through 65). See Form 4567 for instructions 
all  credits,  deductions,  and  exemptions  or  hypothetical  CIT      on completing that form.
liability  minus  deductions  and  credits  available  under  that 
act  and  minus  certificated  credits  allowed  under  the  MBT.       Simplified Calculation
This  calculation  of  liability  requires  a  taxpayer  to  calculate  See  the  “2015  General  Information  for  Standard  Taxpayers” 
the  business  income  and  modified  gross  receipts  tax  bases       in  the Michigan Business Tax for Standard Taxpayers 
and  available  MBT  credits,  including  certificated  credits,        (Form  4600)  for  instructions  on  “Computing  the  Simplified 
deductions,  and  exemptions  available under  the MBT.    Then,        Calculation” for eligible taxpayers.
the taxpayer will calculate the CIT comparison on the Schedule 
of Corporate Income Tax Liability (Form 4946).  A taxpayer is           Line-by-Line Instructions
permitted to reduce hypothetical CIT liability by all deductions 
and credits which would be allowed under that tax as well as            Lines not listed are explained on the form.
the amount of certificated credit allowed under the MBT.  The           Line  1:  If  not  a  calendar-year  taxpayer,  enter  the  beginning 
amount  of  certificated  credit  allowed  under  the  MBT  is  the     and  ending  dates  (MM-DD-YYYY)  that  correspond  to  the 
amount of nonrefundable credit needed to offset MBT liability           taxable period as reported to the IRS.
or the entire amount of a refundable credit.
                                                                        Tax year  means  the  calendar  year,  or  the  fiscal  year  ending 
If  the  taxpayer’s  hypothetical  CIT  liability  would  be  higher    during the calendar year, upon the basis of which the tax base 
than  its  MBT  liability,  the  taxpayer  will  add  the  difference   of a taxpayer is computed. If a return is made for a part of a 
to  MBT  liability  on  line  58  of  Form  4567.    This  is  the  CIT year, tax year means the period for which the return is made. 
adjustment.  If the result of both steps of the calculation is a        Generally,  a  taxpayer’s  tax  year  is  for  the  same  period  as  is 
negative  number,  the  taxpayer  will  receive  a  refund  of  the     covered by its federal income tax return.
lower  negative;  but  a  nonrefundable  credit  cannot  be  used 
to  reduce  liability  below  zero.  Remaining  nonrefundable           Line  2:  Enter  the  complete  address  and,  if  other  than  the 
certificated  credit  may  be  carried  forward  to  succeeding  tax    United States, enter the two-digit abbreviation for the country 
years.                                                                  code.  See  the  list  of  country  codes  in MBT Forms and 
                                                                        Instructions for Standard Taxpayers (Form 4600).
For purposes of this calculation:  For  a  Partnership  or  S 
Corporation,  business  income  includes  payments  and  items          Any  correspondence  regarding  the  return  filed  and/or  refund 
of income and expense attributable to the business activity of          will be sent to the address used here. Check the new address 
the partnership or S corporation and separately reported to the         box if the address used on this line has changed from the last 
members.                                                                filing.  The  taxpayer’s  primary  address  in  the  Department  of 
                                                                        Treasury  (Treasury)  files,  identified  as  the  legal  address  and 
Amended Returns: To amend a current or prior year annual                used  for  all  purposes  other  than  refund  and  correspondence 
return, complete the Form 4567 that is applicable for that year,        on a specific MBT return, will not change until the customer 
check the box in the upper-right corner of the return, and attach       specifically  makes  the  change  on  their  Michigan  Treasury 
a separate sheet explaining the reason for the changes. Include         Online  (MTO)  account.  Visit michigan.gov/mtobusiness  for 
an  amended  federal  return  or  a  signed  and  dated  Internal 

16

- 19 -

more information. tax purposes, including a single member LLC or Q-Sub, must
file as if it were a sole proprietorship if owned by an individual,
UBGs: In the Name field, enter the name of the DM for the
or a branch or division if owned by another business entity.
standard members of this UBG.
Line 9: Check this box if filing a Michigan UBG return and
Line 3: Enter a brief description of business activity (e.g.,
include a Form 4580 for each member of the UBG included in
forestry, fisheries, mining, construction, manufacturing,
this filing.
transportation, communication, electric, gas, sanitary services,
wholesale trade, retail trade, finance, or services, etc.). Line 10: Check this box if the taxpayer has sales that are
receipts from transportation services. Taxpayers that check
Line 4: Enter the start date of first business activity in Michigan.
this box also must complete lines 11a, 11b, and 11c. To
Line 5: Enter the entity’s six-digit North American Industry calculate Michigan Sales from Transportation Services, see the
Classification System (NAICS) code. For a complete list of instructions for line 11 and the table in the “Sourcing of Sales
six-digit NAICS codes, see the U.S. Census Bureau Web site to Michigan” section of these instructions.
at www.census.gov/eos/www/naics/, or enter the same NAICS
Line 11: For a Michigan-based taxpayer, all sales are
code used when filing the entity’s U.S. Form 1120, Schedule K;
Michigan sales unless the taxpayer is subject to tax in
U.S. Form 1120S; U.S. Form 1065; or U.S. Form 1040,
another state. A taxpayer will be deemed subject to a tax in
Schedule C.
another state if the taxpayer has due process and commerce
Line 6: Enter the date, if applicable, on which the taxpayer clause nexus with that state. In that state, the taxpayer must
went out of existence. If the taxpayer is still subject to another be subject to a business privilege tax, a net income tax, a
tax administered by Treasury, or continues to exist but has franchise tax measured by net income, a franchise tax for
stopped doing business in Michigan, do not use this line. Also, the privilege of doing business, a Corporation stock tax, or
do not use this line if the taxpayer is a UBG and one member a tax of the type imposed under the MBT Act, or that state
has stopped doing business. has jurisdiction to subject the taxpayer to one or more of such
taxes regardless of whether or not the tax is imposed.
A discontinuance may be processed by updating the account
by using the Michigan Treasury Online (MTO) website. Visit If no Michigan sales, enter zero.
michigan.gov/mtobusiness for more information.
MBT is based only on business activity apportioned to
Line 7: Use the taxpayer’s Federal Employer Identification Michigan. A taxpayer that has not established nexus with one
Number (FEIN) or the Michigan Treasury (TR) assigned other state or a foreign country is subject to MBT on their
number. Be sure to use the same account number on all forms. entire business activity. Business activity is apportioned to
Michigan based on sales.
If the taxpayer does not have an FEIN or TR number,
the taxpayer must register before filing this form. Sale or Sales means the amounts received by the taxpayer as
Taxpayers are encouraged to register online at consideration from the following:
www.michigan.gov/mtobusiness. Click on the quick link “New
• The transfer of title to, or possession of, property that is
Business” for information on how to obtain a FEIN, which is
stock in trade or other property of a kind which would
required to submit a return through e-file. Taxpayers usually
properly be included in the inventory of the taxpayer if on
can obtain an FEIN from the IRS within 48 hours. Taxpayers
hand at the close of the tax period, or property held by the
registering with the State online usually receive an account
taxpayer primarily for sale to customers in the ordinary
number within seven days.
course of its trade or business. For intangible property, the
Returns received without a registered account number will not amounts received will be limited to any gain received from
be processed until such time as a number is provided. the disposition of that property.
NOTE: TR numbers are generally assigned to accounts that • Performance of services which constitute business activities.
have not acquired an FEIN. Once an FEIN is received, Treasury • The rental, leasing, licensing, or use of tangible or
will use the FEIN as the account number, if provided. To intangible property, including interest, that constitutes
change account numbers, a taxpayer should submit Form 163 business activity.
so Treasury can update the records and make sure the account • Any combination of business activities described above.
numbers are linked.
• For taxpayers not engaged in any other business activities, sales
UBGs: Enter the FEIN or TR Number of the DM for the include interest, dividends, and other income from investment
standard members of this UBG. assets and activities and from trading assets and activities.
Line 8: Check the box that describes the DM’s organization Complete the Apportionment Calculation using amounts for
type. A Trust or a Limited Liability Company (LLC) should the taxpayer’s business activity only. Do not include amounts
check the appropriate box based on its federal return. from an interest in a Partnership, S Corporation, or LLC.
NOTE: A person that is a disregarded entity for federal income Use the information in the “Sourcing of Sales to Michigan”
tax purposes under the internal revenue code shall be classified section of these instructions to determine Michigan sales. If
as a disregarded entity for the purposes of filing the MBT sales reported are adjusted by a deduction for qualified sales to
annual return. This means that a disregarded entity for federal a qualified customer, as determined by the Michigan Economic

- 20 -

Growth  Authority  (MEGA),  attach  the  Anchor  District  Tax         most instances. Taxpayers and tax professionals are expected to 
Credit Certificate or Anchor Jobs Tax Credit Certificate from          be familiar with uncommon situations within their experience, 
the Michigan Economic Development Corporation (MEDC) as                which  produce  gross  receipts  not  identified  by  specific  lines 
support.                                                               on  Worksheet  4700,  and  report  that  amount  on  the  most 
                                                                       appropriate  line.  Treasury  may  adjust  the  figure  resulting 
For  sales  from  the  performance  of  services,  see  RAB  2010-5, 
                                                                       from  the  worksheet  to  account  properly  for  such  uncommon 
“Michigan Business Tax Where Benefit of Services is Received,” 
                                                                       situations.
on  the  Treasury  Web  site  at   www.michigan.gov/treasury/, 
under “Reports and Legal Resources.”                                   A  taxpayer  should  compute  its  gross  receipts  using  the  same 
For transportation services that source sales based on revenue         accounting method used in the computation of its net income 
miles,  enter  a  sales  amount  on  Line  11a  by  multiplying  total for federal income tax purposes.
sales  of  the  transportation  service  by  the  ratio  of  Michigan  Producers  of Agricultural Goods:   The  total  gross  receipts 
revenue  miles  over  revenue  miles  everywhere  as  provided         from  all  business  activity  must  be  reported  on  line  12, 
in the “Sourcing of Sales to Michigan” chart for that type of          including  the  gross  receipts  from  agricultural  activity  of  a 
transportation service. Revenue mile means the transportation          person whose primary activity is the production of agricultural 
for a consideration of one net ton in weight or one passenger          goods.  A  subtraction  is  allowed  on  line  21  for  the  gross 
the distance of one mile.                                              receipts that have been included on this line that are from the 
NOTE: Only transportation services are sourced using revenue           agricultural activity of a person whose primary activity is the 
miles.  To  the  extent  the  taxpayer  has  business  activities  or  production of agricultural goods. 
revenue  streams  not  from  transportation  services,  those                                                   The  total  gross 
                                                                       Producers of Oil or Gas, and Minerals:
receipts should be sourced accordingly.                                receipts from all business activity must be reported on line 12, 
PART 1: MODIFIED GROSS RECEIPTS TAX                                    including the gross receipts from the production of oil and gas 
Line  12: Gross receipts  means  the  entire  amount  received  by     even if this activity is subject to the Severance Tax on Oil or 
the taxpayer, as determined by using the taxpayer’s method of          Gas,  and  Minerals,  1929  PA  48.  A  subtraction  is  allowed  on 
accounting for federal income tax purposes, from any activity,         line 21 for the gross receipts that have been included on this 
whether in intrastate, interstate, or foreign commerce, carried out    line that are from the production of oil and gas that are subject 
for direct or indirect gain, benefit or advantage to the taxpayer or   to the Severance Tax on Oil or Gas, and Minerals.
to others, with certain exceptions.
                                                                       Line  13:  Enter  inventory  acquired  during  the  tax  year, 
Calculation of gross receipts also involves a deduction of any         including  freight,  shipping,  delivery,  or  engineering  charges 
amount deducted as bad debt for federal income tax purposes            included in the original contract price for that inventory, and 
that  corresponds  to  items  of  gross  receipts  included  in  the   any pre-paid sales tax required to be paid on the inventory at the 
modified  gross  receipts  tax  base  for  the  current  tax  year  or time of purchase. Neither pre-paid sales tax, nor the sales tax 
past tax years. This reduction is reflected in the Gross Receipts      collected upon resale of that inventory is excluded from gross 
Worksheet (Worksheet 4700) discussed below. Receipts include,          receipts calculated on Worksheet 4700. This must be reported 
but are not limited to:                                                on line 12 of Form 4567.
• Some or all receipts (sales proceeds) from the sale of assets        Inventory means the stock of goods, including electricity and 
  used in a business activity.                                         natural  gas,  held  for  resale  in  the  ordinary  course  of  a  retail 
• Sale of products.                                                    or  wholesale  business,  and  finished  goods,  goods  in  process 
• Services performed.                                                  of a manufacturer, and raw materials purchased from another 
                                                                       person.  Inventory  also  includes  shipping  and  engineering 
• Gratuities stipulated on a bill.
                                                                       charges  so  long  as  such  charges  are  included  in  the  original 
• Sales tax collected on the sale of tangible personal property,       contract  price  for  the  associated  inventory  and  floor  plan 
  subject to a phase-out schedule.                                     interest for licensed new car dealers. 
• Dividend and interest income.
                                                                       For  purposes  of  this  deduction, floor  plan  interest  means 
• Gross commissions earned.                                            interest paid that finances any part of the person’s purchase of 
• Rents.                                                               new motor vehicle inventory from a manufacturer, distributor, 
• Royalties.                                                           or  supplier.  However,  amounts  attributable  to  any  invoiced 
                                                                       items  used  to  provide  more  favorable  floor  plan  assistance  to 
• Sales of scrap and other similar items.
                                                                       a  person  subject  to  the  tax  imposed  under  this  act  than  to  a 
• Client reimbursed expenses not obtained in an agency capacity.       person not subject to this tax are considered interest paid by a 
• Gross  proceeds  from  sales  between  affiliated  companies,        manufacturer, distributor, or supplier.
  including members of a UBG.
                                                                       For a person that is a securities trader, broker, or dealer or a 
Use Worksheet 4700, in Form 4600, to calculate gross receipts.         person included in the UBG of that securities trader, broker, 
                                                                       or  dealer  that  buys  and  sells  for  its  own  account,  inventory 
Attach  the  worksheet  to  the  return.  Gross  receipts  are  not    includes  contracts  that  are  subject  to  the  Commodity 
necessarily  derived  from  the  federal  return,  however,  the       Exchange  Act,  7  USC  1  to  27f;  the  cost  of  securities  as 
worksheet  will  calculate  gross  receipts  as  defined  by  law  in  defined under IRC § 475(c)(2); and for a securities trader, the 

18

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cost of commodities as defined under IRC § 475(e)(2); and for            calculating total income on the taxpayer’s federal income tax 
a broker or dealer, the cost of commodities as defined under             return. 
IRC  §  475(e)(2)(b),  (c),  and  (d),  excluding  interest  expense 
                                                                       UBGs: This subtraction is only available to a member of the 
other than interest expense related to repurchase agreements. 
                                                                       UBG if the group does not claim the SBAC for the tax year. 
As used in this provision:
                                                                       However,  for  purposes  of  the  SIC  code  requirement,  it  is 
• Broker  and dealer  mean  those  terms  as  defined  under           sufficient that the UBG member that made the payments listed 
  section 78c(a)(4) and (a)(5) of the Securities Exchange Act of       above  be  included  in  SIC  codes  15,  16,  or  17.  Therefore,  the 
  1934, 15 USC 78c.                                                    relevant  SIC  code  is  entered  in  the  member’s  page  of  Form 
• Securities trader means a person that engages in the trade or        4580 (Part 2A, Line 22), and the SIC code field on Form 4567 
  business of purchasing and selling investments and trading           should be left blank by a UBG.
  assets.                                                              Persons  included  in  SIC  codes  15,  16,  and  17  include 
                                                                       general  contractors  (of  residential  buildings  including 
Inventory does not include any of the following:
                                                                       single-family  homes;    industrial,   commercial, and 
• Personal  property  under  lease  or  principally  intended  for     institutional  buildings;  bridges,  roads,  and  infrastructure, 
  lease rather than sale.                                              etc.);  operative  builders;  and  trade  contractors  (such 
• Property allowed a deduction or allowance for depreciation           as  electricians,  plumbers,  painters,  masons,  etc.).  See 
  or depletion under the IRC.                                          http://www.osha.gov/pls/imis/sic_manual.html  for  a  more 
                                                                       complete list.
• Labor costs.
                                                                       A subcontractor  is  an  Individual  or  entity  that  enters  into  a 
Line  14:  Enter  assets  purchased  from  other  firms,  including    contract and assumes some or all of the obligations of a person 
the costs of fabrication and installation, acquired during the tax     included in SIC codes 15, 16, and 17 as set forth in the primary 
year of a type that are, or under the IRC will become, eligible        contract  specific  to  a  project.  Thus,  payments  made  to  an 
for  depreciation,  amortization,  or  accelerated  capital  cost      independent contractor to provide general labor services to the 
recovery for federal income tax purposes.                              contractor not specific to a particular contract do not constitute 
                                                                       purchases  from  other  firms.  However,  payments  made  to  a 
Line  15: To the extent not included in inventory or depreciable 
                                                                       subcontractor  for  services  and  materials  provided  under  a 
property,  enter  materials  and  supplies,  including  repair  parts 
                                                                       contract  specific  to  a  particular  construction  project  (such  as 
and fuel.
                                                                       the  construction  of  commercial  property  on  Main  Street)  do 
Materials and supplies  means  tangible  personal  property            constitute purchases from other firms. There is no limitation or 
purchased in the tax year that are ordinary and necessary              condition that the subcontractors to whom such payments are 
expenses to be used in carrying on a trade or business.                made be licensed.
Materials  and  supplies  includes  repair  parts  and  fuel.  Fuel    The  taxpayer  bears  the  burden  to  prove  it  is  entitled  to  a 
means materials used and consumed to produce heat or power             deduction  in  computing  its  tax  liability.  It  is  presumed  that 
by burning. Fuel does not include electricity.                         good business practice would include documentation such as 
Line 16:  A  staffing  company  may  deduct  compensation  of          a written contract that would support a deduction from gross 
personnel  supplied  to  its  clients,  including  wages,  benefits,   receipts  for  payments  to  subcontractors  as  purchases  from 
workers’  compensation  costs,  and  all  payroll  taxes  paid  for    other  firms.  The  supporting  information  for  payments  to  a 
personnel  provided  to  the  clients  of  staffing  companies  as     subcontractor could be incorporated into the contract for the 
defined under MBT. Staffing company means a taxpayer whose             specific  project  or  memorialized  in  a  separate  contract  with 
business  activities  are  included  in  Industry  Group  736  under   a  subcontractor  specifying  the  project  to  which  the  costs 
the Standard Industrial Classification (SIC) Code as compiled          pertain.
by the United States Department of Labor.                              Line  18:  Enter  film  rental  or  royalty  payments  paid  by  a 
Payments  to  a  staffing  company  by  a  client  do  not  constitute theater owner to a film distributor, a film producer, or a film 
purchases from other firms.                                            distributor and producer.
                                                                       Line  19:  Enter  any  deduction  available  to  a  Qualified 
Line  17:  For  taxpayers  that  fall  under  SIC  major  groups  15 
                                                                       Affordable Housing Project (QAHP).
(Building  Construction  General  Contractors  and  Operative 
Builders),  16  (Heavy  Construction  Other  Than  Building            Public Act (PA) 168 of 2008 provides for a deduction from the 
Construction Contractors), and 17 (Construction Special Trade          modified  gross  receipts  and  apportioned  business  income  tax 
Contractors) and do not claim the Small Business Alternative           bases for a Qualified Affordable Housing Project.
Credit  (SBAC)  under  MCL  208.1417,  the  following  payments 
                                                                       Qualified  Affordable  Housing  Project  means  a  person  that 
are considered purchases from other firms:
                                                                       is  organized,  qualified,  and  operated  as  a  limited  dividend 
• Payments to subcontractors for a construction project under          housing  association  that  has  a  limitation  on  the  amount  of 
  a contract specific to that project, and                             dividends or other distributions that may be distributed to its 
• To  the  extent  not  deducted  as  inventory  and  materials  and   owners in any given year and has received funding, subsidies, 
  supplies,  payments  for  materials  deducted  as  purchases         grants,  operating  support,  or  construction  or  permanent 
  in  determining  the  cost  of  goods  sold  for  the  purpose  of   funding through one or more public sources.

                                                                                                                          19

- 22 -

A limited  dividend  housing  association  is  organized  and             Therefore,  the  entire  amount  of  Modified  Gross  Receipts  Tax 
qualified  pursuant  to  Chapter  7  of  the  State  Housing              stated and collected by new motor vehicle dealers and new or 
Development Authority Act (MCL 125.1491 et seq).                          used personal watercraft dealers must be remitted to Treasury. 
                                                                          There should be no instance where a dealer would be collecting 
If  these  criteria  are  satisfied,  a  Qualified  Affordable  Housing 
                                                                          amounts  of  Modified  Gross  Receipts  Tax  from  customers  in 
Project  may  deduct  its  gross  receipts  attributable  to  the 
                                                                          excess of the amount of taxes remitted to Treasury. Taxpayers 
residential  rental  units  in  Michigan  it  owns  multiplied  by 
                                                                          who  elect  to  separately  collect  the  Modified  Gross  Receipts 
a  fraction,  the  numerator  of  which  is  the  number  of  rent 
                                                                          Tax, in addition to sales price, under MCL 208.1203(5) may file 
restricted  units  in  Michigan  owned  by  that  Qualified 
                                                                          and remit the tax as estimated payments with their Corporate 
Affordable  Housing  Project  and  the  denominator  of  which  is 
                                                                          Income Tax Quarterly Return (Form 4913). 
the number of all residential rental units in Michigan owned by 
the project. This deduction is reduced by the amount of limited           NOTE: Only new motor vehicle dealers and dealers of new or 
dividends  or  other  distributions  made  to  the  owners  of  the       used  personal  watercraft  are  permitted  to  separately  itemize 
project.  Amounts  received  by  the  management,  construction,          and collect a tax imposed under the MBT Act from customers 
or development company for completion and operation of the                in addition to sales price, and that authority is limited to only 
project  and  rental  units  do  not  constitute  gross  receipts  for    the  Modified  Gross  Receipts  Tax  imposed  and  levied  under 
purposes of the deduction.                                                Section  203  of  the  MBT  Act.  The  statute  does  not  authorize 
                                                                          separate itemizing and collection of the Business Income Tax 
MCL 208.1201(8) governs the termination of this deduction.
                                                                          by any taxpayer.
UBGs:  Leave  lines  19a  through  19f  blank  and  carry  the 
                                                                          UBGs: Add the combined total after eliminations from Form 
amount from Form 4580, Part 2B, line 24g, column C, to Form 
                                                                          4580, Part 2B, line 29, column C, to the number on Form 4567, 
4567, line 19g.
                                                                          line 25, and enter the sum on line 26.
Line 20:  Enter  payments  made  by  taxpayers  licensed  under 
                                                                          NOTE:  For  a  UBG  in  which  no  member  charged  MGR 
Article  25  (Real  Estate  Brokers  and  Salespersons)  or  Article 
                                                                          (Modified  Gross  Receipts)  tax  as  an  invoice  item,  line  26 
26  (Real  Estate  Appraisers)  of  the  Occupational  Code  [MCL 
                                                                          should  match  line  25.  For  a  UBG  in  which  one  or  more 
339.2501 to 339.2518 and 339.2601 to 339.2637] to independent 
                                                                          members charged MGR tax as an invoice item and overcharged 
contractors licensed under Articles 25 or 26.
                                                                          (on  a  member-by-member  basis)  for  the  year,  line  26  will  be 
Line 21:  There  are  three  items  that  qualify  for  entry  on  this   larger than line 25 by the combined amount of the members’ 
line. If more than one type applies, enter the combined total as          pro forma overcharges.
a single amount.
  A) For a person classified under the 2002 North American                PART 2: BUSINESS INCOME TAX
  Industrial  Classification  System  (NAICS)  Number  484,  as           If business activity is protected under Public Law (PL) 86-272, 
  compiled  by  the  United  States  Office  of  Management  and          complete  and  include  the MBT  Schedule  of  Business  Activity 
  Budget,  that  does  not  qualify  for  a  credit  under  Section       Protected Under Public Law 86-272 (Form 4586). Leave lines 
  417, enter the payment, made on or after July 12, 2011, to              28 through 50 blank.
  subcontractors to transport freight by motor vehicle under a 
                                                                          UBGs: If  business  activity  of  a  UBG  member  is  protected 
  contract specific to that freight to be transported by motor 
                                                                          under PL 86-272, that member must claim protection by filing 
  vehicle. Attach a letter to explain the activity that qualifies 
                                                                          Form 4586 (if that member is the DM) or Form 4581 (if a non-
  for  this  subtraction  and  the  date  of  the  payment.  Include 
                                                                          designated member). Report only the activities of the member 
  the NAICS code.
                                                                          named on that form. If all members of the UBG are claiming 
  B)  Enter  on  this  line  the  gross  receipts  included  on  line     PL  86-272  protection,  then  the  UBG  will  leave  lines  28 
  12, which result from the agricultural activity of a person             through 50 blank. So long as one member of a UBG has nexus 
  whose primary activity (i.e., more than 50 percent of gross             with  Michigan  and  exceeds  the  protections  of  PL  86-272,  all 
  receipts) is the production of agricultural goods.                      members  of  the  UBG  —  including  members  protected  under 
                                                                          PL  86-272  —  must  be  included  when  calculating  the  UBG’s 
  C) Enter on this line the gross receipts included on line 12 
                                                                          Business Income Tax base and apportionment formula. PL 86-
  which result from the production of oil or gas, and minerals 
                                                                          272 will only remove business income from the apportionable 
  if that production of oil or gas, and minerals is subject to the 
                                                                          Business Income Tax base when all members of the UBG are 
  Severance Tax on Oil or Gas, 1929 PA 48.
                                                                          protected under PL 86-272.
Line  26: Enter the amount of MBT Modified Gross Receipts 
                                                                          Line  28: Business income  means  that  part  of  federal  taxable 
Tax collected in the tax year. 
                                                                          income  derived  from  business  activity.  For  MBT  purposes, 
Section  203(5)  of  the  MBT  Act  permits  new  motor  vehicle          federal taxable income means taxable income as defined by IRC 
dealers  licensed  under  the  Michigan  Vehicle  Code,                   § 63, except that federal taxable income shall be calculated as if 
PA 300 of 1949, MCL 257.1 to 257.923, and dealers of new or               IRC § 168(k) [as applied to qualified property placed in service 
used personal watercraft to collect the Modified Gross Receipts           after December 31, 2007] and IRC § 199 were not in effect. For 
Tax  in  addition  to  the  sales  price.  The  act  states  the  “amount a Partnership or S Corporation (or LLC federally taxed as such), 
remitted  to  the  Department  for  the  [Modified  Gross  Receipts       business  income  includes  payments  and  items  of  income  and 
Tax] ... shall not be less than the stated and collected amount.”         expense  that  are  attributable  to  business  activity  of  the 

20

- 23 -

Partnership  or  S  Corporation  and  separately  reported  to  the        to  that  individual,  or  a  common  trust  established  under  the 
partners or shareholders.                                                  Collective Investment Funds Act of 1941, is not included in the 
                                                                           Business  Income  Tax  base.  This  exclusion  only  applies  to  the 
Use  the Business Income  Worksheet    (Worksheet  4746),  in 
                                                                           specific types of taxpayers identified above. Investment income 
Form 4600, to calculate business income. Attach the worksheet 
                                                                           and any other types of income earned or received by all other 
to  the  return.  The  worksheet  will  calculate  business  income 
                                                                           types of persons or taxpayers not specifically referenced must be 
as  defined  by  law  in  most  instances.  Taxpayers  and  tax 
                                                                           included in the business income of the taxpayer.
professionals  are  expected  to  be  familiar  with  uncommon 
situations  within  their  experience,  which  produce  business           Additions to Income
income  not  identified  by  specific  lines  on  the  worksheet,  and     Additions  are  generally  required  to  the  extent  deducted  in 
report that amount on the most appropriate line. Treasury may              arriving at federal taxable income. (Business income, line 28.)
adjust  the  figure  resulting  from  Worksheet  4746  to  account 
properly for such uncommon situations.                                     Line  29:  Enter  any  interest  income  and  dividends  from 
                                                                           bonds and similar obligations or securities of states other than 
For  an  organization  that  is  a  mutual  or  cooperative  electric      Michigan and their political subdivisions in the same amount 
company  exempt  under  IRC  §  501(c)(12),  business  income              that was excluded from federal taxable income (as defined for 
equals  the  organization’s  excess  or  deficiency  of  revenues          MBT purposes). Reduce this addition by any expenses related 
over expenses as reported to the federal government by those               to  the  foregoing  income  that  were  disallowed  on  the  federal 
organizations  exempt  from  the  federal  income  tax  under  the         return by IRC § 265 or 291.
IRC, less capital credits paid to members of that organization, 
less  income  attributed  to  equity  in  another  organization’s  net     Line  30:  Enter  all  taxes  on,  or  measured  by,  net  income 
income,  and  less  income  resulting  from  a  charge  approved           including city and state taxes, Foreign Income Tax, and Federal 
by  a  state  or  federal  regulatory  agency  that  is  restricted  for   Environmental Tax claimed as a deduction on the federal return.
a  specified  purpose  and  refundable  if  it  is  not  used  for  the    Line  31:  Enter  the  Michigan  Business  Tax,  including 
specified purpose.                                                         surcharge, claimed as a deduction on the federal return.
For  a  tax-exempt  person, business income  means  only  that             Line  32: Enter any net operating loss carryback or carryover 
part of federal taxable income (as defined for MBT purposes)               that  was  deducted  in  arriving  at  federal  taxable  income  (as 
derived from unrelated business activity.                                  defined  for  MBT  purposes)  reported  on  line  28.  Enter  this 
For  an  Individual  or  an  Estate,  or  for  a  Partnership  or  Trust   amount as a positive number.
organized for estate or gift planning purposes, business income            Line  33: Enter any losses included in federal taxable income 
is  that  part  of  federal  taxable  income  (as  defined  for  MBT       (as  defined  for  MBT  purposes)  that  are  attributable  to  other 
purposes) derived from transactions, activities, and sources in            entities that have made a valid election to file under the MBT 
the regular course of the person’s trade or business, including            and have filed under the MBT. If there is only one such entity 
the following:                                                             to  report,  enter  its  FEIN  or  TR  number  in  the  field  on  this 
• All  income  from  tangible  and  intangible  property  if  the          form.  If there is more than one such entity to report, enter 
  acquisition, rental, lease, management, or disposition of the            on  the  form  the  FEIN  or  TR  number  of  one  of  the  entities 
  property  constitutes  integral  parts  of  the  person’s  regular       and  attach  a  list  of  the  account  numbers  of  all.  On  the  list 
  trade or business operations.                                            include a breakdown of the amount of this loss add-back that 
• Gains or losses incurred in the taxpayer’s trade or business             is attributable to each entity. In any case, the amount on line 
  from  stock  and  securities  of  any  foreign  or  domestic             33 should be the total of all losses, not just the loss of the one 
  corporation and dividend and interest income.                            entity identified on the form.
• Income  derived  from  isolated  sales,  leases,  assignments,           UBGs:  It  is  not  necessary  to  attach  a  list  of  entities  in 
  licenses,  divisions,  or  other  infrequently  occurring                connection  with  this  line  item  because  all  entities  for  which 
  dispositions,  transfers,  or  transactions  involving  tangible,        a loss add-back is being reported have been identified on the 
  intangible, or real property if the property is or was used in           corresponding line of Form 4580, or a similar list required as 
  the person’s trade or business operation.                                an attachment to Form 4580.
• Income derived from the sale of an interest in a business that           Line  34: Enter any royalty, interest, or other expense paid to 
  constitutes an integral part of the person;’s regular trade or           a person related to the taxpayer by ownership or control for 
  business.                                                                the  use  of  an  intangible  asset  if  the  person  is  not  included 
                                                                           in  the  taxpayer’s  UBG.  Royalty,  interest,  or  other  expense 
• Income derived from the lease or rental of real property
                                                                           described here is not required to be included if the taxpayer 
NOTE:  Personal  investment  income,  gains  from  the  sale  of           can  demonstrate  that  the  transaction  has  a  nontax  business 
property held for personal use and enjoyment, or other assets not          purpose  other  than  avoidance  of  this  tax,  is  conducted  with 
used in a trade or business, and any other income not specifically         arm’s-length  pricing  and  rates  and  terms  as  applied  in 
derived  from  a  trade  or  business  that  is  earned,  received,  or    accordance with IRC § 482 and 1274(d), and satisfies one of 
otherwise  acquired  by  an  Individual,  an  Estate,  or  a  Trust  or    the following:
Partnership organized or established for estate or gift planning           • Is  a  pass-through  of  another  transaction  between  a  third 
purposes, a person organized exclusively to conduct investment               party  and  the  related  person  with  comparable  rates  and 
activity  solely  for  a  third  party  individual  or  a  person  related 

                                                                                                                                   21

- 24 -

  terms.                                                               A)  For  tax  years  that  begin  after  December  31,  2009,  to 
• Results  in  double  taxation.  For  this  purpose,  double          the  extent  included  in  federal  taxable  income,  deduct 
  taxation exists if the transaction is subject to tax in another      the  amount  of  a  charitable  contribution  made  to  the 
  jurisdiction.                                                        Advance  Tuition  Payment  fund  created  under  section  9 
                                                                       of  the  Michigan  Education  Trust  Act,  PA  316  of  1986, 
• Is unreasonable as determined by Treasury, and the taxpayer 
                                                                       MCL  390.1429.  This  is  deductible  only  to  the  extent  that 
  agrees that the addition would be unreasonable based on the 
                                                                       contribution was NOT federally deductible.
  taxpayer’s facts and circumstances.
• The related person (recipient of the transaction) is organized       B) Eligible  licensed  marihuana  trades  or  businesses  may 
  under  the  laws  of  a  foreign  nation  which  has  in  force  a   subtract ordinary and necessary expenses paid or incurred 
  comprehensive income tax treaty with the United States.              during the tax year that would be allowed if section 280E 
                                                                       of  the  internal  revenue  code  were  not  in  effect.  Under 
Line 35:  There  currently  are  no  additions  required  that  are    the Michigan Regulation and Taxation of Marihuana Act 
recorded on this line. Leave this line blank.                          (which allows for what is often referred to as “recreational” 
                                                                       or  “adult  use”  marihuana),  a  marihuana  establishment 
Subtractions from Income                                               licensed  under  that  act  is  allowed  a  deduction  from 
                                                                       Michigan income tax for certain expenses not allowed in 
Subtractions  are  generally  available  to  the  extent  included  in 
                                                                       arriving  at  federal  taxable  income.  IRC  280E  prohibits  a 
arriving at federal taxable income (Business Income, line 28).
                                                                       deduction for any amount paid or incurred in carrying on 
Line  38:  Enter  any  dividends  and  royalties  received  from       a trade or business that consists of trafficking in Schedule 
persons other than United States persons and foreign operating         I and II controlled substances (e.g., marihuana).  However, 
entities,  including,  but  not  limited  to,  amounts  determined     the IRC is also structured to recognize the cost of goods 
under IRC § 78 or IRC § 951 to 965.                                    sold  before  reaching  gross  profit,  regardless  whether 
                                                                       taxpayer  is  in  the  business  of  trafficking  in  marihuana. 
NOTE:  To  the  extent  deducted  in  arriving  at  federal  taxable 
                                                                       Therefore, any expenses related to cost of goods sold (and 
income, any deduction under IRC 250(a)(1)(B) should be added 
                                                                       any  other  expenses  already  allowed  in  reaching  federal 
back on this line (i.e., netted against subtractions made on this 
                                                                       taxable income) may not be subtracted from the Michigan 
line).
                                                                       base.
Line  39: Enter any income included in federal taxable income (as 
                                                                       C)  Enter  the  Book-Tax  deduction  to  the  extent  available.  
defined for MBT purposes) that are attributable to other entities 
                                                                       The deduction is only available to a taxpayer that reported 
that have made a valid election to file under the MBT and have 
                                                                       a  Book-Tax  amount  on  Form  4593  with  an  original  2008 
filed under the MBT. If there is only one such entity to report, 
                                                                       MBT annual return.
enter its FEIN or TR number in the field on this form.  If there is 
more than one such entity to report, enter on the form the FEIN or     The Book-Tax deduction is calculated as follows:
TR number of one of the entities and attach a list of the account 
numbers of all. On the list include a breakdown of the amount of       1)  Total of amount reported on Column C of Form 4593 
this income subtraction that is attributable to each entity. In any    with  the  original  2008  MBT  annual  return.  (For UBGs, 
case, the amount on line 39 should be the total of all income, not     compute  the  sum  of  the  amounts  reported  by  all  current 
just the income of the one entity identified on the form.              members of the group who filed Form 4593.)
UBGs:  It  is  not  necessary  to  attach  a  list  of  entities  in   2)  Calculate  the  amount  needed  to  offset  the  net  deferred 
connection with this line item because all entities for which an       tax  liability  of  the  taxpayer  which  results  from  the 
income  subtraction  is  being  reported  have  been  identified  on   imposition of the business income tax, at a rate of 4.95%, 
the corresponding line of Form 4580, or a similar list required        and  the  modified  gross  receipts  tax,  at  a  rate  of  0.8%, 
as an attachment to Form 4580.                                         calculated  for  the  first  fiscal  period  ending  after  July  12, 
                                                                       2007.
Line  40: To the extent included in federal taxable income (as 
defined  for  MBT  purposes),  deduct  interest  income  derived       3) Take the lesser of the result of (1) or (2).
from United States obligations.
                                                                       4)  Report  on  this  line  4%  of  the  result  of  step  3.  The 
Line  41: To the extent included in federal taxable income (as         remaining  percentage  of  the  amount  from  step  3  will  be 
defined  for  MBT  purposes),  deduct  any  earnings  that  are  net   deductible in future years.
earnings  from  self-employment  as  defined  under  IRC  §  1402 
                                                                       A  taxpayer  claiming  the  Book-Tax  deduction  must  maintain 
of the taxpayer, or a partner or LLC member of the taxpayer. 
                                                                       records  and  work  papers  necessary  to  support  the  calculation 
The  amount  deducted  shall  be  the  amount  properly  reported 
                                                                       and journal entry identified for the same length of time that the 
on a schedule K-1-form 1065 as self-employment earnings for 
                                                                       deduction  is  available,  and  to  support  a  potential  audit  of  the 
federal income tax purposes for the tax year.
                                                                       taxpayer’s business by the Michigan Department of Treasury.
Line 42: There  are  three  items  that  qualify  for  entry  on  this 
                                                                       Line  45: If line 45 is negative, enter as a negative number. A 
line. If more than one type applies, enter the combined total as 
                                                                       loss on line 45 will create (or increase) the MBT business loss 
a single amount. 
                                                                       carryforward for the next year.

22

- 25 -

Line  46:  Deduct  any  available  MBT  business  loss  incurred          agreement)  less  rental  expenses  attributable  to  residential 
after December 31, 2007. Enter as a positive number.                      rental units in Michigan, including, but not limited to, repairs, 
                                                                          interest, insurance, maintenance, utilities, and depreciation.
Business loss means a negative business income tax base, after 
apportionment, if applicable.                                             Specifically, Partnerships may use a Rental Real Estate Income 
                                                                          and Expenses of a Partnership or an S Corporation (U.S. Form 
Only an MBT business loss may be used and only from prior 
                                                                          8825) to determine its taxable income attributable to residential 
consecutive years when the taxpayer was an MBT taxpayer.
                                                                          rental  units  in  Michigan.  To  the  extent  that  the  Qualified 
NOTE:  MBT  business  loss  carryforward  is  not  the  same  as          Affordable  Housing  Project  is  taxed  as  something  other  than 
the  federal  net  operating  loss  carryforward  or  carryback.  It      a  Partnership  or  S  Corporation,  the  Qualified  Affordable 
is also not the same as a Corporate Income Tax business loss              Housing  Project  may  use  the  Supplemental  Income  and  Loss 
carryforward.  A  CIT  business  loss  carryforward  may  not  be         (U.S. Form 1040, Schedule E) or  the relevant portions  of the 
entered  on  this  line  or  applied  against  the  MBT  tax  base.  A    U.S.  Corporation  Income  Tax  Return  (U.S.  Form  1120),  as 
taxpayer  that  acquires  the  assets  of  another  corporation  in  a    appropriate.  If  the  Qualified  Affordable  Housing  Project  is  a 
transaction described under section 381(a)(1) or (2) of the IRC           Corporation, the expenses permitted should be limited to those 
may deduct any MBT business loss carryforward attributable                also listed on the Low-Income Housing Credit Agencies Report 
to that distributor or transfer or corporation.                           of  Noncompliance  or  Building  Disposition  (U.S.  Form  8823) 
                                                                          and U.S. Form 1040, Schedule E. Rental receipts and expenses 
Line  47: Subtract line 46 from line 45. Any negative amount 
                                                                          must be calculated without regard to any gain or loss resulting 
on  line  47  is  an  MBT  business  loss  which  may  be  carried 
                                                                          from the disposition of rental property. Also, since Partnerships 
forward to the next filing period, except to the extent that all or 
                                                                          are  subject  to  tax  as  a  person  under  MBT,  flow-through 
some portion of this business loss has exceeded its usable life 
                                                                          amounts from other Partnerships are not considered.
of ten tax years.
                                                                          Improvements that increase the value of the property or extend 
NOTE: Any business loss created on this return may only be 
                                                                          its  life,  such  as  replacing  a  roof  or  renovating  a  kitchen,  are 
applied against a subsequent MBT business income tax base.  
                                                                          not  deductible  rental  expenses.  Any  passive  activity  loss 
This  business  loss  may  not  be  applied  against  a  subsequent 
                                                                          limitations  applicable  to  the  Qualified  Affordable  Housing 
Corporate Income Tax tax base.
                                                                          Project’s  federal  return  also  apply  for  purposes  of  MCL 
Line  48: If line 47 is positive, enter the Qualified Affordable          208.1201(7).
Housing Deduction, if applicable.                                         The  Qualified  Affordable  Housing  Project’s  deduction 
NOTE: If claiming both the seller’s and the QAHP deductions,              is  reduced  by  the  amount  of  limited  dividends  or  other 
complete the QAHP deduction calculation on lines 48a through              distributions  made  to  the  owners  of  the  project.  Income 
48h,  and  add  to  the  total  at  line  48i  the  amount  from  Form    received  by  the  management,  construction,  or  development 
4579, line 5.                                                             company  for  completion  and  operation  of  the  project  and 
                                                                          rental units does not constitute taxable income attributable to 
PA 168 of 2008 provides for a deduction from the apportioned              residential rental units.
Business Income Tax base to a Qualified Affordable Housing 
Project  and  a  seller  of  residential  rental  units  to  a  Qualified UBGs:  Leave  lines  48a  through  48h  blank  and  carry  the 
Affordable  Housing  Project.  Qualified  Affordable  Housing             amount from Form 4580, Part 2B, line 45i, column C, to line 
Project is defined under instructions for line 19.                        48i.
The seller may take a deduction from its apportioned Business             When  the  seller  claims  a  deduction  for  the  year  of  sale,  the 
Income  Tax  base  equal  to  the  gain  from  the  sale  of  the         State will place a lien on the property equal to the amount of 
residential  rental  units  to  the  Qualified  Affordable  Housing       the seller’s deduction. If the buyer fails to qualify as a Qualified 
Project,  as  calculated  on  the  MBT  Qualified  Affordable             Affordable  Housing  Project  or  fails  to  operate  any  of  the 
Housing  Seller’s  Deduction  (Form  4579).  Enter  the  amount           residential  rental  units  as  rent  restricted  units  in  accordance 
from Form 4579, line 5. (All MBT forms, including Form 4579,              with  the  operation  agreement  within  15  years  after  the  date 
are available online at www.michigan.gov/mbt.)                            of  purchase,  the  lien  placed  on  the  property  for  the  amount 
                                                                          of  the  seller’s  deduction  becomes  payable  to  the  State.  The 
The  Qualified  Affordable  Housing  Project  may  deduct  from           lien  is  payable  through  a  “recapture”  to  be  added  to  the  tax 
its  apportioned  Business  Income  Tax  base  an  amount  equal          liability  of  the  buyer  in  the  year  the  recapture  event  occurs. 
to the product of the taxable income attributable to residential          The recapture is calculated on MBT Schedule of Recapture of 
rental  units  in  Michigan  it  owns  multiplied  by  a  fraction,       Certain Business Tax  Credits and Deductions  (Form  4587), 
the numerator of which is the number of rent restricted units             and is reduced proportionally for the number of years the buyer 
in  Michigan  owned  by  that  Qualified  Affordable  Housing             qualified for the deduction.
Project  and  the  denominator  of  which  is  the  number  of  all 
residential rental units in Michigan owned by the project. MCL            PART 3: TOTAL MICHIGAN BUSINESS TAX
208.1201(8) governs the termination of this deduction.                    Line  53: IMPORTANT:       If  apportioned  or  allocated  gross 
In  general,  taxable  income  attributable  to  residential  rental      receipts  are  less  than  $350,000,  enter  a  zero  on  this  line.  A 
units  is  gross  rental  receipts  attributable  to  residential  rental return  to  report  tax  credit  recapture  is  mandatory,  however, 
units  in  Michigan  (purchased  pursuant  to  an  operation              even  if  a  taxpayer  is  otherwise  not  required  to  file  a  return 
                                                                          because it does not meet the filing threshold of $350,000.

                                                                                                                                        23

- 26 -

Tax Years Less Than 12 Months: If the reported tax year is Refer to the “Computing Penalty and Interest” section in Form
less than 12 months, gross receipts must be annualized. If 4600 to determine the annual return penalty rate and use the
annualized gross receipts do not exceed $350,000, enter zero on following “Overdue Tax Penalty” and “Overdue Tax Interest”
this line. worksheets.
Annualizing
WORKSHEET – OVERDUE TAX PENALTY
Multiply each applicable amount, total gross receipts, adjusted
business income, and shareholder, officer, and partner income, A. Tax due from Form 4567, line 67 ......... 00
and, for fiscal filers, divide the result by the number of months B. Late/extension or insufficient
the business operated. Generally, a business is considered in payment penalty percentage ................ %
business for one month if the business operated for more than C. Multiply line A by line B ..................... 00
half the days of the month. If the tax year is less than one month, Carry amount from line C to Form 4567, line 69b.
consider the tax year to be one month for the purposes of the
calculation. WORKSHEET – OVERDUE TAX INTEREST
A. Tax due from Form 4567, line 67 ......... 00
UBGs: If apportioned or allocated gross receipts before B. Applicable daily interest percentage .. %
intercompany eliminations (gross receipts from Form 4580, C. Number of days return was past due ...
Part 2B, line 17, column A, multiplied by the apportionment D. Multiply line B by line C .................... %
percentage reported on Form 4567, line 11c) are less than E. Multiply line A by line D .................... 00
$350,000, enter a zero on this line. Group members reporting
Carry amount from line E to Form 4567, line 69c.
a period of less than 12 months with this group return must
annualize their gross receipts figure on a member by member
basis. Use each member’s number of months reported in the Line 69c: NOTE: If the late period spans more than one
group’s tax year. Once all applicable members’ gross receipts interest rate period, divide the late period into the number
figures are annualized, add all members’ figures to determine of days in each of the interest rate periods identified in the
the group’s annualized apportioned or allocated gross receipts. “Computing Penalty and Interest” section in Form 4600, and
Line 58: If the amount entered on Form 4946, line 39, is a apply the calculations in the “Overdue Tax Interest” worksheet
positive number, enter that amount on this line. Only a positive separately to each portion of the late period. Combine these
amount may be entered on this line. interest subtotals and carry the total to line 66c.
NOTE: Include a completed copy of Form 4946 with this PART 5: REFUND OR CREDIT FORWARD
return regardless of whether an amount is entered on Line 58. Line 71: If the amount of the overpayment, less any penalty
and interest due on lines 68 and 69d is less than zero, enter the
PART 4: PAYMENTS, REFUNDABLE CREDITS, AND difference (as a positive number) on line 70. If the amount is
TAX DUE greater than zero, enter on line 71.
Line 61: Enter the total estimated taxes paid. Include all NOTE: If an overpayment exists, a taxpayer must elect a
payments made on returns that apply to the current tax year. refund of all or a portion of the amount and/or designate all or
For example, calendar year filers include money paid with the a portion of the overpayment to be used as an estimate for the
combined returns for return periods January through December. next MBT tax year. Complete lines 72 and 73 as applicable.
Line 72: If the taxpayer anticipates an MBT liability in the
Amended Returns Only: filing period subsequent to this return, some or all of any
Line 66a: Enter total payment(s) made with original and/or overpayment from line 71 may be credited forward to the next
prior amended returns for this period. tax year as an estimated payment. Enter the desired amount to
Line 66b: Enter net overpayment received (refund(s) received use as an estimate for the next MBT tax year.
plus credit forward(s) created) from the original
Reminder: Taxpayers must sign and date returns. Preparers
and/or prior amended returns for this period.
must provide a Preparer Taxpayer Identification Number
Line 66c: Add lines 65 and 66a and subtract line 66b from (PTIN), FEIN or Social Security number (SSN), a business
the sum. name, and a business address and phone number.

Line 68: If penalty and interest are owed for not filing Other Supporting Forms and Schedules
estimated returns or for underestimating tax, complete
Federal Forms: Attach copies of these forms to the return.
the MBT Penalty and Interest Computation for Underpaid
Estimated Tax (Form 4582) to compute penalty and interest UBGs: See Form 4580 instructions for information regarding
due. If a taxpayer chooses not to file this form, Treasury will federal attachments for members of UBGs.
compute penalty and interest and bill for payment. • C Corporations: U.S. Form 1120 (pages 1 through 4),
Line 69: Enter the annual return penalty rate on line 69a. Add Schedule D, Form 851, Form 4562, and Form 4797. If filing
the overdue tax penalty on line 69b to the overdue tax interest as part of a consolidated federal return, attach a pro forma
in line 69c. Enter total on line 69d. or consolidated schedule.
• S Corporations: U.S. Form 1120-S (pages 1 through 4)*,

- 27 -

  Schedule D, Form 851, Form 4562, Form 4797, Form 8825.
• Individuals: U.S. Form 1040 (pages 1 and 2), Schedules C, 
  C-EZ, D, E, and Form 4797.
• Fiduciaries: U.S. Form 1041 (pages 1 through 2), Schedule 
  D, and Form 4797.
• Partnerships:  U.S.  Form  1065,  (pages  1  through  5)*, 
  Schedule D, Form 4797, and Form 8825.
• Limited Liability Companies:  Attach  appropriate 
  schedules listed above based on federal return filed.
• Federally Exempt Entities:  In  certain  circumstances, 
  a federally tax exempt entity must file an MBT return.  In 
  those cases, attach U.S. Form 990-T (pages 1 through 4).
*  Do  not  send  copies  of  K-1s.  Treasury  will  request  them  if 
  necessary.

                                                                       25

- 28 -

                                      Sourcing of Sales to Michigan
                                                                        franchises, licenses, contracts, customer lists, 
TANGIBLE AND REAL PROPERTY 
                                                                        computer software, or similar items
Sale of tangible personal property
                                                                        Property is used by the purchaser in this State. If property is 
Property is shipped or delivered, or, in the case of electricity        used in more than one state, royalties or other income will be 
and  gas,  the  contract  requires  the  property  to  be  shipped  or  apportioned to this State pro rata according to the portion of 
delivered,  to  any  purchaser  within  this  State  based  on  the     use in this State. 
ultimate destination at the point that the property comes to rest 
regardless of the free on board point or other conditions of the        If  the  portion  of  use  in  this  State  cannot  be  determined,  the 
sales.                                                                  royalties  or  other  income  will  be  excluded  from  both  the 
                                                                        numerator and the denominator. 
Property stored in transit for 60 days or more prior to receipt 
by the purchaser or the purchaser’s designee, or in the case of         If the purchaser of intangible property uses it or the rights to 
a dock sale not picked up for 60 days or more, shall be deemed          the  intangible  property,  in  the  regular  course  of  its  business 
to  have  come  to  rest  at  this  ultimate  destination.  Property    operations  in  this  State,  regardless  of  the  location  of  the 
stored in transit for fewer than 60 days prior to receipt by the        purchaser’s customers.
purchaser or the purchaser’s designee, or in the case of a dock 
                                                                        SALES FROM PERFORMANCE OF SERVICES (IN 
sale not picked up before 60 days, is not deemed to have come 
to rest at this ultimate destination.                                   GENERAL)
                                                                        Receipts from performance of services, in general
NOTE: Tangible personal property means that term as defined 
in Section 2 of the Use Tax Act, Public Act (PA) 94 of 1937,            Recipient of services receives all of the benefit of the services 
MCL 205.92.                                                             in this State. 
Sale, lease, rental or licensing of real property                       If the recipient of the services receives some of the benefit of 
                                                                        the services in this State, receipts are included in the numerator 
Property is located in this State.                                      of the apportionment factor in proportion to the extent that the 
Lease or rental of tangible personal property                           recipient receives benefit of the services in this State.
To the extent the property is used in this State. Extent of use         For  more  information  regarding  how  a  taxpayer  determines 
is  determined  by  multiplying  the  receipts  by  a  fraction,  the   where  the  recipient  of  services  performed  receives  the 
numerator  is  the  number  of  days  of  physical  location  of  the   benefit  of  those  services,  see  RAB  2010-5,  Michigan 
property in this State during the lease or rental period in the         Business  Tax  Where  Benefit  of  Services  is  Received,  on  the 
tax year and the denominator is the number of days of physical          Michigan  Department  of  Treasury  (Treasury)  Web  site  at 
location of the property everywhere during all lease or rental          www.michigan.gov/taxes.
periods in the tax year. 
If  the  physical  location  of  the  property  during  the  lease  or  FINANCIAL SERVICES
rental period is unknown or cannot be determined, the tangible          Sales derived from securities brokerage services 
personal  property  is  used  in  the  state  in  which  the  property  including  commissions on transactions, the spread 
was  located  at  the  time  the  lease  or  rental  payer  obtained    earned on principal transactions in which broker buys 
possession.                                                             or sells from its account, total margin interest  paid 
                                                                        on behalf of brokerage accounts owned  by broker’s 
Lease or rental of mobile transportation property                       customers, and fees and receipts of all kinds from 
owned by the taxpayer                                                   underwriting of securities
To the extent property is used in this State. For example, the          Multiply  the  total  dollar  amount  of  receipts  from  securities 
extent  an  aircraft  will  be  deemed  to  be  used  is  determined    brokerage services by a fraction, the numerator of which is the 
by  multiplying  all  the  receipts  from  the  lease  or  rental  of   sales of securities brokerage services to customers within this 
the  aircraft  by  a  fraction,  the  numerator  of  the  fraction  is  State, and the denominator of which is the sales of securities 
the  number  of  landings  of  the  aircraft  in  this  State  and  the brokerage services to all customers. 
denominator of the fraction is the total number of landings of 
the aircraft.                                                           If  receipts  from  brokerage  services  can  be  associated  with 
                                                                        a  particular  customer,  but  it  is  impractical  to  associate  the 
If the extent of use of any transportation property within this         receipts with the address of the customer, then the address of 
State cannot be determined, then the receipts are in this State         the customer will be presumed to be the address of the branch 
if the property has its principal base of operations in this State.     office that generates the transactions for the customer.
INTANGIBLE PROPERTY (IN GENERAL)
                                                                        Sales of services  derived directly or indirectly from 
Royalties and other income received for use of or for                   sale of management, distribution,  administration, 
the privilege of using intangible  property including                   or securities  brokerage  services  to, or on behalf of, 
patents, knowhow,  formulas, designs,  processes,                       a  regulated  investment  company  or  its  beneficial 
patterns,  copyrights,  trade names, service names,                     owners,  including  receipts derived directly or 

26

- 29 -

indirectly  from  trustees, sponsors,  or  participants                    Gains  from sale of  a loan  not  secured by  real 
of  employee  benefit  plans  that  have  accounts  in  a                  property,  including  income  recorded under  coupon 
regulated investment company                                               stripping rules of IRC 1286
To  the  extent  the  shareholders  of  the  regulated  investment         Borrower is located in this State.*
company  are  domiciled  within  this  State.  For  this  purpose, 
domicile  means  the  shareholder’s  mailing  address  on  the             Credit card receivables, including interest, fees, and 
records of the regulated investment company.                               penalties from credit card receivables and receipts 
                                                                           from fees charged to cardholders, such as annual fees
If  the  regulated  investment  company  or  the  person  providing 
management services to the regulated investment company has                Billing address of the cardholder is located in this State.
actual  knowledge  that  the  shareholder’s  primary  residence  or 
                                                                           Sale of credit card or other receivables
principal  place  of  business  is  different  than  the  shareholder’s 
mailing  address,  then  the  shareholder’s  primary  residence  or        Billing address of the customer is located in this State.
principal place of business is the shareholder’s domicile. 
                                                                           Credit card issuer’s reimbursements fees
A separate computation must be made with respect to receipts 
                                                                           Billing address of the cardholder is located in this State.
derived  from  each  regulated  investment  company.  Total 
amount  of  sales  attributable  to  this  State  must  be  equal  to      Merchant discounts, computed net of any cardholder 
total receipts received by each regulated investment company               chargebacks, but  not  reduced by any interchange 
multiplied by a fraction determined as follows:                            transaction fees or by any issuer’s reimbursement 
• The numerator of the fraction is the average of the sum of               fees  paid to another for charges  made by its 
  the  beginning-of-year  and  end-of-year  number  of  shares             cardholders
  owned  by  the  regulated  investment  company  shareholders             Commercial domicile of the merchant is located in this State.
  who have their domicile in this State.
• The denominator of the fraction is the average of the sum                Loan  servicing fees derived from loans of another 
  of the beginning-of-year and end-of-year number of shares                secured by real property
  owned by all shareholders.                                               Real property is located in this State.
• For purposes of the fraction, the year will be the tax year of 
                                                                           Real property is located both in and out of this State and one or 
  the regulated investment company that ends with or within 
                                                                           more states if more than 50 percent of the fair market value of the 
  the tax year of the taxpayer.
                                                                           real property is located in this State.
Receipts from the origination of a loan or gains from 
                                                                           More  than  50  percent  of  the  fair  market  value  of  the  real 
sale of a loan secured by residential real property
                                                                           property  is  not  located  in  any  one  state,  and  the  borrower  is 
Only if one or more of the following apply:                                located in this State.*
• Real property is located in this State.                                  If the location of the security cannot be determined, then loan 
• Real property is located  both within  this State  and  one  or          servicing fees for servicing either the secured or the unsecured 
  more  other  states  and  more  than  50  percent  of  the  fair         loans of another are in this State if the lender to whom the loan 
  market value of the real property is located within this State.          servicing service is provided is located in this State.
• More than 50 percent of the real property is not located in 
  any one state and the borrower is located in this State.*                Loan servicing fees derived from loans of another not 
                                                                           secured by real property
Interest from loans secured by real property
                                                                           Borrower is located in this State.*
Property is located in this State.
                                                                           If  location  of  the  security  cannot  be  determined,  then  loan 
If property is located both in this State and one or more other            servicing fees for servicing either the secured or the unsecured 
states, if more than 50 percent of the fair market value of the            loans of another are in this State if the lender to whom the loan 
real property is located within this State.                                servicing service is provided is located in this State.
If  more  than  50  percent  of  the  fair  market  value  of  the  real 
                                                                           Sale  of  securities  and  other assets from  investment 
property is not located within any one state, if the borrower is 
                                                                           and trading  activities, including,  but not  limited  to, 
located in this State.*
                                                                           interest, dividends, and gains
The determination of whether the real property securing a loan 
                                                                           Attributable  to  the  State  if  the  person’s  customer  is  in  this 
is  located  in  this  State  will  be  made  at  the  time  the  original 
                                                                           State,  or  if  the  location  of  the  person’s  customer  cannot  be 
agreement was made and any and all subsequent substitutions 
                                                                           determined, both of the following:
of collateral will be disregarded.
                                                                           • Interest,  dividends,  and  other  income  from  investment 
Interest from a loan not secured by real property
                                                                             assets and activities and from trading assets and activities, 
Borrower is located in this State.*                                          including, but not limited to, investment securities; trading 

*A borrower is considered located in this State if the borrower’s billing address is in this State.

                                                                                                                                      27

- 30 -

  account assets; federal funds; securities purchased and sold             gross receipts for the barrel miles transported in this State 
  under  agreements  to  resell  or  repurchase;  options;  futures        bear to the gross receipts for the barrel miles transported by 
  contracts;  forward  contracts;  notional  principal  contracts          the person everywhere.
  such  as  swaps;  equities;  and  foreign  currency  transactions      • Gas by pipeline – Proportioned based on the ratio that the 
  are in this State if the average value of the assets is assigned         gross receipts for the 1,000 cubic feet miles transported in 
  to  a  regular  place  of  business  of  the  taxpayer  within  this     this State bear to the gross receipts for the 1,000 cubic feet 
  State.                                                                   miles transported by the person everywhere.
  ○ Interest  from  federal  funds  sold  and  purchased  and 
     from securities purchased under resale agreements and               NOTE: If a taxpayer can show that revenue mile information 
     securities sold under repurchase agreements are in this             is  not  available  or  cannot  be  obtained  without  unreasonable 
     State  if  the  average  value  of  the  assets  is  assigned  to   expense to the taxpayer, receipts attributable to this State will 
     a regular place of business of the taxpayer within this             be  that  portion  of  the  revenue  derived  from  transportation 
     State.                                                              services everywhere performed that the miles of transportation 
                                                                         services  performed  in  this  State  bears  to  the  miles  of 
  ○ Amount    of  receipts  and  other  income from investment 
                                                                         transportation  services  performed  everywhere.  If  Treasury 
     assets and activities is in this State if assets are assigned 
                                                                         determines  that  the  information  required  for  the  calculations 
     to a regular place of business of the taxpayer within this 
                                                                         above  are  not  available  or  cannot  be  obtained  without 
     State.
                                                                         unreasonable expense to the taxpayer, Treasury may use other 
• Amount  of  receipts  from  trading  assets  and  activities,          available information that in the opinion of Treasury will result 
  including,  but  not  limited  to,  assets  and  activities  in  the   in an equitable allocation of the taxpayer’s receipts to this State.
  matched book, in the arbitrage book, and foreign currency 
  transactions,  but  excluding  amounts  otherwise  sourced  in         NOTE: For transportation services that source sales based on 
  this section, are in this State if the assets are assigned to a        revenue miles, enter a sales amount on Form 4567, Line 11a, by 
  regular place of business of the taxpayer within this State.           multiplying total sales of the transportation service by the ratio 
                                                                         of Michigan revenue miles over revenue miles everywhere as 
TRANSPORTATION SERVICES                                                  provided in the table on this page for that type of transportation 
                                                                         service. Revenue  mile  means  the  transportation  for  a 
Receipts from transportation services                                    consideration  of  one  net  ton  in  weight  or  one  passenger  the 
                                                                         distance of one mile. Only transportation services are sourced 
Generally, receipts will be proportioned based on the ratio that 
                                                                         using  revenue  miles.  To  the  extent  the  taxpayer  has  business 
revenue  miles  of  the  person  in  this  State  bear  to  the  revenue 
                                                                         activities or revenue streams not from transportation services, 
miles of the person everywhere.
                                                                         those receipts should be sourced accordingly.
Receipts  from  maritime  transportation  services  will  be 
attributable to this State as follows:                                   TELECOMMUNICATIONS SERVICES
• 50 percent of those receipts that either originate or terminate        Sale of telecommunications service  or mobile 
  in this State.                                                         telecommunications service, in general
• 100  percent  of  those  receipts  that  both  originate  and          Customer’s place of primary use of the service is in this State. 
  terminate in this State.                                               As  used  here, place of primary use  means  the  customer’s 
Receipts attributable to this State of a person whose business           residential  street  address  or  primary  business  street  address 
activity consists of the transportation of:                              where  the  customer’s  use  of  the  telecommunications  service 
                                                                         primarily occurs. 
• Property and individuals – Proportioned based on the total 
  gross  receipts  for  passenger  miles  and  ton  mile  fractions,     For  mobile  telecommunications  service,  the  customer’s 
  separately computed and individually weighted by the ratio             residential street address or primary business street address is 
  of gross receipts from passenger transportation to total gross         the place of primary use only if it is within the licensed service 
  receipts  from  all  transportation,  and  by  the  ratio  of  gross   area of the customer’s home service provider.
  receipts  from  freight  transportation  to  total  gross  receipts    Sale of telecommunications service  sold on an 
  from all transportation, respectively.                                 individual call-by-call basis
    Michigan Ton Miles                  Gross Receipts from              Call both originates and terminates in this State.
     Total Ton Miles         x      Transportation of Property           Call either originates or terminates in this State and the service 
                                                                         address is located in this State.

  Michigan Passenger Miles   +          Gross Receipts from              Sale of postpaid telecommunications service
  Total Passenger Miles      x      Transportation of Passengers         Origination  point  of  telecommunication  signal  (as  first 
                                                                         identified by the service provider’s telecommunication system 
     =  Michigan Sales from Transportation Services                      or as identified by information received by the seller from its 
                                                                         service provider if system used to transport telecommunication 
• Oil  by  pipeline  –  Proportioned  based  on  the  ratio  that  the   signals is not the seller’s) is located in this State.

28

- 31 -

Sale of prepaid telecommunications service  or                             Taxpayer whose business activities include live radio 
prepaid mobile telecommunications service                                  or television programming as described in Subsector 
                                                                           Code  7922 of  Industry  Group  792 or  are included  in 
Purchaser  obtains  the  prepaid  card  or  similar  means  of 
                                                                           Industry Groups 483, 484, 781, or 782, under the SIC 
conveyance at a location in this State.
                                                                           Code as compiled by the U.S. Department of Labor, or 
Recharging a prepaid telecommunications service or                         any combination of the business activities included in 
mobile telecommunications service                                          those groups
Purchaser’s billing information indicates a location in this State.        Media  receipts  are  attributable  to  this  State  only  if  the 
                                                                           commercial  domicile  of  the  customer  is  in  this  State  and  the 
Sale of private communication services                                     customer  has  a  direct  connection  or  relationship  with  the 
100  percent  of  the  receipts  from  the  sale  of  each  channel        taxpayer pursuant to a contract under which the media receipts 
termination point within this State.                                       are derived.
100 percent of the receipts from the sale of the total channel             Media receipts from the sale of advertising are attributable to 
mileage between each termination point within this State.                  this  State  if  the customer of that  advertising  is  commercially 
                                                                           domiciled  in  this  State  and  receives  some  of  the  benefit  of 
50 percent of the receipts from the sale of service segments for           the sale of that advertising in this State. Sales are included in 
a  channel  between  two  customer  channel  termination  points,          proportion to the extent that the customer receives the benefit 
one  of  which  is  located  in  this  State  and  the  other  is  located of the advertising in this State.
outside of this State, which segments are separately charged. 
                                                                           If  the  taxpayer  is  a  broadcaster  and  if  the  customer  receives 
Receipts from the sale of service for segments with a channel              some of the benefit of the advertising in this State, the media 
termination point located in this State and in two or more other           receipts for that sale of advertising from that customer will be 
states  or  equivalent  jurisdictions,  and  which  segments  are          proportioned based on the ratio that the broadcaster’s viewing 
not  separately  billed,  are  in  this  State  based  on  a  percentage   or listening audience in this State bears to its total viewing or 
determined  by  dividing  the  number  of  customer  channel               listening audience everywhere.
termination points in this State by the total number of customer 
channel termination points.                                                Media property  means  motion  pictures,  television  programs, 
                                                                           Internet programs and Web sites, other audiovisual works, and 
Sale  of  billing  services and  ancillary  services for                   any other similar property embodying words, ideas, concepts, 
telecommunications service                                                 images,  or  sound  without  regard  to  the  means  or  methods  of 
Based on the location of the purchaser’s customers.                        distribution or the medium in which the property is embodied.
If  the  location  of  the  purchaser’s  customers  is  not  known  or     Media receipts means receipts from the sale, license, broadcast, 
cannot be determined, the sale of billing services and ancillary           transmission,  distribution,  exhibition,  or  other  use  of  media 
services for telecommunications service are in this State based            property and receipts from the sale of media services. Media 
on the location of the purchaser.                                          receipts do not include receipts from the sale of media property 
                                                                           that is a consumer product that is ultimately sold at retail.
To access  a carrier’s network or from the sale of 
telecommunications services for resale                                     Media services means services in which the use of the media 
                                                                           property is integral to the performance of those services.
100  percent  of  the  receipts  from  access  fees  attributable  to 
intrastate telecommunications service that both originates and             NOTE: Terms used to describe the sale of telecommunications 
terminates in this State.                                                  service  or  mobile  telecommunications  service  have  the  same 
                                                                           meaning as those terms defined in the Streamlined Sales and 
50  percent  of  the  receipts  from  access  fees  attributable  to       Use  Tax  Agreement  administered  under  the  Streamlined 
interstate  telecommunications  service  if  the  interstate  call         Sales and Use Tax Administration Act, PA 174 of 2004, MCL 
either originates or terminates in this State.                             205.801 to 205.833.

100  percent  of  receipts  from  interstate  end  user  access  line      OTHER
charges,  if  customer’s  service  address  is  in  this  State.  As 
used  here,  “interstate  end  user  access  line  charges”  includes,     Default for  all  other  receipts not  otherwise  sourced 
but  is  not  limited  to,  the  surcharge  approved  by  the  federal     here 
communications commission and levied pursuant to 47 CFR 69.                Sourced based on where the benefit to the customer is received, 
Gross  receipts  from  sales  of  telecommunications  services  to         or  if  where  the  benefit  to  the  customer  is  received  cannot  be 
other  telecommunication  service  providers  for  resale  will  be        determined, sourced to the customer’s location.
sourced  to  this  State  using  the  apportionment  concepts  used        For  more  information  regarding  how  a  taxpayer  determines 
for  non-resale  receipts  of  telecommunications  services  if  the       where the recipient of services performed receives the benefit 
information is readily available to make that determination. If            of  those  services,  see  RAB  2010-5,  Michigan  Business  Tax 
the information is not readily available, then the taxpayer may            Where Benefit of Services is Received, on the Treasury Web 
use any other reasonable and consistent method.                            site at www.michigan.gov/taxes.

                                                                                                                                        29

- 32 -

- 33 -

Michigan Department of Treasury                                                                                                                                          Attachment 26
4946 (Rev. 04-22), Page 1 of 2

2022 MICHIGAN Schedule of Corporate Income Tax Liability 
for a Michigan Business Tax Filer
Issued under authority of Public Act 36 of 2007 and PA 39 of 2011.
Taxpayer Name (print or type)                                                                    Federal Employer Identification Number (FEIN)

PART 1: APPORTIONMENT CALCULATION
 1.  Michigan sales of the taxpayer. (If no Michigan sales, enter zero) ................................................................                             1.                    00
 2.  Total sales of the taxpayer .............................................................................................................................       2.                    00
 3.  Apportionment percentage. Divide line 1 by line 2 .............................................................................................                 3.                    %

PART 2: BUSINESS INCOME TAX
 4.  Federal taxable income from federal Form 1120 (Includes ag activities. Non-C Corporations, see instructions.)                                                   4.                    00

 5.  This line is no longer in use. Skip to line 6 .........................................................................................................         5.  X X X X X X X X X 00
 6.  Miscellaneous (see instructions) ........................................................................................................................       6.                    00
 7.  Adjustments due to decoupling of Michigan depreciation from IRC § 168(k). 
     If adjustment is negative, enter as negative:
     a. Net bonus depreciation adjustment .................................................. 7a.             00
     b. Gain/loss adjustment on sale of eligible depreciable asset(s) ...........            7b.             00
     c. Add lines 7a and 7b. If negative, enter as negative.......................................................................................                   7c.                   00
 8.  Add lines 4, 6 and 7c. If negative, enter as negative..........................................................................................                 8.                    00
 9. For a Unitary Business Group (UBG), total group eliminations from business income. (See instructions.)  
     All other filers, enter zero................................................................................................................................... 9.                    00
10.  Business Income. All filers, subtract line 9 from line 8. If negative, enter as negative ....................................                                   10.                   00

Additions to Business Income
 11. Interest income and dividends derived from obligations or securities of states other than Michigan .................                                            11.                   00
12.  Taxes on or measured by net income, including CIT (see instructions) .............................................................                              12.                   00
13.  Any carryback or carryover of a federal net operating loss (enter as a positive number) ...................................                                     13.                   00
14.  Royalty, interest, and other expenses paid to a related person that is not a UBG member of this taxpayer ......                                                 14.                   00
15.  Miscellaneous (see instructions)  .......................................................................................................................       15.                   00
16.  Total Additions to Income.  Add lines 11 through 15 ...........................................................................................                 16.                   00
17.  Corporate Income Tax Base After Additions.  Add lines 10 and 16. If negative, enter as negative ..............                                                  17.                   00

Subtractions from Business Income
18.  Income from non-unitary FTEs (Enter loss as negative) ...................................................................................                       18.                   00
19.  Dividends and royalties received from persons other than U.S. persons and foreign operating entities ..........                                                 19.                   00
20.  Interest income derived from United States obligations ....................................................................................                     20.                   00
21.  Miscellaneous (see instructions)  .......................................................................................................................       21.                   00
22.  Total Subtractions from Income. Add lines 18 through 21 .................................................................................                       22.                   00

23.  Corporate Income Tax Base.  Subtract line 22 from line 17.  If negative, enter as negative ..........................                                           23.                   00
24.  Apportioned Corporate Income Tax Base. Multiply line 23 by percentage from line 3 ......................................                                        24.                   00
25.  Apportioned income from non-unitary FTEs and pro forma CIT business loss carryforward ............................                                              25.                   00
26.  Add line 24 and line 25. If negative, enter zero .................................................................................................              26.                   00
27.  Corporate Income Tax Before Credit. Multiply line 26 by 6% (0.06). If apportioned or allocated gross 
     receipts are less than $350,000, enter zero ......................................................................................................              27.                   00

+ 0000 2022 56 01 27 7                                                                                                                                                   Continue on Page 2

- 34 -

2022 Form 4946, Page 2 of 2                                                  Taxpayer FEIN

PART 3: TOTAL CORPORATE INCOME TAX
28. Small Business Alternative Credit (see instructions) .........................................................................................         28. 00
29. Tax Liability after the Small Business Alternative Credit.  Subtract line 28 from line 27.............................                                 29. 00

PART 4: CERTIFICATED AND RECAPTURED CREDITS
30. Certificated Nonrefundable Credits from Form 4947, line 11 ............................................................................                30. 00
31. Subtract line 30 from line 29. If less than zero, enter zero ................................................................................          31. 00
32. Recapture of Certain Business Tax Credits for CIT from Form 4947, line 28 ....................................................                         32. 00
33. Total Tax Liability. Add line 31 and line 32 ......................................................................................................... 33. 00
34. Certificated Refundable Credits from Form 4947, line 39 .................................................................................              34. 00
35. Subtract line 34 from line 33. If negative, enter as negative..............................................................................            35. 00

PART 5: MBT CALCULATION TO COMPARE AGAINST CIT
36. Total MBT Liability after Recapture from Form 4567, line 57 ............................................................................               36. 00
37. Refundable Credits from Form 4574, line 23.....................................................................................................        37. 00
38. MBT Liability after Refundable Credits. Subtract line 37 from line 36. If less than zero, enter as a negative 
    number. A negative number here represents an overpayment ..........................................................................                    38. 00
39. If line 35 is greater than line 38, enter the difference. If line 38 is greater than or equal to line 35, enter zero. 
    Carry to Form 4567, line 58. (See examples below.) ........................................................................................            39. 00

                            EXAMPLES
    1. If both lines 38 and 35 are tax due:
    Example A: Line 38 = $100; line 35 = $300; enter 200 on line 39
    Example B: Line 38 = $300; line 35 = $100; enter 0 on line 39
    2. If both lines 38 and 39 are overpayments
    Example C: Line 38 = ($700); line 35 = ($400); enter 300 on line 39
    Example D: Line 38 = ($400); line 35 = ($700); enter 0 on line 39
    3. Of lines 38 and 39, if one is tax due and one is an overpayment
    Example E: Line 38 = ($500); line 35 = $200; enter 700 on line 39
    Example F: Line 38 = $200; line 35 = ($500); enter 0 on line 39

+ 0000 2022 56 02 27 5

- 35 -

                                            Instructions for Form 4946
Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer
                                                                        income tax, a franchise tax measured by net income, a franchise 
Purpose
                                                                        tax  for  the  privilege  of  doing  business,  a  corporate  stock  tax, 
To  calculate  the  Corporate  Income  Tax  (CIT)  liability  for       or if the state or foreign country has jurisdiction to subject the 
standard  taxpayers  filing  a  Michigan  Business  Tax  (MBT)          taxpayer to 1 or more of the above listed taxes. In that state, the 
return.                                                                 taxpayer must be subject to a business privilege tax, a net income 
A taxpayer calculates the business income and modified gross            tax, a franchise tax measured by net income, a franchise tax for 
receipts tax bases of the MBT and applies all credits, including        the privilege of doing business, or a corporation stock tax, or that 
certificated credits, deductions, and exemptions available under        state has jurisdiction to subject the taxpayer to one or more of 
the MBT.  Then, a taxpayer calculates the business income tax           such taxes regardless of whether the tax is imposed. 
base under the CIT, applies all credits and deductions available        The  CIT  is  based  only  on  business  activity  apportioned  to 
under  the  CIT  and  the  amount  of  certificated  credit  allowed    Michigan. A taxpayer that has not established nexus with one 
from  the  MBT.  The  amount  of  certificated  credit  allowed         other  state  or  a  foreign  country  is  subject  to  the  CIT  on  its 
from the MBT is the amount of nonrefundable credit needed               entire  business  activity.  Business  activity  is  apportioned  to 
to offset MBT liability plus the entire amount of a refundable          Michigan based on sales.
credit.  If the result of both steps of the calculation is a negative 
number,  the  taxpayer  will  receive  a  refund  of  the  lower        Sale or Sales means the amounts received by the taxpayer as 
negative; but a nonrefundable credit cannot be used to reduce           consideration from the following:
liability below zero.  A taxpayer must pay the higher liability or      • The transfer of title to, or possession of, property that is stock 
take the lower refund.                                                    in  trade  or  other  property  of  a  kind  which  would  properly 
                                                                          be  included  in  the  inventory  of  the  taxpayer  if  on  hand  at 
Line-by-Line Instructions                                                 the close of the tax period, or property held by the taxpayer 
                                                                          primarily  for  sale  to  customers  in  the  ordinary  course  of 
Lines not listed are explained on the form.                               its  trade  or  business.  For  intangible  property,  the  amounts 
Public Law 86-272 Protection:  If  business  activity  is                 received  will  be  limited  to  any  gain  received  from  the 
protected under Public Law (PL) 86-272, leave lines 4 through             disposition of that property.
29 blank. For more information, please see the instructions to          • Performance of services which constitute business activities.
Part 2 of Form 4567.                                                    • The rental, leasing, licensing, or use of tangible or intangible 
Name and Account Number:      Enter  the  name  and  Federal              property,  including  interest,  that  constitutes  business 
Employer  Identification  Number  (FEIN)  as  they  appear  on            activity.
the corresponding copy of the Michigan Business Tax Annual              • Any combination of business activities described above.
Return (Form 4567).                                                     • For taxpayers not engaged in any other business activities, sales 
                                                                          include interest, dividends, and other income from investment 
UBGs:  Complete  one  Form  4946  for  the  group,  with  all 
                                                                          assets and activities and from trading assets and activities.
numbers entered reflecting the total amount for all members in 
the group.                                                              If a flow-through entity (FTE) is unitary with the taxpayer, the 
                                                                        taxpayer’s  sales  factor  includes  its  proportionate  share  of  the 
Exempt  income  (loss)  from  certain  flow-through  entities 
                                                                        sales of the FTE. Proportionate sales between the taxpayer and 
(FTEs):  Public  Act  233  of  2013  provides  that,  in  the  case  of 
                                                                        a unitary FTE, and between FTEs unitary with the taxpayer, 
an  FTE  that  made  the  election  to  remain  taxable  under  the 
                                                                        are  eliminated.  See CIT Unitary Relationships with Flow-
MBT, each owner of the FTE that does not file as a member 
                                                                        Through Entities (Form 4900) for further guidance.
of  a  unitary  business  group  with  the  FTE  shall  disregard  all 
items  attributable  to  that  member’s  ownership  interest  in  the   Use  the  information  in  the  “Sourcing  of  Sales  to  Michigan” 
electing FTE for all purposes of the CIT.  If the taxpayer filing       section in CIT for Standard Taxpayers booklet (Form 4890) to 
this form owns an interest in an FTE that files an MBT return           determine Michigan sales.
for the FTE’s tax year that ends with or within this taxpayer’s 
                                                                        Line 1:  Enter  Michigan  sales  that  are  directly  attributable 
tax year, the taxpayer’s distributive share of income (loss) from 
                                                                        to  the  taxpayer  plus  the  proportionate  Michigan  sales,  after 
such FTE will be exempt from the taxpayer’s CIT portion of 
                                                                        eliminations,  from  unitary  FTEs.  The  amount  of  Michigan 
the MBT/CIT comparison calculation. However, do not exclude 
                                                                        sales to include from unitary FTEs is computed on CIT Form 
the exempt income (loss) on lines 4 through 22 of this form.  
                                                                        4900.
The corporate income tax base attributable to such FTE will be 
removed via line 18..                                                   For transportation services that source sales based on revenue 
                                                                        miles,  enter  (or  include)  a  Michigan  sales  amount  on  this 
Part 1: Apportionment Calculation
                                                                        line  by  multiplying  total  sales  of  the  transportation  service 
For  a  Michigan-based  taxpayer,  all  sales  are  Michigan  sales     by  the  ratio  of  Michigan  revenue  miles  over  revenue  miles 
unless the taxpayer is subject to tax in another state or foreign       everywhere.  Revenue  mile  means  the  transportation  for  a 
country. A taxpayer is subject to a tax in another state or foreign     consideration  of  one  net  ton  in  weight  or  one  passenger  the 
country if the taxpayer is subject to a business privilege tax, a net   distance of one mile.

                                                                                                                                       33

- 36 -

Certain types of transportation services have special sourcing Line 11: Enter any interest income and dividends from
provisions. See the “Sourcing of Sales to Michigan” section of bonds and similar obligations or securities of states other than
the CIT for Standard Taxpayers booklet (Form 4890). Michigan and their political subdivisions in the same amount
that was excluded from federal taxable income (as defined for
NOTE: Only transportation services are sourced using revenue
CIT purposes). Reduce this addition by any expenses related to
miles. To the extent the taxpayer has business activities or
the foregoing income that were disallowed on the federal return
revenue streams not from transportation services, those
by IRC § 265 and § 291.
receipts should be sourced accordingly.
Line 12: Enter all taxes on, or measured by, net income
UBGs: Enter on this line the entire amount of Michigan sales
including city and state taxes, Foreign Income Tax, and Federal
of all members in the group after eliminations. For more
Environmental Tax claimed as a deduction on the taxpayer’s
information see the instructions for CIT Data for Unitary
federal return. This includes the tax imposed under the CIT
Business Group Members (Form 4897).
to the extent claimed as a deduction on the taxpayer’s federal
Line 2: Enter total sales that are directly attributable to the return. This also includes, to the extent deducted in arriving
taxpayer plus the proportionate total sales, after eliminations, at federal taxable income (as defined for CIT purposes), the
from unitary FTEs. The amount of total sales to include from Business Income Tax component of the MBT. This does NOT
unitary FTEs is computed on CIT Form 4900. include the Modified Gross Receipts component of the MBT.
For transportation services, enter (or include) total sales. Line 13: Enter any net operating loss carryback or carryover
that was deducted in arriving at federal taxable income (as
UBGs: Enter on this line the entire amount of total sales of all defined for CIT purposes). Enter this amount as a positive
members in the group after eliminations. For more information number.
see the instructions for CIT Data on Unitary Business Group
Members (Form 4897). Line 14: Enter, to the extent deducted in arriving at federal
taxable income (as defined for CIT purposes), any royalty,
interest, or other expense paid to a person related to the
PART 2: BUSINESS INCOME
taxpayer by ownership or control for the use of an intangible
Line 4: Non-C Corporations enter this line as business income. asset if the person is not included in the taxpayer’s UBG.
Business income includes payments and items of income and Royalty, interest, or other expense described here is not
expense attributable to the business activity of the Non-C required to be included if the taxpayer can demonstrate that
Corporation (Partnership or S Corporation) and separately the transaction has a nontax business purpose other than
reported to the members. avoidance of this tax, is conducted with arm’s-length pricing
Agricultural activities: Include income from the production of and rates and terms as applied in accordance with IRC § 482
agricultural activities on line 12. Farms are not exempt under and § 1274(d), and satisfies one of the following:
the CIT. Furthermore, the tax base attributable to the production • Is a pass through of another transaction between a third party
of agricultural goods by a person whose primary activity is the and the related person with comparable rates and terms.
production of agricultural goods is similarly not exempt. • Results in double taxation. For this purpose, double
Line 6: There are currently no miscellaneous items to be taxation exists if the transaction is subject to tax in another
entered on this line. Leave this line blank. jurisdiction.
Line 9: For UBGs only: Enter the group’s total eliminations • Is unreasonable as determined by the Treasurer, and the
from federal taxable income. taxpayer agrees that the addition would be unreasonable
based on the taxpayer’s facts and circumstances.
NOTE: Elimination, where required, applies to transactions • The related person (recipient of the transaction) is organized
between any members of the UBG. For example, if the UBG under the laws of a foreign nation which has in force a
includes standard taxpayers (not owned by and unitary with a comprehensive income tax treaty with the United States.
financial institution in the UBG), an insurance company, and
two financial institutions, transactions between a standard Line 15: Enter on this line the expenses that resulted from
taxpayer member and an insurance or financial member are the production of oil and gas if that production of oil and gas
eliminated whenever elimination is required, despite the fact is subject to Michigan severance tax on oil or gas, 1929 PA
that the insurance and financial members are not reported on the 48. Also enter expenses related to the income derived from a
combined return filed by standard taxpayer members. mineral to the extent that income is included on line 21 and that
expense was deducted in arriving at federal taxable income.
However, there is no elimination with an otherwise related entity
if the related entity is excluded from the UBG. For example, Subtractions from Business Income
consider a group with a U.S. parent, a U.S. subsidiary, and a
foreign operating entity subsidiary that would otherwise be Subtractions are generally available to the extent included in
a UBG, but the foreign operating entity is excluded from the arriving at FTI (as defined for CIT purposes).
UBG by definition. The U.S. parent filing a UBG return may Line 18: Complete all other subtractions from business income,
not eliminate intercompany transactions between itself and the lines 19 through 21, before completing line 18. Enter on this
foreign operating entity. line the sum of all entries in Column C of CIT Non-Unitary
Relationships with Flow-Through Entities (Form 4898). If an
Additions to Business Income amount is entered on this line, Form 4898 should be used to
34

- 37 -

compute the amount required to be entered here. Do not include December 31, 2011. Business loss means a negative
Form 4898 with this filing. Retain a copy for your records. business income tax base, after apportionment, if
applicable. For this calculation, pro forma CIT business
To calculate apportionment properly, line 18 removes from the
loss is available if line 26 of the previous year’s Form
corporate income tax base the taxpayer’s distributive share of
4946 was negative prior to applying the “If negative,
income (loss) attributable to a non-unitary flow-through entity
enter zero” instruction found on that line. Convert this
(FTE). Income or loss received as a distributive share from a
amount to a positive number before subtracting it from
non-unitary FTE is subtracted here (prior to apportionment of
Item 1. If the result of the calculation described above is
the CIT tax base on line 24), and apportioned on Form 4898
negative, enter it as a negative on the form.
according to the FTE’s apportionment factor. The resulting
amount from Form 4898 is then added back on line 25. The calculation described above is illustrated as follows:
Flow-through entity means an entity that for the applicable If apportioned income from non-unitary FTEs is 100, and
tax year is treated as a subchapter S corporation under section pro forma CIT business loss carryforward from the prior
1362(a) of the IRC, a general partnership, a trust, a limited period is 250, the entry on line 25 is -150.
partnership, a limited liability partnership, or a limited liability
company, that for the tax year is not taxed as a C corporation If apportioned loss from non-unitary FTEs is -100, and
for federal income tax purposes. pro forma CIT business loss carryforward from the prior
period is 60, the entry on line 25 is -160.
See the General Information section of the instructions for
Form 4898 for an explanation of FTEs with which a taxpayer is For any return with a non-zero amount on this line, attach a
not unitary. statement identifying separately the amount attributable to Item
1 and Item 2.
Line 19: Enter, to the extent included in federal taxable income
(as defined for CIT purposes), any dividends and royalties Line 26: If line 26 is negative, enter zero on this form but
received from persons other than United States persons and retain the negative amount for use on line 25 of Form 4946 for
foreign operating entities, including, but not limited to, amounts the next tax year.
determined under IRC § 78 or IRC § § 951 to 965. NOTE: Any loss carryforward created in this calculation will
NOTE: To the extent deducted in arriving at federal taxable evaporate when the taxpayer’s MBT election ends. This is
income, any deduction under IRC 250(a)(1)(B) should be added described as a pro forma CIT business loss because it cannot be
back on this line (i.e., netted against subtractions made on this claimed on an actual CIT return.
line). Line 27: IMPORTANT: If apportioned or allocated gross
Line 20: To the extent included in federal taxable income (as receipts, as defined under the MBT, are less than $350,000, enter
defined for CIT purposes), deduct interest income derived from a zero on this line. If a business operated less than 12 months,
United States obligations. annualize gross receipts to determine if this rule applies.
Line 21: Enter on this line income from the production of oil Annualizing
and gas if that production of oil and gas is subject to Michigan Multiply each applicable amount, total gross receipts, adjusted
severance tax on oil and gas, 1929 PA 48, to the extent that business income, and shareholder, officer, and partner income by
income was included in federal taxable income. Also enter, 12 and divide the result by the number of months the business
income derived from a mineral to the extent included in federal operated. Generally, a business is considered in business for one
taxable income. month if the business operated for more than half the days of the
month. If the tax year is less than one month, consider the tax
Line 25: The entry on this line is the combination of the year to be one month for the purposes of the calculation.
following two items:
PART 3: TOTAL CORPORATE INCOME TAX
Item 1: The apportioned amount of corporate income
tax base attributable to the taxpayer’s distributive share Line 28: Calculate this line by using the Small Business
Alternative Credit Calculation for the Corporate Income Tax
of income (loss) from a non-unitary flow-through entity
worksheet later in these instructions.
(FTE). The amount for this Item 1 can be found by
summing all the entries from Column E of CIT Form Retain the worksheet with your tax records. Do not include the
4898. If an amount is entered on this line, Form 4898 worksheet as part of this return.
should be used to compute the amount required to be
entered here. Do not include Form 4898 with this filing. Include completed Form 4946 as part of the tax return filing.
Retain a copy for your records.
NOTE: In this calculation, do not include distributive
share items attributable to an FTE that is not unitary with
the taxpayer and has a valid election in place to file MBT
for its tax year that ends with or within the taxpayer’s tax
year, in accordance with PA 233 of 2013.
Item 2: Subtract from Item 1 any available pro forma
CIT business loss incurred as an MBT taxpayer after
35

- 38 -

Small Business Alternative Credit Calculation for the Corporate Income Tax
Worksheet for the 2022 Michigan Business Tax

NOTE: A taxpayer claiming the CIT Small Business Alternative Credit on Line 28 should complete CIT Form 4894 before
completing this worksheet, and retain a copy for its records. Do not include a copy of Form 4894 as part of this return.

1. Gross Receipts (see instructions).......................................................................................................................... 1. . 00
2. Tax liability prior to this credit from Form 4946, line 27 ......................................................................................... 2. . 00

Adjusted Business Income
3. Business Income from Form 4946, line 10 ............................................................................................................ 3. . 00
4. Carryback or carryover capital loss. Enter as a positive number (see instructions) .............................................. 4. . 00
5. Carryback or carryover of a federal net operating loss from Form 4946, line 13. Enter as a positive number ..... 5. . 00
6. Subtotal. Add lines 3, 4 and 5 ............................................................................................................................... 6. . 00
7. Compensation and director fees of active shareholders from Form 4894, line 1 ................................................. 7. . 00
8. Compensation and director fees of officers from Form 4894, line 2 ..................................................................... 8. . 00
9. Adjusted Business Income. Add lines 6, 7 and 8................................................................................................... 9. . 00
Small Business Alternative Credit Calculation
10. Small Business Alternative Tax. Multiply line 9 by 1.8% (0.018). If less than zero, enter zero ............................ 10. . 00
11. Small Business Alternative Credit. Subtract line 10 from line 2. If less than zero, enter zero ....................... 11. . 00
12. Allocated income used for reduction (see instructions) ......................................... 12. .00
13. Reduction percentage from Reduced Credit Table at bottom of this page (based on amount from line 12) ....... 13. %
14. Reduced Credit. Multiply the percentage on line 13 by the credit on line 11. If gross receipts from line 1 are
less than or equal to $19,000,000, carry amount to Form 4946, line 28 (see instructions) ................................... 14. . 00
Reduction Based on Gross Receipts
Complete this section if gross receipts are more than $19,000,000 but not more than $20,000,000.
15. Excess gross receipts. Subtract $19,000,000 from line 1 .................................................................................... 15. . 00
16. Excess percentage. Divide line 15 by $1,000,000................................................................................................. 16. %
17. Allowable percentage. Subtract line 16 from 100% ............................................................................................... 17. %
18. Small Business Alternative Credit. Multiply the percentage on line 17 by the credit on line 14.
Carry amount to Form 4946, line 28 ...................................................................................................................... 18. . 00

REDUCED CREDIT TABLE
If allocated* income is: The reduced credit is:
$0 - $160,000 ........................ 100% of the Small Business Alternative Credit
$160,001 - $164,999 ........... 80% of the Small Business Alternative Credit
$165,000 - $169,999 ........... 60% of the Small Business Alternative Credit
$170,000 - $174,999 ........... 40% of the Small Business Alternative Credit
$175,000 - $180,000 ........... 20% of the Small Business Alternative Credit
* See instructions for tax years less than 12 months.

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            Instructions for the Small Business Alternative Credit Calculation  
                                 for the Corporate Income Tax Worksheet
Purpose                                                                  Tax Years Less Than 12 Months
                                                                         If  the  reported  tax  year  is  less  than  12  months,  gross 
This worksheet is used to allow a taxpayer to calculate the CIT 
                                                                         receipts,  adjusted  business  income,  and  shareholders’  or 
Small Business Alternative Credit for standard taxpayers filing 
                                                                         officers’ compensation and share of business income must be 
a Michigan Business Tax (MBT) return.
                                                                         annualized to determine eligibility and reduction percentage. If 
Due  to  differences  between  the  MBT  Small  Business                 annualized gross receipts exceed $19,000,000 but do not exceed 
Alternative  Credit  and  the  CIT  Small  Business  Alternative         $20,000,000,  annualize  figures  to  compute  the  Reduction 
Credit,  a  taxpayer  must  use  this  worksheet  and  may  not  use     Based on Gross Receipts, lines 15 through 18. 
MBT Common Credits for Small Businesses (Form 4571) when                 NOTE: If a shareholder owned stock for less than the entire tax 
calculating its CIT Small Business Alternative Credit.                   year  of  the  corporation,  or  an  officer  served  as  an  officer  less 
A  taxpayer  is  disqualified  from  taking  the  Small  Business        than the entire tax year, shareholder compensation amounts must 
Alternative  Credit  under  certain  circumstances,  which  are          be annualized when determining disqualifiers.
detailed below. Financial institutions and insurance companies           Annualizing
are not eligible for this credit                                         Multiply each applicable amount, total gross receipts, adjusted 
Do  not  attach  this  worksheet  or  any  supporting  forms  to  the    business income, and shareholder and officer income by 12 and 
MBT  filing.    A  taxpayer  must  retain  this  worksheet  and  any     divide the result by the number of months in the tax year. If the 
supporting forms in its records.                                         tax year is less than one month, consider the tax year to be one 
                                                                         month for the purposes of this calculation.
Eligibility for the Small Business Alternative                           Loss Adjustment
Credit                                                                   If  taxpayers  are  not  eligible  for  the  full  Small  Business 
Taxpayers  are  not  eligible  for  the  Small  Business  Alternative    Alternative  Credit  due  to  an  adjusted  business  income  or 
Credit if any of the following conditions exist:                         allocated  income  disqualifier,  they  may  benefit  from  the CIT 
                                                                         Loss Adjustment for the Small Business Alternative Credit (Form 
• Gross receipts exceed $20,000,000.                                     4895).  If  the  adjusted  business  income  was  less  than  zero  in 
• Adjusted  business  income  after  loss  adjustment  exceeds           any  of  the  five  years  immediately  preceding  this  filing  period 
  $1,521,000  for  Corporations  (and  LLCs  federally  taxed  as        and  Small  Business  Alternative  Credit  was  received  for  that 
  such).                                                                 same year, the taxpayer may be able to reduce the current year’s 
• Any  shareholder  or  officer  has  allocated  income  after           adjusted  business  income  or  allocated  income  amounts  by  the 
  loss  adjustment  of  over  $180,000,  as  determined  on  the         loss. See Form 4895 for more details. Do not attach a copy of 
  CIT  Schedule  of  Shareholders  and  Officers (Form  4894).           Form 4895 to the MBT filing.  If a loss adjustment is used, the 
  (Retain a pro forma copy of Form 4894 for your records, if             taxpayer must retain a completed Form 4895 in its records. Do 
  necessary.)                                                            not attach Form 4895 to this return.
                                                                         UBGs: See “Special Instructions for UBGs” for Form 4895.
In addition, the Small Business Alternative Credit is reduced 
if  a  shareholder  or  an  officer  has  allocated  income  after  loss A loss adjustment will not prevent a reduction or elimination of 
adjustment of more than $160,000 but less than $180,000. This            the Small Business Alternative Credit based on gross receipts 
reduction  is  based  on  the  officer/shareholder  with  the  largest   that exceed $19,000,000. It will also not change the amount of 
allocated income.                                                        compensation on Form 4894, column L. 
The Small Business Alternative Credit also is reduced if gross           NOTE:  If  using  a  loss  adjustment,  Form  4895  must  be  used 
receipts exceed $19,000,000 but are not more than $20,000,000.           when using this worksheet to calculate the CIT Small Business 
                                                                         Alternative Credit.  This form must be used in place of Form 
Allocated income is the greater of either:                               4571 due to the differences between the MBT Small Business 
(a)  Shareholders’ or officers’ compensation and director fees           Alternative  Credit  and  the  CIT  Small  Business  Alternative 
from Form 4894, column L, or                                             Credit.

(b)  Shareholders’  compensation,  director  fees,  and  share  of       Special Instructions for UBGs
business  income  (or  loss)  after  loss  adjustment,  from  Form 
                                                                         UBGs  calculate  the  gross  receipts  and  adjusted  business 
4894, column N.
                                                                         income  disqualifiers  at  the  UBG  level AFTER  eliminating 
If  either  (a)  or  (b)  is  greater  than  $180,000,  the  Corporation intercompany  transactions.  Note  that  this  differs  from  the 
is  not  eligible  for  the  Small  Business  Alternative  Credit.  In   comparable calculation in MBT.  For a UBG to claim a Small 
addition, if either (a) or (b) is more than $160,000 but not more        Business Alternative Credit, each member of the UBG that is 
than $180,000, the Corporation must reduce the Small Business            a corporation (including an entity taxed federally as such) must 
Alternative Credit based on the officer or shareholder with the          complete Form 4894, column L. Retain a completed Form 4895 
largest allocated income.                                                in your records; do not attach Form 4895 to this return.

                                                                                                                                         37

- 40 -

The disqualifier that is based on compensation and/or share of if a shareholder or an officer has allocated income after loss
business income attributable to an owner or officer is applied adjustment of more than $160,000 but not more than $180,000.
on a combined basis. All items paid or allocable to a single This reduction is based on the officer/shareholder with the
individual will be combined when calculating the disqualifier, largest allocated income. Enter the allocated income of the
regardless of the number of entities from which the amounts shareholder or officer with the highest allocated income after
may be derived. loss adjustment, even if that figure is $160,000 or less.
NOTE: This is a change from the comparable calculation in If loss adjustment is successfully applied to fully or partially
MBT. For more information on UBGs, see the “Supplemental cure a shareholder’s allocated income disqualifier, enter on line
Instructions for UBGs” in Form 4890. 12 the number from Form 4895, line 12
In addition, a disqualifier applies to a UBG if such disqualifier Line 13: For a taxpayer whose shareholders or officers all have
applies to any member of that UBG. For example, a UBG allocated income (after loss adjustment) of $160,000 or less,
is disqualified from taking the SBAC if that UBG includes a enter 100 percent.
member for which the allocated income after loss adjustment
All other taxpayers, see the table at the bottom of this
of a shareholder is $180,000. The reduction percentages for
worksheet to determine what percent to enter on this line.
the credit also apply to the entire group if they apply to one
member. Line 14: All taxpayers must complete this line.
If gross receipts from line 1 are $19,000,000 or less, carry the
Line-by-Line Instructions
amount on line 14 to Form 4946, line 28.
Lines not listed are explained on the form.
Reduction Based on Gross Receipts
Name and Account Number: Enter name and account number
as reported on page 1 of the MBT Annual Return (Form 4567). Complete this section if gross receipts are more than
$19,000,000 but not more than $20,000,000.
UBGs: Complete one form for the group. Enter the Designated
Member (DM) name in the Taxpayer Name field and the DM Line 17: For a result less than zero, enter zero.
account number in the Federal Employer Identification Number Do not include this worksheet as part of the tax return
(FEIN). filing.
Line 1: Enter amount from Form 4567, line 12. For periods less
than 12 months, enter annualized gross receipts. For guidance,
see the “Annualizing” section at the beginning of these
instructions.
UBGs: All UBG filers will use the amount from Form 4567,
line 12, after eliminating gross receipts included in that amount
that arise from intercompany transactions. For periods less
than 12 months, line 10 reflects the annualized amount for the
purpose of completing Form 4893.
Adjusted Business Income
Line 3: Enter business income from Form 4946, line 10.
NOTE: The adjusted business income (ABI) disqualifier is
based on annualized ABI, but the credit calculations performed
here are based on actual ABI.
UBGs: Enter business income for all members from Form
4946, line 10.
Line 4: Enter, to the extent deducted in determining federal
taxable income, a carryback or carryover of a capital loss from
Schedule D of federal Form 1120. Enter as a positive number.
UBGs: Combine for all members all carryback or carryover
of a capital loss, to the extent deducted in determining federal
taxable income, and enter on line 4. Enter as a positive number.
Line 9: If loss adjustment is successfully applied to cure an
ABI disqualifier, ignore the apparent disqualification on line 9
of the worksheet and proceed with calculating the SBAC on the
remainder of the worksheet.
Small Business Alternative Credit Calculation
Line 12: The Small Business Alternative Credit is reduced

- 41 -

Michigan Department of Treasury                                                                                                                                          Attachment 29
4947 (Rev. 04-22)

2022 MICHIGAN Schedule of Certificated Credits
Issued under authority of Public Act 38 of 2011.
Taxpayer Name (print or type)                                                           Federal Employer Identification Number (FEIN)

PART 1: CERTIFICATED NONREFUNDABLE CREDITS
 1. This credit has expired. Leave this line blank and skip to line 2 ........................................................................                       1.  X X X X X X X X X 00
 2. Eligible Renaissance Zone Credit (see instructions) .........................................................................................                    2.                    00
 3.  Historic Preservation Credit Net of Recapture from Form 4568, line 22 ...........................................................                               3.                    00
 4. MEGA Federal Contracts Credit from Form 4568, line 28 .................................................................................                          4.                    00
 5.  Brownfield Redevelopment Credit from Form 4568, line 32 ..............................................................................                          5.                    00
 6. Film Infrastructure Credit from Form 4568, line 35 ............................................................................................                  6.                    00
 7. MEGA Plug-In Traction Battery Manufacturing Credit from Form 4568, line 36 ................................................                                      7.                    00
 8. Anchor Company Payroll Credit from Form 4568, line 37 .................................................................................                          8.                    00
 9. Anchor Company Taxable Value Credit from Form 4568, line 38 ......................................................................                               9.                    00
10.  MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4568, line 39 ...                                                         10.                   00
 11. Certificated Nonrefundable Credits for CIT. Add lines 2 through 10 and carry to Form 4946, line 30,  
     or Form 4975, line 8  ......................................................................................................................................... 11.                   00

PART 2: RECAPTURE OF CERTAIN BUSINESS TAX CREDITS — Amount may not be less than zero. See instructions.
12.  Recapture of MBT Investment Tax Credit (see instructions) .............................................................................                         12.                   00
13.  Recapture of Single Business Tax (SBT) Investment Tax Credit from Form 4585, line 7 .................................                                           13.                   00
14.  This recapture has expired. Leave this line blank and skip to line 15 ...............................................................                           14. X X X X X X X X X 00
15.  Recapture of MBT MEGA Employment Tax Credit from Form 4587, line 2a .....................................................                                       15.                   00
16.  This recapture has expired. Leave this line blank and skip to line 19 ...............................................................                           16. X X X X X X X X X 00
17.  This recapture has expired. Leave this line blank and skip to line 19 ...............................................................                           17. X X X X X X X X X 00
18.  This recapture has expired. Leave this line blank and skip to line 19 ...............................................................                           18. X X X X X X X X X 00
19.  Recapture of MEGA Federal Contract Credit from Form 4587, line 4 ...............................................................                                19.                   00
20.  Recapture of MEGA Photovoltaic Technology Credit from Form 4587, line 5 ...................................................                                     20.                   00
21.  This recapture has expired. Leave this line blank and skip to line 22 ...............................................................                           21. X X X X X X X X X 00
22.  Recapture of MBT Brownfield Redevelopment Credit from Form 4587, line 7 ..................................................                                      22.                   00
23.  Recapture of Film Infrastructure Credit from Form 4587, line 8f .......................................................................                         23.                   00
24.  Recapture of Anchor Company Payroll Credit from Form 4587, line 9..............................................................                                 24.                   00
25.  Recapture of Anchor Company Taxable Value Credit from Form 4587, line 10 ................................................                                       25.                   00
26.  Recapture of Miscellaneous MEGA Battery Credits from Form 4587, line 12a .................................................                                      26.                   00
27.  Recapture of Start-Up Business Credit from Form 4573, line 8 ........................................................................                           27.                   00
28.  Total Recapture of Certain Business Tax Credits for CIT. Add lines 12, 13, 15, 19, 20 and 22 through 27, 
     and carry to Form 4946, line 32, or Form 4975, line 10 ....................................................................................                     28.                   00

PART 3: CERTIFICATED REFUNDABLE CREDITS — Amount may not be less than zero. See instructions.
29.  MEGA Employment Tax Credit from Form 4574, line 12 ...................................................................................                          29.                   00
30.  This credit is no longer available. Leave this line blank and skip to line 31 ......................................................                            30. X X X X X X X X X 00
31.  Farmland Preservation Credit from Form 4574, line 15 ....................................................................................                       31.                   00
32.  MEGA Federal Contract Credit from Form 4574, line 16...................................................................................                         32.                   00
33.  MEGA Photovoltaic Technology Credit from Form 4574, line 17 .......................................................................                             33.                   00
34.  Film Production Credit from Form 4574, line 18 ................................................................................................                 34.                   00
35.  This credit is no longer available. Leave this line blank and skip to line 36 ......................................................                            35. X X X X X X X X X 00
36.  Anchor Company Payroll Credit from Form 4574, line 20 .................................................................................                         36.                   00
37.  Anchor Company Taxable Value Credit from Form 4574, line 21 ......................................................................                              37.                   00
38.  MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4574, line 22 ...                                                         38.                   00
39.  Certificated Refundable Credits. Add lines 29, 31 through 34, and 36 through 38, and carry to Form 4946, 
     line 34, or Form 4975, line 12 ............................................................................................................................     39.                   00

+ 0000 2022 58 01 27 3

- 42 -

- 43 -

                                            Instructions for Form 4947 
                                      Schedule of Certificated Credits

                                                                         determine which Renaissance Zone credits are certificated. A 
Purpose
                                                                         certificated  Renaissance  Zone  credit  will  be  identified  by  the 
To  allow  qualified  taxpayers  that  elect  to  file  Michigan         checkbox  on  line  2  of  Form  4595.  Only  a  credit  of  that  type 
Business Tax (MBT) for tax years ending after 2011 to identify           may be reported on this line. Enter credit amount from Form 
their  certificated  credits  and  recapture  of  certain  tax  credits. 4595, line 25b, for which certificated status is properly claimed 
These  amounts  will  be  used  in  calculating  the  pro  forma         on Form 4595, line 2.
Corporate Income Tax (CIT) liability on the   Schedule of CIT 
Liability for a MBT Filer  (Form  4946),  which  is  a  required         If  a  taxpayer  has  activity  in  more  than  one  certificated 
element in calculating MBT liability for tax years ending after          Renaissance Zone, a separate Form 4595 will be filed for each 
2011.                                                                    Zone.  In  that  case,  report  here  the  combined  total  of  credits 
                                                                         claimed  on  all  Forms  4595,  line  25b,  for  which  certificated 
NOTE:  Only  a  limited  number  of  credits  and  recaptures            status is properly claimed on Form 4595, line 2.
listed on this form apply to financial institutions or insurance 
companies.  Credits  and  recaptures  applicable  to  financial          DO NOT use the Renaissance Zone credit amount from Form 
institutions are identified in the instructions of the forms from        4573 or Form 4596 to complete this form.
which  figures  on  this  form  originate.  A  credit  or  recapture     Line 3:  An  Historic  Preservation  Credit  may  be  classified 
should not be reported on Form 4947 if it is not reported on one         as refundable or nonrefundable, depending upon an election 
of the following forms:                                                  made  by  the  taxpayer.  Use  this  line  only  to  report  an 
• Nonrefundable Credits Summary (Form 4568)                              Historic  Preservation  Credit  that  is  properly  classified  as 
                                                                         nonrefundable.  If  a  refundable  historic  preservation  credit 
• Credits  for  Compensation,  Investment,  and  Research  and 
                                                                         was  claimed  as  an  accelerated  credit  on  the Request for 
  Development (Form 4570)
                                                                         Accelerated  Payment  for  the  Brownfield  Redevelopment 
• Miscellaneous Nonrefundable Credits (Form 4573)                        Credit  and  the  Historic  Preservation  Credit  (Form  4889), 
• Refundable Credits (Form 4574)                                         that  credit  amount  is  not  reported  on  this  form.  Standard 
• Investment  Tax  Credit  Recapture  From  Sale  of  Assets             taxpayers  and  financial  institutions  use  the  Historic 
  Acquired Under Single Business Tax (Form 4585)                         Preservation Credit Net of Recapture amount as reported on 
                                                                         Form 4568, line 22.
• Schedule of Recapture of Certain Business  Tax Credits   
  (Form 4587)                                                            Line 4: A MEGA Federal Contracts Credit may be classified as 
• Renaissance Zone Credit Schedule (Form 4595).                          refundable or nonrefundable, depending upon an election made 
                                                                         by the taxpayer. Use this line only to report a MEGA Federal 
NOTE       for   Insurance       Companies:          Insurance           Contracts  Credit  that  is  properly  classified  as  nonrefundable, 
Companies  calculate  certificated  credits  separately  on  the         and reported on Form 4568.
Miscellaneous Credits for Insurance Companies        (Form 
4596)  and  the Schedule  of  Corporate  Income  Tax  Liability          Line 5:  A  Brownfield  Redevelopment  Credit  may  be 
for a Michigan Business Tax Insurance Filer  (Form 4974).                classified as refundable or nonrefundable, depending upon an 
                                                                         election  made  by  the  taxpayer.  Use  this  line  only  to  report  a 
Line-by-Line Instructions                                                Brownfield Redevelopment Credit that is properly classified as 
Lines not listed are explained on the form.                              nonrefundable. If a refundable Brownfield credit was claimed 
                                                                         as  an  accelerated  credit  on  Form  4889,  that  credit  amount  is 
Name and Account Number:  Enter  name  and  account                      not  reported  on  this  form.  Standard  taxpayers  and  financial 
number as reported on page 1 of the applicable MBT annual                institutions use the Brownfield Redevelopment Credit amount 
return  (either MBT Annual Return  (Form  4567)  for  standard           as reported on Form 4568, line 32
taxpayers, MBT Annual Return for Financial Institutions (Form 
4590),  or Insurance  Company  Annual  Return for Michigan               Line 6:  Standard  taxpayers  and  financial  institutions  use  the 
Business and Retaliatory Taxes (Form 4588).                              amount from Form 4568, line 35.
UBGs:  Complete  one  form  for  the  group.  Enter  designated          Line 7: For tax years ending after December 31, 2014, the 
member’s name and account number. To the extent that credits             MEGA Plug-In Traction Battery  Manufacturing  Credit 
are calculated on a pro-forma, member level basis on the 4568,           is no longer available.  However,  unused  credit  carryforward 
4595, or 4574, enter the total credit amount for the group on this       from the immediately preceding tax year may still be claimed, 
form.                                                                    if available.
PART 1: Certificated Nonrefundable Credits                               Line 8: An Anchor Company Payroll Credit may be classified 
                                                                         as  refundable  or  nonrefundable,  depending  upon  an  election 
If not taking any credits in Part 1, skip to Part 2.
                                                                         made by the taxpayer. Use this line only to report an Anchor 
Line 2:  Not  all  Renaissance  Zone  credits  are  certificated         Company  Payroll  Credit  that  is  properly  classified  as 
credits to be reported on this form. See special instructions on         nonrefundable, and reported on Form 4568.
the MBT Renaissance Zone Credit Schedule  (Form  4595)  to 
                                                                         Line 9:  An  Anchor  Company  Taxable  Value  Credit  may  be 

                                                                                                                               41

- 44 -

classified as refundable or nonrefundable, depending upon Miscellaneous MEGA Battery Credits may be classified as
an election made by the taxpayer. Use this line only to report refundable or nonrefundable, depending upon an election
an Anchor Company Taxable Value Credit that is properly made by the taxpayer in the year the credit arises. Use this
classified as nonrefundable, and reported on Form 4568. line to report a MEGA Poly-Silicon Energy Cost Credit and/
or any Miscellaneous MEGA Battery Credits that are properly
Line 10: A MEGA Poly-Silicon Energy Cost Credit may be
classified as refundable and reported on Form 4574, line 22.
classified as refundable or nonrefundable, depending upon
an election made by the taxpayer. Use this line only to report
a MEGA Poly-Silicon Energy Cost Credit that is properly
classified as nonrefundable, and reported on Form 4568.
PART 2: Recapture of Certain Business Tax Credits
If not reporting any recaptures in Part 2, skip to Part 3.
Line 12: See the section “Calculation of MBT ITC Credit
Recapture Amount” later in these instructions.
Line 13: UBGs: In a UBG, a separate copy of Form 4585 is
filed for each member that has activity reportable on that form.
If the return includes multiple copies of Form 4585, report here
the combined total of recapture reported on all Forms 4585,
line 7.
PART 3: Certificated Refundable Credits
Line 29: Standard taxpayers and financial institutions use the
MEGA Employment Tax Credit amount as reported on Form
4574, line 12.
Line 30: This credit cannot be claimed for a tax period
ending in 2016 or later.
Line 32: A MEGA Federal Contracts Credit may be classified
as refundable or nonrefundable, depending upon an election
made by the taxpayer. Use this line only to report a MEGA
Federal Contracts Credit that is properly classified as
refundable, and reported on Form 4574, line 16.
Line 33: Standard taxpayers and financial institutions use the
MEGA Photovoltaic Technology Credit amount as reported on
Form 4574, line 17.
Line 34: Standard taxpayers and financial institutions use the
Film Production Credit amount as reported on Form 4574, line
18.
Line 35: The MEGA Plug-In Traction Battery
Manufacturing Credit is no longer available as a newly
arising credit. Line 7 of this form will continue to be used
to claim an unused credit carryforward from the immediately
preceding tax year.
Line 36: An Anchor Company Payroll Credit may be
classified as refundable or nonrefundable, depending upon an
election made by the taxpayer. Use this line only to report an
Anchor Company Payroll Credit that is properly classified as
refundable, and reported on Form 4574, line 20.
Line 37: An Anchor Company Taxable Value Credit may be
classified as refundable or nonrefundable, depending upon
an election made by the taxpayer. Use this line only to report
an Anchor Company Taxable Value Credit that is properly
classified as refundable, and reported on Form 4574, line 21.
Line 38: A MEGA Poly-Silicon Energy Cost Credit and the

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                                  Calculation of MBT ITC Credit Recapture Amount
Calculation of MBT ITC Credit Recapture Bases                             gain  reflected  in  federal  taxable  income  (as  defined  for  MBT 
For  each  category  of  asset  disposed  (or  moved  out  of             purposes) is equal to the gain reported for federal purposes.
Michigan) that triggers an MBT ITC credit recapture, enter the            UBGs:  The  recapture  of  capital  investments  for  UBGs  is 
information requested below.                                              calculated  on  combined  assets  of  standard  members  of  the 
In  each  category  of  disposed/moved  asset,  group  assets  by         UBG.  Assets  transferred  between  members  of  the  group  are 
taxable year in which they were acquired. All events that have            not  a  capital  investment  in  qualifying  assets  for  purposes 
varying  dates  must  be  listed  separately.  Multiple  dispositions     of  calculating  this  credit  or  its  recapture.  Disposing  of  or 
(or  transfers)  may  be  combined  as  one  entry,  subject  to  the     transferring  an  asset  outside  of  the  UBG  triggers  recapture. 
following:  all  combined  events  must  satisfy  the  terms  of          Also, moving an asset outside of Michigan creates recapture, 
the  table  in  which  they  are  entered.  “Taxable  Year  in  which     even if the transfer is to a member of the UBG.
disposed assets were acquired” must be the same for all events            Worksheet 1a — Depreciable Tangible Assets
combined on a single line.
                                                                          Enter  all  dispositions  of  depreciable  tangible  assets  located 
UBGs: If capital asset subject to recapture is from a member              in Michigan that were acquired or moved into Michigan after 
that  was  not  part  of  the  group  in  the  tax  year  the  asset  was acquisition  in  a  tax  year  beginning  after  2007  and  were  sold 
acquired,  make  a  separate  line  entry  for  the  tax  year  the       or  otherwise  disposed  of  during  the  current  filing  period. 
member  filed  outside  of  the  group.  Take  care  to  report  on       Give all information required for each disposition in columns 
this line information requested in each column only from the              A through F. In column A, enter the taxable year in which the 
member’s single filings, not the group’s.                                 disposed  assets  were  acquired.  Enter  combined  gross  sales 
                                                                          price (net of costs of sale) in column B, and in column C, enter 
NOTE:  A  sale  of  qualifying  property  reported  on  the 
                                                                          total gain or loss included in calculating federal taxable income 
installment  method  for  federal  income  tax  purposes  causes 
                                                                          (as defined for MBT purposes).
a recapture based upon the entire sale price in the year of the 
sale. The recapture is reduced by any gain reported in federal            NOTE: Sales price includes any benefit derived from the sale. 
taxable income (as defined for MBT purposes) in the year of the 
sale. The gain attributable to the installment sale that is reported      Worksheet 1b — Depreciable Mobile Tangible Assets
in subsequent years increases the credit base (or reduces other           Enter all dispositions of depreciable mobile tangible assets that 
sources of recapture) for those years, and must be reported on            were acquired after 2007 and were sold or otherwise disposed 
column  C  of  the  appropriate  Worksheet  based  on  the  type  of      of during the current filing period. Give all information required 
asset. For property placed in service prior to January 1, 2008,           for each disposition in columns A through F. In column A, enter 

Worksheet 1a — Depreciable Tangible Assets
     A                          B                 C                            D                 E                       F
Taxable Year (End Date)                                                   CIT Apportionment      Apportioned            MBT ITC Recapture
In Which Disposed       Combined Sales Price                              Percentage from Form   Gain/Loss               (Base 1)
Assets Were Acquired    of Disposed Assets by   Net Gain/Loss From        4891, line 9g, or Form Multiply Column C      Subtract Column E
(MM-DD-YYYY)            Year of Acquisition     Sale of Assets            4908, line 9c          by Column D            From Column B

Worksheet 1b — Depreciable Mobile Tangible Assets
     A                          B                 C                            D                 E                       F
Taxable Year (End Date)                                                                          CIT Apportionment      MBT ITC Recapture
In Which Disposed       Combined Sales Price of                           Adjusted Proceeds      Percentage from Form    (Base 2)
Assets Were Acquired    Disposed Assets by      Net Gain/Loss From        Subtract Column C      4891, line 9g, or Form Multiply Column D
(MM-DD-YYYY)            Year of Acquisition     Sale of Assets            From Column B          4908, line 9c           by Column E

Worksheet 1c — Assets Transferred Outside Michigan
     A                                    B
Taxable Year (End Date)         MBT ITC Recapture 
In Which Disposed       Combined Adjusted Federal Basis of 
Assets Were Acquired    Disposed Assets by Year of Acquisition
(MM-DD-YYYY)                      (Base 3)

                                                                                                                                         43

- 46 -

the taxable year in which the disposed assets were acquired. NOTE: Sales price includes any benefit derived from the sale.
Enter gross sales price (net of costs of sale) in column B, and in
column C, enter total gain or loss included in calculating federal Worksheet 1c — Assets Transferred Outside Michigan
taxable income (as defined for MBT purposes). Enter all depreciable tangible assets other than mobile tangible
assets acquired after 2007 that were eligible for ITC and were
For property placed in service prior to January 1, 2008, gain
transferred outside Michigan during the filing period. Give
reflected in federal taxable income (as defined for MBT
all information required for each disposition in column A and
purposes) is equal to the gain reported for federal purposes.
column B. In column A, enter the taxable year in which the
For property placed in service after December 31, 2007, gain disposed assets were acquired, and in column B, enter adjusted
reflected in federal taxable income (as defined for MBT basis as used for federal purposes. Do not use a recomputed
purposes) is the gain reported federally except that it shall be MBT basis for this purpose.
calculated as if IRC § 168(k) were not in effect.

Calculation of MBT ITC Recapture Rates Multiply column J by column K. This represents the total
and Amounts amount of ITC credit recapture available to be reported in the
Complete Worksheet 2 (on the following page), entering each tax year.
taxable year (End Date) in which the disposed assets that • Column M: MBT ITC credit recapture amount offset by
triggered MBT ITC credit recapture were acquired. credit. Enter the lesser of columns H and L. This is the
amount of available ITC credit recapture that was offset by
NOTE: Lines references on columns below are based on
the total amount of available ITC credit in the year.
2010 MBT form 4570. Lines for 2008 and 2009 MBT forms
are different, so if copying information from a 2008 or 2009 • Column O: SBT credit recapture amount. Enter total amount
MBT form, choose the appropriate lines. from Form 4570, line 19 for each taxable year listed on column
N.
Worksheet 2 • Column P: SBT ITC credit recapture amount offset by
• Column A: Enter in chronological order, beginning with credit. Enter lesser of the amount on column O, and the
the earliest, the tax year end date of each acquisition year amount of column H minus column M. This is the amount
of disposed assets that triggered MBT ITC recapture from of SBT ITC credit recapture that was offset by the total
Worksheet 1a through 1c. amount of available ITC credit in the taxable year.
UBGs: If capital asset subject to recapture is from a member • Column Q: Total MBT ITC used. Add columns D, M, and
that was not part of the group in the tax year the asset was P. The total amount of MBT ITC used equals to the amount
acquired, make a separate line entry for the tax year the of credit that offsets MBT ITC credit recapture, SBT ITC
member filed outside of the group. Take care to report in this credit recapture, and the MBT liability.
line information requested in each column only from the
• Column R: Extent used rate. Divide amounts on column Q
member’s single filings, not the group’s.
by amounts on column H.
• Column B: Enter allowable MI compensation and • Column T: MBT recapture base. Enter total amount of
ITC credits amount from Form 4570, line 26 with the recapture capital investment from Worksheet 1a, column F;
corresponding acquisition year in column A. Worksheet 1b, column F and Worksheet 1c, column B.
• Column C: Enter the MI compensation credit amount from • Column U: MBT recapture amount. Multiply amount in
Form 4570, line 3 with the corresponding acquisition year in column T by rates in column G, and in column R.
column A.
Add up figures in each row of column U, and carry that amount
• Column D: Calculate net ITC credit amount: subtract to Form 4947, line 12.
column C from column B for each taxable year. If
difference is less than zero (is negative), enter zero. This is
the amount of ITC credit that offsets MBT liability.
• Column F: MBT capital investment amount. Enter total
amount of capital investment reported on Form 4570, line 8
for each taxable year listed on column E.
• Column G: ITC rate. Enter 2.32% for taxable years on
column E that end with 2008, otherwise enter 2.9%.
• Column H: Calculate gross IC credit amount: multiply
column F by column G for each taxable year.
• Column J: MBT recapture of capital investment. Enter total
amount of recapture of capital investment reported on form
4570, line 16, for each taxable year listed on column I.
• Column L: Gross MBT ITC credit recapture amount.

- 47 -

Worksheet 2 — Calculation of MBT ITC Recapture Rates and Amounts
NOTE: Lines references on columns below are based on 2010 MBT form 4570. Lines for 2008 and 2009 MBT forms are 
different, so if copying information from a 2008 or 2009  MBT form, choose the appropriate lines.  
A                      B                                C                            D
                       Allowable Michigan                                            ITC that offsets MBT liability 
Taxable Year (End Date) in  compensation and ITC credit Michigan Compensation        Subtract column C 
which MBT ITC Disposed amount from Form 4570,           Credit Amount from           from column B 
Assets were acquired   line 26                          Form 4570, line 3            (Enter 0 if less than 0)

E                      F                                G                            H
                       MBT Capital Investment           ITC rate                     Gross ITC Credit Amount 
Taxable Year           Amount from Form 4570,           (2.32% for tax years ending  Multiply column F  
(repeat from column A) line 8                           in 2008, or 2.9% otherwise)  by column G

I                      J                                K                            L                              M
                       MBT Recapture of Capital         ITC rate                     Gross MBT ITC Recapture        MBT ITC Recapture Amount 
Taxable Year           Investment Amount from           (2.32% for tax years ending  Multiply column J              Offset by Credit Lesser 
(repeat from column A) Form 4570, line 16               in 2008, or 2.9% otherwise)  by column K                    of column L and H

N                      O                                P                            Q                              R
                                                        SBT ITC Recapture Amount 
                       SBT ITC Credit Recapture         Offset by Credit Lesser 
Taxable Year           Amount from Form 4570,           of column O,                 Total MBT ITC Credit Used      Extent Credit Used Rate 
(repeat from column A) line 19                          and column (H – M)           Add columns D, M, and P        Divide column Q by column H

S                      T                                U
                       Recapture base. 
                       Enter total amount of 
                       recapture from Worksheet 
                       1a, column F; Worksheet 1 b,     Recapture Amount. 
Taxable Year           column F; and Worksheet 1c,      Multiply column T by  
(repeat from column A) column B.                        column G and by column R

                                                                                                                                           45

- 48 -

No text to extract.

- 49 -

Michigan Department of Treasury                                                                                                                   Attachment 02
4568 (Rev. 04-22), Page 1 of 2

2022 MICHIGAN Business Tax Nonrefundable Credits Summary
Issued under authority of Public Act 36 of 2007.
Taxpayer Name                                                                                                 Federal Employer Identification Number (FEIN) or TR Number

 1. Tax before all credits from Form 4567, line 53, or Form 4590, line 26 .......................................................             1.                        00

 2. There is no amount to be entered on this line. Skip to line 3......................................................................       2.  X X X X X X X X X X X 00
 3. Tax After SBT credit carryforwards. Enter amount from line 1.
     If less than zero, enter zero  ..................................................................    3.  00

 4. a. Compensation and Investment Tax Credits from Form 4570, line 26 ....................................................                   4a.                       00

     b. If Form 4570, line 20, is negative, enter here as a negative number. Otherwise, leave blank ..............                            4b.                       00

 5. Research and Development Credit from Form 4570, line 33 .....................................................................             5.                        00
 6. Tax After Research and Development Credit. Subtract lines 4a, 4b 
     and 5 from line 3 (see instructions) .......................................................         6.  00

 7. Small Business Alternative Credit from Form 4571, line 13 or 19, whichever applies................................                        7.                        00

 8. Gross Receipts Filing Threshold Credit from Form 4571, line 27 ...............................................................            8.                        00
 9. Tax After Gross Receipts Filing Threshold Credit. Subtract lines 7 and 
     8 from line 6 (see instructions) ..............................................................      9.  00

 10. Community and Education Foundations Credit from Form 4572, line 5 .....................................................                  10.                       00

 11. Homeless Shelter/Food Bank Credit from Form 4572, line 9 .....................................................................           11.                       00
 12. Tax After Homeless Shelter/Food Bank Credit. Subtract lines 10 and 
     11 from line 9. If less than zero, enter zero ...........................................            12. 00

 13. This credit is no longer available. Leave this line blank and skip to line 15 ...............................................            13. X X X X X X X X X X X 00

 14. This credit is no longer available. Leave this line blank and skip to line 15 ...............................................            14. X X X X X X X X X X X 00

 15. Start-up Business Credit from Form 4573, line 9.  If less than zero, enter as a negative number .............                            15.                       00
 16. Tax After Start-up Business Credit. Subtract lines 13 and 15 from line 
     12. If less than zero, enter zero .............................................................      16. 00

 17. Public Contribution Credit from Form 4572, line 14....................................................................................   17.                       00

 18. Arts and Culture Credit from Form 4572, line 19 ........................................................................................ 18.                       00
 19. Tax After Arts and Culture Credit. Subtract lines 17 and 18 from line 
     16 (see instructions) .............................................................................. 19. 00

 20. Next Energy Business Activity Credit from Form 4573, line 12 ..................................................................          20.                       00

 21. Renaissance Zone Credit from Form 4573, line 14 ....................................................................................     21.                       00

 22. Historic Preservation Credit Net of Recapture from Form 4573, line 17b ..................................................                22.                       00

 23. Low-Grade Hematite Credit from Form 4573, line 22.................................................................................       23.                       00

 24. New Motor Vehicle Dealer Inventory Credit from Form 4573, line 27 ........................................................               24.                       00

+ 0000 2022 15 01 27 3                                                                                                                            Continue on Page 2

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2022 Form 4568, Page 2 of 2                                                                                 FEIN or TR Number

 25. Large Food Retailer Credit from Form 4573, line 31 ..................................................................................                             25. 00

 26. Mid-size Food Retailer Credit from Form 4573, line 35 ..............................................................................                              26. 00

 27. Bottle Deposit Administration Credit from Form 4573, line 39 ....................................................................                                 27. 00

 28. MEGA Federal Contract Credit from Form 4573, line 41............................................................................                                  28. 00

 29. Individual or Family Development Account Credit from Form 4573, line 47 ...............................................                                           29. 00

 30. Bonus Depreciation Credit from Form 4573, line 51 ..................................................................................                              30. 00

 31. International Auto Show Credit from Form 4573, line 54 ............................................................................                               31. 00

 32. Brownfield Redevelopment Credit from Form 4573, line 56 .......................................................................                                   32. 00

 33. Private Equity Fund Credit from Form 4573, line 61 ..................................................................................                             33. 00

 34. Film Job Training Credit from Form 4573, line 66 ......................................................................................                           34. 00

 35. Film Infrastructure Credit from Form 4573, line 72 .....................................................................................                          35. 00

 36. MEGA Plug-In Traction Battery Manufacturing Credit from Form 4573, line 75 .........................................                                              36. 00

 37. Anchor Company Payroll Credit from Form 4573, line 77 ..........................................................................                                  37. 00

 38. Anchor Company Taxable Value Credit from Form 4573, line 79 ...............................................................                                       38. 00
 39. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4573, 
     line 81 ......................................................................................................................................................... 39. 00
 40. Total Nonrefundable Credits.  Add lines 4a, 4b, 5, 7, 8, 10, 11, 15, 17, 18, and 20 through 39.  Enter total 
     here and carry total to Form 4567, line 54, or Form 4590, line 27 .............................................................                                   40. 00
 41. Tax After Nonrefundable Credits. Subtract line 40 from line 1. If less 
     than zero, enter zero. (This line must be equal to Form 4567, line 55, 
     or Form 4590, line 28.) .......................................................................... 41. 00

+ 0000 2022 15 02 27 1

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Instructions for Form 4568
Michigan Business Tax (MBT) Nonrefundable Credits Summary

Purpose Line-by-Line Instructions
The purpose of this form is to determine a taxpayer’s tax Lines not listed are explained on the form.
liability after application of nonrefundable tax credits.
Name and Account Number: Enter name and account number
Form 4568 is intended to summarize all applicable as reported on page 1 of the applicable MBT annual return
nonrefundable credits. Specific eligibility criteria, including (either the MBT Annual Return (Form 4567) for standard
varying credit carryforward life spans, apply to each of the taxpayers or the MBT Annual Return for Financial Institutions
nonrefundable credits. For more details about each of the (Form 4590)).
credits, refer to the MBT Act or the instructions for the specific
Line 6: Although most of the entries on this form are credits
forms referenced on this form.
that cause tax liability to decrease, if there is an entry on line
NOTE: Beginning January 1, 2012, only those taxpayers with 4b, subtracting that negative number will cause tax liability to
a certificated credit, which is awarded but not yet fully claimed increase.
or utilized, may elect to be MBT taxpayers.
The total created by the calculations in this line cannot be less
NOTE: This form may be used by both standard taxpayers than zero. A total of less than zero is only possible through a
and financial institutions. Insurance companies use the calculation error or an incorrect line entry.
Miscellaneous Credits for Insurance Companies (Form 4596) to
Line 9: The total created by the calculations in this line cannot
claim credits for which they may be eligible. Of the credits listed
be less than zero. A total of less than zero is only possible
on this form, financial institutions may only claim the following:
through a calculation error or an incorrect line entry.
• Single Business Tax (SBT) Credit Carryforwards
Line 16: Although most of the entries on this form are credits
• Compensation Credit that cause tax liability to decrease, if there is a negative entry
• Renaissance Zone Credit on line 15, subtracting that negative number will cause tax
• Historic Preservation Credit liability to increase.
• Individual or Family Development Account Credit Line 19: The total created by the calculations in this line
• Brownfield Redevelopment Credit cannot be less than zero. A total of less than zero is only
possible through a calculation error or an incorrect line entry.
• Film Infrastructure Credit.
Include completed Form 4568 as part of the tax return filing.
The goal of arranging credits in this fashion is to minimize the
need for taxpayers to go through all the available forms before
deciding which ones may be applicable to them. Under the
present arrangement, taxpayers are able to identify the forms
pertaining to them, and efficiently prepare the tax return.
Taxpayers should claim all credits for which they are eligible.

Special Instructions for Unitary Business Groups
Credits are earned and calculated on either an entity-specific or
group basis, as determined by the relevant statutory provisions
for the respective credits. Intercompany transactions are not
eliminated for the calculation of any credits. Credits earned or
calculated on either an entity-specific or group basis by Unitary
Business Group (UBG) members are generally applied against
the tax liability of the UBG, unless otherwise specified by
statute.
Entity-specific provisions are applied on a member-by-member
basis and are addressed in the line-by-line instructions of each
form. In none of these cases does a taxpayer that is a UBG
take the entity type of its parent, Designated Member (DM),
or any other member of the UBG. A UBG taxpayer will not
be attributed an entity type based on the composition of its
members.
Complete one Form 4568 for the group.
Further UBG instructions are provided on the forms where the
credits are calculated.

- 52 -

No text to extract.

- 53 -

Michigan Department of Treasury Attachment 04
4570 (Rev. 04-22), Page 1 of 4

2022 MICHIGAN Business Tax Credits for Compensation,
Investment, and Research and Development
Issued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability before the Compensation and Investment Tax Credits from Form 4568, line 3 ............................. 1. 00

PART 1: COMPENSATION CREDIT. If not claiming this credit, go to Part 2.

2. Michigan Compensation ................................................................................................................................... 2. 00

3. Multiply line 2 by 0.37% (0.0037). .................................................................................................................... 3. 00

PART 2: INVESTMENT TAX CREDIT
Read instructions to ensure eligibility before claiming this credit. If not claiming this credit, carry amount from line 3 to line 21.
Capital Investments
4. Total eligible depreciable tangible assets located in Michigan that were acquired during the tax year
(from line 35). ........................................................................................................................................................ 4. 00
5. Total eligible depreciable tangible assets purchased or acquired for use outside of Michigan in a tax year
beginning after December 31, 2007, that were transferred into Michigan during the tax year (from line 36) .... 5. 00

6. Total eligible depreciable mobile tangible assets that were acquired during the tax year (from line 37) ............ 6. 00
7. Mobile Tangible Assets. If subject to apportionment, multiply line 6 by the percentage from Form 4567,
line 11c. If not subject to apportionment, enter amount from line 6 ..................................................................... 7. 00

8. Total Capital Investments. Add lines 4, 5 and 7 ................................................................................................. 8. 00

9. Total cost paid or accrued of all depreciable real and personal property located everywhere that was acquired
during the tax year (authorized under MCL 208.1513(3)) .................................................................................... 9. 00
LINE 9 IS FOR STATISTICAL PURPOSES ONLY AND SHOULD NOT BE USED IN ANY CALCULATION ON THIS FORM.

Recapture of Capital Investments Acquired or Transferred into Michigan During the Tax Year
10. Adjusted Proceeds from recapture of eligible depreciable tangible assets located in Michigan that were
acquired or transferred into Michigan during the tax year and were also sold or otherwise disposed of during
the tax year (from line 39)...................................................................................................................................... 10. 00

If subject to apportionment, complete lines 11 and 12; otherwise, go to line 13.

11. Apportioned gains/losses. Multiply line 38, column F, by the percentage from Form 4567, line 11c ..................... 11. 00
12. Apportioned Adjusted Proceeds. If line 11 is a gain, subtract it from line 38, column E. If line 11 is a loss, add
its positive value to line 38, column E.................................................................................................................... 12. 00
13. Adjusted Proceeds from recapture of eligible depreciable mobile tangible assets acquired during the tax year
that were sold or otherwise disposed of during the tax year (from line 41) .............................................................. 13. 00

If subject to apportionment, complete line 14; otherwise, go to line 15.

14. Apportioned Adjusted Proceeds. Multiply line 13 by percentage from Form 4567, line 11c ................................. 14. 00
15. Adjusted Federal Basis of eligible depreciable tangible assets (other than mobile tangible assets) acquired
during the tax year that are eligible for the Investment Tax Credit and are transferred outside Michigan during
the tax year (from line 42)...................................................................................................................................... 15. 00
16. Recapture of Capital Investments. Add lines 10, 13, and 15. Or, if taxable in another state,
add lines 12, 14, and 15 ........................................................................................................................................ 16. 00

+ 0000 2022 23 01 27 6 Continue on Page 2

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2022 Form 4570, Page 2 of 4                                                       FEIN or TR Number

Net Capital Investments
 17. Net MBT Capital Investment.  Subtract line 16 from line 8 .................................................................................                      17.                 00
 18. Multiply line 17 by 2.9% (0.029) ............................................................................................................................    18.                 00
 19. Net Recapture Amount. Enter sum of amounts from Worksheet 2, total of column U, and Form 4585, line 7 ......                                                     19.                 00
 20. Subtract line 19 from line 18.  If negative, carry amount to Form 4568, line 4b ....................................................                             20.                 00

PART 3: REDUCED COMPENSATION AND INVESTMENT TAX CREDITS
 21. Add lines 3 and 20.  If line 20 is negative, enter amount from line 3 ......................................................................                     21.                 00
 22. Enter amount from Form 4567, line 51, or Form 4590, line 22..............................................................................                        22.                 00
 23. There is no amount to be entered on this line. Skip to line 24................................................................................                   23. X X X X X X X X 00
 24. Enter amount from line 22 ...................................................................................................................................... 24.                 00
 25. Multiply line 24 by 52% (0.52) ................................................................................................................................  25.                 00
 26. Allowable Credit.  Enter lesser of line 21 or line 25. Carry amount to Form 4568, line 4a ...................................                                    26.                 00
 27. If line 20 is negative, enter amount from line 20 as a positive number. If line 20 is positive, leave this line blank ...                                        27.                 00
 28. Tax After Compensation and Investment Tax Credits. Subtract line 26 from line 1 and add line 27 ......................                                           28.                 00

PART 4: RESEARCH AND DEVELOPMENT CREDIT
 29. Research and development expenses in Michigan ................................................................................................                   29.                 00
 30. Multiply line 29 by 1.9% (0.019) .............................................................................................................................   30.                 00
 31. Multiply line 24 by 65% (0.65) ................................................................................................................................  31.                 00
 32. Ceiling for Research and Development Credit.  Subtract line 26 from line 31 .......................................................                              32.                 00
 33. Research and Development Credit. Enter the lesser of line 30 or line 32. Carry amount to Form 4568, line 5 ........                                              33.                 00
 34. Tax After Research and Development Credit.  Subtract line 33 from line 28.   
     (This line must be equal to Form 4568, line 6.) ......................................................................................................           34.                 00

+ 0000 2022 23 02 27 4                                                                                                                                                    Continue on Page 3

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2022 Form 4570, Page 3 of 4 FEIN or TR Number

Table 1 - Enter all eligible depreciable tangible assets located in Michigan that were acquired during the tax year.
A B C D
Date Acquired Cost Paid or Accrued
Description City (MM-DD-YYYY) During Tax Year

35. Total of column D. Carry amount to line 4, page 1 ................................................................................................ 35. 00

Table 2 - Enter all eligible depreciable tangible assets purchased or acquired for use outside of Michigan in a tax year beginning after
December 31, 2007, that were transferred into Michigan during the tax year.
A B C D
Date Physically
Located in Michigan Federal Adjusted Basis
Description City (MM-DD-YYYY) as of Date Transferred

36. Total of column D. Carry amount to line 5, page 1 ................................................................................................ 36. 00

Table 3 - Enter all eligible depreciable mobile tangible assets that were acquired during the tax year.
A B C D
Date Acquired Cost Paid or Accrued
Description State (MM-DD-YYYY) During Tax Year

37. Total of column D. Carry amount to line 6, page 1 ................................................................................................ 37. 00

+ 0000 2022 23 03 27 2 Continue on Page 4

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2022 Form 4570, Page 4 of 4 FEIN or TR Number

Table 4 - Enter all eligible depreciable tangible assets located in Michigan that were acquired or transferred into Michigan during the tax
year and were also sold or otherwise disposed of during the tax year. (Enter dates as MM-DD-YYYY.)
A B C D E F
Description City Date Acquired Date Sold Gross Sales Price Gain/Loss

38. Totals of columns E and F. A loss in column F will increase recapture ............................ 38. 00 00
39. Adjusted Proceeds. If line 38, column F, is a gain, subtract it from line 38, column E. If line 38, column F, is a
loss, add its positive value to line 38, column E. Carry amount to line 10, page 1 ................................................. 39. 00

Table 5 - Enter all eligible depreciable mobile tangible assets acquired during the tax year that were also sold or otherwise disposed of
during the tax year. (Enter dates as MM-DD-YYYY.)
A B C D E F
Description State Date Acquired Date Sold Gross Sales Price Gain/Loss

40. Totals of columns E and F. A loss in column F will increase recapture ............................ 40. 00 00
41. Adjusted Proceeds. If line 40, column F, is a gain, subtract it from line 40, column E. If line 40, column F, is a
loss, add its positive value to line 40, column E. Carry amount to line 13, page 1 ................................................. 41. 00

Table 6 - Enter all eligible depreciable tangible assets (other than mobile tangible assets) acquired during the tax year that are eligible
for the Investment Tax Credit and were transferred outside Michigan during the tax year. (Enter dates as MM-DD-YYYY.)
A B C D E
Description City Date Acquired Date Transferred Federal Adjusted Basis

42. Adjusted Federal Basis. Total of column E. Carry amount to line 15, page 1 ......................................................... 42. 00

+ 0000 2022 23 04 27 0

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Instructions for Form 4570, Michigan Business Tax (MBT)
Credits for Compensation, Investment, and Research and Development
Purpose Line 2: Enter compensation, as defined in Michigan Compiled
Laws 208.1107(3), paid in the tax year on behalf of or for the
To claim the Compensation Credit, Investment Tax Credit benefit of employees, officers, or directors. Generally, under
(ITC), and the Research and Development Credit calculated this definition, compensation includes, but is not limited to,
here and carried to the MBT Nonrefundable Credits Summary payments that are subject to or specifically exempt or excepted
(Form 4568). from withholding under Internal Revenue Code (IRC) § 3401
NOTE: This form may be used by standard taxpayers to through § 3406.
claim eligible credits and by financial institutions to claim Compensation also includes fringe benefits and any earnings
the Compensation Credit only. Insurance companies use the that are net earnings from self-employment, as defined under
Miscellaneous Credits for Insurance Companies (Form 4596) IRC § 1402, of the taxpayer, partner, or Limited Liability
to claim credits for which they may be eligible. Company member of the taxpayer. Wages, salaries, fees,
The Compensation Credit and ITC together are limited to bonuses, commissions, and other payments made in the tax
52 percent of the total tax liability. The Research and Development year on behalf of or for the benefit of employees, officers, or
Credit, combined with the Compensation Credit and ITC, are directors, as well as net earnings from self-employment, must
limited to 65 percent of the tax liability. be reported on a cash basis.
This form will also determine an ITC recapture that potentially Payments made to a pension plan, retirement or profit sharing
could increase the tax liability. plan, employee insurance plans, and payments under health and
welfare benefit plans, as well as the administration fees paid for
NOTE: Beginning January 1, 2012, only those taxpayers the administration of the health and welfare benefit plan, are
with a certificated credit, which is awarded but not yet fully compensation. Compensation also includes certain payments
claimed or utilized, may elect to be MBT taxpayers. If a made by licensed taxpayers that are statutorily identified. These
taxpayer files an MBT return and claims a certificated credit, compensation payments are calculated on a cash or accrual basis
the taxpayer makes the election to file and pay under the MBT consistent with the taxpayer’s method of accounting for federal
until the certificated credit and any carryforward of that credit income taxes. The statute provides for certain exclusions from
are exhausted. A taxpayer making a valid certificated credit compensation, including employee discounts on merchandise
election may also claim the credits on this form. and services, payments for State and federal unemployment
compensation and federal insurance contributions, and payments
Special Instructions for Unitary Business Groups made to most independent contractors.
Credits are earned and calculated on either an entity-specific or Expenses incurred for the benefit of the taxpayer rather than for
group basis, as determined by the relevant statutory provisions the benefit of employees of the taxpayer are not compensation.
for the respective credits. The credits on this form are Noncompensation expenses might include payments reported
calculated on a group basis. Intercompany transactions are not on a Form 1099 to an employee for the rental of a building or
eliminated for the calculation of any credits. Assets transferred for interest income.
between members of the group are not considered capital
investments in qualifying assets for purposes of calculating This credit is calculated on the taxpayer’s Michigan
the ITC in Part 2. Credits are generally applied against the compensation.
tax liability of the Unitary Business Group (UBG), unless Compensation is “in this state” if (a) the individual’s service
otherwise specified by statute. is performed entirely within Michigan, or (b) the individual’s
Complete one Form 4570 for the group. service is performed both within Michigan and outside
Michigan, but the services performed outside Michigan are
Line-by-Line Instructions incidental to the individual’s service within Michigan.
Lines not listed are explained on the form. Example 1: Sales Co. employs Salesperson whose territory
includes both Detroit, Michigan, and Toledo, Ohio. Salesperson
Dates must be entered in MM-DD-YYYY format.
calls on customers located in both Michigan and Ohio. The
Name and Account Number: Enter name and account number compensation paid to Salesperson is not “compensation in this
as reported on page 1 of the applicable MBT annual return state” because Salesperson’s activity is not limited solely to
(either the MBT Annual Return (Form 4567) for standard Michigan, and calling on customers in Ohio is not incidental to
taxpayers or the MBT Annual Return for Financial Institutions Salesperson’s activity in Michigan.
(Form 4590)).
Example 2: Manufacturer employs Engineer at its Michigan
PART 1: COMPENSATION CREDIT facility. Several times a year, Engineer travels out of state to meet
UBGs: If the taxpayer is a UBG, the Compensation Credit is with suppliers. Although Engineer performs services both within
calculated on the combined Michigan compensation of the Michigan and outside Michigan, Engineer’s out-of-state services
UBG members. Intercompany transactions are not eliminated are incidental to Engineer’s services within Michigan. The
for this purpose. compensation paid to Engineer is “compensation in this state.”

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PART 2: INVESTMENT TAX CREDIT                                            the same for all events combined on a single line.
Use  Part  2  to  determine  the  total  eligible  acquisitions  and     Cost includes costs of fabrication and installation.
dispositions for the filing period. Complete Tables 1 through 6 
(lines 35 through 42) before completing lines 4 through 16. If           Table 1:  Enter  a  short  description  (for  example,  equipment, 
more space is needed for any assets acquired, sold, or disposed          building, etc.), city or township in which the asset is located, 
of in this tax year, include additional copies of page 3 or page         date  acquired,  and  cost  paid  or  accrued  of  all  eligible 
4 (as applicable) of the form identifying the name and account           depreciable  tangible  assets  located  in  Michigan  that  were 
number  at  the  top  with  only  the  additional  applicable  fields    acquired during the filing period.
completed. Financial institutions and insurance companies do 
                                                                         If multiple pages of Form 4570, Table 1, are included, carry the 
not qualify for this credit. 
                                                                         grand total of all Table 1, column D, entries to line 4. 
For  tax  years  beginning  after  2007,  taxpayers  may  claim  an 
ITC  for  a  percentage  of  the  net  costs  paid  or  accrued  in  the Table 2:  Enter  a  short  description  (for  example,  equipment, 
filing period for qualifying tangible assets physically located in       automobile, etc.), city or township in which the asset is located, 
Michigan. The assets must be of a type that are or will become           date  physically  located  in  Michigan,  and  adjusted  basis  (as 
eligible  for  depreciation,  amortization,  or  accelerated  capital    calculated  for  federal  purposes)  as  of  the  date  moved  of  all 
cost  recovery  for  federal  income  tax.  Mobile  tangible  assets     eligible  depreciable  tangible  assets  purchased  or  acquired 
(defined  in  the  instructions  for  line  8),  wherever  located,  are for  use  outside  of  Michigan  after  2007  that  were  moved  into 
subject to apportionment in the same manner as the tax base.             Michigan  during  the  filing  period  for  a  business  use.  Do  not 
Assets  purchased  or  acquired  after  2007  for  use  outside  of      include mobile tangible assets (see below).
Michigan  and  moved  into  Michigan  during  the  filing  period,       If multiple pages of Form 4570, Table 2, are included, carry the 
also  qualify  for  ITC.  Disposition  of  an  asset,  or  moving  an    grand total of all Table 2, column D, entries to line 5.
asset out of Michigan, creates recapture that reduces the credit. 
If recapture exceeds the positive credit earned by acquisitions,         Table 3:  Enter  a  short  description  (for  example,  construction 
the tax liability is increased.                                          equipment, aircraft, etc.), the state in which the asset primarily 
                                                                         was  based  during  the  tax  year,  date  acquired,  and  cost  paid 
NOTE:  Recapture  from  dispositions  during  the  filing  period 
                                                                         or accrued during the filing period for all depreciable mobile 
of  assets  acquired  (or  moved  into  Michigan)  after  1999  and 
                                                                         tangible  assets  that  were  acquired  during  the  filing  period, 
before  2008  is  calculated  on  the MBT  Investment  Tax  Credit 
                                                                         whether located in Michigan or outside Michigan.
Recapture from Sale of Assets Acquired Under Single Business 
Tax (Form 4585).                                                         Mobile tangible assets are all of the following: 
If, during the filing period, a taxpayer acquired depreciable real       • Motor  vehicles  that  have  a  gross  vehicle  weight  rating  of 
or personal property or disposed of depreciable real or personal           10,000 pounds or more and are used to transport property or 
property that was acquired in a tax year beginning after 1999,             persons for compensation.
complete this form and include it as part of the annual return. If 
                                                                         • Rolling  stock  (railroad  freight  or  passenger  cars, 
property disposed of during the filing period was acquired in a 
                                                                           locomotives,  or  other  railcars),  aircraft,  and  watercraft 
tax year beginning after 1999 and before 2008, also complete 
                                                                           used  by  the  owner  to  transport  property  or  persons  for 
and include Form 4585.
                                                                           compensation or used by the owner to transport the owner’s 
UBGs:  If  the  taxpayer  is  a  UBG,  the  ITC  is  calculated  on        property for sale, rental, or further processing.
combined  assets  of  standard  members  of  the  UBG.  Assets           • Equipment used directly in completion of, or in construction 
transferred  between  members  of  the  group  are  not  a  capital        contracts  for,  the  construction,  alteration,  repair,  or 
investment in qualifying assets for purposes of calculating this           improvement of property.
credit.
                                                                         If multiple pages of Form 4570, Table 3, are included, carry the 
The following instructions for the Part 2 “Capital Investments 
                                                                         grand total of all Table 3, column D, entries to line 6.
(Acquisitions)”  and  “Recapture  of  Capital  Investments 
(Dispositions)” sections provide information on completing the           Recapture of Capital Investments (Dispositions)
tables on pages 3 and 4 of this form. The instructions for Part 4        Use this section to compute credit recapture from disposition 
follow these sections.                                                   (or  moving  out  of  Michigan)  of  tangible,  depreciable  real  or 
Capital Investments (Acquisitions)                                       personal  property  that  was  acquired  in  a  tax  year  beginning 
                                                                         after  2007.  Recapture  from  the  disposition  of  qualifying 
NOTE: When completing tables 1 through 6,  leave  lines/                 property that was acquired in a tax year beginning after 1999 
boxes blank if they do not apply or if the amount is zero, unless        but before 2008 is calculated on Form 4585 and reported here. 
otherwise instructed.
                                                                         NOTE:  A  sale  of  qualifying  property  reported  on  the 
NOTE: For Tables 1 through 3, all events that have varying               installment  method  for  federal  income  tax  purposes  causes 
dates must be listed separately. “Various” is not a valid entry in       a  recapture  based  upon  the  entire  sale  price  in  the  year  of 
a date field. Multiple acquisitions (or transfers) may be combined       the  sale.  The  recapture  is  reduced  by  any  gain  reported  in 
as one entry, subject to the following: all combined events must         federal  taxable  income  (as  defined  for  MBT  purposes)  in 
satisfy the terms of the table in which they are entered. “Date          the  year  of  the  sale.  The  gain  attributable  to  the  installment 
Acquired” (or “Date Physically Located in Michigan”) must be             sale  that  is  reported  in  subsequent  years  increases  the  credit 

56

- 59 -

base (or reduces other sources of recapture) for those years. (for example, construction equipment, aircraft, etc.). Enter
For property placed in service prior to January 1, 2008, gain gross sales price (net of costs of sale) in column E, and in
reflected in federal taxable income (as defined for MBT column F, enter total gain or loss included in calculating federal
purposes) is equal to the gain reported for federal purposes. taxable income (as defined for MBT purposes).
UBGs: If the taxpayer is a UBG, the recapture of capital For property placed in service in the current filing period,
investments is calculated on combined assets of standard gain reflected in federal taxable income (as defined for MBT
members of the UBG. Assets transferred between members of purposes) is the gain reported federally except that it shall be
the group are not a capital investment in qualifying assets for calculated as if IRC § 168(k) were not in effect.
purposes of calculating this credit or its recapture. However,
NOTE: Sales price includes any benefit derived from the sale.
moving an asset outside of Michigan creates recapture, even if
the transfer is to a member of the UBG. If multiple pages of Form 4570, Table 5, are included, carry the
grand total of all line 41 entries to line 13.
Using the Correct Tables to Calculate Recapture
Enter information on Tables 4, 5, 6 as explained below ONLY Table 6: Enter all depreciable tangible assets (other than mobile
for assets that are being disposed of in the current filing period, tangible assets) acquired in the current filing period that were
and that were purchased, acquired, or moved into Michigan eligible for ITC and were ALSO transferred outside Michigan
ALSO in the current filing period. during the current filing period. Give all information required
for each disposition in columns A through E. In column A, enter
Information for assets disposed of in the current filing period a short description (e.g., equipment, automobile, etc.) and in
and purchased, acquired, or moved into Michigan in tax years column B, enter the Michigan city or township in which the asset
included in PREVIOUS filing periods must be entered on was located before its transfer. In column E, enter adjusted basis
worksheets 1a, 1b, and 1c provided at the end of the instructions as used for federal purposes. Do not use a recomputed MBT
for this form. Recapture for assets that were acquired in a tax basis for this purpose.
year beginning before 2008 and disposed of during the current
filing period is reported on Form 4585. If multiple pages of Form 4570, Table 6, are included, carry the
grand total of all Table 6, column E, entries to line 15.
The total credit recapture for assets reported on worksheets
1a, 1b, and 1c is calculated on Worksheet 2 at the end of this PART 4: RESEARCH AND DEVELOPMENT CREDIT
instructions, and will be reported on line 19 on this form. If the Line 29: As used in this part, research and development
filer is also reporting SBT ITC recapture on Form 4585, add expenses means that term as defined in IRC § 41(b).
both the total sum from Worksheet 2, column U, and the amount UBGs: If the taxpayer is a UBG, the Research and Development
from Form 4585, line 7 and enter the sum on line 19 on Form Credit is calculated on the combined research and development
4579 (this form). expenses of standard members of the UBG. Intercompany
NOTE: For Tables 4 through 6, all events that have varying transactions are not eliminated for this purpose. Qualified
dates must be listed separately. “Various” is not a valid expenses incurred by members of a UBG that are paid to fellow
entry in a date field. Multiple dispositions (or transfers) members are included in calculating the group’s credit.
may be combined as one entry, subject to the following: All Include completed Form 4570 as part of the tax return filing.
combined events must satisfy the terms of the table in which
they are entered. “Date Acquired” must be the same for all
IMPORTANT: Complete the worksheets on the following
events combined on a single line, and “Date Sold” (or “Date
pages for assets disposed (or moved out of Michigan) in
Transferred”) also must be the same.
the current filing period that were purchased, acquired, or
Table 4: Enter all dispositions of depreciable tangible assets moved into Michigan in a previous tax year beginning after
located in Michigan that were acquired or moved into December 31, 2007.
Michigan in the current filing period, and were ALSO sold
or otherwise disposed of during the current filing period.
Give all information required for each disposition in columns
A through F. In column A, enter a short description (for
example, equipment, building, etc.). Enter gross sales price
(net of costs of sale) in column E, and in column F, enter total
gain or loss included in calculating federal taxable income (as
defined for MBT purposes).
NOTE: Sales price includes any benefit derived from the sale.
If multiple pages of Form 4570, Table 4, are included, carry the
grand total of all line 39 entries to line 10.
Table 5: Enter all dispositions of depreciable mobile tangible
assets that were acquired in the current filing period and were
ALSO sold or otherwise disposed of during the current filing
period. Give all information required for each disposition in
columns A through F. In column A, enter a short description
57

- 60 -

                                   Calculation of MBT ITC Credit Recapture Amount
Calculation of MBT ITC Credit Recapture Bases                           installment  method  for  federal  income  tax  purposes  causes 
For  each  category  of  asset  disposed  (or  moved  out  of           a recapture based upon the entire sale price in the year of the 
Michigan) that triggers an MBT ITC credit recapture, enter the          sale. The recapture is reduced by any gain reported in federal 
information requested below.                                            taxable income (as defined for MBT purposes) in the year of 
                                                                        the  sale.  The  gain  attributable  to  the  installment  sale  that  is 
• Use the worksheets below to report information ONLY on                reported  in  subsequent  years  increases  the  credit  base  (or 
assets disposed (or moved out of Michigan) in the current filing        reduces other sources of recapture) for those years, and must 
period that were purchased, acquired, or moved into Michigan            be reported on column C of the appropriate Worksheet based 
in a PREVIOUS tax year beginning after December 31, 2007.               on  the  type  of  asset.  For  property  placed  in  service  prior  to 
• Use tables 4, 5, and 6 on the form to report assets that were         January  1,  2008,  the  gain  reflected  in  federal  taxable  income 
disposed  of  or  moved  out  of  Michigan  in  the  current  filing    (as defined for MBT purposes) is equal to the gain reported for 
period  AND  were  also  purchased,  acquired,  or  moved  into         federal purposes.
Michigan in the same current filing period.                             UBGs:  The  recapture  of  capital  investments  for  UBGs  is 
In  each  category  of  disposed/moved  asset,  group  assets  by       calculated  on  combined  assets  of  standard  members  of  the 
taxable year in which they were acquired. All events that have          UBG.  Assets  transferred  between  members  of  the  group  are 
varying  dates  must  be  listed  separately.  Multiple  dispositions   not  a  capital  investment  in  qualifying  assets  for  purposes 
(or  transfers)  may  be  combined  as  one  entry,  subject  to  the   of  calculating  this  credit  or  its  recapture.  Disposing  of  or 
following:  all  combined  events  must  satisfy  the  terms  of        transferring  an  asset  outside  of  the  UBG  triggers  recapture. 
the  table  in  which  they  are  entered.  “Taxable  Year  in  which   Also, moving an asset outside of Michigan creates recapture, 
disposed assets were acquired” must be the same for all events          even if the transfer is to a member of the UBG.
combined on a single line.                                              Worksheet 1a — Depreciable Tangible Assets
UBGs: If an asset subject to recapture is from a member that            Enter  all  dispositions  of  depreciable  tangible  assets  located 
was not part of the group in the tax year the asset was acquired,       in Michigan that were acquired or moved into Michigan after 
make  a  separate  line  entry  for  the  tax  year  the  member        acquisition  in  a  tax  year  beginning  after  2007  and  were  sold 
filed  outside  of  the  group.  Take  care  to  report  in  this  line or  otherwise  disposed  of  during  the  current  filing  period. 
information requested in each column only from the member’s             Give all information required for each disposition in columns 
single filings, not the group’s.                                        A through F. In column A, enter the taxable year in which the 
                                                                        disposed  assets  were  acquired.  Enter  combined  gross  sales 
NOTE:  A  sale  of  qualifying  property  reported  on  the             price (net of costs of sale) in column B, and in column C, enter 

Worksheet 1a — Depreciable Tangible Assets
     A                           B                 C                         D                 E                       F
Taxable Year (End Date)                                                 MBT Apportionment      Apportioned            MBT ITC Recapture
  In Which Disposed     Combined Sales Price                            Percentage from        Gain/Loss               (Base 1)
Assets Were Acquired    of Disposed Assets by   Net Gain/Loss From      Form 4567, line 11c,   Multiply Column C      Subtract Column E
  (MM-DD-YYYY)          Year of Acquisition     Sale of Assets          or Form 4590, line 10c by Column D            From Column B

Worksheet 1b — Depreciable Mobile Tangible Assets
     A                           B                 C                         D                 E                       F
Taxable Year (End Date)                                                                        MBT Apportionment      MBT ITC Recapture
  In Which Disposed     Combined Sales Price of                         Adjusted Proceeds      Percentage from         (Base 2)
Assets Were Acquired    Disposed Assets by      Net Gain/Loss From      Subtract Column C      Form 4567, line 11c,   Multiply Column D
  (MM-DD-YYYY)          Year of Acquisition     Sale of Assets          From Column B          or Form 4590, line 10c  by Column E

Worksheet 1c — Assets Transferred Outside Michigan
     A                             B
Taxable Year (End Date)          MBT ITC Recapture 
  In Which Disposed     Combined Adjusted Federal Basis of 
Assets Were Acquired    Disposed Assets by Year of Acquisition
  (MM-DD-YYYY)                     (Base 3)

58

- 61 -

total gain or loss included in calculating federal taxable income For property placed in service after December 31, 2007, gain
(as defined for MBT purposes). reflected in federal taxable income (as defined for MBT
purposes) is the gain reported federally except that it shall be
NOTE: Sales price includes any benefit derived from the sale.
calculated as if IRC § 168(k) were not in effect.
Worksheet 1b — Depreciable Mobile Tangible Assets
NOTE: Sales price includes any benefit derived from the sale.
Enter all dispositions of depreciable mobile tangible assets that
were acquired after 2007 and were sold or otherwise disposed Worksheet 1c — Assets Transferred Outside Michigan
of during the current filing period. Give all information required Enter all depreciable tangible assets (other than mobile tangible
for each disposition in columns A through F. In column A, enter assets) acquired after 2007 that were eligible for ITC and were
the taxable year in which the disposed assets were acquired. transferred outside Michigan during the filing period. Give
Enter gross sales price (net of costs of sale) in column B, and in all information required for each disposition in column A and
column C, enter total gain or loss included in calculating federal B. In column A, enter the taxable year in which the disposed
taxable income (as defined for MBT purposes). assets were acquired, and in column B, enter adjusted basis as
used for federal purposes. Do not use a recomputed MBT basis
For property placed in service prior to January 1, 2008, gain
for this purpose.
reflected in federal taxable income (as defined for MBT
purposes) is equal to the gain reported for federal purposes.

Calculation of MBT ITC Recapture Rates • Column H: Calculate gross ITC credit amount: multiply
and Amounts column F by column G for each taxable year.
Complete Worksheet 2 (on the following page), entering each • Column J: MBT recapture of capital investment. Enter total
taxable year (End Date) in which the disposed assets that amount of recapture of capital investment reported on Form
triggered MBT ITC credit recapture were acquired. 4570, line 16, for each taxable year listed on column I.
NOTE: Lines references on columns below are based on • Column L: Gross MBT ITC credit recapture amount. Multiply
2010 MBT form 4570. Lines for MBT forms prior to 2010 column J by column K. This represents the total amount of ITC
are different, so if copying information from MBT forms credit recapture available to be reported in the tax year.
other than 2010, choose the appropriate lines. • Column M: MBT ITC credit recapture amount offset by
credit. Enter the lesser of columns H and L. This is the amount
Worksheet 2 of available ITC credit recapture that was offset by the total
• Column A: Enter in chronological order, beginning with amount of available ITC credit in the year.
the earliest, the tax year end date of each acquisition year • Column O: SBT credit recapture amount. Enter total amount
of disposed assets that triggered MBT ITC recapture from from Form 4570, line 19 for each taxable year listed on column
Worksheet 1a through 1c. N.
UBGs: If an asset subject to recapture is from a member that • Column P: SBT ITC credit recapture amount offset by credit.
was not part of the group in the tax year the asset was acquired, Enter lesser of the amount on column O, and the amount of
make a separate line entry for the tax year the member column H minus column M. This is the amount of SBT ITC
filed outside of the group. Take care to report in this line credit recapture that was offset by the total amount of available
information requested in each column only from the member’s ITC credit in the taxable year.
single filings, not the group’s.
• Column Q: Total MBT ITC used. Add columns D, M, and
• Column B: Enter allowable MI compensation and ITC credits
P. The total amount of MBT ITC used equals to the amount of
amount from Form 4570, line 26 with the corresponding
credit that offsets MBT ITC credit recapture, SBT ITC credit
acquisition year in column A.
recapture, and the MBT liability.
• Column C: Enter the MI compensation credit amount from
• Column R: Extent used rate. Divide amounts on column Q
Form 4570, line 3 with the corresponding acquisition year in
by amounts on column H.
column A.
• Column T: MBT recapture base. Enter total amount of
• Column D: Calculate net ITC credit amount: subtract column
recapture capital investment from Worksheet 1a, column F;
C from column B for each taxable year. If difference is less
Worksheet 1b, column F and Worksheet 1c, column B.
than zero (is negative), enter zero. This is the amount of ITC
credit that offsets MBT liability. • Column U: MBT recapture amount. Multiply amount in
• Column F: MBT capital investment amount. Enter total column T by rates in column G, and in column R.
amount of capital investment reported on Form 4570, line 8, for Add up figures in each row of column U, and carry that amount
each taxable year listed on column E. to line 19. If filer is also reporting SBT ITC recapture, add both
• Column G: ITC rate. Enter 2.32% for taxable years on the total sum from column U in this form, and the amount from
column E that end with 2008, otherwise enter 2.9%. Form 4585, line 7 and enter the sum on line 19 on this form.

- 62 -

Worksheet 2 — Calculation of MBT ITC Recapture Rates and Amounts
  A                      B                              C                            D
                         Allowable Michigan                                          ITC that offsets MBT liability 
Taxable Year (End Date) in  compensation and ITC credit Michigan Compensation        Subtract column C 
which MBT ITC Disposed   amount from Form 4570,         Credit Amount from           from column B 
  Assets were acquired   line 26                        Form 4570, line 3            (Enter 0 if less than 0)

  E                      F                              G                            H
                         MBT Capital Investment         ITC rate                     Gross ITC Credit Amount 
  Taxable Year           Amount from Form 4570,         (2.32% for tax years ending  Multiply column F  
  (repeat from column A) line 8                         in 2008, or 2.9% otherwise)  by column G

  I                      J                              K                            L                              M
                         MBT Recapture of Capital       ITC rate                     Gross MBT ITC Recapture        MBT ITC Recapture Amount 
  Taxable Year           Investment Amount from         (2.32% for tax years ending  Multiply column J              Offset by Credit Lesser 
  (repeat from column A) Form 4570, line 16             in 2008, or 2.9% otherwise)  by column K                    of column L and H

  N                      O                              P                            Q                              R
                                                        SBT ITC Recapture Amount 
                         SBT ITC Credit Recapture       Offset by Credit Lesser 
  Taxable Year           Amount from Form 4570,         of column O,                 Total MBT ITC Credit Used      Extent Credit Used Rate 
  (repeat from column A) line 19                        and column (H – M)           Add columns D, M, and P        Divide column Q by column H

  S                      T                              U
                         Recapture base. 
                         Enter total amount of 
                         recapture from Worksheet 
                         1a, column F; Worksheet 1b,    Recapture Amount. 
  Taxable Year           column F; and Worksheet 1c,    Multiply column T by  
  (repeat from column A) column B.                      column G and by column R

60

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Michigan Department of Treasury Attachment 06
4571 (Rev. 04-22), Page 1 of 2

2022 MICHIGAN Business Tax Common Credits for Small Businesses
Issued under authority of Public Act 36 of 2007.
Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

The Small Business Alternative Credit is NOT available if any The Small Business Alternative Credit must be reduced
of the following conditions exist: if any of the following conditions exist:
• Gross receipts exceed $20,000,000. • Any individual, shareholder or officer has allocated
• Adjusted business income after loss adjustment exceeds income after loss adjustment of over $160,000 but not
$1,609,400. over $180,000, or any partner has distributive share of
• Any individual, shareholder or officer has allocated income income after loss adjustment of over $160,000 but not over
after loss adjustment of over $180,000, or any partner has $180,000, as determined on Forms 4577 or 4578.
distributive share of income after loss adjustment of over • Gross receipts exceed $19,000,000 but are not more
$180,000, as determined on Form 4577 or 4578. than $20,000,000.
• Compensation and director fees of a shareholder or officer of
a C Corporation exceed $180,000.
Taxpayers claiming the small business alternative credit, other than individuals and fiduciaries filing as individuals MUST complete and
include Form 4577 or 4578, as applicable.

1. Tax liability prior to this credit from Form 4568, line 6 ........................................................................................... 1. 00

PART 1: SMALL BUSINESS ALTERNATIVE CREDIT
If not claiming a Small Business Alternative Credit, skip to Part 2.
Adjusted Business Income
2. Business Income from Form 4567, line 28 (see instructions)................................................................................ 2. 00
3. Gross capital loss utilized on federal return (see instructions) .............................................................................. 3. 00
4. Federal net operating loss carryover or carryback from Form 4567, line 32 ......................................................... 4. 00
5. Add lines 2, 3, and 4 ............................................................................................................................................. 5. 00
6. Compensation and director fees of active shareholders from Form 4577, line 3 ................................................. 6. 00
7. Compensation and director fees of officers from Form 4577, line 4 ..................................................................... 7. 00
8. Adjusted Business Income. Add lines 5, 6 and 7................................................................................................... 8. 00
Small Business Alternative Credit Calculation
9. Small Business Alternative Tax. Multiply line 8 by 1.8% (0.018). If less than zero, enter zero ............................ 9. 00
10. Small Business Alternative Credit. Subtract line 9 from line 1. If less than zero, enter zero ......................... 10. 00
11. Allocated income/distributive share of income used for reduction (see instructions) .. 11. 00
12. Reduction percentage from Reduced Credit Table on page 2 (based on amount from line 11) .......................... 12. %
13. Reduced Credit. Multiply line 12 by line 10. If gross receipts from Form 4567, line 12, are less than or equal
to $19,000,000, carry amount to Form 4568, line 7 (see instructions) .................................................................. 13. 00
14. Tax After Small Business Alternative Credit. Subtract line 13 from line 1 ............................................................. 14. 00
Reduction Based on Gross Receipts
Complete this section if gross receipts are more than $19,000,000 but not more than $20,000,000.
15. Gross receipts from Form 4567, line 12 (see instructions) .................................................................................... 15. 00
16. Excess gross receipts. Subtract $19,000,000 from line 15 .................................................................................. 16. 00
17. Excess percentage. Divide line 16 by $1,000,000, and enter as a percentage .................................................... 17. %
18. Allowable percentage. Subtract line 17 from 100% ............................................................................................... 18. %
19. Small Business Alternative Credit. Multiply percentage on line 18 by the credit on line 13.
Carry amount to Form 4568, line 7 ........................................................................................................................ 19. 00
20. Tax After Small Business Alternative Credit. Subtract line 19 from line 1 ............................................................. 20. 00

Continue on Page 2
+ 0000 2022 27 01 27 8

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2022 Form 4571, Page 2 of 2 FEIN or TR Number

PART 2: GROSS RECEIPTS FILING THRESHOLD CREDIT
Complete this section if apportioned gross receipts are equal to or greater than $350,000 but less than $700,000.
See instructions for tax years less than 12 months.
21. Tax before credit from line 1, 14 or 20, whichever applies .................................................................................... 21. 00
22. Threshold Ceiling .................................................................................................................................................. 22. 700,000 00
23. Gross Receipts from Form 4567, line 12 (see instructions) .................................................................................. 23. 00
24. Apportioned Gross Receipts. Multiply line 23 by percentage from Form 4567, line 11c ....................................... 24. 00
25. Excess Gross Receipts. Subtract line 24 from line 22. If negative, enter zero on line 27 (no credit allowed) ...... 25. 00
26. Gross Receipts Filing Threshold Credit Percentage. Divide line 25 by $350,000, and enter as a percentage ..... 26. %
27. Gross Receipts Filing Threshold Credit. Multiply line 26 by line 21. Carry amount to Form 4568, line 8 ........ 27. 00
28. Tax After Gross Receipts Filing Threshold Credit. Subtract line 27 from line 21. (This line must be equal to
Form 4568, line 9.) ................................................................................................................................................ 28. 00

+ 0000 2022 27 02 27 6

- 65 -

                                              Instructions for Form 4571 
       Michigan Business Tax (MBT) Common Credits for Small Businesses
                                                                             determined  on  the MBT Schedule  of  Shareholders and 
Purpose 
                                                                             Officers (Form  4577)  or  the      MBT Schedule of Partners     
To allow taxpayers to calculate the Small Business Alternative               (Form 4578).
Credit and the Gross Receipts Filing Threshold Credit. Credits 
are calculated here and then carried to the MBT Nonrefundable            In addition, the Small Business Alternative Credit is reduced 
Credits Summary (Form 4568).                                             if  an  Individual,  a  partner  in  a  Partnership,  a  shareholder  of 
                                                                         a Corporation, or an officer of a C Corporation has allocated 
A  taxpayer  is  disqualified  from  taking  the  Small  Business        income  (or  distributive  share  of  income,  for  a  partner)  after 
Alternative  Credit  under  certain  circumstances,  which  are          loss adjustment of more than $160,000. This reduction is based 
detailed below.                                                          on  the  individual/partner/officer/shareholder  with  the  largest 
A  taxpayer  with  gross  receipts  allocated  or  apportioned  to       allocated or distributive share of income.
Michigan  equal  to  or  greater  than  $350,000,  but  less  than       The Small Business Alternative Credit also is reduced if gross 
$700,000, may claim a Gross Receipts Filing Threshold Credit.            receipts exceed $19,000,000 but are not more than $20,000,000.
Unitary Business Groups (UBGs): Taxpayers that are part of               C Corporations
a UBG must use the gross receipts of the entire group before             Allocated income for C Corporations is either:
eliminations  to  determine  if  the  gross  receipts  allocated  or 
apportioned to Michigan are between $350,000 and $700,000.               (a)  A  shareholder  or  officer’s  compensation  and  director  fees 
                                                                             from Form 4577, column L, or 
NOTE:  Beginning  January  1,  2012,  only  those  taxpayers 
with  a  certificated  credit,  which  is  awarded  but  not  yet  fully (b)  A shareholder’s compensation, director fees, and share of 
claimed  or  utilized,  may  elect  to  be  MBT  taxpayers.    If  a         business income (or loss) after loss adjustment, from Form 
taxpayer files an MBT return and claims a certificated credit,               4577, column N.
the taxpayer makes the election to file and pay under the MBT            If either (a) or (b) is greater than $180,000 for any shareholder 
until the certificated credit and any carryforward of that credit        or officer, the Corporation is not eligible for the Small Business 
are exhausted.    A  taxpayer  making  a  valid  certificated  credit    Alternative Credit. In addition, if either (a) or (b) is more than 
election may also claim the credits on this form.                        $160,000  but  not  more  than  $180,000  for  any  shareholder 
NOTE: A member of a Limited Liability Company (LLC) is                   or  officer,  the  Corporation  must  reduce  the  Small  Business 
characterized for MBT purposes as a partner, shareholder, or             Alternative Credit based on the officer or shareholder with the 
owner, based on the federal tax classification of the LLC. An            largest allocated income.
LLC taxed as a Partnership for federal purposes is required to 
                                                                         S Corporations
file as a Partnership for MBT. Similarly, an LLC taxed as a C 
Corporation or an S Corporation for federal purposes must file           Allocated  income  for  S  Corporations  is  shareholder’s 
under that same entity type for MBT.                                     compensation, director fees, and share of business income (or 
                                                                         loss), after loss adjustment, from Form 4577, column N.
NOTE: A person that is a disregarded entity for federal income 
tax purposes under the internal revenue code shall be classified         NOTE: Individuals and Fiduciaries filing as Individuals do not 
as  a  disregarded  entity  for  the  purposes  of  filing  the  MBT     need to file Form 4577 or Form 4578.
annual return.                                                           NOTE:  Taxpayers  leasing  employees  from  professional 
Fiscal  Year  Filers:  See  “Supplemental  Instructions  for             employer  organizations  must  include  the  compensation  of 
Standard  Fiscal  MBT  Filers”  in  the     MBT Forms and                officers  (of  the  operating  company)  and  shareholders  who 
Instructions for Standard Taxpayers (Form 4600).                         receive compensation in determining the eligibility for the Small 
                                                                         Business Alternative Credit even though their compensation is 
Eligibility for the Small Business Alternative                           paid by the professional employer organization.
Credit                                                                   NOTE: If a shareholder owned stock for less than the entire tax 
Taxpayers  are  not  eligible  for  the  Small  Business  Alternative    year of the corporation, or an officer served as an officer less 
Credit if any of the following conditions exist:                         than  the  entire  tax  year,  shareholder  compensation  amounts 
                                                                         must be annualized when determining disqualifiers.
• Gross receipts exceed $20,000,000.
• Adjusted business income after loss adjustment exceeds:                Tax Years Less Than 12 Months
  ○ $1,609,400  for Corporations or Partnerships (and LLCs               If  the  reported  tax  year  is  less  than  12  months,  gross  receipts, 
  federally taxed as such).                                              adjusted business income, partners’ distributive share of business 
                                                                         income, and shareholders’ and officers’ allocated or distributive 
  ○ $180,000   for Individuals or Fiduciaries.                           share of income must be annualized to determine eligibility. If 
• Any  shareholder  or  officer  has  allocated  income  after  loss     annualized gross receipts exceed $19,000,000 but do not exceed 
  adjustment of over $180,000 or any partner has distributive            $20,000,000, annualize figures to compute the Reduction Based 
  share of income after loss adjustment of over $180,000, as             on Gross Receipts, lines 15 through 20. 

                                                                                                                                           63

- 66 -

Annualizing                                                              Adjusted Business Income
Multiply  each  applicable  amount,  total  gross  receipts,  adjusted   Line  2: Enter business income from Form 4567, line 28. If not 
business income, and shareholder, officer, and partner income by         subject  to  Business  Income  Tax,  enter  business  income  from 
12 and divide the result by the number of months the business            the Business Income Worksheet  (Worksheet  4746)  in  Form 
operated. Generally, a business is considered in business for one        4600. Attach this worksheet to the return.
month if the business operated for more than half the days of the        UBGs:  Enter  the  business  income  before  eliminations  from 
month. If the tax year is less than one month, consider the tax          Form 4580, Part 2B, line 30A.
year to be one month for the purposes of the calculation.
                                                                         Line  3: Enter all capital losses that were used federally to offset 
Loss Adjustment                                                          capital gain. This is not the net figure found on the Schedule D 
If  taxpayers  are  not  eligible  for  the  full  Small  Business       lines identified below. It is the amount of capital losses that were 
Alternative  Credit  due  to  an  adjusted  business  income  or         used  in  reaching  the  net  figure  on  the  federal  return  lines.  If 
allocated income disqualifier, they may benefit from the MBT             filing a U.S. Form 1040 or 1041, include the capital loss amount 
Loss  Adjustment  for  the  Small  Business  Alternative  Credit         that  the  Individual  or  Fiduciary  was  able  to  use  against  the 
(Form  4575).  If  the  adjusted  business  income  was  less  than      capital  gain  and  the  capital  loss  amount  that  the  Individual  or 
zero in any of the five years immediately preceding the tax year         Fiduciary was permitted to deduct from ordinary income ($3,000 
for which a taxpayer is claiming a credit and an MBT Small               or less). Use both long-term and short-term capital losses here.
Business  Alternative  Credit  was  received  for  that  same  year, 
                                                                         Include  the  capital  losses  used  in  calculating  the  net  figure 
the taxpayer may be able to reduce the current year’s adjusted 
                                                                         using  “Net  short-term  capital  gain  or  (loss)”  and  “Net  long-
business income or allocated income amounts by the loss. See 
                                                                         term capital gain or (loss)” from Schedule D of federal Forms 
Form 4575 for more details.
                                                                         1040, 1041, 1065, 1120 and 1120S as applicable.
A  loss  adjustment  will  not  prevent  a  reduction  to  the  Small 
                                                                         UBGs: Combine all capital losses for all members and enter on 
Business  Alternative  Credit  based  on  gross  receipts  that 
                                                                         line 3.
exceed  $19,000,000.  It  will  also  not  change  the  amount  of 
compensation on Form 4577, column L, for a C Corporation.                Line 6 and line 7: Fiscal Year Filers:  See  “Supplemental 
                                                                         Instructions for Standard Fiscal MBT Filers” in Form 4600.
Special Instructions for UBGs
                                                                         Small Business Alternative Credit Calculation
UBGs calculate the gross receipts and adjusted business income 
                                                                         Line 11: The  Small  Business  Alternative  Credit  is  reduced 
disqualifiers at the UBG level without eliminating intercompany 
                                                                         if  an  Individual,  a  partner  in  a  Partnership,  a  shareholder  of 
transactions.  For  a  UBG  to  claim  a  small  business  alternative 
                                                                         a Corporation, or an officer of a C Corporation has allocated 
credit, each member of the UBG that is a corporation (including 
                                                                         income  (or  distributive  share  of  income,  for  a  partner)  after 
an  entity  taxed  federally  as  such)  must  file  Form  4577.   Each 
                                                                         loss adjustment of more than $160,000. This reduction is based 
member  of  the  UBG  that  is  a  partnership  (including  an  entity 
                                                                         on  the  individual/partner/officer/shareholder  with  the  largest 
taxed  federally  as  such)  must  file  Form  4578.  The  disqualifier 
                                                                         allocated  or  distributive  share  of  income.  Enter  the  allocated 
that  is  based  on  allocated  or  distributive  share  of  income  is 
                                                                         income of the shareholder or officer with the highest allocated 
applied on a separate entity basis using a pro forma calculation 
                                                                         income after loss adjustment or the highest distributive share of 
for business income and is not a combined amount received from 
                                                                         income assigned to a partner or individual, even if that figure is 
all members of a UBG. See the “Supplemental Instructions for 
                                                                         $160,000 or less.
Standard Members in UBGs” section in Form 4600.
                                                                         If loss adjustment is successfully applied to fully or partially 
Line-by-Line Instructions                                                cure  an  owner’s  allocated  or  distributive  income  disqualifier, 
                                                                         enter on line 11 the number from Form 4575, line 5.
Lines not listed are explained on the form.
                                                                         Line  12:  For  a  taxpayer  whose  owners  or  officers  all  have 
Name and Account Number:     Enter name and account number 
                                                                         allocated or distributive share of income after loss adjustment 
as reported on page 1 of the MBT Annual Return (Form 4567).
                                                                         of $160,000 or less, enter 100 percent. All other taxpayers, see 
UBGs: Complete one form for the group. Enter the Designated              the table at the bottom of page 2 of this form to determine what 
Member  (DM)  name  in  the  Name  field  and  the  DM  account          percent to enter on this line.
number in the Federal Employer Identification Number (FEIN) 
                                                                         Line 13: All taxpayers must complete this line.
or TR Number field.
                                                                         If  gross  receipts  from  Form  4567,  line  12,  are  $19,000,000  or 
PART 1: SMALL BUSINESS ALTERNATIVE CREDIT                                less, carry the amount on line 13 to Form 4568, line 7.  For  tax 
Skip  to  Part  2  of  this  form  if  not  claiming  a  Small  Business years less than 12 months, use annualized gross receipts.  For 
Alternative Credit.                                                      guidance,  see  the  “Annualizing”  section  at  the  beginning  of 
Business  income  is  adjusted  by  federal  net  operating  loss        these instructions.  
carryover  or  carryback  from  Form  4567,  line  32.  It  is 
                                                                         UBGs:  For  the  purpose  of  calculating  the  credit  reduction 
also  adjusted  by  compensation  and  director  fees  of  active 
                                                                         based  on  gross  receipts,  the  UBG  combined  gross  receipts 
shareholders and officers from Form 4577 and by capital losses.
                                                                         must  reflect  the  sum  of  every  member’s  gross  receipts  on  a 
                                                                         12-month basis, before eliminations. Therefore, if no members 
                                                                         of  the  UBG  are  short-year  filers,  use  the  amount  from  the 

64

- 67 -

MBT Unitary Business Group Combined Filing Schedule for 
Standard Members (Form 4580), Part 2B, line 17A. Otherwise, 
for all short-year members of the group, annualize their gross 
receipts amount from Form 4580, Part 2A, line 17A, and then 
combine the annualized amounts with the gross receipts (Form 
4580, Part 2A, line 17A) for the remaining group members.
Reduction Based on Gross Receipts
Line 15: For tax periods less than 12 months, enter annualized 
gross  receipts  to  determine  if  annualized  gross  receipts  are 
more than $19,000,000 but not more than $20,000,000.
UBGs:  To  calculate  the  entry  for  this  line,  see  the  UBG 
guidance under line 13. Enter the sum of all members’ 12-month 
basis gross receipts, before eliminations, on line 15 of this form.
PART 2: GROSS RECEIPTS FILING THRESHOLD 
CREDIT
Complete Part 2 if apportioned gross receipts are equal to or 
greater than $350,000 but less than $700,000.
Line 23: For tax periods less than 12 months, enter annualized 
gross receipts. For guidance, see the “Annualizing” section at 
the beginning of these instructions.
UBGs:  To  calculate  the  entry  for  this  line,  see  the  UBG 
guidance  under  line  13.  Enter  the  sum  of  all  members’ 
12-month basis gross receipts, before eliminations, on line 23 
of this form. 
Include completed Form 4571 as part of the tax return filing.

                                                                     65

- 68 -

- 69 -

Michigan Department of Treasury Attachment 10
4572 (Rev. 04-22)

2022 MICHIGAN Business Tax Charitable Contribution Credits
Issued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability prior to this credit from Form 4568, line 9 ................................................................................. 1. 00

COMMUNITY AND EDUCATION FOUNDATIONS CREDIT
If not claiming the Community or Education Foundations Credit, carry amount from line 1 to line 6.
Code 1 Code 2
2. Enter Community and/or Education Foundation Code(s) (see instructions) ........ 2.
3. Community and Education Foundations donation amount .......................................................................... 3. 00
4. Multiply line 3 by 50% (0.50) ....................................................................................................................... 4. 00
5. Community and Education Foundations Credit. Enter the lesser of line 4, $5,000, or 5% (0.05) of
the tax on Form 4567, line 53. Carry amount to Form 4568, line 10 .......................................................... 5. 00
6. Tax After Community and Education Foundations Credit. Subtract line 5 from line 1. If less than zero,
enter zero ................................................................................................................................................... 6. 00

HOMELESS SHELTER/FOOD BANK CREDIT
If not claiming the Homeless Shelter/Food Bank Credit, carry amount from line 6 to line 10.
7. Homeless Shelter/Food Bank cash donation amount ................................................................................. 7. 00
8. Multiply line 7 by 50% (0.50) ....................................................................................................................... 8. 00
9. Homeless Shelter/Food Bank Credit. Enter the lesser of line 8, $5,000, or 5% (0.05) of the tax on
Form 4567, line 53. Carry amount to Form 4568, line 11 ........................................................................... 9. 00
10. Tax After Homeless Shelter/Food Bank Credit. Subtract line 9 from line 6. If less than zero, enter zero.
(This line must be equal to Form 4568, line 12.) ......................................................................................... 10. 00

PUBLIC CONTRIBUTION CREDIT
If not claiming the Public Contribution Credit, complete line 11 and carry amount to line 15.
11. Enter tax amount from Form 4568, line 16 .................................................................................................. 11. 00
12. Public Contribution donation amount........................................................................................................... 12. 00
13. Multiply line 12 by 50% (0.50) ..................................................................................................................... 13. 00
14. Public Contribution Credit. Enter the lesser of line 13, $5,000, or 5% (0.05) of line 11.
Carry amount to Form 4568, line 17 ............................................................................................................ 14. 00
15. Tax After Public Contribution Credit. Subtract line 14 from line 11. If less than zero, enter zero ................ 15. 00

ARTS AND CULTURE CREDIT
If not claiming the Arts and Culture Credit, carry amount from line 15 to line 20.
16. Arts and Culture donation amount (see instructions) .................................................................................. 16. 00
17. Qualified donation amount. Subtract $50,000 from line 16. If less than zero, enter zero ............................ 17. 00
18. Multiply line 17 by 50% (0.50) ..................................................................................................................... 18. 00
19. Arts and Culture Credit. Enter the lesser of line 18, $100,000, or the tax from line 15.
Carry amount to Form 4568, line 18 ............................................................................................................ 19. 00
20. Tax After Arts and Culture Credit. Subtract line 19 from line 15. If less than zero, enter zero.
(This line must be equal to Form 4568, line 19.) ......................................................................................... 20. 00

+ 0000 2022 31 01 27 9

- 70 -

                                            Instructions for Form 4572 
                Michigan Business Tax (MBT) Charitable Contribution Credits
                                                                         donations are made during the taxable year to public broadcast 
Purpose 
                                                                         stations  located  in  Michigan,  Michigan  public  libraries, 
To allow standard taxpayers to claim the charitable contribution         institutions of higher learning located in Michigan or a nonprofit 
credits. Credits are calculated here and then carried to the MBT         corporation,  fund,  foundation,  trust,  or  association  organized 
Nonrefundable Credits Summary (Form 4568).                               and  operated  exclusively  for  the  benefit  of  an  institution  of 
                                                                         higher  learning,  the  Michigan  Colleges  Foundation,  and  the 
NOTE: Financial institutions and insurance companies are not 
                                                                         Michigan  Housing  and  Community  Development  Fund.  A 
eligible for these credits.
                                                                         taxpayer  that  also  is  subject  to  the  Michigan  Income  Tax  Act 
NOTE:  Beginning  January  1,  2012,  only  those  taxpayers             (PA 281 of 1967) may not claim this credit under the MBT.
with  a  certificated  credit,  which  is  awarded  but  not  yet  fully 
claimed  or  utilized,  may  elect  to  be  MBT  taxpayers.  If  a       ARTS AND CULTURE CREDIT
taxpayer files an MBT return and claims a certificated credit,           A partial credit is allowed when donations are made to either of 
the taxpayer makes the election to file and pay under the MBT            the following:
until the certificated credit and any carryforward of that credit        • Category A:  A  municipality  or  a  nonprofit  corporation 
are  exhausted.  A  taxpayer  making  a  valid  certificated  credit       affiliated  with  a  municipality  and  an  art,  historical,  or 
election may also claim the credits on this form.                          zoological  institute  for  the  purpose  of  benefiting  the  art, 
                                                                           historical, or zoological institute, OR 
Special Instructions for Unitary Business Groups
                                                                         • Category B: An institute devoted to the procurement, care, 
Credits  are  generally  earned  and  calculated  on  a  group  basis,     study, and display of objects of lasting interest or value. 
unless  the  relevant  statute  contains  entity-specific  provisions. 
These  credits,  including  the  ceilings  on  these  credits,  are      To calculate the Arts and Culture Credit, a taxpayer may count 
calculated on a group basis.                                             aggregate  contributions  to  the  charities  described  in  Category 
                                                                         A  above  if  those  contributions  exceed  $50,000,  as  well  as 
Complete one Form 4572 for the group.                                    aggregate contributions to charities described in Category B if 
                                                                         those contributions exceed $50,000. A taxpayer is not precluded 
Line-by-Line Instructions
                                                                         from taking the credit for donations made to both categories as 
Lines not listed are explained on the form.                              long as the taxpayer meets the minimum donation separately for 
Name and Account Number: Enter name and account number                   each category and does not exceed the overall credit limitation of 
as reported on page 1 of the MBT Annual Return (Form 4567).              $100,000. 
                                                                         Contributions  within  a  category  may  be  aggregated  to  reach 
Credits                                                                  the  $50,000  minimum.  However,  contributions  made  to  one 
COMMUNITY AND EDUCATION FOUNDATIONS CREDIT                               category may not be aggregated with contributions to the other 
A  partial  credit  is  allowed  when  donating  to  the  endowment      to reach the $50,000 minimum.
fund  of  a  certified  community  foundation  or  education             Line  16: Use  the  worksheet  below  to  calculate  the  donation 
foundation.  A  list  of  certified  foundations,  if  applicable,  will amount.
be  posted  as  a  Revenue  Administrative  Bulletin  found  online 
                                                                         If aggregate contributions to Category A institutions 
at www.michigan.gov/treasury  under  “Reports  and  Legal                exceed $50,000, enter that aggregate amount here
Resources.” If a valid code is not entered, a credit will not be 
allowed. If donations were made to more than two foundations,            If aggregate contributions to Category B institutions   +
attach a list referencing the additional foundations.                    exceed $50,000, enter that aggregate amount here
                                                                                                                                 =
HOMELESS SHELTER/FOOD BANK CREDIT                                        TOTAL Arts and Culture donation amount .................
A partial credit is allowed when making a cash donation to a 
qualifying  shelter  for  homeless  persons,  food  kitchen,  food 
bank,  or  other  entity  whose  primary  purpose  is  to  provide       Include completed Form 4572 as part of the tax return filing.
overnight accommodations, food, or meals to indigent persons. 
For more information, see Michigan Compiled Law 208.1427, 
found online at www.legislature.mi.gov. 
PUBLIC CONTRIBUTION CREDIT
A  partial  credit  is  allowed  for  Corporations  and  Partnerships 
(and Limited Liability Companies federally taxed as such) when 

68

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Michigan Department of Treasury                                                                                                                                                  Attachment 11
4573 (Rev. 04-22), Page 1 of 3

2022 MICHIGAN Business Tax Miscellaneous Nonrefundable Credits
Issued under authority of Public Act 36 of 2007.

Taxpayer Name                                                                                      Federal Employer Identification Number (FEIN) or TR Number

PART 1 - If not taking any credits in Part 1, skip to Part 2.
This credit is no longer available. - Skip to line 7.
 1. This credit is no longer available. Leave this line blank and skip to line 7..............................................................                               1.  X X X X X X X X 00
 2. This credit is no longer available. Leave this line blank and skip to line 7..............................................................                               2.  X X X X X X X X 00

 3. This credit is no longer available. Leave this line blank and skip to line 7..............................................................                               3.  X X X X X X X X 00
This credit is no longer available. - Skip to line 7. 
 4. This credit is no longer available. Leave this line blank and skip to line 7..............................................................                               4.  X X X X X X X X 00
 5. This credit is no longer available. Leave this line blank and skip to line 7..............................................................                               5.  X X X X X X X X 00
 6. This credit is no longer available. Leave this line blank and skip to line 7..............................................................                               6.  X X X X X X X X 00
START-UP BUSINESS CREDIT
 7.  Start-Up Business Credit (attach MEDC Certificate) ..............................................................................................                       7.                  00
 8. Recapture of Start-Up Business Credit ..................................................................................................................                 8.                  00
 9.  Start-Up Business Credit. Subtract line 8 from line 7. Carry to Form 4568, line 15. If less than zero, enter as 
     a negative number ..................................................................................................................................................    9.                  00

PART 2 
10.  Tax from Form 4568, line 19 ...................................................................................................................................         10.                 00
NEXT ENERGY BUSINESS ACTIVITY CREDIT. If not claiming, carry amount from line 10 to line 13.
 11. Next Energy Business Activity Credit (attach MEDC Certificate) ...........................................................................                              11.                 00
12.  Next Energy Business Activity Credit. Enter the lesser of line 10 or 11. Carry amount to Form 4568, line 20 ....                                                        12.                 00
13.  Tax After Next Energy Business Activity Credit. Subtract line 12 from line 10........................................................                                   13.                 00
RENAISSANCE ZONE CREDIT. If not claiming, carry amount from line 13 to line 15.
If claiming, complete and include the Renaissance Zone Credit Schedule, Form 4595.
14.  Renaissance Zone Credit. Amount from Form 4595, line 25b. Carry amount to Form 4568, line 21 ...................                                                        14.                 00
15.  Tax After Renaissance Zone Credit. Subtract line 14 from line 13. If less than zero, enter zero ...........................                                             15.                 00
HISTORIC PRESERVATION CREDIT. If not claiming, carry amount from line 15 to line 18.
16.  Historic Preservation Credit from Form 4584, line 28 .........................................................................................                          16.                 00
17a. Recapture of Historic Preservation Tax Credit from Form 4584, line 2 .................................................................. 17a.                                                00
17b. Historic Preservation Credit Net of Recapture. Subtract line 17a from line 16.  
     If less than zero, enter as a negative number. Carry to Form 4568, line 22 ......... 17b.               00
18.  Tax After Historic Preservation Credit. Subtract line 16 from line 15 and add line 17a ..........................................                                       18.                 00
LOW-GRADE HEMATITE CREDIT. If not claiming, carry amount from line 18 to line 23.
19.  Current Year Credit. Multiply $1.00 by number of long tons of qualified low-grade hematite used ........................                                                19.                 00
20.  Unused credit from previous period MBT return .....................................................................................................                     20.                 00
21.  Total Available Credit. Add lines 19 and 20 ............................................................................................................                21.                 00
22.  Low-Grade Hematite Credit. Enter the lesser of line 18 or line 21. Carry amount to Form 4568, line 23 ............                                                      22.                 00
23.  Tax After Low-Grade Hematite Credit. Subtract line 22 from line 18 ......................................................................                               23.                 00
24.  Credit Carryforward. If line 21 is greater than line 18, enter the difference ........... 24.           00
NEW MOTOR VEHICLE DEALER INVENTORY CREDIT. If not claiming, carry amount from line 23 to line 28.
25.  Amount paid to acquire new motor vehicle inventory in the tax year .....................................................................                                25.                 00
26.  Multiply line 25 by 0.25% (0.0025) .........................................................................................................................            26.                 00
27.  New Motor Vehicle Dealer Inventory Credit. Enter lesser of line 23 or line 26. Carry amount to 
     Form 4568, line 24..................................................................................................................................................    27.                 00
28.  Tax After New Motor Vehicle Dealer Inventory Credit. Subtract line 27 from line 23. If less than zero,  
     enter zero ............................................................................................................................................................ 28.                 00

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2022 Form 4573, Page 2 of 3 FEIN or TR Number:

LARGE FOOD RETAILER CREDIT. If not claiming, carry amount from line 28 to line 32.
29. Michigan compensation .......................................................................................................................................... 29. 00
30. Multiply line 29 by 1% (0.01) .................................................................................................................................. 30. 00
31. Large Food Retailer Credit. Enter lesser of line 28, line 30, or $8,500,000. Carry amount to Form 4568, line 25 ..... 31. 00
32. Tax After Large Food Retailer Credit. Subtract line 31 from line 28. If less than zero, enter zero .......................... 32. 00
MID-SIZE FOOD RETAILER CREDIT. If not claiming, carry amount from line 32 to line 36.
33. Michigan compensation .......................................................................................................................................... 33. 00
34. Multiply line 33 by 0.125% (0.00125) ..................................................................................................................... 34. 00
35. Mid-size Food Retailer Credit. Enter lesser of line 32, line 34, or $300,000. Carry amount to Form 4568, line 26 .... 35. 00
36. Tax After Mid-size Food Retailer Credit. Subtract line 35 from line 32. If less than zero, enter zero...................... 36. 00
BOTTLE DEPOSIT ADMINISTRATION CREDIT. If not claiming, carry amount from line 36 to line 40.
37. Expenses incurred in compliance with MCL 445.571 - 445.576 ............................................................................. 37. 00
38. Multiply line 37 by 30.5% (0.305) ........................................................................................................................... 38. 00
39. Bottle Deposit Administration Credit. Enter the lesser of line 36 or 38. Carry amount to Form 4568, line 27 ..... 39. 00
40. Tax After Bottle Deposit Administration Credit. Subtract line 39 from line 36. If less than zero, enter zero ........... 40. 00
MEGA FEDERAL CONTRACT CREDIT. If not claiming, carry amount from line 40 to line 42.
41. MEGA Federal Contract Credit from Form 4584, line 37. Carry amount to Form 4568, line 28 .......................... 41. 00
42. Tax After MEGA Federal Contract Credit. Subtract line 41 from line 40. If less than zero, enter zero ................... 42. 00
INDIVIDUAL OR FAMILY DEVELOPMENT ACCOUNT CREDIT. If not claiming, carry amount from line 42 to line 48.
43. Contribution amount from MSHDA certificate (attach)............................................................................................ 43. 00
44. Current Individual or Family Development Account (IFDA) Credit. Multiply amount on line 43 by 75% (0.75) ...... 44. 00
45. Unused credit from previous period MBT return ..................................................................................................... 45. 00
46. Total Available Credit. Add lines 44 and 45 ............................................................................................................ 46. 00
47. IFDA Credit. Enter the lesser of line 42 or 46. Carry to Form 4568, line 29 .......................................................... 47. 00
48. Tax After IFDA Credit. Subtract line 47 from line 42. If less than zero, enter zero.................................................. 48. 00
49. Credit Carryforward. If line 46 is greater than line 42, enter the difference ...... 49. 00
BONUS DEPRECIATION CREDIT UNUSED CARRYFORWARD. If not claiming, carry amount from line 48 to line 52.
50. Unused credit from previous MBT return ................................................................................................................ 50. 00
51. Bonus Depreciation Credit. Enter the lesser of line 48 or line 50. Carry to Form 4568, line 30 .......................... 51. 00
52. Tax After Bonus Depreciation Credit. Subtract line 51 from line 48. If less than zero, enter zero ............................ 52. 00
53. Credit Carryforward. If line 50 is greater than line 48, enter the difference ...... 53. 00
INTERNATIONAL AUTO SHOW CREDIT. If not claiming, carry amount from line 52 to line 55.
54. International Auto Show Credit. Enter the lesser of line 52 or $250,000. Carry to Form 4568, line 31 .............. 54. 00
55. Tax After International Auto Show Credit. Subtract line 54 from line 52 ................................................................. 55. 00
BROWNFIELD REDEVELOPMENT CREDIT. If not claiming, carry amount from line 55 to line 57.
56. Brownfield Redevelopment Credit from Form 4584, line 55. Carry amount to Form 4568, line 32 ............................. 56. 00
57. Tax After Brownfield Redevelopment Credit. Subtract line 56 from line 55. If less than zero, enter zero ........................ 57. 00
PRIVATE EQUITY FUND CREDIT. If not claiming, carry amount from line 57 to line 62.
58. Total activity of fund manager conducted in Michigan in the tax year .................................................................... 58. 00
59. Total activity of fund manager conducted everywhere in the tax year .................................................................... 59. 00
60. Credit percentage. Divide line 58 by line 59 ........................................................................................................... 60. %
61. Private Equity Fund Credit. Multiply line 57 by line 60. Carry amount to Form 4568, line 33 ............................. 61. 00
62. Tax After Private Equity Fund Credit. Subtract line 61 from line 57. If less than zero, enter zero .......................... 62. 00
FILM JOB TRAINING CREDIT. If not claiming, carry amount from line 62 to line 67.
63. Amount from Qualified Job Training Expenditure Certificate provided by Michigan Film Office (attach) ............... 63. 00
64. Unused credit from previous period MBT return ..................................................................................................... 64. 00
65. Total Available Credit. Add lines 63 and 64 ............................................................................................................ 65. 00
66. Film Job Training Credit. Enter the lesser of line 62 or line 65. Carry amount to Form 4568, line 34 ................. 66. 00
67. Tax After Film Job Training Credit. Subtract line 66 from line 62. If less than zero, enter zero .............................. 67. 00
68. Credit Carryforward. If line 65 is greater than line 62, enter the difference ...... 68. 00

+ 0000 2022 35 02 27 9 Continue on Page 3.

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2022 Form 4573, Page 3 of 3 FEIN or TR Number:

FILM INFRASTRUCTURE CREDIT. If not claiming, carry amount from line 67 to line 73.
69. Amount from Investment Expenditure Certificate provided by MI Film Office (attach) or assigned credit amount . 69. 00
70. Unused credit from previous period MBT return ..................................................................................................... 70. 00
71. Total Available Credit. Add lines 69 and 70 ............................................................................................................ 71. 00
72. Film Infrastructure Credit. Enter the lesser of line 67 or line 71. Carry amount to Form 4568, line 35 ............... 72. 00
73. Tax After Film Infrastructure Credit. Subtract line 72 from line 67. If less than zero, enter zero............................. 73. 00
74. Credit Carryforward. If line 71 is greater than line 67, enter the difference ...... 74. 00
MEGA PLUG-IN TRACTION BATTERY MANUFACTURING CREDIT. If not claiming, carry amount from line 73 to line 76.
75. MEGA Plug-In Traction Battery Manufacturing Credit from Form 4584, line 64. Carry amount to Form 4568,
line 36 ..................................................................................................................................................................... 75. 00
76. Tax After MEGA Plug-In Traction Battery Manufacturing Credit. Subtract line 75 from line 73. If less than zero,
enter zero ............................................................................................................................................................... 76. 00
ANCHOR COMPANY PAYROLL CREDIT. If not claiming, carry amount from line 76 to line 78.
77. Anchor Company Payroll Credit from Form 4584, line 72. Carry amount to Form 4568, line 37 ....................... 77. 00
78. Tax After Anchor Company Payroll Credit. Subtract line 77 from line 76. If less than zero, enter zero .................. 78. 00
ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming, carry amount from line 78 to line 80.
79. Anchor Company Taxable Value Credit from Form 4584, line 80. Carry amount to Form 4568, line 38 ............ 79. 00
80. Tax After Anchor Company Taxable Value Credit. Subtract line 79 from line 78. If less than zero, enter zero ....... 80. 00
MEGA POLY-SILICON ENERGY COST CREDIT AND MISCELLANEOUS MEGA BATTERY CREDITS.
If not claiming, carry amount from line 80 to line 82.
81. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4584,
line 88. Carry amount to Form 4568, line 39 ............................................................................................................... 81. 00
82. Tax After Miscellaneous MEGA Battery Credit. Subtract line 81 from line 80. If less than zero, enter zero ........... 82. 00

+ 0000 2022 35 03 27 7

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No text to extract.

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                                           Instructions for Form 4573 
        Michigan Business Tax (MBT) Miscellaneous Nonrefundable Credits
Purpose                                                               To the extent that a qualified taxpayer earning the Brownfield 
                                                                      Redevelopment  Credit  or  Historic  Preservation  Credit  is 
To  allow  standard  taxpayers  to  claim  certain  miscellaneous     included  within  a  UBG  taxpayer  for  relevant  tax  years, 
nonrefundable      credits.   Generally, credits and   any            the  qualified  taxpayer’s  unused  pre-2008  Brownfield 
carryforwards  allowed  are  calculated  here  and  then  carried     Redevelopment  Credit  and/or  Historic  Preservation  Credit 
to  the MBT Nonrefundable Credits Summary  (Form  4568).              (that  is,  such  credits  earned  under  the  Single  Business  Tax 
Review  the  descriptions  carefully  before  claiming  a  credit  as (SBT))  may  be  applied  against  the  tax  liability  imposed  on 
there are strict eligibility requirements. Follow the instructions    the entire UBG taxpayer (of which the qualified taxpayer is a 
on the form for each credit.                                          member) for the tax years the carryforward would have been 
NOTE: This form may also be used by financial institutions to         available under SBT. These carryforwards are claimed on the 
claim a limited number of credits:                                    MBT Single Business Tax Credit Carryforwards (Form 4569).
• Renaissance Zone Credit                                             Find additional information on calculating credit carryforwards 
• Historic Preservation Credit                                        in  the  “Supplemental  Instructions  for  Standard  Members 
                                                                      in  UBGs”  section  in  the MBT Forms and Instructions for 
• Individual or Family Development Account Credit
                                                                      Standard Taxpayers (Form 4600).
• Brownfield Redevelopment Credit
• Assigned Film Infrastructure Credit.                                Line-by-Line Instructions
Insurance  companies  use  the     Miscellaneous Credits for 
                                                                      Lines not listed are explained on the form.
Insurance Companies (Form 4596) to claim credits for which 
they are eligible.                                                    Name and Account Number:    Enter name and account number 
                                                                      as  reported  on  page  1  of  the  applicable  MBT  annual  return 
NOTE: Beginning January 1, 2012, only those taxpayers with 
                                                                      (either  the MBT Annual Return  (Form  4567)  for  standard 
a certificated credit, which is awarded but not yet fully claimed 
                                                                      taxpayers or the MBT Annual Return for Financial Institutions 
or utilized, may elect to be MBT taxpayers.
                                                                      (Form 4590)).
Fiscal  Year  Filers: All  credits must  be  calculated using 
                                                                      UBGs: Complete one form for the group. Enter the DM’s name 
actual numbers from the period included on this return. For 
                                                                      and account number.
more information, see “Supplemental Instructions for Standard 
Fiscal  MBT  Filers”  in  the MBT Forms and Instructions for          UBG NOTE: If the eligible taxpayer is a member of a UBG, 
Standard Taxpayers (Form 4600).                                       a  pro  forma  calculation  must  be  performed  to  determine  the 
                                                                      tax liability of the eligible taxpayer prior to this credit. Where 
Special Instructions for Unitary Business                             a  pro  forma  calculation  is  required,  the  underlying  objective 
Groups                                                                is  to  determine  what  the  tax  liability  of  the  UBG  member 
                                                                      generating the credit would have been if that member was not 
Credits are earned and calculated on either an entity-specific or 
                                                                      included in the UBG. Therefore, the UBG member generating 
group basis, as determined by the relevant statutory provisions 
                                                                      the credit must calculate its pro forma tax liability as if it was 
for  the  respective  credits.  Intercompany  transactions  are  not 
                                                                      a singular, stand alone taxpayer in all aspects. This supporting 
eliminated for the calculation of most credits. Credits earned or 
                                                                      calculation should be provided in a statement attached to this 
calculated on either an entity-specific or group basis by Unitary 
                                                                      form. However, this calculation should never be transferred to a 
Business Group (UBG) members are generally applied against 
                                                                      Form 4567 or displayed as such.
the  tax  liability  of  the  UBG,  unless  otherwise  specified  by 
statute or these instructions.                                        PART 1
Entity-specific provisions are applied on a member-by-member          If not taking any credits in Part 1, skip to Part 2. 
basis  and  are  addressed  in  the  “Line-by-Line  Instructions.”    Lines 1-3:  For  tax  years  ending  after  December  31,  2016,  the 
In none of these cases does a taxpayer that is a UBG take the         NASCAR Speedway Credit is no longer available.
organization type of its parent, Designated Member (DM), or 
any other member of the UBG. A UBG taxpayer will not be               Lines 4-6:  For  tax  years  ending  after  December  31,  2012,  the 
attributed an organization type based on the composition of its       NASCAR Stadium Credit is no longer available.
members.
                                                                      Start-Up Business Credit 
If  any  member  of  the  UBG  is  eligible  for  an  entity-specific The  Start-Up  Business  Credit  provides  a  credit  for  small, 
credit, a statement must be attached to the form identifying the      relatively  new  taxpayers  with  substantial  research  and 
eligible member and any information requested for the credit.         development  activity.  For  a  qualified  taxpayer,  the  credit  is 
If  more  than  one  member  is  eligible,  requested  information    equal to the taxpayer’s MBT liability for the year. To qualify, a 
should be provided in the statement on a per member basis. The        taxpayer must apply to and obtain annual certification from the 
total  amount  from  all  eligible  members  should  be  entered  on  Michigan  Economic  Development  Corporation  (MEDC),  and 
each corresponding line on the form.                                  attach that certificate to its MBT return. For an application form 

                                                                                                                           73

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or additional information, call the MEDC at (517) 373-9808.             UBGs:  See  guidance  on  pro  forma  calculations  in  the  UBG 
                                                                        note earlier in these instructions.
For  the  tax  year  for  which  a  Start-Up  Business  Credit  is 
claimed,  compensation,  director  fees,  or  distributive  shares      Line  8: Enter any recapture of Start-Up Business Credit.
paid by the taxpayer to any one of the following cannot exceed 
$135,000:                                                               NOTE:  A  company  claiming  the  Start-Up  Business  Credit 
                                                                        under either MBT or SBT must pay back a portion of the credit 
• A  shareholder  of  a  C  Corporation  or  S  Corporation.            if they have no business activity in Michigan and have business 
  Shareholder means a person who owns outstanding stock in              activity  outside  of  Michigan  within  three  years  after  the  last 
  a business or is a member of a business entity (for example,          tax year in which the credit was taken. The following amounts 
  an  LLC)  that  files  as  a  corporation  for  federal  income  tax  must be added to the tax liability:
  purposes. All members of a shareholder’s family, as defined 
  by  Internal  Revenue  Code  (IRC)  §  318(a)(1),  that  receive      • 100 percent of the total of all credits claimed if the move is 
  compensation from the business are considered shareholders.             within the first tax year after the last tax year for which a 
                                                                          credit is claimed.
• An officer of a C Corporation. 
                                                                        • 67 percent of the total of all credits claimed if the move is 
• A partner of a Partnership or Limited Liability Partnership.            within the second tax year after the last tax year for which a 
• A member of a Limited Liability Company (LLC).                          credit is claimed.
• An Individual who is an owner.                                        • 33 percent of the total of all credits claimed if the move is 
                                                                          within the third tax year after the last tax year for which a 
Officer  means  an  officer  of  a  corporation  other  than  a           credit is claimed.
subchapter  S  corporation,  including  all  of  the  following: 
(a)  The  chairperson  of  the  board,  (b)  The  president,  vice      PART 2 
president,  secretary,  or  treasurer  of  the  corporation  or  board, Next Energy Business Activity Credit 
(c)  Persons  performing  similar  duties  and  responsibilities  to 
                                                                        The  Next  Energy  Business  Activity  Credit  allows  an  eligible 
persons described in subdivisions (a) and (b) that include, at a 
                                                                        taxpayer to claim a credit for certain qualified business activity 
minimum, major decision making.
                                                                        if certified under the Michigan Next Energy Authority Act.
Corporations  (and  LLCs  federally  taxed  as  such)  must  report 
                                                                        Qualified  business  activity  is  research,  development,  or 
compensation  and  director  fees  of  shareholders  and  (if  a  C 
                                                                        manufacturing  of  an  alternative  energy  marine  propulsion 
Corporation)  officers  on  the MBT Schedule of Shareholders 
                                                                        system,  an  alternative  energy  system,  an  alternative  energy 
and Officers (Form 4577) and include it as part of the return. 
                                                                        vehicle,  alternative  energy  technology,  or  renewable  fuel  (as 
Partnerships  (and  LLCs  federally  taxed  as  such)  must  report 
                                                                        defined in the Michigan Next Energy Authority Act). 
distributive shares to partners on the MBT Schedule of Partners 
(Form 4578) and include it as part of the return.                       Line  11: Attach the certificate issued by MEDC for this credit 
                                                                        to  the  return  to  substantiate  a  claim.  (If  the  certificate  is  not 
A taxpayer that meets the criteria and that is a qualified start-up 
                                                                        attached, the credit will be disallowed.)
business that does not have business income for two consecutive 
tax  years  may  claim  a  credit  against  the  tax  imposed  for  the UBGs:  If  the  eligible  taxpayer  is  a  member  of  a  UBG,  the 
second of those two consecutive tax years and each immediately          eligible member’s calculated pro forma liability (not the group’s 
following consecutive tax year in which the taxpayer does not           liability) must be used to determine the credit amount certified 
have business income. For the purposes of this credit, business         by  the  MEDC.  This  supporting  pro  forma  calculation  should 
income excludes funds received from small business innovation           be provided in a statement attached to this form. See guidance 
research grants and small business technology transfer programs         on  pro  forma  calculations  in  the  UBG  note  earlier  in  these 
established  under  the  Small  Business  Innovation  Development       instructions.
Act  of  1982,  Public  Law  97-219,  reauthorized  under  the  Small   For more information, call the MEDC at (517) 373-9808 or visit 
Business Research and Development Enhancement Act, Public               the MEDC Web site at http://www.michiganadvantage.org/.
Law  102-564,  and  subsequently  reauthorized  under  the  Small 
Business Reauthorization Act of 2000, Public Law 106-554.               Renaissance Zone Credit 
A  Start-Up  Business  Credit  cannot  be  claimed  for  more  than     The  Renaissance  Zone  Credit  encourages  businesses  and 
a  total  of  five  tax  years  including  the  number  of  years  the  individuals to help revitalize a designated Zone. 
taxpayer was eligible to claim the credit under SBT.                    Line  14:  Complete  and  include  the MBT Renaissance Zone 
UBGs:   If  the  eligible  taxpayer  is  a  member  of  a  UBG,  this   Credit Schedule (Form 4595) to claim this credit.
credit is based on the eligible member’s business activity only.        NOTE the changed instructions for certain taxpayers for line 
This  credit  amount  is  limited  to  the  pro  forma  tax  liability  24 of Form 4595.
calculated  for  the  eligible  taxpayer  for  that  tax  year.  The 
resulting credit amount is then applied towards the UBG’s tax           If  located  in  more  than  one  zone,  complete  and  include  a 
liability for that tax year.                                            separate  Form  4595  for  each  zone.  Add  line  25b  from  each 
                                                                        Form 4595 and enter the sum on line 14 of Form 4573. 
Line  7: Enter the tax liability from Form 4568, line 12, or the 
eligible member’s pro forma liability if part of a UBG. Attach          NOTE:   Beginning  January  1,  2012,  certain  renaissance  zone 
supporting MEDC Certification Letter.                                   credits  are  available  as  a  certificated  credit.  A  certificated 
                                                                        renaissance  zone  credit  must  be  claimed  beginning  with  the 

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taxpayer’s first tax year ending after December 31, 2011, in production of pig iron or steel, that is the business activity of
order for the taxpayer to remain taxable under the MBT and the taxpayer. If the credit exceeds the tax liability, the excess
claim the credit. may be carried forward for five years.
For more information see Form 4595. UBGs: The credit is calculated from the aggregate tonnage
of qualified low-grade hematite pellets consumed by all UBG
For more information on Renaissance Zones, contact your local
members in an industrial or manufacturing process.
tax assessor. For information on the MBT credit, contact the
Michigan Department of Treasury, Customer Contact Division, Line 19: Low-grade hematite means any hematitic iron
MBT Unit, at 517-636-6925. formation that is not of sufficient quality in its original
mineral state to be mined and shipped for the production of
Historic Preservation Credit
pig iron or steel without first being drilled, blasted, crushed,
The Historic Preservation Credit provides tax incentives for and ground very fine to liberate the iron minerals and for
homeowners, commercial property owners, and businesses which additional beneficiation and agglomeration are required
to rehabilitate historic resources located in Michigan. to produce a product of sufficient quality to be used in the
Rehabilitation projects must be certified by the State Historic production of pig iron or steel. Qualified low-grade hematite
Preservation Office (SHPO). must be produced from low-grade hematitic iron ore mined in
NOTE: Beginning January 1, 2012, the historic preservation the United States.
credit is available to the extent that a taxpayer had a Part Line 20: UBGs: Enter the carryforward amount from Form
2 approval, approved rehabilitation plan, approved high 4580, Part 2B, line 51, column C.
community impact rehabilitation plan or preapproval letter
by December 31, 2011, but has not fully claimed the credit Line 24: If line 21 is greater than line 18, enter the difference.
before January 1, 2012. The credit may be claimed as either This is a credit carryforward to be used on the taxpayer’s
a refundable accelerated credit (on Form 4889) or a non- immediately following MBT return.
refundable credit. Non-refundable credits and non-refundable New Motor Vehicle Dealer Inventory Credit
carryforwards of the credit are claimed here. A taxpayer may
A taxpayer that is a new motor vehicle dealer licensed under
elect to claim a certificated historic preservation credit in the
the Michigan vehicle code, Michigan Compiled Law (MCL)
year in which a credit is available and will be taxable under
257.1 to 257.923, may claim a credit against the tax equal to
the MBT until the qualifying credit and any carryforward of
0.25 percent of the amount paid by the taxpayer to acquire new
the credit are extinguished. The credit must first be claimed in
motor vehicle inventory in Michigan during the tax year.
the year that the certificate of completed rehabilitation of the
historic resource was issued. Line 25: New motor vehicle inventory means new motor
Line 16: Complete the MBT Election of Refund or vehicles or new motor vehicle parts.
Carryforward of Credits (Form 4584) to claim this credit and Large Food Retailer Credit
elect a carryforward of any excess credit.
An eligible taxpayer may claim a Large Food Retailer Credit
Line 17a: Recapture from Form 4584, Line 2. If the resource equal to 1 percent of the taxpayer’s compensation in Michigan,
is sold or the certification of completed rehabilitation or not to exceed $8,500,000. A taxpayer that claims a Large Food
preapproval letter is revoked less than five years after the Retailer Credit cannot also claim a Mid-Size Food Retailer
historic resource is placed in service, a percentage of the credit Credit.
may be subject to recapture.
The taxpayer must meet all of the following criteria:
100 percent If less than 1 year • Operates at least 17,000,000 square feet of enclosed retail
space and 2,000,000 square feet of enclosed warehouse space
80 percent If at least 1 year, but less than 2 years
in Michigan.
60 percent If at least 2 years, but less than 3 years
• Sells all of the following at retail:
40 percent If at least 3 years, but less than 4 years
○ Fresh, frozen, or processed food; food products; or
20 percent If at least 4 years, but less than 5 years consumable necessities.
○ Prescriptions and over-the-counter medications.
Questions regarding federal and State certification may be
directed to SHPO at (517) 373-1630. For additional information, ○ Health and beauty care products.
visit the SHPO Web site at www.michigan.gov/shpo. ○ Cosmetics.
Information about Federal Historic Preservation Tax Incentives ○ Pet products.
is available at www.nps.gov/hps/tps/tax/index.htm.
○ Carbonated beverages.
Low-Grade○ Beer, wine, or liquor. Hematite Credit
The Low-Grade Hematite Credit provides a credit equal to
• Sales of the items listed above represent more than
one dollar per long ton of qualified low-grade hematite pellets
35 percent of the taxpayer’s total sales in the tax year.
consumed in an industrial or manufacturing process, a process
in which low-grade hematite is used as a raw material in the • Maintains its headquarters operation in Michigan.
Line 29: Enter compensation attributable to Michigan.

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UBGs: If the eligible taxpayer is a UBG, enter the order for the taxpayer to remain taxable under the MBT and
compensation attributable to Michigan for the entire UBG. claim the credit.
Mid-Size Food Retailer Credit Line 41: Complete Form 4584 to claim this credit and elect a
An eligible taxpayer may claim a Mid-Size Food Retailer refund or carryforward of any excess credit.
Credit equal to 0.125 percent of the taxpayer’s compensation in For more information, contact MEDC at 517-373-9808
Michigan, not to exceed $300,000. or visit the MEDC Web site at michiganadvantage.org/
The taxpayer must meet all of the following criteria: MIAdvantage/Taxes-and-Incentives.
• Operates at least 2,500,000 square feet of enclosed retail Individual or Family Development Account Credit
space and 1,400,000 square feet of enclosed warehouse, A taxpayer or qualified financial institution may claim a credit
headquarters, and transportation services in Michigan. for 75 percent of certified contributions made to a reserve fund
• Sells all of the following at retail: of a fiduciary organization in accordance with the Individual
○ Fresh, frozen, or processed food; food products; or or Family Development Account Program Act, MCL 206.701
consumable necessities. to 206.711. A fiduciary organization is a 501(c)(3) exempt,
○ Prescriptions and over-the-counter medications. charitable organization approved by the Michigan State Housing
Development Authority (MSHDA) to manage a reserve fund. A
○ Health and beauty care products. reserve fund is a fund established and managed by a fiduciary
○ Cosmetics. organization housed at a financial institution.
○ Pet products. This credit is nonrefundable but may be carried forward up
○ Carbonated beverages. to ten years. The credit may not exceed $1 million annually
○ Beer, wine, or liquor. for all taxpayers. The determination of whether the annual
limit is reached will be made by MSHDA, which must certify
• Sales of the items listed above represent more than 35 contributions eligible for a credit, in accordance with the
percent of the taxpayer’s total sales in the tax year. Individual or Family Development Account Program Act.
• Maintains its headquarters operation in Michigan.
Attach the certificate issued by MSHDA for this credit to the
Line 33: Enter compensation attributable to Michigan. return to substantiate a claim. (If the certificate is not attached,
UBGs: If the eligible taxpayer is a UBG, enter the the credit will be disallowed.)
compensation attributable to Michigan for the entire UBG. NOTE: For purposes of this credit, qualified financial
institution is defined by reference to the definition of financial
Bottle Deposit Administration Credit institution in the Individual or Family Development Account
An eligible taxpayer may claim a Bottle Deposit Program Act, rather than the MBT Act. Financial institution
Administration Credit equal to 30.5 percent of the taxpayer’s for this credit is defined as “a state chartered bank, state
expenses incurred during the tax year to comply with MCL chartered savings bank, savings and loan association, credit
445.571 to 445.576. Eligible taxpayer means a distributor union, or trust company; or a national banking association or
or manufacturer who originates a deposit on a beverage federal savings and loan association or credit union.”
container in accordance with MCL 445.571 to 445.576.
Line 45: UBGs: Standard taxpayers, enter the unused credit
Beverage container and distributor mean those terms as
amount from Form 4580, Part 2B, line 52, column C. Financial
defined under MCL 445.571 to 445.576.
institutions, enter the combined total of carryforward amounts
UBGs: If the eligible taxpayer is a member of a UBG, enter reported on the UBG Combined Filing Schedule for Financial
expenses incurred only by that eligible member. If multiple Institutions (Form 4752), line 30, by all members of the group.
members of a UBG are eligible taxpayers, combine the
Bonus Depreciation Credit
expenses of those eligible members.
For tax years starting after 2010, only unused carryforward of
MEGA Federal Contract Credit the Bonus Depreciation Credit can be used.
This credit is available for a qualified taxpayer or collective Line 50: Enter the unused credit amount from previous year.
group of taxpayers that have been awarded a federal
UBGs: Enter the unused credit amount from Form 4580, Part
procurement contract from the U.S. Department of Defense,
2B, line 53, column C.
Department of Energy, or Department of Homeland Security
resulting in a minimum of 25 new full-time jobs. International Auto Show Credit
NOTE: Beginning January 1, 2012, this credit is available as A taxpayer who owns, operates, or controls an international
a certificated credit to the extent that the taxpayer has entered auto show in Michigan that meets certain criteria may claim
into an agreement with MEGA by December 31, 2011, but a credit. An international auto show must meet all of the
the credit has not been fully claimed or paid prior to January following criteria:
1, 2012. This credit must be claimed beginning with the
• Promote, advertise, or display the design or concept of
taxpayer’s first tax year ending after December 31, 2011, in

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  products  that  are  designed,  manufactured,  or  produced,  in    the tax year.
  whole or in part, in this State and are available for sale to the 
                                                                      Eligible taxpayer  means  a  taxpayer  that  is  a  private  equity 
  general public.
                                                                      fund  which  serves  as  a  conduit  for  the  investment  of  private 
• Use more than 100,000 square feet of floor space.                   securities  not  listed  on  a  public  exchange  by  accredited 
• Be open to the general public for at least seven consecutive        investors or qualified purchasers at any time during which the 
  days in a calendar year.                                            investment is acquired or subsequently used to claim the credit 
• Have attendance exceeding 500,000.                                  under this section. 
• Have  more  than  3,000  credentialed  journalists,  including      Accredited investor means that term as defined under Section 2 
  international journalists, who attend the auto show.                of the Securities Act of 1933, 15 USC 77b. 
A taxpayer claiming the International Auto Show Credit must           Qualified  purchaser   means  that  term  as  defined  under 
maintain in its records proof that the international auto show        Section 2 of the Investment Company Act of 1940, 15 United 
satisfies all of the above criteria.                                  States Code (USC) 80a-2.
Line 54: The credit is equal to the qualified taxpayer’s entire       Line  58:  Private  equity  fund  manager  means  the  person  or 
MBT liability or $250,000, whichever is less.                         persons responsible for the management of the investments of 
UBGs: If the eligible taxpayer is a member of a UBG, a pro            the eligible taxpayer. 
forma tax calculation must be attached showing the individual         For purposes of this credit, the location of the activity of the 
member’s tax liability. This credit is equal to the lesser of the     private  equity  fund  manager  is  based  on  the  location  of  the 
member’s entire MBT liability or $250,000, whichever is less.         office  from  which  the  fund  manager  conducts  management 
See guidance on pro forma calculations in the UBG note earlier        activity for the eligible taxpayer. 
in these instructions.
                                                                      UBGs: If the eligible taxpayer is a member of a UBG, enter only 
Brownfield Redevelopment Credit                                       the activity of the eligible fund manager conducted in Michigan.
The  Brownfield  Redevelopment  Credit  encourages  businesses 
                                                                      Line  59: If  the  eligible  taxpayer  is  a  member  of  a  UBG, 
to  make  investment  on  eligible  Michigan  property  that  was 
                                                                      enter only the activity of the eligible fund manager conducted 
used or is currently used for commercial, industrial, public, or 
                                                                      everywhere.
residential  purposes  and  is  either  a  facility  (environmentally 
contaminated property), functionally obsolete, or blighted.           Line  61: If the taxpayer engages in both private equity fund 
NOTE:  Beginning  January  1,  2012,  the  Brownfield                 activities  as  well  as  other  activities,  the  amount  on  line  70 
redevelopment credit may be claimed as a certificated credit if       cannot  be  used.  Instead,  the  taxpayer  must  do  a  pro  forma 
a taxpayer has a preapproval letter by December 31, 2011, but         calculation  of  the  tax  before  this  credit  based  solely  on  the 
has not fully claimed the credit by January 1, 2012.  The credit      private equity fund activities.
may  be  claimed  as  either  a  refundable  accelerated  credit  (on UBGs:  To  the  extent  that  a  private  equity  fund  is  part  of 
Form 4889) or a non-refundable credit. Non-refundable credits         a  UBG,  the  Private  Equity  Fund  Credit  is  equal  to  the  tax 
and  non-refundable  carryforwards  of  the  credit  are  claimed     liability of the eligible member prior to this credit, multiplied 
here. The credit must first be claimed in the year in which the       by a fraction which is the Michigan activities of the manager 
certificate of completion is issued.                                  over  the  activities  of  the  manager  everywhere.  A  pro  forma 
A  taxpayer  claiming  a  nonrefundable  certificated  brownfield     calculation  must  be  performed  to  determine  the  tax  liability 
credit may make the election in the year in which a credit is         of the eligible UBG member prior to this credit. See guidance 
available  and  will  remain  taxable  under  the  MBT  until  the    on  pro  forma  calculations  in  the  UBG  note  earlier  in  these 
qualifying  credit  and  any  carryforward  of  the  credit  are      instructions.
extinguished. 
                                                                      Film Job Training Credit 
Line  56: Complete Form 4584 to claim this credit and elect a 
                                                                      An  eligible  production  company  may  claim  a  credit  of  up  to 
carryforward of any excess credit.
                                                                      50  percent  of  qualified  job  training  expenditures  in  film  and 
The  administration  of  the  Brownfield  Redevelopment  Credit       digital  media  for  qualified  personnel,  provided  the  taxpayer 
program  is  assigned  to  MEGA.  For  more  information  on  the     enters  into  an  agreement  with  the  Michigan  Film  Office, 
approval process, contact the MEDC at 517-373-9808.                   concurred in by the State Treasurer. If the credit exceeds the 
                                                                      taxpayer’s  tax  liability  for  the  tax  year,  the  excess  may  be 
Private Equity Fund Credit                                            carried forward to offset tax liability in subsequent years for a 
An eligible taxpayer may claim a Private Equity Fund Credit           maximum of ten years.
equal to the eligible taxpayer’s tax liability attributable to the    Line  63:  Upon  verification  that  the  taxpayer  has  complied 
activities as an eligible taxpayer for the tax year after claiming    with  the  agreement  terms  and  the  qualified  job  training 
any  other  credits  allowed  under  the  MBT  Act  multiplied  by    expenditures and eligibility are met, the Film Office will issue 
a fraction, the numerator of which is the total activity of the       a Qualified Job Training Expenditure Certificate verifying the 
private equity fund manager conducted in Michigan during the          amount  of  the  credit  to  be  claimed.  The  certificate  must  be 
tax year and the denominator of which is the total activity of        attached to the return to receive the credit.
the private equity fund manager conducted everywhere during 

                                                                                                                      77

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NOTE: To qualify for the credit, a taxpayer must not be in the base investment, that taxpayer must recapture part of the
delinquent in a tax or other obligation owed to Michigan nor be credit in the year of disposition. Credit recapture is reported on
owned or under common control of an entity that is delinquent. Form 4587.
A credit cannot be claimed for any direct expenditure for which
Line 70: UBGs: Standard taxpayers, enter the unused credit
a Film Production Credit was claimed for either an MBT or
amount from Form 4580, Part 2B, line 56, column C. Financial
withholding tax liability.
institutions, enter the combined total of carryforward amounts
Line 64: UBGs: Enter the unused credit amount from Form reported on Form 4752, line 32, by all members of the group.
4580, Part 2B, line 55, column C.
Line 74: If line 71 is greater than line 67, enter the difference.
Line 68: If line 65 is greater than line 62, enter the difference. This is a credit carryforward to be used on the taxpayer’s next
This is a credit carryforward to be used on the taxpayer’s next MBT return.
MBT return.
For more information, contact the Michigan Film
For more information, contact the Michigan Film Office at 1-800-477-3456 or visit the Web site at
Office at 1-800-477-3456 or visit the Web site at www.michiganfilmoffice.org.
www.michiganfilmoffice.org.
MEGA Plug-In Traction Battery Manufacturing Credit
Film Infrastructure Credit The MEGA Plug-In Traction Battery Manufacturing Credit
An eligible taxpayer may claim a credit for investment in encourages investment in the development, manufacture,
a qualified film and digital media infrastructure project of commercialization, and affordability of advanced automotive
up to 25 percent of the base investment expenditures for the high-power energy batteries. The credit is available only to a
project, provided the taxpayer enters into an agreement with taxpayer that has entered into an agreement with MEGA that
the Michigan Film Office, concurred in by the State Treasurer. provides that the taxpayer will manufacture plug-in traction
The credit is reduced by the amount of any Brownfield battery packs in Michigan. The taxpayer must attach the
Redevelopment Credit claimed under Section 437 of the MEGA certificate to the MBT annual return on which the
MBT Act for the same base investment. If the credit exceeds credit is claimed.
the taxpayer’s tax liability for the tax year, the excess may be
carried forward to offset tax liability in subsequent years for a For tax years ending after December 31, 2014, this credit
maximum of ten years. is no longer available. However, unused credit from the
immediately preceding tax year may still be claimed, if
Upon verification that the taxpayer has complied with the available.
agreement terms and investment expenditures and eligibility
are met, the Film Office will issue an Investment Expenditure NOTE: Beginning January 1, 2012, this credit is available as a
Certificate stating the amount of the credit. The certificate must certificated credit to the extent that the taxpayer has entered into
be attached to the return. an agreement with MEGA by December 31, 2011, but the credit
has not been fully claimed or paid prior to January 1, 2012. This
The credit may be assigned in the tax year in which the credit must be claimed beginning with the taxpayer’s first tax
Investment Expenditure Certificate is received but any such year ending after December 31, 2011, in order for the taxpayer to
assignment is irrevocable. The MBT Film Credit Assignment remain taxable under the MBT and claim the credit.
(Form 4589) must be attached to the return on which the credit
is claimed. For more information, contact MEDC at (517) 373-9808 or visit
the MEDC Web site at http://www.michiganadvantage.org/.
An assigned credit amount must be claimed against the
assignee’s MBT liability during the assignee’s tax year in Line 75: For tax years ending after December 31, 2014, the
which the credit was assigned. MEGA Plug-In Traction Battery Manufacturing Credit
is no longer available. Complete Form 4584 to claim any
NOTE: Beginning January 1, 2012, this credit is available as unused credit from the immediately preceding tax year, if
a certificated credit to the extent that the taxpayer has entered available.
into an agreement with the Michigan Film Office with the
concurrence of the State Treasurer by December 31, 2011, but Anchor Company Payroll Credit
the credit has not been fully claimed or paid prior to January 1, This credit is available for a qualified taxpayer that was
2012. This credit must be claimed beginning with the taxpayer’s designated by MEGA as an anchor company within the last
first tax year ending after December 31, 2011, in order for the five years and that has influenced a new qualified supplier or
taxpayer to remain taxable under the MBT and claim the credit. customer to open, locate, or expand in Michigan.
NOTE: To qualify for the credit, a taxpayer must not be NOTE: Beginning January 1, 2012, this credit is available as
delinquent in a tax or other obligation owed to Michigan nor be a certificated credit to the extent that the taxpayer has entered
owned or under common control of an entity that is delinquent. into an agreement with MEGA by December 31, 2011, but
A credit cannot be claimed for any direct expenditure for which the credit has not been fully claimed or paid prior to January
a Film Production Credit was claimed against either an MBT or 1, 2012. This credit must be claimed beginning with the
withholding tax liability. taxpayer’s first tax year ending after December 31, 2011, in
order for the taxpayer to remain taxable under the MBT and
If the taxpayer originally awarded this credit sells or otherwise
claim the credit.
disposes of any tangible assets, the cost of which were included

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Line  77: Complete Form 4584 to claim this credit and elect a 
refund or carryforward of any excess credit.
For  more  information,  contact  the  MEDC  at  517-373-9808  or 
visit the MEDC Web site at http://www.michiganadvantage.
org/.
Anchor Company Taxable Value Credit
This  credit  is  available  for  a  qualified  taxpayer  that  was 
designated  by  MEGA  as  an  anchor  company  within  the  last 
five years and that has influenced a new qualified supplier or 
customer to open, locate, or expand in Michigan. 
NOTE: Beginning January 1, 2012, this credit is available as a 
certificated credit to the extent that the taxpayer has entered into 
an agreement with MEGA by December 31, 2011, but the credit 
has not been fully claimed or paid prior to January 1, 2012. This 
credit  must  be  claimed  beginning  with  the  taxpayer’s  first  tax 
year ending after December 31, 2011, in order for the taxpayer to 
remain taxable under the MBT and claim the credit.
Line  79: Complete Form 4584 to claim this credit and elect a 
refund or carryforward of any excess credit.
For more information, contact the MEDC at (517) 373-9808 or 
visit the MEDC Web site at http://www.michiganadvantage.
org/.
MEGA Poly-Silicon Energy Cost Credit and 
Miscellaneous MEGA Battery Credits
NOTE: Beginning January 1, 2012, these credits are available 
as certificated credits to the extent that the taxpayer has entered 
into  an  agreement  with  MEGA  by  December  31,  2011,  but 
the credit has not been fully claimed or paid prior to January 
1,  2012.  These  credits  must  be  claimed  beginning  with  the 
taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in 
order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and 
claim the credit.
Line 81: Complete Form 4584 to claim these credits and elect 
a  refund  or  carryforward  of  any  excess  credit,  and  to  apply 
unused  carryforwards  of  these  credits  from  the  immediately 
preceding tax year.
The miscellaneous MEGA battery credits on this line include 
the  MEGA  Poly-Silicon  Energy  Cost  Credit,  MEGA  Plug-
in  Traction  Battery  Integration  Credit,  MEGA  Battery 
Manufacturing  Facility  Credit,  MEGA  Large  Scale  Battery 
Credit, and/or MEGA Advanced Lithium Ion Battery Credit.
The following credits are no longer available for tax years 
ending after the associated date.  Complete  Form  4584  to 
claim  any  unused  credit  from  the  immediately  preceding  tax 
year, if available.
• MEGA Advanced Battery Engineering Credit — December 31, 
2014.
• MEGA Advanced Lithium Ion Battery Credit — December 31, 
2016.
• MEGA Large Scale Battery Credit --December 31, 2017.
Include completed Form 4573 as part of the tax return filing.

                                                                        79

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Michigan Department of Treasury Attachment 14
4574 (Rev. 04-22)

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

PERSONAL PROPERTY TAX CREDIT. If not claiming this credit, skip to line 8.

1. Property taxes paid on eligible industrial personal property in the current MBT tax year (see instructions) .......... 1. 00
2. Multiply line 1 by 35% (0.35) .................................................................................................................................. 2. 00
3. Property taxes paid on eligible telephone personal property in the current MBT tax year (see instructions) .......... 3. 00
4. Multiply line 3 by 13.5% (0.135) ............................................................................................................................. 4. 00
5. Property taxes paid on eligible natural gas pipeline property in the current MBT tax year (see instructions) ........ 5. 00
6. Multiply line 5 by 10% (0.10) .................................................................................................................................. 6. 00
7. Personal Property Tax Credit. Add lines 2, 4 and 6 ............................................................................................ 7. 00
WORKER’S DISABILITY SUPPLEMENTAL BENEFIT (WDSB) CREDIT. If not claiming this credit, skip to line 9.
8. WDSB Credit allowed by the Workers’ Compensation Agency ............................................................................. 8. 00
NEXT ENERGY PAYROLL CREDIT.
Available only to businesses located within an alternative energy renaissance zone. If not claiming this credit, skip to line 12.
9. Enter alternative energy renaissance zone property information below:
Street Address

City Parcel Number

10. Total payroll of research, development or manufacturing employees who work primarily within the zone ............ 10. 00
11. Next Energy Payroll Credit. Multiply line 10 by 4.25% (0.0425) ......................................................................... 11. 00
MEGA EMPLOYMENT TAX CREDIT. If not claiming this credit, skip to line 15.
12. Credit amount from MEDC Annual Tax Credit Certificate (attach) ......................................................................... 12. 00
CREDIT NO LONGER AVAILABLE.
13. This credit is no longer available. Leave this line blank and skip to line 15 ........................................................... 13. X X X X X X X X 00
CREDIT NO LONGER AVAILABLE.
14. This credit is no longer available. Leave this line blank and skip to line 15 ........................................................... 14. X X X X X X X X 00
FARMLAND PRESERVATION CREDIT. If not claiming this credit, skip to line 16.
15. Credit amount from Form 4594, line 29 .................................................................................................................. 15. 00
MEGA FEDERAL CONTRACT CREDIT. If not claiming this credit, skip to line 17.
16. Credit amount from Form 4584, line 35a ................................................................................................................ 16. 00
MEGA PHOTOVOLTAIC TECHNOLOGY CREDIT. If not claiming this credit, skip to line 18.
17. Credit amount from Certificate provided by MEDC (attach) or assigned credit amount ......................................... 17. 00
FILM PRODUCTION CREDIT. If not claiming this credit, skip to line 20.
18. Credit amount from Post-Production Certificate of Completion provided by Michigan Film Office (attach)
or assigned credit amount (see instructions) .......................................................................................................... 18. 00
CREDIT NO LONGER AVAILABLE.
19. This credit is no longer available. Leave this line blank and skip to line 20 ........................................................... 19. X X X X X X X X 00
ANCHOR COMPANY PAYROLL CREDIT. If not claiming this credit, skip to line 21.
20. Credit amount from Form 4584, line 70a ................................................................................................................ 20. 00
ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming this credit, skip to line 22.
21. Credit amount from Form 4584, line 78a ............................................................................................................... 21. 00
MEGA POLY-SILICON ENERGY COST CREDIT AND MISCELLANEOUS MEGA BATTERY CREDITS.
If not claiming this credit, skip to line 23.
22. Credit amount from Form 4584, line 86a ................................................................................................................ 22. 00
TOTAL REFUNDABLE CREDITS
23. Add lines 7, 8, 11, 12, 15, 16, 17, 18, 20, 21 and 22. Enter total here and carry to Form 4567,
line 64; or Form 4590, line 37 ................................................................................................................................. 23. 00

+ 0000 2022 39 01 27 3

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No text to extract.

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                                            Instructions for Form 4574 
                      Michigan Business Tax (MBT) Refundable Credits

Purpose                                                                   Line-by-Line Instructions
To allow standard taxpayers to claim certain credits. Unless              Lines not listed here are explained on the form.
otherwise  specified,  if  the  amount  of  the  credit  exceeds  the 
                                                                          NOTE:  Although qualification for certain credits is reviewed 
tax  liability  of  the  taxpayer  for  the  tax  year,  that  excess  is 
                                                                          and approved by MEGA, in many cases the certificates for such 
refunded.
                                                                          credits  are  issued  by  the  Michigan  Economic  Development 
NOTE: This form may also be used by financial institutions to             Corporation (MEDC).
claim a limited number of credits:                                        Name and Account Number: Enter name and account number 
• Michigan Economic Growth Authority (MEGA) Employment                    as  reported  on  page  1  of  the  applicable  MBT  annual  return 
  Tax Credit.                                                             (either  the MBT Annual Return  (Form  4567)  for  standard 
                                                                          taxpayers or the MBT Annual Return for Financial Institutions 
• Assigned MEGA Photovoltaic Technology Credit.
                                                                          (Form 4590)).
• Assigned Film Production Credit.
                                                                          UBGs: Complete one form for the group. Enter the DM name 
Insurance  companies  use  the     Miscellaneous Credits for              in the Taxpayer Name field and the DM account number in the 
Insurance Companies (Form 4596) to claim credits for which                Federal Employer Identification Number (FEIN) field.
they are eligible.
                                                                          Personal Property Tax Credit
NOTE: Refunds of the Brownfield Redevelopment Credit and 
                                                                          The  Personal  Property  Tax  Credit  is  available  against 
Historic  Preservation  Credit  are  no  longer  available  on  Form 
                                                                          personal  property  taxes  paid  in  the  tax  year  on  eligible 
4574. Taxpayers may apply for an accelerated payment of the 
                                                                          industrial  personal  property,  eligible  telephone  personal 
qualified credits by filing the Request for Accelerated Payment 
                                                                          property,  and  eligible  natural  gas  pipeline  property.  The 
for  the  Brownfield  Redevelopment  Credit  and  the  Historic 
                                                                          Personal  Property  Tax  Credit  is  available  only  to  the 
Preservation Credit (Form 4889).
                                                                          taxpayer who timely files the required statements or reports, 
NOTE: Beginning January 1, 2012, only those taxpayers with                to  whom  an  assessment  or  bill  is  issued,  and  who  pays  the 
a certificated credit, which is awarded but not yet fully claimed         taxes  in  the  tax  year.  A  taxpayer  that  disagrees  with  the 
or utilized, may elect to be MBT taxpayers.                               assessor’s  classification  of  property  must  pursue  a  change 
                                                                          of  classification  through  the  property  tax  appeals  process. 
Fiscal  Year  Filers: See  “Supplemental  Instructions  for 
                                                                          Treasury will not revise a property classification for purposes 
Standard  Fiscal  MBT  Filers”  in  the     MBT Forms and 
                                                                          of these credits.
Instructions for Standard Taxpayers (Form 4600).
                                                                          Line  1: Eligible industrial personal property  is  property 
Special Instructions for Unitary Business Groups                          classified as industrial personal property under Section 34c of 
                                                                          the General Property Tax Act (Michigan Compiled Law (MCL) 
Credits are earned and calculated on either an entity-specific or         211.34c). Under MCL 211.34c, the assessor is charged with the 
a  group  basis,  as  determined  by  relevant  statutory  provisions     responsibility  of  classifying  property.  The  taxes  must  have 
for  the  respective  credits.  Inter-company  transactions  are  not     been levied after December 31, 2007, and the taxes must have 
eliminated for the calculation of most credits. Credits earned or         been paid during the tax year included in this return.
calculated on either an entity-specific or group basis by Unitary 
Business Group (UBG) members are generally applied against                Line 3: Eligible  telephone personal property  is  defined  as 
                                                                          personal  property  of  a  telephone  company  subject  to  the  tax 
the  tax  liability  of  the  UBG,  unless  otherwise  specified  by 
                                                                          levied under MCL 207.1 to 207.21. The taxes on this property 
statute or these instructions.
                                                                          must have been paid during the tax year included in this return.
Entity-specific provisions are applied on a member-by-member 
basis.  In  none  of  these  cases  does  a  taxpayer  that  is  a  UBG   Line 4:  For  eligible  telephone  personal  property  levied  and 
                                                                          paid in the tax year the credit is equal to 13.5 percent of the 
take  the  organization  type  of  its  parent,  Designated  Member 
                                                                          taxes paid.
(DM), or any member of the UBG. A UBG taxpayer will not be 
attributed an organization type based on the composition of its           Line  5: Eligible natural gas pipeline property is  defined  as 
members.                                                                  natural  gas  pipelines  that  are  classified  as  utility  personal 
                                                                          property under Section 34c of the General Property Tax Act and 
If  any  member  of  the  UBG  is  eligible  for  an  entity-specific 
                                                                          are subject to regulation under the Natural Gas Act. The taxes 
credit, a statement must be attached to the form identifying the 
                                                                          must have been levied after December 31, 2007, and the taxes 
eligible  member  and  any  information  requested  for  the  credit. 
                                                                          must have been paid during the tax year included in this return.
If  more  than  one  member  is  eligible,  requested  information 
should be provided in the statement on a per member basis. The            Line  7: The taxpayer claiming a Personal Property Tax Credit 
total  amount  from  all  eligible  members  should  be  entered  on      must  attach  to  the  MBT  return  copies  of  property  tax  bills 
each corresponding line on this form. Line-by-line instructions           that properly identify “eligible” property and provide proof of 
indicate credits requiring entity-specific information.                   payment of the tax in the tax year.

                                                                                                                                83

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UBGs: Add up the property tax bills for all members and enter           credit has been claimed or could have been claimed under SBT.
the  total  amount  on  the  corresponding  line.  The  requested 
                                                                        A taxpayer that claimed a credit under either SBT or MBT that 
tax bills and proof of payment for each member claiming the 
                                                                        had an agreement with MEGA based on qualified new jobs as 
Personal Property Tax Credit should be attached to the group’s 
                                                                        defined in the MEGA Act, and that removes 51 percent or more 
annual return.
                                                                        of those qualified new jobs from Michigan within three years 
Workers’ Disability Supplemental Benefit (WDSB) Credit                  after the first year in which the taxpayer claimed a credit, must 
The  WDSB  Credit  is  available  to  self-insured  taxpayers  for      pay back an amount equal to the total of all credits claimed no 
the  amount  authorized  by  the  Department  of  Licensing  and        later than 12 months after those qualified new jobs are removed 
Regulatory Affairs (LARA) during the tax year. The amount of            from Michigan. Recapture is reported on Form 4587.
the credit is provided to taxpayers by LARA.                            For  more  information,  contact  MEDC  at  1-888-522-0103  or 
For  more  information  on  WDSB  credit  eligibility,  contact         visit the MEDC Web site at  http://www.michiganadvantage.
LARA,  Workers’  Compensation  Agency  at  (517)  322-1879              org/.
or  1-888-396-5041,  or  visit  the  LARA  Web  site  at 
                                                                        Line  12:  Approved  businesses  receive  a  certificate  from 
www.michigan.gov/lara.
                                                                        MEGA  each  year  showing  the  total  amount  of  tax  credit 
Line  8: Attach to the return a copy of the document provided           allowed. Attach the Annual Tax Credit Certificate to the return. 
by LARA to substantiate a claim for this credit.                        (If the certificate is not attached, the credit will be disallowed.)
UBGs: Enter total amount authorized for all members on line 8           UBGs:  Enter  the  total  amount  of  MEGA  Employment  Tax 
and attach LARA documentation for each member.                          Credits claimed by eligible members and provide the requested 
                                                                        MEGA certification for each eligible member.
Next Energy Payroll Credit
Next Energy Payroll Credit provides a payroll-based credit to           NASCAR Safety Credit
a  taxpayer  located  within  an  alternative  energy  Renaissance      This credit is not available for tax years after 2011. Leave line 
Zone.  The  credit  is  equal  to  the  payroll  amount  for  the  tax  13 blank, and continue to line 14.
year attributable to employees who are working on alternative 
energy-related  research,  development,  or  manufacturing              Farmland Preservation Credit
and  whose  regular  place  of  employment  is  within  the  Zone,      Farmland  Preservation  Credit  gives  back  to  farmland  owners 
multiplied  by  the  Michigan  Individual  Income  Tax  (IIT)  rate     a  portion  of  the  property  taxes  paid  on  farmland.  Farmland 
for that year. (The Michigan Individual Income Tax rate can be          owners qualify for the credit by agreeing to preserve the land 
found at www.michigan.gov/taxes.)                                       as farmland and not develop for another use.
Line 11: Multiply line 10 by the Individual Income Tax rate of          To qualify for the credit, the taxpayer must meet the following 
4.25% (0.0425).                                                         requirements:
UBGs: If any member of a UBG is claiming the Next Energy                • Taxpayer must own farmland,
Payroll  Credit,  attach  a  statement  identifying  the  member(s)     • Taxpayer must have entered into a Farmland Development 
and  providing  information  requested  on  the  form.  Enter  the        Rights Agreement (FDRA) with the Michigan Department 
total payroll amount for all eligible members on line 10.                 of Agriculture (MDA), and
                                                                        • Taxpayer  must  complete  the       Michigan Farmland 
MEGA Employment Tax Credit                                                Preservation Tax Credit (Form 4594).
The  MEGA  Employment  Tax  Credit  promotes  economic 
growth  and  jobs  in  Michigan.  For  a  period  of  time  not  to     If  agreements  with  MDA  were  entered  into  on  or  after 
exceed 20 years, a taxpayer that is an authorized business or           January 1, 1978, the gross receipts qualifications in Part 1 of 
an  eligible  taxpayer  may  claim  a  credit  equal  to  the  amount   Form 4594 must be satisfied.
certified each year by MEGA.                                            NOTE: Beginning January 1, 2012, this credit is available as 
NOTE: Beginning January 1, 2012, this credit is available as            a certificated credit to the extent that the taxpayer has entered 
a certificated credit to the extent that the taxpayer has entered       into a farmland preservation agreement by December 31, 2011. 
into  an  agreement  with  MEGA  by  December  31,  2011,  but          This  credit  must  be  claimed  beginning  with  the  taxpayer’s 
the credit has not been fully claimed or paid prior to January          first tax year ending after December 31, 2011, in order for the 
1,  2012.    This  credit  must  be  claimed  beginning  with  the      taxpayer to remain taxable under the MBT and claim the credit.
taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in   UBGs:  UBG  members  claiming  this  credit  should  total  all 
order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and    amounts  from  Form  4594,  line  29,  and  enter  on  line  16  each 
claim the credit.                                                       eligible  member  should  submit  Form  4594,  which  would  be 
MEGA may certify a credit based on an agreement entered into            calculated  based  upon  that  member’s  respective  property  tax 
prior to January 1, 2008, under the Single Business Tax (SBT).          obligation and its respective MBT Business Income Tax base.
The number of years for which the credit may be claimed under 
                                                                        MEGA Federal Contract Credit
MBT will be equal to the maximum number of years designated 
in  the  resolution  reduced  by  the  number  of  years  for  which  a This  credit  is  available  for  a  qualified  taxpayer  or  collective 
                                                                        group  of  taxpayers  that  have  been  awarded  a  federal 

84

- 87 -

procurement  contract  from  the  United  States  Department  of        must  attach  the  assignment  certificate  to  the  return.  (If  the 
Defense,  Department  of  Energy  or  Department  of  Homeland          certificate is not attached, the credit will be disallowed.)
Security resulting in a minimum of 25 new full-time jobs.
                                                                        Film Production Credit 
NOTE:   Beginning January 1, 2012, this credit is available as          The  Michigan  Film  Office,  with  the  concurrence  of  the  State 
a certificated credit to the extent that the taxpayer has entered       Treasurer,  may  enter  into  an  agreement  with  an  eligible 
into  an  agreement  with  MEGA  by  December  31,  2011,  but          production company providing the company with a refundable 
the credit has not been fully claimed or paid prior to January          credit against MBT tax liability or against taxes withheld under 
1,  2012.    This  credit  must  be  claimed  beginning  with  the      Chapter 7 of the Michigan Individual Income Tax Act.
taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in 
order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and    NOTE: Beginning January 1, 2012, this credit is available as 
claim the credit.                                                       a certificated credit to the extent that the taxpayer has entered 
                                                                        into  an  agreement  with  the  Michigan  Film  Office  with  the 
Complete Form 4584 to claim this credit and elect a refund or           concurrence of the State Treasurer by December 31, 2011, but 
carryforward of the resulting overpayment.                              the credit has not been fully claimed or paid prior to January 
For  more  information,  contact  MEDC  at  1-888-522-0103  or          1,  2012.    This  credit  must  be  claimed  beginning  with  the 
visit the MEDC Web site at http://www.michiganadvantage.                taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in 
org/.                                                                   order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and 
                                                                        claim the credit.
MEGA Photovoltaic Technology Credit                                     To  qualify  for  the  credit,  an  eligible  production  company 
The  MEGA  Photovoltaic  Technology  Credit  is  available  to  a       must spend at least $50,000 in Michigan for the development, 
qualified taxpayer that enters into an agreement with MEGA to           preproduction,  production,  or  postproduction  costs  of  a 
construct and operate a new facility in Michigan which serves           State-certified qualified production and must not be delinquent 
to develop and manufacture photovoltaic energy, photovoltaic            in a tax or other obligation owed to Michigan nor be owned or 
systems, or other photovoltaic technology.  Photovoltaic energy,        under common control of an entity that is delinquent.
systems,  or  technology  rely  on  solar  power.  The  credit  is 
available for 25 percent of the taxpayer’s capital investment in        A  Post-Production  Certificate  will  be  issued  verifying  the 
the new facility during the tax year.                                   amount  of  the  credit  to  be  claimed  once  the  Michigan  Film 
                                                                        Office is satisfied that expenditure and eligibility requirements 
NOTE: Beginning January 1, 2012, this credit is available as            are met. 
a certificated credit to the extent that the taxpayer has entered 
into  an  agreement  with  MEGA  by  December  31,  2011,  but          The  credit  may  be  assigned  in  the  tax  year  in  which  the 
the credit has not been fully claimed or paid prior to January          Post-Production  Certificate  is  issued  but  such  assignment  is 
1,  2012.    This  credit  must  be  claimed  beginning  with  the      irrevocable. 
taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in   For  more  information,  contact  the  Michigan  Film 
order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and    Office  at  1-800-477-3456  or  visit  the  Web  site  at 
claim the credit.                                                       www.michiganfilmoffice.org.
The  credit  generally  must  be  taken  in  equal  installments        Line  18: A taxpayer claiming a Film Production Credit must 
over  a  two-year  period  beginning  in  the  tax  year  in  which     attach the Post-Production Certificate to the return. A taxpayer 
the certificate is issued. A taxpayer may make an irrevocable           claiming an assigned Film Production Credit must attach to the 
assignment of all or a portion of the credit or may convey the          return an MBT Film Credit Assignment (Form 4589) approved 
right to the assignment on a form provided by MEGA, which               by Treasury. (If the certificate or approved assignment form is 
will then issue assignment certificates to the assignee(s).             not attached, the credit will be disallowed.)
A taxpayer or assignee that claims a credit and subsequently            UBGs: Enter  the  total  amount  for  this  credit  claimed  by  all 
fails  to  meet  the  requirements  of  the  act  or  any  other        eligible  members  and  provide  the  requested  post-production 
conditions  established  by  MEGA  in  the  agreement  may,  as         certification or Form 4589 for each eligible member.
determined by MEGA, have its credit reduced or terminated 
or have a percentage of the credit previously claimed added             MEGA Plug-In Traction Battery Manufacturing Credit  
back to the tax liability of the taxpayer in the tax year that the      Line 19: For tax years ending after December 31, 2014, the 
taxpayer or assignee fails to comply. Recapture is reported on          MEGA Plug-In Traction Battery Manufacturing Credit is 
Form 4587.                                                              no longer available.
A  taxpayer  certified  to  take  the  polycrystalline  silicon  credit Anchor Company Payroll Credit
under MCL 208.1432 is disqualified from taking this credit.             This  credit  is  available  for  a  qualified  taxpayer  that  was 
                                                                        designated  by  MEGA  as  an  anchor  company  within  the  last 
Line 17: Approved businesses receive a certificate from MEGA 
                                                                        five years and that has influenced a new qualified supplier or 
each year showing the total amount of tax credit allowed. Attach 
                                                                        customer to open, locate, or expand in Michigan. 
the  Annual  Tax  Credit  Certificate  to  the  return.  A  taxpayer 
claiming  an  assigned  MEGA  Photovoltaic  Technology  Credit          NOTE:    Beginning January 1, 2012, this credit is available as 

                                                                                                                                    85

- 88 -

a certificated credit to the extent that the taxpayer has entered 
into  an  agreement  with  MEGA  by  December  31,  2011,  but 
the  credit  has  not  been  full  claimed  or  paid  prior  to  January 
1,  2012.    This  credit  must  be  claimed  beginning  with  the 
taxpayer’s  first  tax  year  ending  after  December  31,  2011,  in 
order  for  the  taxpayer  to  remain  taxable  under  the  MBT  and 
claim the credit.
Complete Form 4584 to claim this credit and elect a refund or 
carryforward of the resulting overpayment.
For  more  information,  contact  MEDC  at  1-888-522-0103  or 
visit the MEDC Web site at http://www.michiganadvantage.
org/.
Anchor Company Taxable Value Credit
This  credit  is  available  for  a  qualified  taxpayer  that  was 
designated  by  MEGA  as  an  anchor  company  within  the  last 
five years and that has influenced a new qualified supplier or 
customer to open, locate, or expand in Michigan. 
Complete Form 4584 to claim this credit and elect a refund or 
carryforward of the resulting overpayment.
For  more  information,  contact  MEDC  at  1-888-522-0103  or 
visit the MEDC Web site at http://www.michiganadvantage.
org/.
MEGA Poly-Silicon Energy Cost Credit and 
Miscellaneous MEGA Battery Credits
Complete Form 4584 to claim the MEGA Poly- Silicon Energy 
Cost Credit, MEGA Plug-in Traction Battery Integration Credit, 
MEGA  Battery  Manufacturing  Facility  Credit,  MEGA  Large 
Scale  Battery  Credit,  and/or  MEGA  Advanced  Lithium  Ion 
Battery Credit and elect a refund or carryforward of any excess 
credit. Carry amount from Form 4584, line 86a and enter it here.
The following credits are no longer available for tax years 
ending after the associated date. Complete Form 4584 to 
claim an used credit from the immediately preceding tax 
year, if available.
• MEGA Advanced Battery Engineering Credit — December 
31, 2014.
• MEGA Advanced Lithium Ion Battery Credit — December 
31, 2016.
• MEGA Large Scale Battery Credit -- December 31, 2017.
Include completed Form 4574 as part of the tax return filing.

86

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Michigan Department of Treasury Attachment 09
4575 (Rev. 04-22)

2022 MICHIGAN Business Tax Loss Adjustment
for the Small Business Alternative Credit
Issued under authority of Public Act 36 of 2007.
Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN) or TR Number

INSTRUCTIONS: Use this worksheet to qualify for an otherwise disallowed Small Business Alternative Credit by adjusting current year
adjusted business income. This is available only if a taxpayer had a negative adjusted business income in any of the five tax years
immediately preceding this tax year and received an MBT Small Business Alternative Credit in the loss year. Partnerships and members of
Unitary Business Groups, see instructions before completing.

PART 1: CURRENT YEAR AMOUNTS
Use this section to determine amount of loss adjustment to business income needed to qualify for the Small Business Alternative Credit.

Adjusted Business Income Disqualifier

1. Adjusted Business Income from Form 4571, line 8 ................................................................................... 1. 00
2. Business Income Disqualifier.
Enter $180,000 for individuals, or $1,609,400 for all other organization types ......................................... 2. 00

3. Loss adjustment required. Subtract line 2 from line 1. If less than zero, enter zero .................................. 3. 00

Shareholder Income Disqualifier: $180,000

4. Enter the amount from Form 4571, line 5 .................................................................................................. 4. 00

5. Shareholder Income Disqualifier (See chart in instructions)...................................................................... 5. 00
6. Enter compensation and director fees from Form 4577, column L, of the shareholder creating the
disqualifier or reduction* ............................................................................................................................ 6. 00

7. Subtract line 6 from line 5. If less than zero, see instructions ................................................................... 7. 00

8. Divide line 7 by the percent of ownership from Form 4577, column G, for the shareholder on line 6 ....... 8. 00

9. Loss adjustment required. Subtract line 8 from line 4 ............................................................................... 9. 00
* Note: If compensation exceeds $180,000 for any C Corporation shareholder or officer, a Small Business Alternative Credit cannot be claimed nor can a
loss adjustment be used to reduce compensation from Form 4577, column L.
PART 2: AVAILABLE LOSS
Read instructions before completing Part 2. Use Part 2 to determine the loss available from the five preceding periods. Do not enter a
negative sign in front of the loss amounts in lines 11 through 16.
Complete line 10 for the five immediately preceding tax years (oldest to the left). Then complete lines 11 through 16, one column at a time
beginning with the oldest, but completing only those columns representing periods that reported a loss (either generated or used) AND
received a Small Business Alternative Credit.
10. Tax year end date (MM-DD-YYYY) ..........
11. Adjusted business income .......................
12. Loss used on prior returns .......................
13. Loss available for current return ..............
14. Loss adjustment required ........................
15. Remaining loss adjustment required .......
16. Loss adjustment carryforward .................

+ 0000 2022 43 01 27 4

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No text to extract.

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Instructions for Form 4575, Michigan Business Tax (MBT) Loss Adjustment
for the Small Business Alternative Credit
Department of Treasury (TR) assigned number. In the Unitary
Purpose
Business Groups Only field, enter “GROUP COPY FOR ABI,”
To reduce the adjusted business income (ABI) or shareholder and leave FEIN or TR Number field blank. On this group copy
allocated income to qualify for the Small Business Alternative of Form 4575, enter groupwide data for lines 1 through 3.
Credit (SBAC) or minimize the reduction percentage required. Leave lines 4 through 9 blank. Complete lines 10 through 16
following line-specific instructions.
If the ABI was less than zero in any of the five years
immediately preceding the tax year for which a credit is being To reduce the UBG’s ABI disqualifier, the group will use its
claimed, and the taxpayer received an SBAC under MBT for available loss from a prior tax period when the UBG received
that same year, the taxpayer may adjust for the loss before the SBAC, as well as a member’s available loss from a tax
figuring eligibility for the SBAC. Business income for credit year when it received the SBAC and was not part of the UBG
purposes is adjusted by using available loss from prior years (member’s separate year). However, the group may not use
on a first-in, first-out basis until those losses are extinguished. a member’s separately calculated available loss for a tax year
A loss adjustment will not affect a reduction to the SBAC when the member was part of the UBG to reduce the group’s
based on gross receipts that exceed $19,000,000. Also, it will ABI disqualifier.
not change the amount of compensation in column L for a C
For the purposes of completing Part 2, if a member’s separate
Corporation on the MBT Schedule of Shareholders and Officers
year does not share a common year end with the UBG, use a
(Form 4577).
separate column for that member. If some members’ separate
NOTE: Although this form is formatted for Corporations, it years share a common year end, total the amount of those
can be used by other types of entities with minor adjustments. members’ available loss in a single column. Arrange all of
See instructions for further details. the columns in chronological order. If additional columns are
needed to accommodate the five preceding periods, create and
Special Instructions for Unitary Business attach a table comparable to that found in lines 10 through 16.
Groups (UBGs) Apply to that custom table the calculations described in the
form text and instructions for lines 10 through 16.
The ABI disqualifier must be calculated by the UBG by
combining the ABIs of its members. Likewise, to reduce Lines 14 through 16 on the Group Copy for ABI will reflect
an ABI disqualifier of the UBG, loss adjustment must be the usage of loss adjustment to resolve the ABI disqualifier
calculated on a group level and used against the group’s ABI. and the maintenance of loss adjustment available for future
Generally, a UBG will file only one copy of this form, the years (within the five year statutory period). Loss adjustment
“Group Copy for ABI.” used for the ABI disqualifier is not recorded on the member
copy of Form 4575. However, loss adjustment used for the ABI
Members Not Included in UBG for Entire Lookback disqualifier from a member’s separately filed years should be
Period tracked in the taxpayer’s records. Any ABI loss adjustment
For years in which a member was not part of the UBG, the UBG remaining from a member’s separately filed years will be
will use that member’s available loss from those separate years available to that member in the event the member leaves the
on a first-in, first-out basis until those losses are extinguished. UBG prior to complete usage of the loss adjustment available
These amounts are calculated initially at the member level but by the UBG. See the “Supplemental Instructions for Standard
used and maintained for use in future years on the Group Copy Members in UBGs” section in the MBT Forms and Instructions
for ABI. Supporting 4575 forms must be filed by each member for Standard Taxpayers (Form 4600) for details.
that has a loss available from the separate years that is used
against the UBG’s ABI disqualifier (member forms). Only Part NOTE: If the UBG still has a disqualification on this basis
2, lines 10 through 13, of Form 4575 need to be completed on the (greater than $1,609,400) after completing the group’s Form
member form. 4575 as described above, the UBG is disqualified from the
SBAC. Do not proceed with these instructions.
Adjusted Business Income Disqualifier
Line-by-Line Instructions
This disqualifier is calculated at the group level. If the UBG
has ABI in excess of $1,609,400, the UBG must complete one, Lines not listed are explained on the form.
group Form 4575. The groupwide Form 4575 will calculate loss Dates must be entered in MM-DD-YYYY format.
available from the UBG’s prior tax years as well as organize
the members’ available loss that may be used against this Name and Account Number: Enter name and account number
disqualifier. These member amounts are calculated initially as reported on page 1 of the MBT Annual Return (Form 4567).
at the member level but used and maintained for use in future UBGs: Generally, only one form will be filed per UBG. See
years on the Group Copy for ABI. “Special Instructions for UBGs” above for exceptions. Enter
In the Taxpayer Name field at the top of the page, enter the the DM’s name in the Taxpayer Name field and FEIN in the
Designated Member’s (DM’s) name followed by the DM’s first identification line, and “GROUP COPY FOR ABI” and no
Federal Employer Identification Number (FEIN) or Michigan FEIN in the second identification line.

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Part 1: Current Year Amounts annualized member figures (when applicable) to get the group’s
total annualized figure.
Use Part 1 to determine the amount of loss adjustment
necessary to qualify for the SBAC. Line 5: Form 4575 should always be calculated initially using
$160,000. This calculation will establish taxpayer eligibility
If the taxpayer is not eligible for the credit because the ABI
without the need to reduce the SBAC. However, if the total
exceeds $1,609,400 ($180,000 for individuals), complete lines 1
loss available for the current year on line 13 does not equal or
through 3.
exceed the loss adjustment required on line 9, the taxpayer may
If the taxpayer is not eligible because a shareholder’s still calculate a lesser loss adjustment to claim a reduced credit.
allocated income exceeds $180,000, or a partner’s distributive
income exceeds $180,000, complete lines 4 through 9 for the Line 5 Eligible % of Credit
shareholder(s) or partner(s) creating the disqualifier. The loss $ 160,000 100% - no reduction
adjustment required is the largest amount needed to eliminate $164,999 80%
all allocated income disqualifiers. $169,999 60%
Partnerships: Form 4575 is formatted for Corporations. To use $174,999 40%
it for a Partnership, make these changes: $180,000 20%
• Enter on line 6 any guaranteed payments made to the
Line 7: If a negative number is reached, some reduction of
partner creating a $180,000 disqualifier.
credit is necessary. Return to line 5 and enter the higher
• On line 8, divide by the percentage of ownership from disqualifier amount from the chart. Continue this process
column C of the MBT Schedule of Partners (Form 4578). until line 7 is greater than or equal to zero. This calculation
Reduced SBAC: A reduction of the SBAC is required if establishes the maximum allowable SBAC.
an Individual, a partner in a Partnership, a shareholder of
Part 2: Available Loss
a Corporation, or an officer of a C Corporation has allocated
income after loss adjustment of more than $160,000. This Use Part 2 to determine the loss available from the five preceding
reduction is based on the Individual/partner/officer/shareholder periods. Do not enter a negative sign in front of the loss amount.
with the largest allocated income.
Complete lines 11 through 16, one column at a time. For
Complete lines 4 through 9 for the shareholder or partner those lines, complete only columns for years that reported a
creating the need to reduce the SBAC. loss (either generated or used) and received an SBAC. If the
taxpayer did not report a loss or did not receive an SBAC for a
Form 4575 should always be calculated initially using $160,000
tax year, leave that column, lines 11 through 16, blank.
on line 5. This calculation will establish taxpayer eligibility
without the need to reduce the SBAC. However, if the total Line 10: Enter the five most recent tax years, beginning with
loss available for the current year on line 13 does not equal or the oldest year in the left column, including years in which
exceed the loss adjustment required on line 9, the taxpayer may there was no loss or no SBAC credit taken. Then complete lines
still calculate a lesser loss adjustment to claim a reduced credit. 11 through 16, one column at at time, for each year in which a
loss was generated or used and an SBAC was claimed.
Try the calculation more than once. Substitute the numbers
shown on the chart in the instructions for line 5, in order to Line 11: Enter (as a positive number) the negative ABI from
maximize the claimed SBAC. If a negative number is reached Form 4571, line 8, for tax years where an SBAC was received.
on line 7, a greater disqualifier amount is needed from the When completing a member’s form (see “Special
UBGs:
disqualifier chart here on line 5. Instrutions for UBGs” so circumstances in which a member
Tax Year Less Than 12 Months: Business income and form is needed), this line is calculated using member specific
shareholder disqualifiers must be calculated on an annualized (pro forma) data. Note, however, the member cannot enter an
basis. Enter annualized numbers on lines 1, 4, and 6. Part-year ABI amount for a tax year that it was part of the UBG and the
shareholders also must annualize compensation and report that UBG did not receive the SBAC. The member may, however,
figure on line 6. enter an ABI amount for a tax year that it was not a member of
the UBG and it received the SBAC, regardless of whether the
Annualizing UBG received the credit in that same year.
To annualize, multiply each applicable amount, ABI, or When completing the Group Copy for ABI, enter the sum of the
shareholder compensation, by 12 and divide the result by the following: 1) UBG’s negative ABI for tax years it received the
number of months the business operated. Generally, a business SBAC, plus, 2) a member’s negative ABI for a tax year when it
is considered in business for one month if the business operated received the SBAC and was not part of the UBG. These member
for more than half the days of the month. amounts are calculated initially at the member level but used and
NOTE: If the business was in operation for less than a month it maintained for use in future years on the Group Copy for ABI.
is considered to have been in business for 1 month. Enter the amount of loss entered on line 11 that was
Line 12:
UBGs: For UBG members reporting a period of less than 12 used as an adjustment in a prior period.
months with the group return, annualization is done using the
member’s number of months in the group’s tax year. Sum the

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UBGs:  When  completing  the  Group  Copy  for  ABI,  if  a 
member’s negative ABI was included on Line 11 (the member 
received a credit and was not part of the UBG in the tax year 
the credit was received), include any loss adjustment used by 
that  member  in  a  prior  period  to  offset  an  ABI  disqualifier. 
Also  enter  any  groupwide  loss  used  against  the  UBG’s  ABI 
disqualifier in a prior period.
Line 13: Subtract line 12 from line 11 to arrive at loss available 
on the current return. If less than zero, enter zero; no loss is 
available.
UBGs: On the Group Copy for ABI, if the group’s membership 
has  not  changed,  that  is,  no  member  has  joined  or  left  the 
group  since  the  filing  of  the  prior  year’s  return,  the  amounts 
calculated on line 13 should equal the amounts on line 16 of 
the prior year’s corresponding columns. If membership for this 
year is different, these amounts may not be the same. See the 
“Supplemental  Instructions  for  Standard  Members  in  UBGs” 
section in Form 4600 for details.
Line 14:  Enter  the  amount  from  line  3  or  line  9,  whichever 
is larger, in the first column where a loss is available on line 
13. In subsequent columns, enter amount from line 15 of the 
previous applicable column.
Line 15: If line 14 is larger than line 13, subtract line 13 from 
line 14. Enter here and on line 14 of the next column where a 
loss is available on line 13.
Line 16: If line 13 is larger than line 14, subtract line 14 from 
line 13. This amount is available to use in subsequent periods.
NOTE:  To  benefit  from  a  loss  adjustment,  the  total  loss 
available for the current year, line 13, must equal or exceed the 
loss adjustment required on line 14.
The  function  of  this  form  is  to  demonstrate  that  a  taxpayer 
that  otherwise  would  have  been  disqualified  from  the  SBAC 
due to ABI, or fully or partially disqualified due to an owner’s 
allocated  income  is,  after  application  of  loss  adjustment, 
allowed to claim a full or partial SBAC.
If  loss  adjustment  is  successfully  applied  to  cure  an  ABI 
disqualifier,  there  is  no  calculated  figure  from  this  form 
that  feeds  to  another  form.  Simply  ignore  the  apparent 
disqualification  on  Form  4571,  line  8  and  proceed  with 
calculating the SBAC on the remainder of Form 4571.
If loss adjustment is successfully applied to fully or partially 
cure  an  owner’s  allocated  income  disqualifier,  this  will  be 
demonstrated by the final applicable column of line 15 being 
blank. In that event, carry the number from line 5 of this form 
to Form 4571, line 11 and proceed with the calculation there.
Include completed Form 4575 as part of the tax return filing.

                                                                         91

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                                                                                        draft 04/28/22

Michigan Department of Treasury                                                                                                                                     Attachment 07
4577 (Rev. 04-22), Page 1 of 2

2022 MICHIGAN Business Tax Schedule of Shareholders and Officers
For all Corporations claiming the Small Business Alternative or Start-Up Business Credits
Issued under authority of Public Act 36 of 2007.
Taxpayer Name (If Unitary Business Group, Name of Designated Member)                                              Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only:  Name of Unitary Business Group Member Reporting on This Form                       Federal Employer Identification Number (FEIN) or TR Number

PART 1:  SHAREHOLDERS AND OFFICERS.  See instructions.
1. A                              B                                                       C                       D         E                   F                    G
                                                                                          FEIN or                 Check                         % Stock with        % Stock from Col. F less 
Member Name of shareholder (including corporation, trust, partnership, or family member Social Security number    (X) if an % Stock             attribution         any attribution between 
Number who is a shareholder through attribution) or officer (Last, First, Middle)       of shareholder or officer officer   directly owned      (See instructions.) two active shareholders
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
                                                                                                                                    %                       %                          %
Percent of stock (not listed above) owned by shareholders who own less than 10% and receive no compensation:                        %
                                                                                                      Total:                100     %

Continue below using the same Member Number references from column 1A.
    H  I                        J               K                                       L                                   M                                       N
       Dividends                                                      Total compensation and director 
Member (used to determine     Salaries, wages and/ Employee insurance fees for officers and/or share-             Share of business income/loss              Total shareholder/officer 
Number active shareholders)   or director fees  plans, pensions, etc. holders.  Add columns J and K.                        (See instructions.)   income. Add columns L and M.

If more space is needed, include additional 4577 forms. Identify taxpayer and complete Part 1 and Part 2 on each additional form. (See instructions.)

+ 0000 2022 47 01 27 6                                                                                                                                       Continue on Page 2.

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2022 Form 4577, Page 2 of 2
FEIN or TR Number

UBG Member FEIN or TR Number

PART 2: LIST OF FAMILY MEMBERS AND THEIR CORRESPONDING RELATIONSHIP
Using the same Member Number references from Part 1, indicate your attributable family relationship (if any) to each shareholder.
(An attributable family relationship is defined as either a spouse, parent, child or grandchild.)
• If an attributable family relationship exists, designate in columns P through S
• If no attributable family relationship exists, check box in column T.

2. O P Q R S T
Check (X) if
Member No Attributable
Number Spouse Parent Child Grandchild Relationship

PART 3: SMALL BUSINESS ALTERNATIVE CREDIT. See instructions for definition of active shareholder.

3. Compensation and director fees of active shareholders. Add amounts in column L for each active
shareholder. Enter here and on Form 4571, line 6 ............................................................................. 3. 00
4. Compensation and director fees of officers. Add amounts in column L for each officer who is not
an active shareholder. Enter here and on Form 4571, line 7.............................................................. 4. 00

+ 0000 2022 47 02 27 4

- 97 -

                                            Instructions for Form 4577 
     Michigan Business Tax (MBT) Schedule of Shareholders and Officers 
  For all Corporations claiming the Small Business Alternative or Start-Up Business Credits 
Purpose                                                                  Part 2 if they receive compensation from the business. List all 
                                                                         shareholders and C Corporation officers who:
To  determine  eligibility  for  all  Corporations  to  qualify  for 
                                                                         • Are employees of the Corporation;
the  Small  Business  Alternative  Credit. Corporation  means  a 
taxpayer that is required or has elected to file as a Corporation        • Are directors of the Corporation; or
under the Internal Revenue Code (IRC).                                   • Own  10  percent  or  more  of  the  stock  of  the  Corporation, 
                                                                           including those by attribution.
General Instructions
                                                                         Shareholder  means  a  person  who  owns  outstanding  stock  in 
If  filing  as  a  Corporation  (including  Limited  Liability           a business or is a member of a business entity that files as a 
Companies  federally  taxed  as  such)  and  claiming  a  Small          corporation  for  federal  income  tax  purposes.  An  individual 
Business Alternative Credit, complete this form and include it           is  considered  as  the  owner  of  the  stock  owned,  directly  or 
as part of the annual return to report:                                  indirectly, by or for family members as defined by IRC § 318(a)
• Shareholder and C Corporation officer qualifications for the           (1).
  Small Business Alternative Credit;                                     An  officer of a C Corporation includes the chairperson of the 
• Compensation and director fees of active shareholders and              board,  president,  vice  president,  secretary,  and  treasurer,  or 
  all C Corporation officers for the computation of the Small            persons performing similar duties.
  Business Alternative Credit.
                                                                         A   family member,  as  defined  by  IRC  §  318(a)(1),  includes 
NOTE: A member of a Limited Liability Company (LLC) is                   spouses, parents, children and grandchildren.
characterized for MBT purposes as a shareholder if the LLC is 
                                                                         NOTE:  Rules  of  attribution  in  IRC  §  318(a)(1)  do  not 
taxed as a corporation for federal purposes.
                                                                         differentiate between an adult and a minor child.
NOTE: A federally disregarded entity is required to file as if 
                                                                         Outstanding stock  means  all  stock  of  record,  regardless  of 
it  were  a  sole  proprietorship  if  owned  by  an  individual,  or  a 
                                                                         class,  value,  or  voting  rights,  but  outstanding  stock  does  not 
branch or division if owned by another business entity.
                                                                         include treasury stock.
This  form  also  is  required  to  be  completed  and  included  as 
                                                                         All  attributable  family  members  of  persons  directly  owning 
part  of  the  return  whenever  a  corporation  claims  a  Start-Up 
                                                                         stock during the tax year must be listed in Parts 2 and 3.
Business Credit. To qualify for the Start-Up Business Credit, the 
compensation,  director  fees,  or  distributive  shares  paid  by  the  If  more  lines  are  needed  for  listing  the  shareholders  and  C 
taxpayer to a shareholder of a C Corporation or S Corporation, or        Corporation  officers,  include  additional  copies  of  this  form.  
an officer of a C Corporation, cannot exceed $135,000.                   Complete  the  taxpayer  name  and  account  number  on  each 
                                                                         copy  (and  UBG  member  if  applicable),  and  lines  1  and  2  as 
Line-by-Line Instructions                                                necessary.  If using more than one copy of the form, continue 
Lines not listed are explained on the form.                              the  sequential  number  system  for  the  Member  Number  in 
                                                                         columns A, H and O.
Name and Account Number:     Enter name and account number 
as reported on page 1 of the MBT Annual Return (Form 4567).              NOTE: Rules  of  attribution  in  IRC  §  318(a)(1)  do  not 
                                                                         differentiate between an adult and a minor child.
Unitary Business  Groups (UBGs):  Complete  one  form  for 
each  member  that  is  a  corporation  (including  an  entity  taxed    Columns  B and C:  Identify  each  shareholder  (including 
federally as such). Enter the Designated Member name in the              Corporations,  Trusts,  or  Partnerships)  and  C  Corporation 
Taxpayer  Name  field  and  the  member  to  whom  the  schedule         officers  by  name  and  Social  Security  number.  Corporations, 
applies on the line below. On the copy filed to report the DM’s          Trusts, and Partnerships should be identified using the Federal 
data (if applicable), enter the DM’s name and account number             Employer Identification Number (FEIN) or Michigan Treasury 
on each line.                                                            (TR) assigned number.
PART 1: SHAREHOLDERS AND OFFICERS                                        NOTE: Column C: An individual or foreign entity that does 
                                                                         not  have  a  Social  Security  number  or  FEIN  may  enter  in 
Line  1 (Columns A through N):  In  column  1A,  assign 
                                                                         Column C “APPLD FOR” (an abbreviation for “applied for”) or 
numbers  (beginning  with  1)  to  all  shareholders  and  C 
                                                                         “FOREIGNUS” (an abbreviation for “foreign filer”).
Corporation officers in order of percentage of stock ownership 
(percentage in column G), starting with the highest percentage           Column  E:  Enter  the  percentage  of  outstanding  stock 
first. (Repeat this numbering in Part 1, line 1H, and Part 2, line       each  shareholder  or  C  Corporation  officer  owns  directly. 
2O. It is essential that this numbering system is followed.) All         If  a  shareholder  owned  stock  for  a  period  less  than  the 
shareholders’ family members, as defined by IRC § 318(a)(1),             Corporation’s  tax  year,  multiply  that  shareholder’s  percentage 
are  considered  shareholders  and  must  be  listed  in  Part  1  and   of ownership by the number of months owned and divide the 

                                                                                                                                   95

- 98 -

result by the number of months in the Corporation’s tax year.
                                                                                              Stock Percentage
Taxpayers must account for 100 percent of the stock. If it is not                         Column E Column F            Column G
accounted for, processing of the return may be delayed.
                                                                               Husband               100%                   70% 
                                                                                          40%
Column  F:  Enter  the  percentage  of  outstanding  stock  each               (active)            (all shareholders) (husband/wife/son)
shareholder owns, including attribution of ownership from family               Wife                  100%              100% 
                                                                                          10%
members under IRC § 318(a)(1). If no attribution exists, enter the             (inactive)          (all shareholders) (all shareholders)
percentage from column E in column G and leave column F blank.                 Son                 70% (husband/            70% 
                                                                                          20%
Column  G:  When  reporting  ownership  of  a  person  who                     (inactive)          wife/son)          (husband/wife/son)
is  an  active  shareholder,  do  not  include  in  Column  G  any             Daughter            80% (husband/            40% 
                                                                                          30%
stock  ownership  attributed  to  this  person  from  another                  (active)            wife/daughter)     (wife/daughter)
active  shareholder.  See  definition  of  active  shareholders  in 
the  Part  3  instructions.  For  the  purposes  of  determining             Column  I: Enter total dividends received by each shareholder 
disqualification  for  the  Small  Business  Alternative  Credit,  an        during the tax year from this business (used to determine active 
active shareholder’s share of business income is not attributed              shareholders).  This  includes  regular  distributions  for  an  S 
to another active shareholder.                                               Corporation.
EXAMPLE: In this case, the husband and daughter are active 
                                                                             Column  J:  Enter  salaries,  wages,  and  director  fees  that  are 
shareholders because their total compensation, director fees, and 
                                                                             attributable  to  each  shareholder  or  C  Corporation  officer. 
dividends from the business are greater than $10,000 and they 
                                                                             Compensation  paid  by  a  professional  employer  organization  to 
own more than 5% of stock (column E). The wife and son are 
                                                                             the officers of a client (if the client is a C Corporation) and to 
not  active  because  their  total  compensation,  director  fees,  and 
                                                                             employees  of  the  professional  employer  organization  who  are 
dividends from the business are less than $10,000 (even though 
                                                                             assigned or leased to and perform services for a client must be 
they own more than 5% of stock).
                                                                             included in determining the eligibility of the client for this credit.
                                                                             NOTE:  If  a  shareholder  owned  stock  for  less  than  the  entire 
                                                                             tax  year  of  the  corporation,  or  an  officer  served  as  an  officer 
                                                                             less  than  the  entire  tax  year,  report  only  the  salaries,  wages 
                                                                             and  director  fees  attributable  while  serving  as  an  officer 
                                                                             or  shareholder.  These  amounts  must  be  annualized  when 
                                                                             determining  disqualifiers,  but  should  be  reported  as  actual 

ATTRIBUTION EXAMPLE:
Larry David Stone    Husband of Betty Stone, Father of Mary Stone, Stepfather of Tammie Rock, Step Grandfather of Kathy Rock
Betty Ann Stone      Daughter of Bob Pebble, Wife of Larry Stone, Mother of Tammie Rock, Stepmother of Mary Stone, Grandmother of Kathy Rock
Mary Elizabeth Stone Daughter of Larry Stone, Stepdaughter of Betty Stone
                     Daughter of Betty Stone, Stepdaughter of Larry Stone, Spouse of Steve Rock, Mother of Kathy Rock, Granddaughter of 
Tammie Marie Rock    Bob Pebble
Steve Carl Rock      Spouse of Tammie Rock, Father of Kathy Rock, Brother of Mike Rock
Kathy Evelyn Rock    Daughter of Tammie and Steve Rock, Granddaughter of Betty Stone, Step Granddaughter of Larry Stone
Mike Joseph Rock     Brother of Steve Rock
Bob Kenneth Pebble   Father of Betty Stone, Grandfather of Tammie Rock
Terry Robert Marble  Friend

Part 1: Shareholders and officers - See instructions                    Part 2: List of family members and their corresponding relationships
1.   A                              B                                   2.   O   P          Q        R            S            T
       Name of shareholder (including corporation, trust, partnership,                                                      Check (X) if
Member    or family member who is a shareholder through attribution) or Member                                         No Attributable
Number               officer (Last, First, Middle)                      Number Spouse     Parent   Child  Grandchild        Relationship
   1      Stone, Larry David                                               1   2                   3
   2      Stone, Betty Ann                                                 2   1          8        4         6
   3      Stone, Mary Elizabeth                                            3              1
   4      Rock, Tammie Marie                                               4   5          2        6
   5      Rock, Steve Carl                                                 5   4                   6
   6      Rock, Kathy Evelyn                                               6              4-5
   7      Rock, Mike  Joseph                                               7                                           X
   8      Pebble, Bob Kenneth                                              8                       2         4
   9      Marble, Terry Robert                                             9                                           X

96

- 99 -

amounts on this form.                                                       O,  the  corresponding  relationship,  and  the  number  of  the 
                                                                            member(s) with that relationship.
NOTE: All compensation must be included, whether or not the 
shareholder or C Corporation officer worked in Michigan.                    Column T: Check column T for each shareholder listed only 
                                                                            if columns P through S are blank (no attributable relationship 
Column  K: Enter employee insurance payments and pensions 
                                                                            exists).
that are attributable to each shareholder or C Corporation officer.
NOTE: If a shareholder owned stock for less than the entire tax             PART 3: Small Business Alternative Credit
year  of  the  corporation,  or  an  officer  served  as  an  officer  less Line  3: Add compensation and director fees in column L for 
than  the  entire  tax  year,  report  only  the  employee  insurance       each active shareholder and enter the result on line 3 and on 
payments,  and  pensions  that  are  attributable  while  serving  as       Form 4571, line 6.
an  officer  or  shareholder.  These  amounts  must  be  annualized 
when determining disqualifiers, but should be reported as actual            An active shareholder:
amounts on this form.                                                       • Is  a  shareholder  of  the  Corporation,  including  through 
NOTE: All employee insurance payments and pensions must be                    attribution, AND
included, whether or not the shareholder of C Corporation officer           • Owns  at  least  5  percent  of  outstanding  stock,  including 
worked in Michigan.                                                           through  attribution  (column  E  or  F  =  5  percent  or  more), 
                                                                              AND
Column L:  If  any  shareholder  or  officer  of  a  C  Corporation 
has  total  compensation  and  director  fees  in  column  L  of  over      • Receives  at  least  $10,000  in  compensation,  director  fees, 
$180,000 after loss adjustment, the C Corporation is not eligible             and dividends from the business (sum of columns I and L 
for the Small Business Alternative Credit.                                    =  $10,000  or  more). Important:  For  short-period  returns 
                                                                              or a part-year shareholder, compensation, director fees, and 
Column  M: Multiply the percentage in column G by line 5c on                  dividends of each individual must be annualized to meet this 
the MBT Common Credits for Small Businesses (Form 4571).                      requirement.
UBGs: Multiply the percentage in column G by the sum of the                 Annualizing
MBT Unitary Business Group Combined Filing Schedule for 
                                                                            Multiply  each  applicable  amount  by  12  and  divide  the  result 
Standard Members (Form 4580), Part 2A, lines 30 and 34, plus 
                                                                            by the number of months in the tax year the business operated 
capital loss deducted on the federal returns of all members.
                                                                            or  the  person  was  a  shareholder.  Generally,  a  business  is 
Column N: If any shareholder  or officer has total income in                considered in business for one month if the business operated 
column N of over $180,000 after loss adjustment, the taxpayer               for more than half the days of the month.
is not eligible for the Small Business Alternative Credit. If any 
                                                                            NOTE: If the business was in operation for less than a month it 
shareholder    or  officer  has  total  income  in  column  N  of  over 
                                                                            is considered to have been in business for 1 month.
$135,000, the taxpayer is not eligible for the Start-Up Business 
Credit.                                                                     Line  4: Add the compensation and director fees in column L for 
                                                                            each C Corporation officer who is not an active shareholder and 
PART 2: LIST OF FAMILY MEMBERS AND THEIR                                    enter the result on line 4 and on Form 4571, line 7.
CORRESPONDING RELATIONSHIP TYPE                                             REMINDER:     Active  shareholders  of  an  S  Corporation  are 
Columns  P  through  S  represent  relationships  affected  by              included in the line 3 calculation, even if the shareholder is also 
attribution.                                                                a C Corporation officer. Because the definition of “officer” for 
For  each  shareholder  listed  in  Part  1,  column  A,  enter  the        this  purpose  does  not  apply  to  an  S  Corporation,  line  4  will 
corresponding  number  of  the  shareholder’s  spouse,  parent,             always be blank for an S Corporation.
child, or grandchild, if any, listed in Part 1, column A.                   Include completed Form 4577 as part of the tax return filing.
If  more  than  one  number  is  entered  in  boxes  P  through  S, 
separate numbers with a dash. For example, if a family member 
has three children, each child’s member number should appear 
in the “Child” column with dashes separating them (“2-3-4”).
Do not use a dash to imply included numbers (such as “5-8” 
meaning  “5  through  8”),  but  instead  include  each  member 
number (“5-6-7-8”). Do not use commas.
EXAMPLE (SEE THE ATTRIBUTION EXAMPLE ON 
THE PREVIOUS PAGE): Kathy Rock’s (6) parents (4 and 5) 
work for the company. Kathy will list “4-5” in column Q.
NOTE:  If  the  space  provided  in  the  line  2  columns  is  not 
adequate to list all of the corresponding relationships, attach a 
separate sheet of paper with the member number from column 

                                                                                                                                97

- 100 -

- 101 -

Michigan Department of Treasury                                                                                                                               Attachment 08
4578 (Rev. 04-22)

2022 MICHIGAN Business Tax Schedule of Partners
Issued under authority of Public Act 36 of 2007.
Taxpayer Name (If Unitary Business Group, Name of Designated Member)                        Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only:  Name of Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN) or TR Number

PARTNER IDENTIFICATION
                     A                                               B                      C                                                                 D
   Name (If partner is an Individual,           FEIN, TR Number or                                                                                            Share of
1. enter Last, First, and Middle Initial)       Social Security Number of Partner           % Owned                                                           Business Income*
a
                                                                                                    %                                                                         00
b
                                                                                                    %                                                                         00
c
                                                                                                    %                                                                         00
d
                                                                                                    %                                                                         00
e
                                                                                                    %                                                                         00
f
                                                                                                    %                                                                         00
g
                                                                                                    %                                                                         00
h
                                                                                                    %                                                                         00
i
                                                                                                    %                                                                         00
j
                                                                                                    %                                                                         00
k
                                                                                                    %                                                                         00
l
                                                                                                    %                                                                         00
m
                                                                                                    %                                                                         00
n
                                                                                                    %                                                                         00
o
                                                                                                    %                                                                         00
p
                                                                                                    %                                                                         00
q
                                                                                                    %                                                                         00

2.  Total of Column C (% Owned). Cannot exceed 100%. ..................................................................................................... 2.                 %

3.  Total of Column D (Share of Business Income). Cannot exceed the partnership’s business income. ............................. 3.                                           00
*If any partner has a share of business income in column D of over $180,000 after loss adjustment, the Partnership is not eligible for the Small Business 
Alternative Credit.
* If any partner has a share of business income in column D of over $135,000, the Partnership is not eligible for the Start-Up Business Credit.

If more space is needed, submit additional forms 4578. Identify taxpayer and complete Partner Identification on each additional form.
(See instructions.)

+ 0000 2022 51 01 27 7

- 102 -

Instructions for Form 4578, Michigan Business Tax (MBT) Schedule of Partners
For all Partnerships claiming the Small Business Alternative Credit or Start-Up Business Credit
Purpose • Column C: Enter the percentage of profits or capital
interest of this Partnership owned by each partner. If
To determine eligibility for the Partnership’s Small a partner owned this interest for a period less than the
Business Alternative Credit. Partnership means a taxpayer that Partnership’s tax year, multiply that partner’s percentage of
is required to, or has elected to, file as a Partnership for federal ownership by the number of months owned and divide the
income tax purposes. result by the number of months in this Partnership’s tax
This form also is required to be completed and included as year.
part of the return whenever a Partnership claims a Start-Up • Column D: Enter each partner’s distributive share of
Business Credit. A partnership cannot qualify for the Start-Up income, losses, and deductions from U.S. Form 1065,
Business Credit if any partner has a distributive share of more Schedule K-1. Use the Business Income Worksheet
than $135,000. (Worksheet 4746) in the MBT Forms and Instructions for
Standard Taxpayers (Form 4600) to calculate partnership
NOTE: A member of a Limited Liability Company (LLC)
business income. Attach Worksheet 4746 to the filing. Each
is characterized for MBT purposes as a partner if the LLC is
partner’s distributive share includes guaranteed payments
taxed as a Partnership for federal purposes.
to partners that are made to that partner. If any partner has
NOTE: A federally disregarded entity is required to file as if it a share of business income in column D of over $180,000
were a sole proprietorship if owned by an individual, or a branch after loss adjustment, the Partnership is not eligible for the
or division if owned by another business entity. Small Business Alternative Credit. If any partner has a
share of business income in Column D of over $135,000, the
Line-by-Line Instructions Partnership is not eligible for the Start-Up Business Credit.
Lines not listed are explained on the form.
IMPORTANT: For short-period returns, each partner’s share of
Name and Account Number: Enter name and account number business income must be annualized to meet these requirements.
as reported on page 1 of the MBT Annual Return (Form 4567). Annualizing
If more lines are needed for listing the partners, include Multiply each applicable amount by 12 and divide the result by
additional copies of this form and complete the name, account the number of months the business operated or the person was
number, and line 1 for each copy. a partner. Generally, a business is considered in business for
one month if the business operated for more than half the days
Unitary Business Groups: Complete one form for each
of the month.
member that is a partnership (including an entity taxed
federally as such). Enter the Designated Member name in the NOTE: If the business was in operation for less than a month it
Taxpayer Name field and the member to whom the schedule is considered to have been in business for 1 month.
applies on the line below. On the copy filed to report the DM’s
Line 2: If multiple pages of Form 4578 are included for one
data (if applicable), enter the DM’s name and account number
separately filing taxpayer, or one member of a UBG, bring the
on each line.
total of all line 1C entries to the main Form 4578.
Line 1: Partner Identification
Line 3: If multiple pages of Form 4578 are included for one
• Columns A and B: Identify each partner (including separately filing taxpayer, or one member of a UBG, bring the
Corporation, Partnership, and Trust) by name. Identify total of all line 1D entries to the main Form 4578.
partners who are individuals by Social Security number.
Partners that are Corporations, Partnerships, or Trusts should Include completed Form 4578 as part of the tax return filing.
be identified using a Federal Employer Identification Number
(FEIN) or Michigan Treasury (TR) assigned number.
NOTE: Column B: An individual or foreign entity that does
not have a Social Security number or FEIN may enter in
Column B “APPLD FOR” (an abbreviation for “applied for”) or
“FOREIGNUS” (an abbreviation for “foreign filer”).

100

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Michigan Department of Treasury                                                                    Attachment 15
4580 (Rev. 04-22), Page 1 of 6

2022 MICHIGAN Business Tax Unitary Business Group  
Combined Filing Schedule for Standard Members
Issued under authority of Public Act 36 of 2007.
IMPORTANT:  Read the instructions before completing this form.
Designated Member Name                                                            Federal Employer Identification Number (FEIN) or TR Number

PART 1A: UNITARY BUSINESS GROUP (UBG) MEMBERS
List the UBG members whose activity is included on the combined return supported by this form, beginning with the Designated Member 
(DM). Include all UBG members (with or without nexus), except those excluded in Part 3. If more than one page is needed, repeat the DM’s 
name and FEIN or TR Number in the field at the top of the page, but not on line 1.
1.                                              A                                 B
                                Member Name                                       FEIN or TR Number

+ 0000 2022 59 01 27 1                                                             Continue on Page 2.

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2022 Form 4580, Page 2 of 6 Designated Member FEIN or TR Number

PART 1B: MEMBER IDENTIFICATION
Complete a separate copy of Part 1B for each member listed in Part 1A.
2. Member Name 5. Organization Type

3. Member FEIN or TR Number Individual C Corporation /
LLC C Corporation
4. Member Street Address Fiduciary S Corporation /
LLC S Corporation
City State ZIP/Postal Code Partnership / LLC Partnership

Beginning Ending
6. Federal Tax Period Included in Return 10. Check if Nexus with Michigan
(MM-DD-YYYY) ........................................
7. If part-year member, enter 11. Check if Registered for MBT
membership dates (MM-DD-YYYY) .........
8. NAICS Code 9. If discontinued, effective date 12. Check if New Member

13. Nature of business activities or operations resulting in a flow of value between members, or integration, dependence or contribution to other members

PART 2A: MEMBER DATA FOR COMBINED RETURN OF STANDARD TAXPAYERS
Enter data for the member listed in Part 1B. Enter whole dollars only.
14. Michigan sales. (If no Michigan sales enter zero) ............................................................................................. 14. 00
15. Total sales.......................................................................................................................................................... 15. 00
16. Pro forma apportionment percentage. Divide line 14 by line 15 ............ 16. %

Member Modified Gross Receipts
17. Gross receipts ................................................................................................................................................... 17. 00
18. Inventory acquired during the tax year .............................................................................................................. 18. 00
19. Depreciable assets acquired during the tax year .............................................................................................. 19. 00
20. Materials and supplies not included in inventory or depreciable property ......................................................... 20. 00
21. Staffing company: Compensation of personnel supplied to customers ............................................................. 21. 00
If the UBG is claiming the Small Business Alternative Credit, skip to line 23.
22. Deduction for contractors in SIC Codes 15, 16 and 17 (see instructions) ......................................................... 22. 00
SIC Code:
23. Film rental or royalty payments paid by a theater owner to a film distributor and/or film producer ................... 23. 00
24. Qualified Affordable Housing Project (QAHP) deduction
a. Gross receipts attributable to residential rentals in Michigan ........... 24a. 00
b. Number of residential rent restricted units in Michigan owned
by the QAHP ...................................................................................... 24b.
c. Total number of residential rental units in MI owned by the QAHP ....... 24c.
d. Divide line 24b by line 24c and enter as a percentage ..................... 24d. %
e. Multiply line 24a by line 24d ............................................................ 24e. 00
f. Limited dividends or other distributions made to QAHP owners ...... 24f. 00
g. QAHP Deduction. Subtract line 24f from line 24e ....................................................................................... 24g. 00
25. Payments made by member licensed under Article 25 or Article 26 of the Occupational Code to
independent contractors licensed under Article 25 or Article 26 ........................................................................ 25. 00
26. Miscellaneous subtractions (see instructions) ................................................................................................... 26. 00
27. Modified gross receipts. Subtract lines 18 through 23 and 24g through 26 from line 17 .................................. 27. 00
28. Enrichment prohibition for dealer of personal watercraft or new motor vehicles. Enter amount collected
during tax year. If zero, enter zero and skip line 29. If greater than zero, enter number here, then see
instructions for how to complete line 29 ............................................................................................................ 28. 00
29. Excess enrichment prohibition tax collected (see instructions) ......................................................................... 29. 00

+ 0000 2022 59 02 27 9 Continue on Page 3.

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2022 Form 4580, Page 3 of 6 Designated Member FEIN or TR Number
Member FEIN or TR Number

PART 2A: MEMBER DATA FOR COMBINED RETURN OF STANDARD TAXPAYERS (Cont.) — Member Business Income
30. Business income. If negative, enter as negative. (If business activity protected under PL 86-272, complete
and attach Form 4581 or Form 4586, as applicable; see instructions.)............................................................. 30. 00
31. Interest income and dividends derived from obligations or securities of states other than Michigan ................ 31. 00
32. Taxes on or measured by net income................................................................................................................ 32. 00
33. Tax imposed under MBT .................................................................................................................................... 33. 00
34. Any carryback or carryover of a federal NOL .................................................................................................... 34. 00
35. Losses attributable to other flow-through entities taxed under the MBT .......................................................... 35. 00
Account No.
36. Royalty, interest, and other expenses paid to a related person not within the UBG (see instructions) ............ 36. 00
37. Miscellaneous additions (see instructions) ....................................................................................................... 37. 00
38. Dividends and royalties received from persons other than U.S. persons and foreign operating entities ......... 38. 00
39. Income attributable to other flow-through entities taxed under the MBT .......................................................... 39. 00
Account No.
40. Interest income derived from U.S. obligations .................................................................................................. 40. 00
41. Net earnings from self-employment. If less than zero, enter zero .................................................................... 41. 00
42. Miscellaneous subtractions (see instructions) .................................................................................................. 42. 00
43. Business Income Tax Base. Add lines 30 through 37 and subtract lines 38 through 42 .................................. 43. 00
44. Available MBT business loss carryforward from previous period MBT return (see instructions) ....................... 44. 00
45. Qualified Affordable Housing Deduction. Members claiming the seller’s deduction only, skip lines 45a through 45h and carry the amount from Form
4579, line 5, to line 45i. Members claiming the QAHP deduction only, complete lines 45a through 45i. If claiming both deductions, see instructions.
a. Gross rental receipts attributable to residential units in MI ............ 45a. 00
b. Rental expenses attributable to residential rental units in Michigan ... 45b. 00
c. Taxable income attributable to residential rental units.
Subtract line 45b from line 45a ........................................................ 45c. 00
d. No. of residential rent restricted units in MI owned by the QAHP .... 45d.
e. Total residential rental units in Michigan owned by the QAHP ........ 45e.
f. Divide line 45d by line 45e and enter as a percentage.................... 45f. %
g. Multiply line 45c by line 45f.............................................................. 45g. 00
h. Limited dividends, other distributions made to project owners ........ 45h. 00
i. Qualified Affordable Housing Deduction. Subtract line 45h from line 45g ................................................... 45i. 00
46. There is no amount to be entered on this line .................................................................................................. 46. x x x x x x x 00
47. There is no amount to be entered on this line .................................................................................................. 47. x x x x x x x 00
48. Unused MBT Basic/Enhanced Historic Preservation Credit carryforward ........................................................ 48. 00
49. Unused MBT Special Consideration Historic Preservation Credit carryforward ............................................... 49. 00
50. Unused MBT Low-Grade Hematite Credit carryforward ................................................................................... 50. 00
51. Unused MBT MEGA Federal Contract Credit carryforward .............................................................................. 51. 00
52. Unused MBT Individual or Family Development Account Credit carryforward ................................................. 52. 00
53. Unused MBT Bonus Depreciation Credit carryforward ..................................................................................... 53. 00
54. Unused MBT Brownfield Redevelopment Credit carryforward ......................................................................... 54. 00
55. Unused MBT Film Job Training Credit carryforward ......................................................................................... 55. 00
56. Unused MBT Film Infrastructure Credit carryforward ....................................................................................... 56. 00
57. Unused MBT MEGA Plug-In Traction Battery Manufacturing Credit carryforward ........................................... 57. 00
58. Unused MBT Anchor Company Payroll Credit carryforward ............................................................................ 58. 00
59. Unused MBT Anchor Company Taxable Value Credit carryforward ................................................................. 59. 00
60. Unused MBT MEGA Poly-Silicon Energy Cost Credit carryforward ................................................................. 60. 00
61. Unused MBT MEGA Plug-In Traction Battery Integration Credit carryforward ................................................. 61. 00
62. Unused MBT MEGA Advanced Battery Engineering Credit carryforward ........................................................ 62. 00
63. Unused MBT MEGA Battery Manufacturing Facility Credit carryforward ......................................................... 63. 00
64. Unused MBT MEGA Large Scale Battery Credit carryforward ......................................................................... 64. 00
65. Unused MBT MEGA Advanced Lithium Ion Battery Credit carryforward .......................................................... 65. 00
66. Overpayment credited from prior MBT return ................................................................................................... 66. 00
67. Estimated tax payments ................................................................................................................................... 67. 00
68. There is no amount to be entered on this line ................................................................................................... 68. x x x x x x x 00
69. Tax paid with request for extension .................................................................................................................. 69. 00

+ 0000 2022 59 03 27 7 Continue on Page 4.

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2022 Form 4580, Page 4 of 6                                                        Designated Member FEIN or TR Number

PART 2B: SUMMARY OF BUSINESS ACTIVITY FOR COMBINED RETURN OF STANDARD TAXPAYERS
NOTE: Not all lines from Part 2A are carried to Part 2B.                           A                   B                   C                  D
                                                                                   Combined Total                          Combined Total     Carry to  
                                                                                   Before Eliminations Eliminations        After Eliminations form, line
 14. Michigan sales ..........................................................                                                                4567, 11a
 15. Total sales ................................................................                                                             4567, 11b
 17. Gross receipts ..........................................................                                                                4567, 12
 18. Inventory acquired during the tax year ......................                                                                            4567, 13
 19. Depreciable assets acquired during the tax year ......                                                                                   4567, 14
 20. Materials and supplies not included in inventory or 
     depreciable property ..................................................                                                                  4567, 15
 21. Staffing company: Compensation of personnel 
     supplied to customers................................................                                                                    4567, 16
 22. Deduction for contractors in SIC Codes 15, 16  
     and 17 (see instructions) ...........................................                                                                    4567, 17
 23. Film rental or royalty payments paid by a theater 
     owner to a film distributor and/or film producer .........                                                                               4567, 18
24g. QAHP Deduction ......................................................                                                                    4567, 19g
 25. Payments made by taxpayers licensed under 
     Article 25 or Article 26 of the Occupational Code to 
     independent contractors licensed under Article 25 or 
     Article 26...................................................................                                                            4567, 20
 26. Miscellaneous subtractions (see instructions) ..........                                                                                 4567, 21

 27. Modified gross receipts                                                                           x  x  x  x  x  x  x                    N/A
     (line 17 minus lines 18 through 26) ..........................
 28. Enrichment prohibition for dealer of personal 
     watercraft or new motor vehicles.  Enter amount 
     collected during tax year...........................................                                                                     N/A
 29. Excess enrichment prohibition tax collected.............                                                                                 See instr.
 30. Business income ......................................................                                                                   4567, 28
 31. Interest income and dividends derived from obligations 
     or securities of states other than Michigan ..................                                    x  x  x  x  x  x  x                    4567, 29
 32. Taxes on or measured by net income.......................                                         x  x  x  x  x  x  x                    4567, 30
 33. Tax imposed under MBT ...........................................                                 x  x  x  x  x  x  x                    4567, 31
 34. Any carryback or carryover of a federal NOL ...........                                           x  x  x  x  x  x  x                    4567, 32
 35. Losses attributable to other flow-through entities taxed 
     under the MBT ..............................................................                                                             4567, 33
 36. Royalty, interest and other expenses paid to a 
     related person...........................................................                         x  x  x  x  x  x  x                    4567, 34
 37. Miscellaneous additions (see instructions) .................                                                                             4567, 35
 38. Dividends and royalties received from persons other 
     than U.S. persons and foreign operating entities .....                                            x  x  x  x  x  x  x                    4567, 38
 39. Income attributable to other flow-through entities taxed 
     under the MBT ..............................................................                                                             4567, 39
 40. Interest income derived from U.S. obligations ..........                                          x  x  x  x  x  x  x                    4567, 40
 41. Net earnings from self-employment. 
     If less than zero, enter zero ......................................                              x  x  x  x  x  x  x                    4567, 41
 42. Miscellaneous subtractions (see instructions) ..........                                                                                 4567, 42
 43. Business Income Tax Base ......................................                                   x  x  x  x  x  x  x                    N/A
 44. Available MBT business loss carryforward from 
     previous period MBT return(s)  .................................                                                                         4567, 46
45i. Qualified Affordable Housing Deduction .....................                                                                             4567, 48i

+ 0000 2022 59 04 27 5                                                                                                       Continue on Page 5.

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2022 Form 4580, Page 5 of 6                                                      Designated Member FEIN or TR Number

PART 2B: SUMMARY OF BUSINESS ACTIVITY FOR COMBINED RETURN OF STANDARD TAXPAYERS (CONT.)
                                                                                 A                   B                   C                   D
                                                                                 Combined Total                          Combined Total      Carry to  
                                                                                 Before Eliminations Eliminations        After Eliminations  form, line

 46. There is no amount to be entered on this line ..........                    x  x  x  x  x  x  x x  x  x  x  x  x  x x  x  x  x  x  x  x X X X
 47. There is no amount to be entered on this line ..........                    x  x  x  x  x  x  x x  x  x  x  x  x  x x  x  x  x  x  x  x X X X
 48. Unused MBT Basic/Enhanced Historic Preservation 
     Credit carryforward ....................................................                        x  x  x  x  x  x  x                     4584, 4
 49. Unused MBT Special Consideration Historic 
     Preservation Credit carryforward ...............................                                x  x  x  x  x  x  x                     4584, 7
 50. Unused MBT Low-Grade Hematite Credit 
     carryforward...............................................................                     x  x  x  x  x  x  x                     4573, 20
 51. Unused MBT MEGA Federal Contract Credit 
     carryforward...............................................................                     x  x  x  x  x  x  x                     4584, 30
 52. Unused MBT Individual or Family Development 
     Account Credit carryforward ......................................                              x  x  x  x  x  x  x                     4573, 45
 53. Unused MBT Bonus Depreciation Credit 
     carryforward...............................................................                     x  x  x  x  x  x  x                     4573, 50
 54. Unused MBT Brownfield Redevelopment Credit 
     carryforward...............................................................                     x  x  x  x  x  x  x                     4584, 40
 55. Unused MBT Film Job Training Credit carryforward ...                                            x  x  x  x  x  x  x                     4573, 64
 56. Unused MBT Film Infrastructure Credit carryforward ..                                           x  x  x  x  x  x  x                     4573, 70
 57. Unused MBT MEGA Plug-In Traction Battery 
     Manufacturing Credit carryforward .............................                                 x  x  x  x  x  x  x                     4584, 57
 58. Unused MBT Anchor Company Payroll Credit 
     carryforward...............................................................                     x  x  x  x  x  x  x                     4584, 65
 59. Unused MBT Anchor Company Taxable Value 
     Credit carryforward ....................................................                        x  x  x  x  x  x  x                     4584, 73
 60. Unused MBT MEGA Poly-Silicon Energy Cost 
     Credit carryforward ....................................................                        x  x  x  x  x  x  x                     4584, 81a
 61. Unused MBT MEGA Plug-In Traction Battery 
     Integration Credit carryforward ..................................                              x  x  x  x  x  x  x                     4584, 81b
 62. Unused MBT MEGA Advanced Battery Engineering 
     Credit carryforward ....................................................                        x  x  x  x  x  x  x                     4584, 81c
 63. Unused MBT MEGA Battery Manufacturing Facility 
     Credit carryforward ....................................................                        x  x  x  x  x  x  x                     4584, 81d
 64. Unused MBT MEGA Large Scale Battery Credit 
     carryforward...............................................................                     x  x  x  x  x  x  x                     4584, 81e
 65. Unused MBT MEGA Advanced Lithium Ion Battery 
     Credit carryforward ....................................................                        x  x  x  x  x  x  x                     4584, 81f
 66. Overpayment credited from prior MBT return ............                                         x  x  x  x  x  x  x                     4567, 60
 67. Estimated tax payments ............................................                             x  x  x  x  x  x  x                     4567, 61
 68. There is no amount to be entered on this line ...........                   x  x  x  x  x  x  x x  x  x  x  x  x  x x  x  x  x  x  x  x X X X
 69. Tax paid with request for extension ...........................                                 x  x  x  x  x  x  x                     4567, 63

Check all that apply to the Unitary Business Group.
 70. Group identified consists of a group of U.S. persons, one of which owns or controls, directly or indirectly, more than 50% of the ownership 
     interests with voting or comparable rights of the others.
 71. Some or all members are included on a consolidated federal income tax return. If checked, attach a copy of federal Form 851.
 72. Each member of the group has business activities or operations resulting in a flow of value between the members or has business activities 
     or operations that are integrated with, dependent upon, or contribute to each other.
 73. All members of the Unitary Business Group are included in this unitary filing.

+ 0000 2022 59 05 27 3                                                                                                     Continue on Page 6.

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2022 Form 4580, Page 6 of 6                   Designated Member FEIN or TR Number

PART 3:  AFFILIATES EXCLUDED FROM THE COMBINED RETURN OF STANDARD TAXPAYERS
List every person (with or without nexus) for which the “greater than 50%” ownership test of a Michigan Unitary Business Group is satisfied, which is not 
included on the combined return of standard taxpayers that is supported by this form. Using the codes below, identify in column D why each person is not 
included in the combined return. If any persons listed here are part of a federal consolidated group, attach a copy of federal Form 851. 
REASON CODES FOR EXCLUSION:
 1.  Lacks business activities resulting in a flow of value or integration, 6.  Other.
    dependence or contribution to group.                                    7. Insurance company. (Insurance companies generally file separately.)
 2.  Foreign operating entity.                                              8. Financial institution. (Financial institutions and standard taxpayers 
 4.  Foreign entity.                                                        generally are not included on the same combined return.)
 5.  Member has no MBT tax year (as a member of this UBG) ending 
    with or within this filing period.

74. A                                    B                                            C       D         E                                F
    Number From                                                                               Reason    Check (X) if 
    Federal Form 851                                                                          Code for  Nexus with 
    (if applicable)                      Name                               FEIN or TR Number Exclusion Michigan                         NAICS Code

PART 4: PERSONS INCLUDED IN THE PRIOR COMBINED RETURN, BUT EXCLUDED FROM CURRENT RETURN
List persons included as standard members in the immediately preceding combined return of this Designated Member that are not included as standard 
members on the return supported by this form. Persons that satisfy the criteria of Part 3 and Part 4 should be listed in each part. See column C instructions.
75.                            A                                                      B                   C
                                                                                              Reason This Person is Not on Current Return 
                               Name                                         FEIN or TR Number   (See instructions for reason codes)

+ 0000 2022 59 06 27 1

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                                         Instructions for Form 4580 
                    Michigan Business Tax (MBT) Unitary Business Group 
                     Combined Filing Schedule for Standard Members
                                                                          •  More than 50 percent of the total combined voting power of 
Purpose
                                                                             all ownership interests with voting (or comparable) rights, or 
The purpose of this form is to:                                           •  More  than  50  percent  of  the  total  value  of  all  ownership 
• Identify all members of a Unitary Business Group (UBG)                     interests with voting (or comparable) rights.
• Gather tax return data for each standard member included in             Relationship Tests. The definition of a Unitary Business Group 
  the combined return on a separate basis, make appropriate               requires  that  the  group  of  persons  have  business  activities  or 
  eliminations, and determine combined UBG data for the tax               operations that either:
  return.
                                                                          1) Result in a flow of value between or among persons in the 
NOTE: This is not the primary return. It is designed to support           group, or
the MBT Annual Return  (Form  4567)  submitted  on  behalf  of 
the UBG by the Designated Member (DM).                                    2) Are integrated with, dependent upon, or contribute to each 
                                                                          other.
Refund Only:  If  combined  apportioned  or  allocated  gross 
receipts  of  all  members  (before  eliminations)  is  less  than        A taxpayer need only meet one of the two alternative tests to 
$350,000 and there is no recapture, and the taxpayer is filing            satisfy the relationship test.
Form  4567  solely  to  claim  a  refund  of  estimates  paid,  Form      1) Flow  of  value  is  established  when  members  of  the 
4580  must  also  be  included.  The  designated  member  must            group  demonstrate  one  or  more  of  functional  integration, 
complete Part 1A, Part 2B (skip lines 18 through 65), Part 3,             centralized  management,  and  economies  of  scale.  Examples 
and Part 4 of Form 4580. For each member listed in Part 1A,               of  functional  integration  include  common  programs  or 
complete Part 1B and 2A (skip lines 18 through 65). See Form              systems  and  shared  information  or  property.  Examples  of 
4567 for instructions on completing that form.                            centralized  management  include  common  management  or 
                                                                          directors,  shared  staff  functions,  and  business  decisions 
Tax Years Less Than 12 Months                                             made  for  the  UBG  rather  than  separately  by  each  member. 
If the reported tax year is less than 12 months, gross receipts,          Examples of economies of scale include centralized business 
must be annualized. If annualized gross receipts do not exceed            functions  and  pooled  benefits  or  insurance.  Groups  that 
$350,000, enter zero on this line.                                        commonly  exhibit  a  flow  of  value  include  vertically  or 
                                                                          horizontally  integrated  businesses,  conglomerates,  parent 
Annualizing                                                               companies with their wholly owned subsidiaries, and entities 
Multiply each applicable amount, total gross receipts, adjusted           in the same general line of business. Flow of value must be 
business  income,  and  shareholder,  officer,  and  partner              more  than  the  mere  flow  of  funds  arising  out  of  passive 
income by 12 and divide the result by the number of months                investment.
the  business  operated.  Generally,  a  business  is  considered  in     2)  The  alternate contribution/dependency  relationship  test 
business for one month if the business operated for more than             asks whether business activities are integrated with, dependent 
half  the  days  of  the  month.  If  the  tax  year  is  less  than  one upon,  or  contributed  to  each  other.  Businesses  are  integrated 
month, consider the tax year to be one month for the purposes             with,  are  dependent  upon,  or  contribute  to  each  other  under 
of the calculation.                                                       many of the same circumstances that establish flow of value. 
                                                                          However,  this  alternate  relationship  test  is  also  commonly 
General Information About UBGs in MBT                                     satisfied  when  one  entity  finances  the  operations  of  another 
                                                                          or  when  there  exist  intercompany  transactions,  including 
Unitary Business Group means  a  group  of  United  States 
                                                                          financing.
persons, other than a foreign operating entity, that satisfies the 
control test and relationship test.                                       For  more  information  on  the  control  and  relationship  tests 
                                                                          for  UBGs,  see  Revenue  Administrative  Bulletin  (RAB) 
United States person is defined in Internal Revenue Code (IRC)            2010-1,  MBT—Unitary  Business  Group  Control  Test,  and 
§ 7701(a)(30). A foreign operating entity is defined by statute in        RAB  2010-2,  MBT—Unitary  Business  Group  Relationship 
Michigan Compiled Laws (MCL) 208.1109(5).                                 Tests,  on  the  Department  of  Treasury  (Treasury)  Web  site 
Control Test. The  control  test  is  satisfied  when  one  person        at www.michigan.gov/treasury/,  under  “Reports  and  Legal 
owns or controls, directly or indirectly, more than 50 percent            Resources.”
of the ownership interest with voting or comparable rights of 
the other person or persons. A person owns or controls more               Filing Procedures for UBGs
than  50  percent  of  the  ownership  interest  with  voting  rights     By  definition,  a  UBG  can  include  standard  taxpayers, 
or  ownership  interest  that  confer  comparable  rights  to  voting     insurance companies, and financial institutions. (Note that an 
rights of another person if that person owns or controls:                 entity that would otherwise be standard but is owned by and 

                                                                                                                          107

- 110 -

unitary with a financial institution is defined by statute to be a 
financial institution.)  In some cases, however, not all members        Example A: UBG A is composed of the following: 
of  the  UBG  will  be  included  on  the  same  return.    Standard    • Four standard members
members (not owned by and unitary with a financial institution          • Three financial institutions (all with nexus in Michigan)
in the UBG) file a combined return on Form 4567. Form 4580              • Two insurance companies. 
must be filed in support of that return.
                                                                        All  members  of  UBG  A  are  owned  by  and  unitary 
Form  4580  is  used  to  gather  and  combine  data  from  each        with one of the standard members of the UBG. UBG A 
standard  member  of  the  UBG  to  support  the  group’s  Form         will  need  to  file  Form  4567,  supported  by  Form  4580, 
4567  and  related  forms.  This  form  must  be  completed  before     containing  the  four  standard  members  and  Form 
the  group’s  Form  4567  and  related  forms  are  completed.  If      4590,  supported  by  Form  4752,  containing  the  three 
this UBG also includes financial institutions and/or insurance          financial  institutions. In Part 1 of   Form 4580 or  Form 
companies, those members generally will not report tax data on          4752,  only  the  members  that  are  included  on  that  form 
this form, but will be listed as excluded affiliates in Part 3.         (either the four standard members, or the three financial 
Financial  institution  members  will  report  and  combine  their      institutions)  will  be  listed.  Form  4580  with  standard 
data  using MBT Unitary Business Group Combined Filing                  members  will  be  prepared  under  the  name  and  Federal 
Schedule for Financial Institutions  (Form  4752),  which               Employer  Identification  Number  (FEIN)  or  Michigan 
supports  the  lead  financial  form, MBT Annual  Return  for           Treasury (TR) assigned number of the group’s standard 
Financial Institutions (Form 4590).                                     DM. One of the financial institutions will serve as DM 
                                                                        for those three members and file Form 4590, supported 
Financial institutions include any of the following:
                                                                        by Form 4752. On Part 3 of Form 4580, list all financial 
• A bank holding company, a national bank, a state chartered            and insurance members. On Part 3 of Form 4752, list all 
bank,  an  office  of  thrift  supervision  chartered  bank  or  thrift standard  and  insurance  members.  The  two  insurance 
institution, or a savings and loan holding company other than           companies each will file a stand-alone Form 4588. 
a  diversified  savings  and  loan  holding  company  as  defined 
in 12 United States Code (USC) 1467a(a)(1)(F) or  a federally           Example B: UBG B is composed of the following: 
chartered Farm Credit System institution.                               • Four  members  that  would  be  standard  (see  below) 
• Any person, other than a person subject to the tax imposed              unless owned by a financial institution
under Chapter 2A of the MBT Act (Insurance Companies), that             • Three financial institutions (all with nexus in Michigan)
is directly or indirectly owned by an entity described above and 
                                                                        • Two insurance companies.
is a member of the UBG.
                                                                        All  members  of  UBG  B  are  owned  by  and  unitary  with 
• A  UBG  of  entities  described  in  either  or  both  of  the 
                                                                        one  of  the  financial  institutions  in  the  UBG.  Due  to  this 
preceding two bullets.
                                                                        ownership by a financial institution, the four members that 
Each insurance company member will file separately, using the           otherwise  would  be  standard  are  defined  by  statute  to  be 
Insurance Company Annual Return for Michigan Business and               financial institutions. (See definition of financial institution 
Retaliatory Taxes (Form 4588). Because insurance companies              earlier in these instructions.) Therefore, this UBG will not 
always file separately, rather than on a combined return, there         file a Form 4580 or Form 4567. Seven members will file a 
is no MBT insurance form that serves a function similar to that         combined return on Form 4590, supported by Form 4752, 
of Form 4580 and Form 4752.                                             listing the two insurance members as excluded affiliates on 
                                                                        Part  3  of  Form  4752.  The  two  insurance  companies  each 
                                                                        will file a stand-alone Form 4588.

                                                                        To complete this form and prepare a combined return, the UBG 
                                                                        must select a DM. 
                                                                        In  Michigan,  a  UBG  with  standard  members  must  file  Form 
                                                                        4567.  A Designated Member  (DM)  must  file  the  return  on 
                                                                        behalf  of  the  standard  members  of  the  group.  In  a  parent-
                                                                        subsidiary controlled group, the controlling member must serve 
                                                                        as DM if it has nexus with Michigan. If it does not have nexus, 
                                                                        the controlling member may appoint any member with nexus 
                                                                        to serve as DM. The tax year of the DM determines the filing 
                                                                        period  for  the  UBG.  The  combined  return  must  include  each 
                                                                        tax year of each member that ends with or within the tax year 
                                                                        of the DM.
                                                                        If a UBG is comprised of both standard taxpayers and financial 
                                                                        institutions, the UBG will have two DMs (one for the standard 
                                                                        taxpayer  members  completing  Form  4567  and  related  forms, 

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and  one  for  the  financial  institution  members  completing        entity taxed federally as a Partnership).
Form 4590 and related forms). 
                                                                       NOTE: A person that is a disregarded entity for federal income 
Role of the DM: The DM speaks, acts, and files the MBT return          tax purposes under the internal revenue code shall be classified 
on  behalf  of  the  group  for  MBT  purposes.  Only  the  DM  may    as  a  disregarded  entity  for  the  purposes  of  filing  the  MBT 
file a valid extension request for the group. Treasury maintains       annual return. This means that a disregarded entity for federal 
the  group’s  MBT  tax  data  (e.g.,  prior  MBT  returns,  business   tax purposes, including a single member LLC or Q-Sub, must 
loss carryforward, tax credit carryforward, overpayment credit         file as if it were a sole proprietorship if owned by an individual, 
forward)  under  the  DM’s  name  and  account  number.  The           or a branch or division if owned by another business entity.
DM  must  be  of  the  same  taxpayer  type  (standard  or  financial 
institution) as the members for which it files a combined return.      Line  6:  List  the  member’s  tax  year,  for  federal  income  tax 
                                                                       purposes,  from  which  business  activity  is  being  reported  on 
Line-by-Line Instructions                                              this copy of Parts 1B and 2A.
Lines not listed are explained on the form.                            Line  7: If the control test and relationship test were not both 
                                                                       satisfied  for  this  member’s  entire  federal  tax  year,  enter  the 
Dates must be entered in MM-DD-YYYY format.                            beginning and ending dates of the period within this member’s 
Do not enter data in boxes filled with Xs.                             federal tax year during which both tests were satisfied. These 
                                                                       dates  constitute  a  short  tax  period  for  MBT  purposes,  even 
For additional guidance, see the “Supplemental Instructions for        if  there  is  no  corresponding  short  federal  tax  period.  This 
Standard Members in UBGs” section in Form 4600.                        member must prepare a pro forma federal return for the portion 
Part 1A: Unitary Business Group Members                                of  its  federal  year  during  which  it  was  a  UBG  member,  and 
                                                                       use that pro forma return as the basis for reporting the tax data 
Lines  1A and 1B: Beginning  with  the  DM,  list  the  UBG            required by Part 2A.
standard  members  and  their  corresponding  FEIN  or  TR 
number. Use additional Part 1A, Form 4580 pages as needed.             Line  8: Enter the member’s six-digit North American Industry 
                                                                       Classification  System  (NAICS)  code.  For  a  complete  list  of 
NOTE: A taxpayer that is a UBG must file a combined return             six-digit NAICS codes, see the U.S. Census Bureau Web site at 
using the tax year of the DM. The combined return of the UBG           www.census.gov/eos/www/naics/. Enter the same NAICS code 
must include each tax year of each member whose tax year ends          used when filing U.S. Form 1120S, U.S. Form 1065, Schedule C 
with or within the tax year of the DM. For example, Taxpayer           of U.S. Form 1040, or Schedule K of U.S. Form 1120.
ABC  is  a  UBG  comprised  of  three  standard  members: 
Member A, the DM with a calendar tax year, and Members B               Line  9:  Enter  the  date,  if  applicable,  on  which  this  member 
and  C  with  fiscal  years  ending  March  31  and  September  30,    went out of existence. Examples include death of an Individual, 
respectively.  Taxpayer  ABC’s  tax  year  is  that  of  its  DM.  For dissolution  of  an  entity,  and  a  merger  in  which  this  member 
this  group  in  2013,  that  annual  return  will  include  Member    was  not  the  surviving  entity.  Include  any  event  in  which  the 
A’s  calendar  year  ending  December  31,  2013,  the  tax  year  of  FEIN ceases to be used by this entity. If this member continues 
Member B ending March 31, 2013, and the tax year of Member             to exist, DO NOT use this line to report that this member has 
C ending September 30, 2013.                                           stopped doing business in Michigan.
                                                                       Line  10: If  this  member  has  nexus  with  Michigan, 
Part 1B: Member Identification
                                                                       check  this  box.  Guidance  in  determining  nexus  can  be 
Include a separate copy of Parts 1B and 2A for each standard           found  in  RAB  2007-6  and  2008-4,  available  online  at 
member whose business activity is reported on the combined             www.michigan.gov/taxes. (See the “Reference Library” link at 
return supported by this form. If a member (other than the DM)         left edge of page.)
has two or more tax periods ending with or within the filing 
period of the return, use a separate copy of Parts 1B and 2A for       Line  12: This line does not apply to the first MBT return filed 
each of that member’s tax periods.                                     by this UBG. For subsequent tax periods, check this box if this 
                                                                       member was not included in the UBG’s preceding MBT return.
Line  5: Identify the organization type of this member:
                                                                       Line  13:  Enter  a  concise  description  of  the  activities  or 
• Individual.
                                                                       operations  of  this  member  that  result  in  a  flow  of  value 
• C  Corporation  (including  an  LLC,  Trust,  or  other  entity      between  this  member  and  others  in  the  UBG,  or  integration, 
  taxed federally as a Corporation under Subchapter C of the           dependence,  or  contribution  to  other  members.  This  is 
  IRC).                                                                not  limited  to  transactions  that  are  recognized  for  tax  or 
• Fiduciary  (a  decedent’s  estate,  and  a  Trust  taxed  federally  accounting  purposes.  It  may  include  sharing  of  assets, 
  as a Trust under Subchapter J of the IRC. A grantor Trust            employees,  data,  business  opportunities,  or  other  resources. 
  or  “revocable  living  Trust”  established  by  an  Individual      (See RAB 2010-2.)
  is not taxed as a separate entity, and should be listed as an 
  Individual).                                                         Part 2A: Member Data for Combined Return of 
                                                                       Standard Taxpayers
• S  Corporation  (including  an  LLC,  Trust,  or  other  entity 
  taxed federally as a Corporation under Subchapter S of the           A member that does not file a separate federal return (e.g., a 
  IRC).                                                                member that is a member of a federal consolidated group) must 
                                                                       prepare a pro forma federal return or equivalent schedule and 
• Partnership (including an LP, LLP, LLC, Trust, or any other 

                                                                                                                                   109

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use it as the basis for preparing its portion of the MBT return.           NOTE:  Only  transportation  services  are  sourced  using 
                                                                           revenue miles. To the extent the UBG has business activities 
Line 14: Sale or Sales means amounts received by a member as 
                                                                           or  revenue  streams  not  from  transportation  services,  those 
consideration from the following:
                                                                           receipts should be sourced accordingly.
• Transfer of title to, or possession of, property that is stock 
                                                                           Line  17: Gross receipts means the entire amount received by 
  in trade or other property of a kind which would properly 
                                                                           the member, as determined by using the member’s method of 
  be  included  in  the  inventory  of  the  member  if  on  hand  at 
                                                                           accounting for federal income tax purposes, from any activity, 
  the close of the tax period, or property held by the member 
                                                                           whether in intrastate, interstate, or foreign commerce, carried 
  primarily  for  sale  to  customers  in  the  ordinary  course  of 
                                                                           out  for  direct  or  indirect  gain,  benefit,  or  advantage  to  the 
  its  trade  or  business.  For  intangible  property,  the  amounts 
                                                                           member or to others, with certain exceptions. Receipts include, 
  received  will  be  limited  to  any  gain  received  from  the 
                                                                           but are not limited to:
  disposition of that property.
                                                                           • Some or all receipts (sales proceeds) from the sale of assets 
• Performance of services which constitute business activities.
                                                                             used in a business activity.
• Rental,  leasing,  licensing,  or  use  of  tangible  or  intangible     • Sale of products.
  property,  including  interest,  that  constitutes  business 
                                                                           • Services performed.
  activity.
                                                                           • Gratuities stipulated on a bill.
• Any combination of business activities described above.
                                                                           • Dividend and interest income.
• For a member not engaged in any other business activities, sales         • Gross commissions earned.
  include interest, dividends, and other income from investment            • Rents.
  assets and activities and from trading assets and activities.
                                                                           • Royalties.
If a member’s business activity is confined solely to Michigan             • Sales of scrap and other similar items.
and  the  member  does  not  establish  nexus  in  another  state,  all    • Client  reimbursed  expenses  not  obtained  in  an  agency 
sales  are  allocated  to  Michigan. State  is  defined  to  include  a      capacity.
foreign  country.  A  member  is  treated  as  if  subject  to  tax  in    • Gross  proceeds  from  sales  between  affiliated  companies, 
another state if, in that state, the member is subject to a business         including members of a UBG.
privilege  tax,  a  net  income  tax,  a  franchise  tax  measured  by 
                                                                           Use  Worksheet  4700  in  Form  4600  to  calculate  gross  receipts. 
net income, a franchise tax for the privilege of doing business, 
                                                                           Attach  the  worksheet  to  the  return.  Gross  receipts  are  not 
a Corporation stock tax, or a tax of the type imposed under the 
                                                                           necessarily  derived  from  the  federal  return,  however,  the 
MBT  Act,  or  that  state  has  jurisdiction  to  subject  the  member 
                                                                           worksheet will calculate gross receipts as defined by law in most 
to  one  or  more  of  such  taxes  regardless  of  whether  the  tax  is 
                                                                           circumstances.  Taxpayers  and  tax  professionals  are  expected  to 
imposed. A member will be treated as subject to a tax in another 
                                                                           be  familiar  with  uncommon  situations  within  their  experience, 
state  for  these  purposes  if  the  member  has  due  process  and 
                                                                           which  produce  gross  receipts  not  identified  by  specific  lines  on 
commerce clause nexus with that state.
                                                                           Worksheet 4700, and report that amount on the most appropriate 
If this member has no Michigan sales, enter zero.                          line. Treasury may adjust the figure resulting from the worksheet 
                                                                           to account properly for such uncommon situations. 
Complete  this  line  using  amounts  for  the  member’s  business 
activity only. Do not include amounts from an interest owned               A  member  should  compute  its  gross  receipts  using  the  same 
by the member in a Partnership or S Corporation (or LLC taxed              accounting  method  used  in  the  computation  of  its  taxable 
federally as such).                                                        income for federal income tax purposes.
If  this  member  is  subject  to  tax  in  another  state,  as  described Producers of Agricultural Goods:  The  total  gross  receipts 
above,  use  the  “Sourcing  of  Sales  to  Michigan”  information         from  all  business  activity  must  be  reported  on  line  17, 
in  the  Form  4567  instructions  to  determine  Michigan  sales.  If     including  the  gross  receipts  from  agricultural  activity  of  a 
sales reported are adjusted by a deduction for qualified sales to          person whose primary activity is the production of agricultural 
a qualified customer, as determined by the Michigan Economic               goods.  A  subtraction  is  allowed  on  line  26  for  the  gross 
Growth  Authority  (MEGA),  attach  the  Anchor  District  Tax             receipts that have been included on this line that are from the 
Credit  Certificate  or  Anchor  Jobs  Tax  Credit  Certificate  from      agricultural activity of a person whose primary activity is the 
the Michigan Economic Development Corporation (MEDC) as                    production of agricultural goods.
support.
                                                                           Producers of Oil or Gas, and Minerals:  The  total  gross 
For  transportation  services  that  source  sales  based  on              receipts from all business activity must be reported on line 17, 
revenue  miles,  include  on  Line  14  a  sales  amount  calculated       including  the  gross  receipts  from  the  production  of  oil  or  gas, 
by  multiplying  total  sales  of  the  transportation  service  by        and minerals, even if this activity is subject to the Severance Tax 
the  ratio  of  Michigan  revenue  miles  over  revenue  miles             on Oil or Gas, 1929 PA 48.  A subtraction is allowed on line 26 
everywhere  as  provided  in  the  “Sourcing  of  Sales  to                for the gross receipts that have been included on this line that 
Michigan” section of the Form 4600 General Instructions, for               are  from  the  production  of  oil  and  gas  that  are  subject  to  the 
that  type  of  transportation  service. Revenue  mile  means  the         Severance Tax on Oil or Gas.
transportation for a consideration of one net ton in weight or 
                                                                           Line  18:  Enter  inventory  acquired  during  the  tax  year, 
one passenger the distance of one mile.
                                                                           including  freight,  shipping,  delivery,  or  engineering  charges 

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included in the original contract price for that inventory.             Line  21:  A  staffing  company  may  deduct  compensation 
                                                                        (including wages, benefits, and all payroll taxes) paid to personnel 
Inventory means the stock of goods, including electricity and 
                                                                        supplied to its clients. Staffing company means a taxpayer whose 
natural gas, held for resale in the ordinary course of a retail 
                                                                        business activities are included in Industry Group 736 under the 
or wholesale business, and finished goods, goods in process 
                                                                        Standard Industrial Classification (SIC) Code as compiled by the 
of a manufacturer, and raw materials purchased from another 
                                                                        United States Department of Labor.
person. Inventory includes shipping and engineering charges 
so long as such charges are included in the original contract           Payments  to  a  staffing  company  by  a  client  do  not  constitute 
price  for  the  associated  inventory.  Inventory  also  includes      purchases from other firms.
floor  plan  interest  for  new  motor  vehicle  dealers  licensed 
                                                                        Line  22:  For  taxpayers  that  fall  under  SIC  major  groups  15 
under  the  Michigan  vehicle  code  and  any  pre-paid  sales  tax 
                                                                        (Building  Construction  General  Contractors  and  Operative 
required to be paid on the inventory at the time of purchase.
                                                                        Builders),  16  (Heavy  Construction  Other  Than  Building 
For  purposes  of  this  deduction, floor  plan  interest  means        Construction  Contractors),  and  17  (Construction  Special  Trade 
interest paid that finances any part of the person’s purchase of        Contractors)  who  do  not  claim  the  Small  Business  Alternative 
new motor vehicle inventory from a manufacturer, distributor,           Credit  (SBAC)  under  MCL  208.1417  for  the  tax  year,  the 
or  supplier.  However,  amounts  attributable  to  any  invoiced       following payments are considered “purchases from other firms:”
items used to provide more favorable floor plan assistance to a 
                                                                        • Payments to subcontractors for a construction project, under 
person subject to the tax imposed under the MBT Act than to 
                                                                          a contract specific to that project, and 
a person not subject to this tax is considered interest paid by 
a manufacturer, distributor, or supplier, and is not considered         • To  the  extent  not  deducted  as  “inventory”  and  “materials 
floor plan interest.                                                      and supplies,” payments for materials deducted as purchases 
                                                                          in  determining  the  cost  of  goods  sold  for  the  purpose  of 
For a person that is a securities trader, broker, or dealer, or a         calculating total income on the taxpayer’s federal income tax 
person  included  in  the  UBG  of  that  securities  trader,  broker,    return.
or  dealer  that  buys  and  sells  for  its  own  account,  inventory 
includes contracts that are subject to the Commodity Exchange           NOTE:  This  subtraction  is  only  available  to  a  member  of 
Act, 7 USC 1 to 27f, the cost of securities as defined under IRC        the  UBG  if  the  group  does  not  claim  the  SBAC  for  the  tax 
§ 475(c)(2) and for a securities trader the cost of commodities         year. However, for purposes of the SIC code requirement, it is 
as defined under IRC § 475(e)(2) and for a broker or dealer the         sufficient that the UBG member that made the payments listed 
cost  of  commodities  as  defined  under  IRC  §  475(e)(2)(b),  (c),  above be included in SIC codes 15, 16, or 17.
and (d), excluding interest expense other than interest expense         Persons  included  in  SIC  codes  15,  16,  and  17  include  general 
related to repurchase agreements. As used in this provision:            contractors  (of  residential  buildings  including  single-family 
• Broker  and dealer  mean  those  terms  as  defined  under            homes;  industrial,  commercial,  and  institutional  buildings; 
  section 78c(a)(4) and (a)(5) of the Securities Exchange Act of        bridges,  roads,  and  infrastructure;  etc.),  operative  builders,  and 
  1934, 15 USC 78c.                                                     trade contractors (such as electricians, plumbers, painters, masons, 
                                                                        etc.).  See http://www.osha.gov/pls/imis/sic_manual.html  for  a 
• Securities trader means a person that engages in the trade or 
                                                                        more complete list.
  business of purchasing and selling investments and trading 
  assets.                                                               A subcontractor  is  an  Individual  or  entity  that  enters  into  a 
                                                                        contract and assumes some or all of the obligations of a person 
Inventory does not include either of the following:                     included in SIC codes 15, 16, and 17 as set forth in the primary 
                                                                        contract specific to a project. Thus, payments to an independent 
• Personal  property  under  lease  or  principally  intended  for 
                                                                        contractor for general labor services not specific to a particular 
  lease rather than sale.
                                                                        construction  contract  do  not  constitute  purchases  from  other 
• Property allowed a deduction or allowance for depreciation            firms. However, payments made to a subcontractor for services 
  or depletion under the IRC.                                           and materials provided under a contract specific to a particular 
Line  19:  Enter  assets,  including  the  costs  of  fabrication       construction  project  (such  as  the  construction  of  commercial 
and  installation,  acquired  during  the  tax  year  of  a  type  that property  at  2400  Main  Street)  do  constitute  purchases  from 
are,  or  under  the  IRC  will  become,  eligible  for  depreciation,  other firms. There is no requirement that the subcontractors to 
amortization,  or  accelerated  capital  cost  recovery  for  federal   whom such payments are made be licensed.
income tax purposes.                                                    The  taxpayer  bears  the  burden  to  prove  it  is  entitled  to  a 
Line  20: To the extent not included in inventory or depreciable        deduction in computing its tax liability. It is contemplated that 
property,  enter  materials  and  supplies,  including  repair  parts   good business practice would include documentation such as 
and fuel.                                                               a written contract that would support a deduction from gross 
                                                                        receipts  for  payments  to  subcontractors  as  purchases  from 
Materials and supplies  means  tangible  personal  property             other  firms.  The  supporting  information  for  payments  to  a 
purchased in the tax year that are ordinary and necessary               subcontractor could be incorporated into the contract for the 
expenses to be used in carrying on a trade or  business.                specific  project  or  memorialized  in  a  separate  contract  with 
Materials  and  supplies  includes  repair  parts  and  fuel.  Fuel     a  subcontractor  specifying  the  project  to  which  the  costs 
means materials used and consumed to produce heat or power              pertain.
by burning. Fuel does not include electricity.

                                                                                                                                111

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Line 24: On lines 24a through 24g, calculate a deduction from              A) For a person classified under the 2002 North American 
gross receipts for a member that is a limited dividend housing             Industrial  Classification  System  (NAICS)  Number  484,  as 
association  that  owns  and  operates  a  Qualified  Affordable           compiled  by  the  United  States  Office  of  Management  and 
Housing Project (QAHP).                                                    Budget,  that  does  not  qualify  for  a  credit  under  Section 
                                                                           417, enter the payment, made on or after July 12, 2011, to 
Public Act (PA) 168 of 2008 provides for a deduction from the 
                                                                           subcontractors to transport freight by motor vehicle under a 
modified  gross  receipts  and  apportioned  business  income  tax 
                                                                           contract specific to that freight to be transported by motor 
bases for a QAHP. (A deduction from the apportioned business 
                                                                           vehicle. Attach a letter to explain the activity that qualifies 
income tax base also is available. See below.)
                                                                           for  this  subtraction  and  the  date  of  the  payment.  Include 
Qualified  Affordable  Housing  Project  means  a  person  that            the NAICS code.
is  organized,  qualified,  and  operated  as  a  limited  dividend        B)  Enter  on  this  line  the  gross  receipts  included  on  line 
housing  association  that  has  a  limitation  on  the  amount  of        17, which result from the agricultural activity of a person 
dividends or other distributions that may be distributed to its            whose primary activity (i.e., more than 50 percent of gross 
owners in any given year and has received funding, subsidies,              receipts) is the production of agricultural goods.
grants,  operating  support,  or  construction  or  permanent 
funding through one or more public sources.                                C) Enter on this line the gross receipts included on line 17 
                                                                           which result from the production of oil or gas, and minerals 
A  limited  dividend  housing  association  is  organized  and             if that production of oil or gas, and minerals is subject to the 
qualified  pursuant  to  Chapter  7  of  the  State  Housing               Severance Tax on Oil or Gas, 1929 PA 48.
Development Authority Act (MCL 125.1491 et seq).
                                                                        Line  28: Enter amount of the MBT Modified Gross Receipts 
If  these  criteria  are  satisfied,  a  QAHP  may  deduct  from  its   (MGR) Tax collected in the tax year.
modified  gross  receipts,  its  gross  receipts  attributable  to 
the  residential  rental  units  in  Michigan  it  owns  multiplied     MCL 208.1203(5) permits new motor vehicle dealers licensed 
by a fraction, the numerator of which is the number of rent             under the Michigan Vehicle Code, PA 300 of 1949, MCL 257.1 
restricted  units  in  Michigan  owned  by  that  QAHP  and  the        to 257.923, and dealers of new or used personal watercraft to 
denominator of which is the number of all residential rental            collect the MGR Tax in addition to the sales price. The statute 
units  in  Michigan  owned  by  the  project.  This  deduction          states  that  the  “amount  remitted  to  the  Department  for  the 
is  reduced  by  the  amount  of  limited  dividends  or  other         [Modified  Gross  Receipts  Tax]  ...  shall  not  be  less  than  the 
distributions  made  to  the  owners  of  the  project.  Amounts        stated  and  collected  amount.”  Therefore,  the  entire  amount 
received  by  the  management,  construction,  or  development          of the MGR Taxes stated and collected by new motor vehicle 
company  for  completion  and  operation  of  the  project  and         dealers  and  new  or  used  personal  watercraft  dealers  must  be 
rental  units  do  not  constitute  gross  receipts  for  purposes  of  remitted  to  Treasury.  There  should  be  no  instance  in  which 
the deduction.                                                          a  dealer  collects  amounts  of  the  MGR  Tax  from  customers 
                                                                        in  excess  of  the  amount  of  MGR  taxes  remitted  to  Treasury. 
MCL 208.1201(8) governs the termination of this deduction.              Eligible  taxpayers  that  elect  to  separately  collect  the  MGR 
                                                                        Tax from customers in addition to sales price may include the 
Line  24a:  Gross  receipts  attributable  to  residential  rentals  in 
                                                                        collected tax as part of their estimated payments. 
Michigan do not include amounts received by the management, 
construction,  or  development  company  for  completion  and           NOTE: Only new motor vehicle dealers and dealers of new or 
operation of the project and those rental units.                        used personal watercraft are permitted to separately itemize 
                                                                        and collect a tax imposed under the MBT Act from customers 
Line 24b: Rent restricted unit  means  any  residential  rental         in addition to sales price, and that authority is limited to only 
unit that has a rental rate restricted in accordance with IRC §         the MGR Tax imposed and levied under MCL 208.1203. The 
42(g)(1)  as  if  it  was  a  qualified  low-income  housing  project,  statute does not authorize separate itemizing and collection of 
or  that  receives  rental  assistance  from  Housing  and  Urban       the Business Income Tax by any person.
Development  (HUD)  section  8  subsidies,  HUD  housing 
assistance program subsidies, U.S. Department of Agriculture            Line 29: A member that is a dealer of personal watercraft or 
rural housing programs, or from any of the programs described           new  motor  vehicles  that  collected  MGR  Tax  from  customers 
in MCL 208.1203(8)(b).                                                  by  separate  statement  on  the  invoice  during  the  tax  year,  as 
                                                                        entered in line 28, should complete the following worksheet to 
Line 24c:  This  includes  rent  restricted  and  unrestricted          determine excess MGR Tax collected.
residential rental units owned by the QAHP in Michigan.
Line 25:  If  the  member  is  licensed  under  Article  25  (Real                        WORKSHEET – 
Estate  Brokers  and  Salespersons)  or  Article  26  (Real  Estate               EXCESS MGR TAX COLLECTED
Appraisers)  of  the  Occupational  Code  [MCL  339.2501  to            A. Pro forma apportionment percentage 
339.2518  and  339.2601  to  339.2637],  enter  payments  made  to         from Form 4580, Part 2A, line 16a .....           %
independent contractors licensed under Articles 25 or 26.               B. Modified gross receipts from  
Line 26: There  are  three  items  that  qualify  for  entry  on  this     Form 4580, Part 2A, line 27. If MGR 
line. If more than one type applies, enter the combined total as           is less than zero, enter zero .................   00
a single amount.                                                        C. Apportioned MGR tax base.  
                                                                           Multiply line B by line A ....................    00

112

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D. Pro forma MGR Tax before credits.                                     • Income  derived  from  isolated  sales,  leases,  assignment, 
   Multiply line C by 0.8% (0.008) .........                 00            licenses,  divisions,  or  other  infrequently  occurring 
E. Enrichment prohibition, amount from                                     dispositions,  transfers,  or  transactions  involving  property 
   Form 4580, Part 2A, line 28 ...............               00            if  the  property  is  or  was  used  in  the  member’s  trade  or 
F. Excess MGR Tax collected.                                               business operation.
   If line D is less than line E, enter the                              • Income derived from the sale of a business.
   difference. Otherwise, enter zero.                                    NOTE:  Personal  investment  income,  gains  from  the  sale  of 
   Carry amount to Form 4580, Part 2A,                                   property held for personal use and enjoyment, or other assets 
   line 29 ................................................. 00
                                                                         not  used  in  a  trade  or  business,  and  any  other  income  not 
                                                                         specifically  derived  from  a  trade  or  business  that  is  earned, 
Line  30: Business income  means  that  part  of  federal  taxable       received,  or  otherwise  acquired  by  an  Individual,  an  estate, 
income  derived  from  business  activity.  For  MBT  purposes,          or a Trust or Partnership organized or established exclusively 
federal  taxable  income  means  taxable  income  as  defined  in        for  estate  or  gift  planning  purposes,  are  not  included  in  the 
IRC § 63, except that federal taxable income shall be calculated         Business Income Tax base. This exclusion only applies to the 
as if section 168(k) [as applied to qualified property placed in         specific types of persons identified above. Investment income 
service after December 31, 2007] and IRC § 199 were not in               and any other types of income earned or received by all other 
effect.  For  a  Partnership  or  S  Corporation  (or  LLC  federally    types of persons not specifically referenced must be included in 
taxed as such), business income includes payments and items of           the business income of the member.
income and expense that are attributable to business activity of 
the Partnership or S Corporation and separately reported to the          IMPORTANT: If business activity is protected under Public 
partners or shareholders.                                                Law (PL) 86-272 for any member of the UBG, then the member 
                                                                         must  claim  protection  by  filing  the MBT Tax Schedule of 
Use the Business Income Worksheet (Worksheet 4746) in Form               Business  Activity  Protected  Under  Public  Law  86-272  (Form 
4600  to  calculate  business  income.  Attach  Worksheet  4746          4586) (if member is the DM) or the MBT Schedule of Business 
to  the  return.  The  worksheet  will  calculate  business  income      Activity  for  Non-Designated  Members  of  a  Unitary  Business 
as  defined  by  law  in  most  circumstances.  Taxpayers  and  tax      Group  Protected  Under  Public  Law  86-272  (Form  4581)  (if 
professionals  are  expected  to  be  familiar  with  uncommon           member  is  not  the  DM)  and  reporting  its  individual  activity. 
situations  within  their  experience,  which  produce  business         Unless  all members of the UBG  have PL 86-272 protection, a 
income  not  identified  by  specific  lines  on  the  worksheet,  and   member claiming protection must complete lines 30 through 45i. 
report that amount on the most appropriate line. Treasury may            If all members of the UBG are claiming PL 86-272 protection, 
adjust  the  figure  resulting  from  Worksheet  4746  to  account       leave lines 30 through 45i blank. 
properly for such uncommon situations.
                                                                         So  long  as  one  member  of  a  UBG  has  nexus  with  Michigan 
For  an  organization  that  is  a  mutual  or  cooperative  electric    and exceeds the protections of PL 86-272, all members of the 
company  exempt  under  IRC  §  501(c)(12),  business  income            UBG,  including  members  protected  under  PL  86-272,  must 
equals  the  organization’s  excess  or  deficiency  of  revenues        be  included  when  calculating  the  UBG’s  Business  Income 
over  expenses  as  reported  to  the  federal  government  by  those    Tax base and apportionment formula. (In other words, PL 86-
organizations  exempt  from  the  federal  income  tax  under  the       272 will only remove business income from the apportionable 
IRC, less capital credits paid to members of that organization,          Business Income Tax base when all members of the UBG are 
less  income  attributed  to  equity  in  another  organization’s  net   protected  under  PL  86-272.)  The  inclusion  of  the  business 
income, and less income resulting from a charge approved by a            income of members that fall under PL 86-272 in the tax base 
state or federal regulatory agency that is restricted for a specified    of the UBG and the subsequent apportionment of such income 
purpose and refundable if it is not used for the specified purpose.      does  not  constitute  taxation  upon  those  PL  86-272  members. 
For  a  tax-exempt  person, business income  means  only  that           Rather,  this  method  is  required  for  properly  determining  the 
part of federal taxable income (as defined for MBT purposes)             Michigan income of the UBG.
derived from unrelated business activity.                                Line  31:  Enter  any  interest  income  and  dividends  from 
For  an  Individual  or  an  estate,  or  for  a  Partnership  or  Trust bonds and similar obligations or securities of states other than 
organized  exclusively  for  estate  or  gift  planning  purposes,       Michigan and their political subdivisions in the same amount 
business  income  is  that  part  of  federal  taxable  income  (as      that  was  excluded  from  federal  taxable  income  (as  defined 
defined  for  MBT  purposes)  derived  from  transactions,               for  MBT  purposes).  Include  only  the  income  derived  from 
activities,  and  sources  in  the  regular  course  of  the  member’s   business activity. Reduce this addition by any expenses related 
trade or business, including the following:                              to  the  foregoing  income  that  were  disallowed  on  the  federal 
                                                                         return by IRC § 265 or 291.
•  All  income  from  tangible  and  intangible  property  if  the 
   acquisition,  rental,  management,  or  disposition  of  the          Line  32:  Enter  all  taxes  on,  or  measured  by,  net  income 
   property constitutes integral parts of the member’s regular           including city and state taxes, foreign income tax, and Federal 
   trade or business operations.                                         Environmental Tax claimed as a deduction on the federal return.
•  Gains or losses incurred in the member’s trade or business            Line  33:  Enter  the  Michigan  Business  Taxm,  including 
   from  stock  and  securities  of  any  foreign  or  domestic          surcharge,  claimed  as  a  deduction  on  this  member’s  federal 
   corporation, and dividend and interest income.

                                                                                                                                  113

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return (or this member’s allocable share, if claimed on a federal          NOTE:  To  the  extent  deducted  in  arriving  at  federal  taxable 
consolidated return).                                                      income, any deduction under IRC 250(a)(1)(B) should be added 
                                                                           back on this line (i.e., netted against subtractions made on this 
Line  34: Enter any net operating loss carryover or carryback 
                                                                           line).
that was deducted in arriving at this member’s federal taxable 
income (as defined for MBT purposes) reported on line 30. If               Line  39: Enter any income included in federal taxable income 
the member reporting on this copy of Part 2A is a member of a              (as  defined  for  MBT  purposes)  that  is  attributable  to  other 
federal consolidated group, or for any other reason did not file a         entities  that  have  made  a  valid  election  to  file  and  have  filed 
separate federal return for the period reported here, the federal          under the MBT. If this member owns an interest in only one 
net operating loss (NOL) carryover or carryback entered here               such  entity,  list  that  entity’s  FEIN  or  TR  number  in  the  field 
must be based on a pro forma federal return for the member                 on the form. If this member owns interests in more than one 
reporting  on  this  copy  of  Part  2A.  Enter  this  amount  as  a       such entity, enter on the form the FEIN or TR number of one 
positive number.                                                           of the entities and attach a list of the account numbers of all. 
                                                                           On the list include a breakdown of the amount of this income 
Line  35: Enter  any  losses  included  in  federal  taxable  income       subtraction that is attributable to each entity. In any case, the 
(as  defined  for  MBT  purposes)  that  are  attributable  to  other      amount on  line 39  should be the total of all income, not just 
entities  that  have  made  a  valid  election  to  file  and  have  filed the  income  of  the  one  entity  identified  on  the  form.  This 
under  the  MBT.  If  this  member  owns  an  interest  in  only  one      subtraction  includes  income  attributable  to  this  member’s 
such entity, list that entity’s FEIN or TR number in the field on          ownership  interest  in  another  member  of  the  UBG,  to  the 
this form. If this member owns interests in more than one such             extent  that  income  was  included  in  this  member’s  federal 
entity, enter on the form the FEIN or TR number of one of the              taxable income (as defined for MBT purposes).
entities and attach a list of the account numbers of all. On the 
list include a breakdown of the amount of this loss add-back that          Line 40: To the extent included in federal taxable income (as 
is attributable to each entity. In any case, the amount on line 35         defined  for  MBT  purposes),  deduct  interest  income  derived 
should be the total of all losses, not just the loss of the one entity     from United States obligations.
identified on the form. This addition includes a loss attributable 
                                                                           Line  41: To the extent included in federal taxable income (as 
to  this  member’s  ownership  interest  in  another  member  of  the 
                                                                           defined  for  MBT  purposes),  deduct  any  earnings  that  are  net 
UBG,  to  the  extent  that  loss  was  included  in  this  member’s 
                                                                           earnings from self-employment as defined under IRC § 1402 of 
federal taxable income (as defined for MBT purposes).
                                                                           the UBG member reporting here. The amount deducted shall 
Line  36:  Enter  any  royalty,  interest,  or  other  expense  paid       be the amount properly reported on a schedule K-1-form 1065 
to  a  person  related  to  the  member  by  ownership  or  control        as  self-employment earnings for  federal income tax purposes 
for the use of an intangible asset if the person is not included           for the tax year.
in  the  member’s  UBG.  Royalty,  interest,  or  other  expense 
                                                                           Line 42:  There  are  three  items  that  qualify  for  entry  on  this 
described here is not required to be included if the taxpayer can 
                                                                           line. If more than one type applies, enter the combined total as 
demonstrate that the transaction has a nontax business purpose 
                                                                           a single amount.
other than avoidance of MBT, is conducted with arm’s-length 
pricing and rates and terms as applied in accordance with IRC              A)  For  tax  years  that  begin  after  December  31,  2009,  to 
§ 482 and 1274(d), and satisfies one of the following:                     the  extent  included  in  federal  taxable  income,  deduct 
                                                                           the  amount  of  a  charitable  contribution  made  to  the 
• Is  a  pass-through  of  another  transaction  between  a  third 
                                                                           Advance  Tuition  Payment  fund  created  under  section  9 
  party  and  the  related  person  with  comparable  rates  and 
                                                                           of  the  Michigan  Education  Trust  Act,  PA  316  of  1986, 
  terms.
                                                                           MCL  390.1429.  This  is  deductible  only  to  the  extent  that 
• Results  in  double  taxation.  For  purposes  of  this                  contribution was NOT federally deductible.
  subparagraph,  double  taxation  exists  if  the  transaction  is 
  subject to tax in another jurisdiction.                                  B)    Eligible  licensed  marihuana  trades  or  businesses  may 
• Is unreasonable as determined by Treasury, and the taxpayer              subtract ordinary and necessary expenses paid or incurred 
  agrees that the addition would be unreasonable based on the              during the tax year that would be allowed if section 280E 
  taxpayer’s facts and circumstances.                                      of  the  internal  revenue  code  were  not  in  effect.  Under 
                                                                           the Michigan Regulation and Taxation of Marihuana Act 
• The related person (recipient of the transaction) is organized           (which allows for what is often referred to as “recreational” 
  under  the  laws  of  a  foreign  nation  which  has  in  force  a       or  “adult  use”  marihuana),  a  marihuana  establishment 
  comprehensive income tax treaty with the United States.                  licensed  under  that  act  is  allowed  a  deduction  from 
Line 37: There currently are no additions that are recorded on             Michigan income tax for certain expenses not allowed in 
this line. Leave this line blank.                                          arriving  at  federal  taxable  income.  IRC  280E  prohibits  a 
                                                                           deduction for any amount paid or incurred in carrying on 
Line  38: To the extent included in federal taxable income (as             a trade or business that consists of trafficking in Schedule 
defined for MBT purposes), enter any dividends and royalties               I and II controlled substances (e.g., marihuana).  However, 
received  from  persons  other  than  United  States  persons              the IRC is also structured to recognize the cost of goods 
and  foreign  operating  entities,  including,  but  not  limited  to,     sold  before  reaching  gross  profit,  regardless  whether 
amounts determined under IRC § 78 or IRC § 951 to 965.                     taxpayer  is  in  the  business  of  trafficking  in  marihuana. 
                                                                           Therefore, any expenses related to cost of goods sold (and 

114

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any  other  expenses  already  allowed  in  reaching  federal             name and FEIN of loss corporation, and loss amount for each 
taxable income) may not be subtracted from the Michigan                   loss corporation.
base.
                                                                          On a non-DM member’s copy of this form: Only a member 
C)  On  a  fiscal  2015-16  tax  return,  enter  the  Book-Tax            that  joined  the  group  in  the  current  tax  year  may  report  a 
deduction  to  the  extent  available.    The  deduction  is  only        loss  carryforward  on  its  copy  of  this  form.  Report  the  loss 
available to a taxpayer that reported a Book-Tax amount on                carryforward  that  the  member  brings  into  the  group.  If  the 
Form 4593 with an original 2008 MBT annual return.                        incoming  member  was  part  of  another  UBG  in  the  tax  year 
                                                                          immediately  prior  to  the  current  year,  the  loss  carryforward 
The Book-Tax deduction is calculated as follows:                          that it brings into the current year group refers to the incoming 
1)  Total of amount reported on Column C of Form 4593                     member’s  share  of  its  former  group’s  total  loss  carryforward 
with  the  original  2008  MBT  annual  return.  (For UBGs,               reported  on  the  former  group’s  immediately  preceding  Form 
compute  the  sum  of  the  amounts  reported  by  all  current           4567.  If  the  incoming  member  was  not  part  of  a  UBG  in 
members of the group who filed Form 4593.)                                the  tax  year  immediately  prior  to  the  current  year,  the  loss 
                                                                          carryforward that it brings into the current year’s group refers 
2)  Calculate  the  amount  needed  to  offset  the  net  deferred        to  the  amount  reported  on  the  immediately  preceding  Form 
tax  liability  of  the  taxpayer  which  results  from  the              4567 filed by that member on a stand alone basis.
imposition of the business income tax, at a rate of 4.95%, 
                                                                          When a new, incoming member created a MBT business loss 
and  the  modified  gross  receipts  tax,  at  a  rate  of  0.8%, 
                                                                          carryforward  from  a  MBT  tax  period  prior  to  joining  the 
calculated  for  the  first  fiscal  period  ending  after  July  12, 
                                                                          current  tax  year  UBG,  the  carryforward  on  that  member’s 
2007.
                                                                          account will be used by the current year group until it is fully 
3) Take the lesser of the result of step 1 or step 2.                     consumed  (or  that  member  leaves  the  group).  This  will  be 
                                                                          based upon accurate reporting of the incoming member’s loss 
4)  Report  on  this  line  4%  of  the  result  of  step  3.  The        carryforward  on  its  copy  of  the  current  year  group’s  Form 
remaining  percentage  of  the  amount  from  step  3  will  be           4580,  as  explained  in  the  bulleted  section  above.  When  a 
deductible in future years.                                               member that generated a carryforward in a prior period leaves 
A  taxpayer  claiming  the  Book-Tax  deduction  must  maintain           the group, that member will take with it an amount equal to the 
records  and  work  papers  necessary  to  support  the  calculation      group’s remaining carryforward from that period multiplied by 
and journal entry identified for the same length of time that the         the amount that member contributed and divided by the total 
deduction  is  available,  and  to  support  a  potential  audit  of  the amount contributed by all group members for the carryforward 
taxpayer’s business by the Michigan Department of Treasury.               in that same period.
                                                                          If  these  instructions  are  not  followed  carefully,  loss 
Line 44: Enter  any  unused  MBT  business  loss  carryforward 
                                                                          carryforward  available  for  use  by  the  group  in  the  current 
that  was  reported  on  the  MBT  return  for  the  immediately 
                                                                          filing  period  will  be  miscalculated.  It  is  important  to  review 
preceding tax period on the appropriate group member copy of 
                                                                          a  carryforward  for  the  possibility  that  some  or  all  of  it  has 
this form as explained in the bulleted section below. Only MBT 
                                                                          expired, or that some or all of it was withdrawn from the group 
business  losses  that  were  incurred  after  December  31,  2007, 
                                                                          by a departing member.
may be entered on this line.
                                                                          Loss carryforward consumed on a return always is the oldest 
Business loss means a negative business income tax base after 
                                                                          available on that return, regardless of whether the oldest loss 
allocation or apportionment. The business loss will be carried 
                                                                          was generated by the group, brought by an incoming member, 
forward  to  the  year  immediately  succeeding  the  loss  year  as 
                                                                          or  acquired  by  a  member  of  the  group  via  IRC  §  381.  Loss 
an offset to the allocated or apportioned Business Income Tax 
                                                                          carryforward  of  a  UBG,  including  loss  carryforward  brought 
base, then successively to the next nine taxable years following 
                                                                          by  an  incoming  member  and  loss  carryforward  acquired  by 
the loss year or until the loss is consumed, whichever occurs 
                                                                          the group or its members via IRC § 381, ages according to the 
first, but for not more than ten taxable years after the loss year.
                                                                          tax years of the group, rather than tax years of any particular 
A taxpayer that acquires the assets of  another corporation in            member.
a  transaction  described  under  section  381(a)(1)  or  (2)  of  the 
Internal Revenue Code (IRC) may deduct any MBT business                   NOTE: MBT business loss carryforward is not the same as a 
                                                                          federal net operating loss carryforward or carryback, or a CIT 
loss carryforward (hereinafter, loss carryforward) attributable 
                                                                          loss carryforward.
to that other corporation. Losses acquired via IRC sec. 381 (a) 
(1) or (2) are reported on this line by the member identified in          Line 45:  If  taking  the  QAHP  deduction  only,  complete  lines 
the bulleted section below.                                               45a through 45i in Part 2A: Member Data for Combined Return 
                                                                          of  Standard  Taxpayers.  If  taking  the  seller’s  deduction  only, 
On the DM’s copy of this form: Enter loss carryforward from 
                                                                          skip  lines  45a  through  45h  and  carry  the  amount  from  Form 
the group’s immediately preceding Form 4567, less any part of 
                                                                          4579, line 5, to line 45i. If taking both deductions, complete the 
that  carryforward  subsequently  taken  by  departing  members 
                                                                          QAHP deduction calculation on lines 45a through 45h, and add 
(see below), plus any loss acquired by the group via IRC § 381 
                                                                          to the total at line 45i the amount from Form 4579, line 5.
(as defined above). Include a list of all loss corporations whose 
losses  were  acquired  in  this  manner  by  this  UBG  during  the      PA 168 of 2008 provides for a deduction from the apportioned 
filing  period.  Provide  name  and  FEIN  of  acquiring  member,         Business Income Tax base to a QAHP and a seller of residential 

                                                                                                                                     115

- 118 -

rental units to a QAHP. Qualified Affordable Housing Project               Line 45i: The seller may take a deduction from its apportioned 
is defined under instructions for line 24.                                 Business Income Tax base equal to the gain from the sale of 
                                                                           the  residential  rental  units  to  the  QAHP,  as  calculated  on 
The QAHP may deduct from its apportioned Business Income 
                                                                           the MBT  Qualified  Affordable  Housing  Seller’s  Deduction 
Tax base an amount equal to the product of the taxable income 
                                                                           (Form  4579).  Enter  the  amount  from  Form  4579,  line  5.  All 
attributable  to  residential  rental  units  in  Michigan  it  owns 
                                                                           MBT  forms,  including  Form  4579,  are  available  online  at 
multiplied by a fraction, the numerator of which is the number 
                                                                           www.michigan.gov/mbt.
of rent restricted units in Michigan owned by that QAHP and 
the denominator of which is the number of all residential rental           When  the  seller  claims  a  deduction  for  the  year  of  sale,  the 
units  in  Michigan  owned  by  the  project.  MCL  208.1201(8)            State will place a lien on the property equal to the amount of 
governs the termination of this deduction.                                 the seller’s deduction. If the buyer fails to qualify as a QAHP 
                                                                           or  fails  to  operate  any  of  the  residential  rental  units  as  rent 
The  seller’s  deduction  is  described  in  the  instructions  to  line 
                                                                           restricted  units  in  accordance  with  the  operation  agreement 
45i.
                                                                           within 15 years after the date of purchase, the lien placed on 
Lines 45a through 45c: In general, taxable income attributable             the property for the amount of the seller’s deduction becomes 
to  residential  rental  units  is  gross  rental  receipts  attributable  payable to the State. The lien is payable through a “recapture” 
to  residential  rental  units  in  Michigan  less  rental  expenses       to  be  added  to  the  tax  liability  of  the  buyer  in  the  year  the 
attributable  to  residential  rental  units  in  Michigan,  including,    recapture  event  occurs.  The  recapture  is  calculated  on MBT 
but  not  limited  to,  repairs,  interest,  insurance,  maintenance,      Schedule of Recapture of Certain Business Tax Credits and 
utilities, and depreciation.                                               Deductions (Form 4587), and is reduced proportionally for the 
                                                                           number of years the buyer qualified for the deduction.
Specifically,  Partnerships  may  use  a  Rental  Real  Estate 
Income  and  Expenses  of  a  Partnership  or  an  S  Corporation          Lines 46 through 65:  These  lines  are  for  reporting  each 
(U.S. Form 8825) to determine its taxable income attributable              member’s  credit  carryforwards  remaining  from  a  previous 
to  residential  rental  units  in  Michigan.  To  the  extent  that  the  year. If the group created a credit carryforward in a preceding 
QAHP  is  taxed  as  something  other  than  a  Partnership  or  S         tax period, Treasury will have maintained that carryforward on 
Corporation, the QAHP may use the Supplemental Income and                  the  DM’s  account.  Enter  unused  credit  carryforwards  of  this 
Loss (U.S. Form 1040, Schedule E) or the relevant portions of              type on the DM’s copy of Part 2A.
the  U.S.  Corporation  Income  Tax  Return  (U.S.  Form  1120), 
                                                                           If  a  member  created  a  credit  carryforward  prior  to  joining 
as  appropriate.  If  the  QAHP  is  a  Corporation,  the  expenses 
                                                                           the  UBG,  Treasury  will  maintain  that  carryforward  on  that 
permitted  should  be  limited  to  those  also  listed  on  the  Low-
                                                                           member’s account, subject to use by the group, until it is fully 
Income Housing Credit Agencies Report of Noncompliance or 
                                                                           consumed or that member leaves the group. Enter unused credit 
Building  Disposition  (U.S.  Form  8823)  and  U.S.  Form  1040, 
                                                                           carryforwards of this type on the copy of Part 2A filed for the 
Schedule  E.  Rental  receipts  and  expenses  must  be  calculated 
                                                                           member that brought the carryforward to the group.
without regard to any gain or loss resulting from the disposition 
of rental property. Also, since Partnerships are subject to tax            Available  credit  carryforwards,  regardless  of  whether  they 
as  a  person  under  MBT,  flow-through  amounts  from  other             arose within the group or outside of it, are applied against the 
Partnerships are not considered.                                           UBG’s  tax  liability  on  the  basis  of  age  (oldest  first).  Credit 
                                                                           carryforward of a UBG, including credit carryforward brought 
Improvements that increase the value of the property or extend 
                                                                           by an incoming member, ages according to the tax years of the 
its  life,  such  as  replacing  a  roof  or  renovating  a  kitchen,  are 
                                                                           group, rather than tax years of any particular member.
not  deductible  rental  expenses.  Any  passive  activity  loss 
limitations applicable to the QAHP’s federal return also apply             If  two  members  each  created  a  carryforward  of  the  same 
for purposes of MCL 208.1201(7).                                           credit and the same age, and together they exceed the amount 
                                                                           allowable  in  this  filing  period,  those  members’  respective 
Line  45d: Rent  restricted unit  means  a  residential  rental 
                                                                           credit  carryforwards  are  used  in  proportion  to  the  amount 
unit’s  rental  income  is  restricted  in  accordance  with  IRC  § 
                                                                           they  contributed  to  the  group.  If  a  member  that  generated  a 
42(g)(1)  as  if  it  was  a  qualified  low-income  housing  project, 
                                                                           carryforward in a prior period leaves the group, that member 
or  receives  rental  assistance  in  the  form  of  HUD  section  8 
                                                                           will  take  with  it  an  amount  equal  to  the  group’s  remaining 
subsidies  or  HUD  housing  assistance  program  subsidies,  or 
                                                                           carryforward  from  that  period  multiplied  by  the  amount  that 
rental assistance from the U.S. Department of Agriculture rural 
                                                                           member contributed relative to the total amount contributed by 
housing programs, or from any of the other programs described 
                                                                           all group members for the same credit in that same period.
in MCL 208.1203(8)(b).
                                                                           NOTE:  It  is  important  to  review  a  carryforward  for  the 
Line 45e:  This  includes  rent  restricted  and  unrestricted             possibility that some or all of it has expired, or that some or all 
residential rental units owned by the QAHP in Michigan.                    of it was withdrawn from the group by a departing member.
Line 45h: The QAHP’s deduction is reduced by the amount of                 Each of these lines for a tax credit carryforward is the amount 
limited dividends or other distributions made to the owners of             of the identified item that may be claimed in this filing period.
the project. Income received by the management, construction, 
or development company for completion and operation of the                 See  the  “Supplemental  Instructions  for  Standard  Members  in 
project  and  rental  units  does  not  constitute  taxable  income        UBGs” section in Form 4600 for information on the effects of 
attributable to residential rental units.                                  members leaving or joining a UBG on credit carryforwards.

116

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Line  66: Enter overpayment credited from the prior MBT or              not eliminate intercompany transactions between itself and the 
Corporate  Income  Tax  (CIT)  return.  When  membership  of  a         foreign operating entity.
UBG changes from one filing period to the next, carryforward 
                                                                        If  a  transaction  between  two  members  of  a  UBG  is  reported 
of an overpayment from the prior return remains with the DM’s 
                                                                        on the group’s current return by one member but reported on 
account. As with business loss carryforwards, in general this 
                                                                        the preceding or succeeding group return by the other member 
line should be used only on the DM’s copy of Part 2A (credit 
                                                                        (due  to  differing  year  ends  or  accounting  methods  of  the 
forward from the group’s prior return) or that of a new member 
                                                                        members),  the  side  of  that  transaction  that  is  included  in  the 
(credit  forward  from  the  new  member’s  final  return  as  a 
                                                                        group’s current filing period must be eliminated. The other side 
separate filer).
                                                                        of the same transaction will be eliminated on the group return 
Line  67: All  MBT  estimated  payments  for  a  UBG  should  be        for  the  filing  period  in  which  the  other  member  reports  the 
made by the DM. Enter estimates paid by the DM on this line of          transaction.
the DM’s copy of Part 2A. If any other member paid estimates                        Add  the  combined  total  after  eliminations  from 
                                                                        Line 29C:
attributable  to  the  group  return  supported  by  this  form,  enter Part 2B, line 29C, to the number on Form 4567, line 25, and 
those estimates on that member’s copy of Part 2A. Include all           carry the sum to Form 4567, line 26. This calculation method is 
payments  made  by  that  member  for  any  portion  of  its  federal   designed to prevent the fact of one member overcharging MGR 
filing period that is included on the group return. For example,        Tax to its customers from being obscured by activities of the 
if a non-DM member has a 12-month fiscal year beginning April           other members.
1, 2010, and is a member of a calendar year UBG throughout that 
period, its business activity from April 1, 2010, through March         Line 43C: Business Income Tax Base. Add Column C, lines 30 
31,  2011,  will  be  reported  on  the  group’s  December  31,  2011,  through 37 and subtract Column C, lines 38 through 42.
return.  If  that  member  pays  MBT  quarterly  estimates,  it  will           U.S. person is defined in IRC § 7701(a)(30).
                                                                        Line  70: 
make two estimates during 2010, before the DM’s filing period 
begins. Because those estimates are attributable to activity that       Line 72:  Flow  of  value,  integration,  dependence,  and 
will be reported on the group’s December 31, 2011, return, they         contribution  in  a  UBG  context  are  described  under  “General 
should be included on the paying member’s copy of Part 2A for           Information About UBGs in MBT” at the beginning of these 
the December 31, 2011, group return.                                    instructions for Form 4580, and in RAB 2010-2.
Line 68: This line is no longer is use.                                 Part 3: Affiliates Excluded From The Combined 
                                                                        Return of Standard Taxpayers
Line  69:  Only  the  DM  may  request  a  filing  extension  for  a    The statutory test for membership in a UBG is a group of U.S. 
UBG.  If  any  other  member  submits  an  extension  request,  it      persons (other than a foreign operating entity):
will not create a valid extension for the UBG, but any payment 
included  with  such  a  request  can  be  credited  to  the  UBG  by   • One of which owns or controls, directly or indirectly, more 
entering  that  payment  on  this  line  in  that  member’s  copy  of   than  50  percent  of  the  ownership  interest  with  voting  rights 
Part 2A.                                                                or ownership interests that confer rights comparable to voting 
                                                                        rights of the other U.S. persons (see RAB 2010-1); and
Part 2B: Summary of Business Activity for Combined                      • That has business activities or operations which result in a 
Return of Standard Taxpayers                                            flow of value between or among persons included in the UBG 
Part 2B supports, line by line, the combination of all members’         or  has  business  activities  or  operations  that  are  integrated 
entries for each corresponding line in Part 2A, and elimination         with,  are  dependent  upon,  or  contribute  to  each  other.  Flow 
of intercompany transaction data where appropriate. In general,         of  value  is  determined  by  reviewing  the  totality  of  facts  and 
see  instructions  for  corresponding  line  numbers  in  Part  2A.     circumstances of business activities and operations. (See RAB 
Guidance specific to the combination and elimination process            2010-2.)
is provided below.                                                      A  person  that  would  be  a  standard  taxpayer  if  viewed 
NOTE:  Elimination,  where  required,  applies  to  transactions        separately is defined and taxed as a financial institution if it is 
between any members of the UBG. For example, if the UBG                 owned, directly or indirectly, by a financial institution and is in 
includes standard taxpayers (not owned by and unitary with a            a UBG with its owner.
financial institution in the UBG), an insurance company, and            The  purpose  of  Part  3  is  to  identify  persons  for  which  the 
two  financial  institutions,  transactions  between  a  standard       ownership  test  described  above  is  satisfied,  but  which  are  not 
taxpayer  member  and  an  insurance  or  financial  member  are        included on the combined return supported by this form, either 
eliminated  whenever  elimination  is  required,  despite  the  fact    because the relationship test is not satisfied or because the person 
that the insurance and financial members are not reported on            is excluded by statute. A new member whose business activity is 
the combined return filed by standard taxpayer members.                 not included in the current combined return because its tax year 
However,  there  is  no  elimination  with  an  otherwise  related      ends after the filing period of the UBG should also be listed here.
entity  if  the  related  entity  is  excluded  from  the  UBG.  For    Line  74A:  If  a  person  being  listed  here  is  listed  on 
example, consider a group with a U.S. parent, a U.S. subsidiary,        U.S.  Form  851,  enter  the  identifying  number  for  that  person 
and a foreign operating entity subsidiary that would otherwise          that is called “Corp. No.” at the left edge of pages 1, 2, and 3 of 
be a UBG, but the foreign operating entity is excluded from the         U.S. Form 851.
UBG by definition. The U.S. parent filing a UBG return may 

                                                                                                                              117

- 120 -

Line  74D: Reason codes for affiliates being excluded from the            If  some  or  all  members  reporting  on  the  current  combined 
current combined return:                                                  return are also members of a federal consolidated group, each 
                                                                          member will prepare its portion of this Form 4580 on the basis 
 1 Lacks business activities resulting in a flow of value or              of  a  pro  forma  federal  return.  In  this  case,  attach  a  copy  of 
   integration, dependence or contribution to group.                      the  applicable  pro  forma  form  and  schedules  as  listed  in  the 
 2 Foreign operating entity.                                              “Other Supporting Forms and Schedules” section of Form 4567 
 4 Foreign entity.                                                        instructions.
 5 Member  has  no  MBT  tax  year  (as  a  member  of  this              Include completed Form 4580 as part of the tax return filing.
   UBG) ending with or within this filing period.
 6 Other. (Include an explaination.)
 7 Insurance company. (Insurance companies generally file 
   separately.)
 8 Financial institution. (Financial institutions and standard 
   taxpayers  generally  are  not  included  on  the  same 
   combined return.)
For  questions  call  Treasury  Technical  Services  at  517-636-
4230, to discuss an appropriate entry.
Line  74E: If  this  person  has  nexus  with  Michigan,  enter  a 
check in this box. 
Line  74F:  Enter  the  person’s  six-digit  NAICS  code.  For  a 
complete  list  of  six-digit  NAICS  codes,  see  the  U.S.  Census 
Bureau  Web  site  at www.census.gov/eos/www/naics/,  or  enter 
the  same  NAICS  code  used  when  filing  the  U.S.  Form  1120, 
Schedule  K;  U.S.  Form  1120S;  U.S.  Form  1065;  or  U.S.  Form 
1040, Schedule C.
Part 4: Persons Included in the Prior Combined 
Return, but Excluded From Current Return
The  purpose  of  Part  4  is  to  assist  Treasury  in  tracking 
membership changes of a UBG from year to year.
NOTE:  If  a  person  satisfies  the  criteria  for  both  Part  3  and 
Part  4,  report  that  person  in  both  parts.  This  is  a  change  of 
procedure from prior MBT forms and instructions.
Line  75C: Reason  codes  for  a  person  being  included  in  last 
year’s return but not on the current combined return:

 10 The  member  no  longer  meets  the  control  test,  but  the 
   ownership interest is still greater than zero.
 12 The  member  no  longer  meets  the  control  test  and  the 
   ownership interest is zero.
 14 Before the beginning of the group’s filing period for the 
   group’s  current  combined  return,  the  person  ceased  to 
   exist due to dissolution.
 16 Before the beginning of the group’s filing period for the 
   group’s  current  combined  return,  the  person  ceased  to 
   exist due to a merger or similar combination.
 
If the reason is not listed among these reason codes, describe 
the reason in 21 characters or less in the space provided.

Other Supporting Forms and Schedules
For  each  member  that  files  a  separate  federal  return,  attach 
copies of the same pages of that member’s federal return as are 
required for a separate filer in similar circumstances. See the 
“Other Supporting Forms and Schedules” section of Form 4567 
instructions for guidance on required pages of federal returns.

118

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Michigan Department of Treasury                                                                                                                       Attachment 16
4582 (Rev. 11-22), Page 1 of 2

2022 MICHIGAN Business Tax Penalty and Interest Computation
for Underpaid Estimated Tax
Issued under authority of Public Act 36 of 2007.
Taxpayer Name                                                                                             Federal Employer Identification Number (FEIN) or TR Number

PART 1:  ESTIMATED TAX REQUIRED
 1. Annual tax from Form 4567, line 59; or Form 4588, line 47; or Form 4590, line 32 ..............................................                1.  00
 2. Required estimate amount. Enter 85% (0.85) of line 1.......................................................................................... 2.  00
See MBT instruction booklet for exceptions to penalty and 
interest computation.                                                                        A            B                                        C  D
 3.  ENTER THE PAYMENT DUE DATES (MM-DD-YYYY) ....                                   3.
 4. Divide amount on line 2 by 4, or by the number of 
     quarterly returns required. If annualizing, enter the 
     amount from Annualization Worksheet, line 70, page 2 ....                       4.
CAUTION:  Complete lines 5 - 13 one column at a time
 5. Prior year overpayment .....................................................     5.                   X  X  X  X  X X  X  X  X  X                 X  X  X  X  X
 6.  Estimated payments and refundable credits (see instr.).....                     6.
 7. Enter amount, if any, from line 13 of the previous column .                      7.      X  X  X  X  X
 8. Add lines 5, 6 and 7 ........................................................... 8.
 9. Add amounts on lines 11 and 12 of the previous column 
     and enter the result here ...................................................   9.      X  X  X  X  X
 10. Subtract line 9 from line 8. If less than zero, enter zero.
     For column A only, enter the amount from line 8 ............... 10.
 11. Remaining underpayment from previous period.  If 
     amount on line 10 is zero, subtract line 8 from line 9 and 
     enter result here. Otherwise, enter zero ............................           11.     X  X  X  X  X
 12. If line 4 is greater than or equal to line 10, subtract line 10 
     from line 4 and enter it here. Then go to line 6 of the next 
     column. Otherwise, go to line 13 ....................................... 12.
 13. If line 10 is larger than line 4, subtract line 4 from line 10 
     and enter it here. Then go to line 6 of next column ........... 13.

PART 2:  FIGURING INTEREST                                                                   A            B                                        C  D
 14. TOTAL UNDERPAYMENT. Add lines 11 and 12 ................. 14.
 15. Enter due date for the next quarter or date tax was paid, 
     whichever is earlier. In column D, enter the due date for the 
     annual return or date tax was paid, whichever is earlier ...... 15.
 16. Number of days from the due date of the quarter to the 
     date on line 15 .................................................................... 16.
 17. No. of days on line 16 after 04-15-22 and before 07-01-22..                     17.
 18. No. of days on line 16 after 06-30-22 and before 01-01-23..                     18.
 19. No. of days on line 16 after 12-31-22 and before 07-01-23..                     19.
 20. No. of days on line 16 after 06-30-23 ...................................       20.
 21. Number of days on line 17 x 4.25% (0.0425) x line 14 ....... 21.
              365
 22. Number of days on line 18 x 4.27% (0.0427) x line 14 ....... 22.
              365
 23. Number of days on line 19 x 5.65% (0.0565) x line 14 ....... 23.
              365
 24. Number of days on line 20 x *% x  line 14 .......................... 24.
              365
 25. Interest on underpayment. Add lines 21 through 24 ........... 25.
 26. Interest Due. Add line 25 columns A through D and enter the result here....................................................... 26.                00
* Interest rate will be set at 1% above the adjusted prime rate for this period.

+ 0000 2022 63 01 27 2                                                                                                                                Continue on Page 2.

- 122 -

2022 Form 4582, Page 2 of 2                                                                                  FEIN or TR Number
PART 3:  FIGURING PENALTY
                                                                                              A              B                C                                                   D
 27. Enter the amount from line 12 ........................................               27.
 28. Payment due dates from line 3 (MM-DD-YYYY) ............                              28.
 29. Annual return due date or the date payment was made, 
     whichever is earlier .........................................................       29.
 30. Number of days from date on line 28 to date on line 29 .                             30.
 31. If line 30 is greater than 0 but less than 61, multiply line 27 by 5% (0.05) ..      31.
 32. If line 30 is greater than 60, but less than 91, multiply line 27 by 10% (0.10)..    32.
 33. If line 30 is greater than 90, but less than 121, multiply line 27 by 15% (0.15)..   33.
 34. If line 30 is greater than 120, but less than 151, multiply line 27 by 20% (0.20)..  34.
 35. If line 30 is greater than 150, multiply line 27 by 25% (0.25) ......                35.
 36. Add lines 31 through 35..................................................            36.
 37. Total Penalty. Add line 36, columns A through D ...................................................................................................... 37.                      00
 38. Total Penalty and Interest. Add lines 26 and 37. Enter here and on Form 4567, line 68; or Form 4588, line 56;  
     or Form 4590, line 41 ................................................................................................................................................ 38.      00
PART 4:  ANNUALIZATION WORKSHEET FOR MODIFIED 
GROSS RECEIPTS AND BUSINESS INCOME TAXES
(If filing Form 4588 or Form 4590, see instructions.)                                         A              B                C                                                   D
Complete worksheet if liability is not evenly distributed throughout year.                    First 3 Months First 6 Months   First 9 Months                                      Full 12 Months
 39. Gross receipts (GR) .........................................................        39.
 40. Subtractions.....................................................................    40.
 41. Modified GR. Subtract line 40 from line 39 ......................                    41.
 42. Apportionment percentage from Form 4567, line 11c .....                              42.        %             %                                                            %    %
 43. Apportioned GR Tax Base. Multiply line 41 by line 42 .....                           43.
 44. Multiply line 43 by 0.8% (0.008) ......................................              44.
 45. Enrichment Prohibition for dealers of boats/new motor vehicles ...                   45.
 46. GR Tax Before Credits. Enter the greater of lines 44 or 45                           46.
 47. Business Income (BI) ......................................................          47.
 48. Additions .......................................................................... 48.
 49. Add lines 47 and 48 .........................................................        49.
 50. Subtractions.....................................................................    50.
 51. BI Tax Base. Subtract line 50 from line 49 .......................                   51.
 52. Apportioned BI Tax Base. Multiply line 51 by line 42 .......                         52.
 53. MBT business loss carryforward .....................................                 53.
 54. Qualified Affordable Housing Deduction ..........................                    54.
 55. Subtract line 54 and line 53 from line 52. 
     If less than zero, enter zero. .............................................         55.
 56. BI Tax Before Credits. Multiply line 55 by 4.95% (0.0495)                            56.
 57. Total MBT Before Credits. Add lines 46 and 56 ...............                        57.
 58. The annual surcharge is no longer applicable. 
     There is no amount to be entered on this line .................                      58. X  X  X  X  X  X  X  X  X  X    X  X  X  X  X                                       X  X  X  X  X
 59. Enter amount from line 57 ...............................................            59.
 60. Nonrefundable Credits.....................................................           60.
 61. Subtract line 60 from line 59. If less than zero, enter zero                         61.
 62. Recapture of certain MBT credits and deductions ...........                          62.
 63. Corporate Income Tax adjustment (see instructions) ......                            63.
 64. Net Tax Liability. Add lines 61, 62 and 63 ........................                  64.
 65. Annualization ratios .........................................................       65. 4              2                1.3333                                              1
 66. Annualized tax. Multiply line 64 by line 65 .......................                  66.
 67. Applicable percentage .....................................................          67. 21.25%         42.5%            63.75%                                              85%
 68. Multiply line 66 by line 67 ................................................         68.
 69. Combined amounts of line 70 from all preceding columns                               69. X  X  X  X  X
 70. ESTIMATE REQUIREMENTS BY QUARTER. 
     Subtract line 69 from line 68. If less than zero, enter zero. 
     Enter here and on page 1, line 4 ........................................            70.
     NOTE:  Totals on line 70 must equal 85% of the current year tax liability on page 1, line 1.

+ 0000 2022 63 02 27 0

- 123 -

           Instructions for Form 4582, Michigan Business Tax (MBT) 
          Penalty and Interest Computation for Underpaid Estimated Tax

Purpose                                                                      less  than  $350,000.  In  addition,  if  your  business  was  not  in 
                                                                             existence in the preceding year, no safe harbor exists. In such 
To  compute  penalty  and  interest  for  underpaying,  late  filing,        a case, estimates must be based on the MBT liability for the 
or  late  payment  of  quarterly  estimates.  If  a  taxpayer  prefers       current year.
not  to  file  this  form,  the  Department  of  Treasury  (Treasury)      • The taxpayer is a farmer, fisherman, or seafarer and files the 
will  compute  any  applicable  penalty  and  interest  and  bill  the       MBT Annual Return (Form 4567) by March 1, or a tentative 
taxpayer.  Part  4  of  this  form  also  is  used  to  determine  and       annual  return  with  payment  by  January  15,  and  the  final 
report the amount of estimates due when income is not evenly                 return on or before April 15. 
distributed through the tax year.
                                                                           Annualizing
NOTE: Penalty and interest for late filing or late payment on 
the annual return is computed separately. See the “Computing               To annualize for a period of less than 12 months, multiply each 
Penalty and Interest” section of the “General Information for              applicable amount by 12 and divide the result by the number 
Standard  Taxpayers”  in  the MBT Forms and  Instructions for              of months the business operated or the person was a partner. 
Standard Taxpayers (Form 4600).                                            Generally, a business is considered in business for one month if 
                                                                           the business operated for more than half the days of the month. 
Estimated  returns  and  payments  are  required  from  any                If  the  business  was  in  operation  for  less  than  a  month  it  is 
taxpayer  that  expects  an  annual  MBT  liability  (including            considered to have been in business for 1 month.
Corporate  Income  Tax  adjustment)  of  more  than  $800. 
Exceptions  are  listed  below.  If  a  taxpayer  owes  estimated          NOTE:  For  a  taxpayer  that  calculates  and  pays  estimated 
tax and the estimated return with full payment is not filed or             payments  for  federal  income  tax  purposes  pursuant  to  section 
is filed late, penalty is added at 5 percent of tax due, for the           6655(e) of the Internal Revenue Code, that taxpayer may use the 
first two months. Penalty increases by an additional 5 percent             same methodology as used to calculate the annualized income 
per  month,  or  fraction  thereof,  after  the  second  month,  to  a     installment  or  the  adjusted  seasonal  installment,  whichever  is 
maximum of 25 percent. If the taxpayer made no estimated tax               used as the basis for the federal estimated payment, to calculate 
payments and none of the exceptions below apply, compute the               the estimated payments required each quarter under this section. 
interest due (Part 2) and the penalty for non-filing (Part 3).             Retain the calculation for your records.

Exceptions                                                                 Line-by-Line Instructions
If any of the conditions listed below apply, do not pay penalty            Lines not listed are explained on the form. 
and interest. If a business operated less than 12 months in the            Do not enter data in boxes filled with Xs.
current or preceding year, annualize figures (as applicable) to 
                                                                           Dates must be entered in MM-DD-YYYY format.
determine if the exceptions apply. See Form 4600 for complete 
annualizing instructions.                                                  Name and Account Number:     Enter name and account number 
                                                                           as  reported  on  page  1  of  the  applicable  MBT  annual  return 
• The annual tax on the current annual return is $800 or less.             (either  Form  4567,  the MBT  Annual Return for  Financial 
• The return is for a taxable period of less than four calendar            Institutions  (Form  4590),  or  the Insurance Company Annual 
  months.                                                                  Return for Michigan Business and Retaliatory Taxes  (Form 
• The  estimated  quarterly  payments  reasonably  approximate             4588)). 
  the tax liability incurred for each quarter and the total of all         PART 1: ESTIMATED TAX REQUIRED
  payments equals at least 85 percent of the annual liability.             Line  2: Enter 85 percent of the annual tax amount from line 1. 
  Complete  the  Annualization  Worksheet  (Part  4)  if  the 
  liability is not evenly distributed through the tax year.                Line  3:  Enter  the  due  date  for  each  quarterly  return.  For 
                                                                           calendar year filers these dates are April 15, July 15, October 
• The sum of estimated payments equals the annual tax on the 
                                                                           15,  and  January  15.  For  fiscal  year  filers,  these  dates  are  the 
  preceding year’s return, provided these payments were made                 th           th th      th         th
                                                                           15   day  of  the  4 ,  7 ,  10   and  13   months  after  the  start  of 
  in four timely equal payments and the preceding tax year’s tax 
                                                                           the fiscal year. For any tax year that includes an estimated tax 
  under the MBT Act was $20,000 or less. If the prior year’s tax 
                                                                           payment period of less than three months, the quarterly return 
  liability  was  reported  for  a  period  less  than  12  months,  this 
                                                                           for that period is due on the 15th day of the month immediately 
  amount must be annualized for purposes of both the $20,000 
                                                                           following the final month of the estimated tax payment period.
  ceiling and calculating the quarterly payments due under this 
  method. See “Filing if Tax Year Is Less Than 12 Months” in               Line  4:  Divide  the  amount  of  the  estimated  tax  required  for 
  the  “General  Information”  section  of  Form  4600  for  more          the year on line 4 by four and enter this as estimated tax for 
  information.  Reliance  on  the  prior  year’s  tax  liability  as  a    each  quarter.  If  the  business  operated  less  than  12  months, 
  means to avoid interest and penalty charges is only allowed              divide  by  the  number  of  quarterly  returns  required  and  enter 
  if you had business activity in Michigan in that prior year. A           this as the estimated tax for each quarter. 
  return  must  have  been  filed  to  establish  the  tax  liability  for 
                                                                           Actual Quarterly Tax.  If  a  taxpayer  computes  quarterly  tax 
  that prior year, even if gross receipts in the prior year were 

                                                                                                                             121

- 124 -

due based on the actual tax base for each quarter, complete As a result, Form 4913 is the only form that supports an MBT
Part 4 first, then bring the tax from line 70 of the Annualization estimated payment.
Worksheet to line 4. See Part 4 instructions for taxpayers filing
Estimated returns and payments for calendar year taxpayers
a return other than Form 4567. The total of the four computed
are due to Treasury by April 15, July 15, October 15, and
amounts cannot be less than line 2.
January 15 of the following year. Fiscal year taxpayers should
Line 5: Complete column A only. Enter the amount of prior make returns and payments by the appropriate due date which
year overpayment credited to the current tax year estimates. is fifteen days after the end of each fiscal quarter. The sum of
estimated payments for each quarter must always reasonably
Line 6: Amount Paid.
approximate the liability for the quarter.
• Column A: Enter estimated payments made by the due date
NOTE: Your debit transaction will be ineligible for EFT
for the first quarterly return. Also in column A, enter the
if the bank account used for the electronic debit is funded or
total refundable credits from line 23 of the MBT Refundable
otherwise associated with a foreign account to the extent that
Credits (Form 4574) or line 5 of the Miscellaneous Credits
the payment transaction would qualify as an International ACH
for Insurance Companies (Form 4596).
Transaction (IAT) under NACHA Rules. Contact your financial
• Column B: Enter payments made after the due date in institution for questions about the status of your account.
column A and by the due date in column B. Contact the Michigan Department of Treasury’s (Treasury)
• Column C: Enter payments made after the due date in EFT Unit at 517-636-6925 for alternate payment methods..
column B and by the due date in column C.
• Column D: Enter payments made after the due date in PART 4: ANNUALIZATION WORKSHEET FOR
column C and by the due date in column D. MODIFIED GROSS RECEIPTS AND BUSINESS
INCOME TAXES
If quarterly payments are made after the due date, penalty and
Standard taxpayers may use the Annualization Worksheet to
interest will apply until the payment is received. If less than
calculate and report the amount of estimates due when income
full payment is made with a late filing, the taxpayer will need
is not evenly distributed throughout the tax year.
to compute multiple penalty and interest calculations for each
column. Attach a separate schedule if necessary. If filing Form 4588, or Form 4590, submit a schedule showing
the entity’s computations for each quarter. Enter the total
PART 2: FIGURING INTEREST amounts on line 64 and follow the instructions for lines 65
Compute the interest due for both non-filing and underpayment through 70.
of the required estimated tax in this section. Follow the
instructions for each line, as interest is calculated separately Each column represents a quarterly three-month filing period.
for each quarter and the interest rate might not be the same for The Annualization Worksheet essentially leads filers through
each quarter. the steps required to calculate the actual MBT due for the
Line 15: Enter the due date of the next quarter or the date the tax year to date. The net tax liability is then annualized and
tax was paid, whichever is earlier. In column D, enter the earlier multiplied by the percentage of estimates required for that
of the due date for the annual return or the date the tax was paid. quarter.
An approved extension does not change the due date of the Line 42: If not subject to apportionment, enter 100 percent.
annual return (column D) for this computation.
Line 53: Deduct any available MBT business loss incurred
PART 3: FIGURING PENALTY after December 31, 2007. Enter as a positive number.
Compute the penalty due for both non-filing and underpayment
Business loss means a negative business income tax base, after
of the required estimated tax in this section. Follow the
apportionment, if applicable.
instructions for each line, as the penalty and interest is
calculated separately for each quarter and the penalty percentage NOTE: MBT business loss carryforward is not the same as
and interest rate might not be the same for each quarter. the federal net operating loss carryforward or carryback. It is
also not the same as a Corporate Income Tax (CIT) business
Avoiding Penalty and Interest Under MBT loss carryforward. CIT business loss carryforward may not be
If estimated liability for the year is reasonably expected to entered on this line or applied against the MBT tax base.
exceed $800, a taxpayer must file estimated returns. A taxpayer
may remit quarterly estimated payments by check with a Line 63: Enter in Column A the entire amount of CIT adjustment
Corporate Income Tax Quarterly Return (Form 4913) or may from Form 4567, Line 58; Form 4590, Line 31; or Form 4588,
remit monthly or quarterly estimated payments electronically Line 28. Only a positive amount may be entered on this line.
by Electronic Funds Transfer (EFT). When payments are made Line 70: The totals for line 70, columns A, B, C, and D, must
by EFT, Form 4913 is not required. equal 85 percent of the current year tax liability on page 1, line 1.
Formerly, taxpayers could make payments on a monthly basis Include completed Form 4582 as part of the tax return filing.
by remitting a check with a Combined Return for Michigan
Tax (Form 160). Form 160 was replaced effective Janaury
2015. The new form no longer accommodates MBT payments.

122

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Michigan Department of Treasury Attachment 13
4584 (Rev. 04-22), Page 1 of 4

2022 MICHIGAN Business Tax Election of Refund or Carryforward of Credits, and
Calculation of Historic Preservation and Brownfield Redevelopment Carryforward
Issued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability after Renaissance Zone Credit from Form 4573, line 15, or tax liability after Renaissance Zone Credit
from Form 4596, line 16 .................................................................................................................................................... 1. 00
HISTORIC PRESERVATION CREDIT. If not claiming, skip to line 29.
Recapture Calculation
2. Historic Preservation Credit recapture. Carry to Form 4573, line 17a, or Form 4596, line 18a............................. 2. 00
3. Tax Liability After Historic Preservation Credit Recapture. Add lines 1 and 2........................................................ 3. 00
4. Unused Basic/Enhanced credit from previous period return ................................................................................. 4. 00
5. Tax liability after Basic/Enhanced credit carryforward. Subtract line 4 from line 3. If less than zero, enter zero ... 5. 00
6. Basic/Enhanced credit carryforward to the next period. If line 4 is greater
than line 3, enter the difference ....................................................................... 6. 00
7. Unused Special Consideration credit from previous period return (see instructions) ............................................ 7. 00
8. Tax liability after Special Consideration credit carryforward. Subtract line 7 from line 5. If less than zero,
enter zero .............................................................................................................................................................. 8. 00
9. Special Consideration credit carryforward to the next period. If line 7 is
greater than line 5, enter the difference ........................................................... 9. 00
10. Basic/Enhanced credit received by assignment in this filing period. (Attach Michigan Department of Treasury
approval letter received from Assignor.) ................................................................................................................ 10. 00
11. Tax liability after Basic/Enhanced credit received by assignment. Subtract line 10 from line 8. If less than zero,
enter zero ........................................................................................................................................................................ 11. 00
12. Assigned Basic/Enhanced credit carryforward to the next period. If line 10 is
greater than line 8, enter the difference ........................................................... 12. 00
13. Special Consideration credit received by assignment for this filing period. (Attach Michigan Department of
Treasury approval letter received from Assignor.) ................................................................................................. 13. 00
14. Tax liability after Special Consideration credit received by assignment. Subtract line 13 from line 11. If less than
zero, enter zero ..................................................................................................................................................... 14. 00
15. Assigned Special Consideration credit carryforward for the next year. If line
13 is greater than line 11, enter the difference ................................................ 15. 00
16. Current period Basic credit from Form 3581, line 4d ....................................... 16. 00
17. Current period Enhanced credit from Form 3581, line 5d ............................... 17. 00
18. Current period Basic/Enhanced credits. Add lines 16 and 17. .............................................................................. 18. 00
19. Tax liability after current period Basic/Enhanced credits. Subtract line 18 from line 14.
If less than zero, enter zero ................................................................................................................................... 19. 00
20. Current period Basic/Enhanced credits that exceed liability. If line 18 is
greater than line 14, enter the difference. ........................................................ 20. 00
21. Special Consideration credit from Form 3581, line 6d..................................... 21. 00
22. Allowable current period Special Consideration credit. Enter the lesser of lines 19 and 21 ................................. 22. 00
23. Current period Special Consideration credit carryforward to next period. If
line 21 is greater than line 22, enter the difference ......................................... 23. 00
24. Tax liability after Historic Preservation Credit. Subtract line 22 from line 19 ........................................................ 24. 00
Carryforward Calculation
25. Prior year and assigned Basic/Enhanced credit carryforward to next period.
Add lines 6 and 12 ........................................................................................... 25. 00
26. Total Special Consideration credit carryforward to next period.
Add lines 9, 15, and 23 .................................................................................... 26. 00
27. Total Basic/Enhanced credit carryforward to next period.
Add lines 25 and 20 ......................................................................................... 27. 00
28. Total Historic Preservation Credit. Subtract line 24 from line 3.
Carry amount to Form 4573, line 16, or Form 4596, line 17............................ 28. 00

+ 0000 2022 71 01 27 5 Continue on Page 2.

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2022 Form 4584, Page 2 of 4 FEIN or TR Number

MEGA FEDERAL CONTRACT CREDIT. If not claiming, skip to line 38.
29. Tax liability before MEGA Federal Contract Credit from Form 4573, line 40 ......................................................... 29. 00
30. Unused credit from previous period MBT return .................................................................................................... 30. 00
31. Tax After Previous Period Credit. Subtract line 30 from line 29. If less than zero, enter zero ............................... 31. 00
32. Remaining unused credit from previous period MBT return. If line 30 is
greater than line 29, enter the difference .......................................................... 32. 00
33. Available credit from the MEDC Certificate (attach) .............................................................................................. 33. 00
34. Tax After Current Period Credit. Subtract line 33 from line 31. If less than zero, enter zero here and
complete line 35; Otherwise, skip to line 36 .......................................................................................................... 34. 00
35. If line 33 is greater than line 31, elect a refund or carryforward of credit by entering the difference on either
line 35a or line 35b.
a. Refundable Amount. Carry amount to Form 4574, line 16 ........................ 35a. 00
b. Carryforward Amount.................................................................................. 35b. 00
36. Total Credit Carryforward. Add lines 32 and 35b ............................................. 36. 00
37. MEGA Federal Contract Credit. Subtract line 34 from line 29.
Carry amount to Form 4573, line 41 ................................................................ 37. 00

BROWNFIELD REDEVELOPMENT CREDIT. If not claiming, skip to line 56.
Recapture Calculation
38. Tax liability before Brownfield Redevelopment Credit from Form 4573, line 55, or Form 4596, line 19 ................ 38. 00

39. Enter MBT Brownfield Redevelopment Credit recapture amount .................... 39. 00
40. Unused credit from previous period MBT return .............................................. 40. 00
41. Subtract line 40 from line 39. If less than zero, enter zero .............................. 41. 00
42. Remaining prior year carryforward. If line 40 is greater than line 39, enter the difference .................................... 42. 00
43. Assigned credit from MBT Brownfield Redevelopment Credit Assignment
Certificate (attach) ........................................................................................... 43. 00
44. Subtract line 43 from line 41. If less than zero, enter zero .............................. 44. 00
45. Remaining assigned credit. If line 43 is greater than line 41, enter the difference ................................................ 45. 00
46. Available credit from MBT Brownfield Redevelopment Credit Certificate of
Completion (attach) ......................................................................................... 46. 00
47. Subtract line 46 from line 44. If less than zero, enter zero here;
Otherwise, carry amount to Form 4587, line 7 ................................................ 47. 00

Carryforward Calculation
48. Remaining current year credit. If line 46 is greater than line 44, enter the difference ........................................... 48. 00
49. Available prior year and assigned credit. Add lines 42 and 45 .............................................................................. 49. 00
50. Tax after available prior year and assigned credit. Subtract line 49 from line 38. If less than zero, enter zero ..... 50. 00
51. Prior year and assigned credit carryforward. If line 49 is greater than
line 38, enter the difference ............................................................................. 51. 00
52. Tax after Brownfield Redevelopment Credit. Subtract line 48 from line 50. If less than zero, enter zero here
and complete line 53; otherwise, skip to line 55 .................................................................................................... 52. 00
53. If line 48 is greater than line 50, enter the difference ....................................... 53. 00
54. Total Credit Carryforward. Add lines 51 and 53 .............................................. 54. 00
55. Brownfield Redevelopment Credit. Subtract line 52 from line 38.
Carry amount to Form 4573, line 56, or Form 4596, line 20............................ 55. 00

+ 0000 2022 71 02 27 3 Continue on Page 3.

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2022 Form 4584, Page 3 of 4 FEIN or TR Number

MEGA PLUG-IN TRACTION BATTERY MANUFACTURING CREDIT.
If not claiming, carry amount from line 56 to line 61, and continue to the next credit.
56. Tax liability before MEGA Plug-In Traction Battery Manufacturing Credit from Form 4573, line 73 ...................... 56. 00
57. Unused credit from previous period MBT return .................................................................................................... 57. 00
58. Tax After Previous Period Credit. Subtract line 57 from line 56. If less than zero, enter zero ............................... 58. 00
59. Remaining unused credit from previous period MBT return. If line 57 is
greater than line 56, enter the difference .......................................................... 59. 00
60. This credit is no longer available, except a carryforward amount reported on line 57. Leave this line blank ....... 60. X X X X X X X X 00

61. Enter amount from line 58. Skip to line 63............................................................................................................. 61. 00

62. a. Leave this line blank and skip to line 63 ..................................................... 62a. X X X X X X X X 00
b. Leave this line blank and skip to line 63 ..................................................... 62b. X X X X X X X X 00
63. Total Credit Carryforward. Enter amount from line 59 ..................................... 63. 00
64. MEGA Plug-In Traction Battery Manufacturing Credit. Subtract line 61
from line 56. Carry amount to Form 4573, line 75 ........................................... 64. 00

ANCHOR COMPANY PAYROLL CREDIT.
If not claiming, carry amount from line 61 to line 69, and continue to the next credit.
65. Unused credit from previous period MBT return .................................................................................................... 65. 00
66. Tax After Previous Period Credit. Subtract line 65 from line 61. If less than zero, enter zero ............................... 66. 00
67. Remaining unused credit from previous period MBT return. If line 65 is
greater than line 61, enter the difference .......................................................... 67. 00
68. Available credit from the MEDC Certificate (attach) .............................................................................................. 68. 00
69. Tax After Current Period Credit. Subtract line 68 from line 66. If less than zero, enter zero here and complete
line 70; otherwise, skip to line 71........................................................................................................................... 69. 00
70. If line 68 is greater than line 66, elect a refund or carryforward of credit by entering the difference on either line
70a or line 70b.
a. Refundable Amount. Carry amount to Form 4574, line 20 ......................... 70a. 00
b. Carryforward Amount.................................................................................. 70b. 00
71. Total Credit Carryforward. Add lines 67 and 70b .............................................. 71. 00
72. Anchor Company Payroll Credit. Subtract line 69 from line 61.
Carry amount to Form 4573, line 77 ................................................................. 72. 00

ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming, carry amount from line 69 to line 77, and continue to the next credit.
73. Unused credit from previous period MBT return .................................................................................................... 73. 00
74. Tax After Previous Period Credit. Subtract line 73 from line 69. If less than zero, enter zero ............................... 74. 00
75. Remaining unused credit from previous period MBT return. If line 73 is
greater than line 69, enter the difference .......................................................... 75. 00
76. Available credit from the MEDC Certificate (attach) .............................................................................................. 76. 00
77. Tax After Current Period Credit. Subtract line 76 from line 74. If less than zero, enter zero here and complete
line 78; Otherwise, skip to line 79 .......................................................................................................................... 77. 00
78. If line 76 is greater than line 74, elect a refund or carryforward of credit by entering the difference on either
line 78a or line 78b.
a. Refundable Amount. Carry amount to Form 4574, line 21 ......................... 78a. 00
b. Carryforward Amount.................................................................................. 78b. 00
79. Total Credit Carryforward. Add lines 75 and 78b ............................................ 79. 00
80. Anchor Company Taxable Value Credit. Subtract line 77 from line 69.
Carry amount to Form 4573, line 79 ................................................................ 80. 00

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2022 Form 4584, Page 4 of 4 FEIN or TR Number

MEGA POLY-SILICON ENERGY COST CREDIT AND MISCELLANEOUS MEGA BATTERY CREDITS — See Instructions
Lines 81 through 88 calculate the following credits: MEGA Poly-Silicon Energy Cost Credit; MEGA Plug-In Traction Battery Integration Credit; MEGA
Advanced Battery Engineering Credit; MEGA Battery Manufacturing Facility Credit; MEGA Large Scale Battery Credit; and MEGA Advanced Lithium Ion
Battery Credit. If claiming multiple credits, see instructions.
81. Unused credit from previous period MBT return.
a. Unused MEGA Poly-Silicon Energy Cost Credit.......................................... 81a. 00
b. Unused MEGA Plug-In Traction Battery Integration Credit......................... 81b. 00
c. Unused MEGA Advanced Battery Engineering Credit ................................. 81c. 00
d. Unused MEGA Battery Manufacturing Facility Credit .................................. 81d. 00
e. Unused MEGA Large Scale Battery Credit.................................................. 81e. 00
f. Unused MEGA Advanced Lithium Ion Battery Credit .................................. 81f. 00
g. Total of all unused credits. Add lines 81a through 81f ....................................................................................... 81g. 00
82. Tax After Previous Period Credit. Subtract line 81g from line 77. If less than zero, enter zero .............................. 82. 00
83. Remaining unused credit from previous period MBT return. If line 81g is
greater than line 77, enter the difference .......................................................... 83. 00
84. Available credit from the MEDC Certificate (attach).
a. MEGA Poly-Silicon Energy Cost Credit ....................................................... 84a. 00
b. MEGA Plug-In Traction Battery Integration Credit ...................................... 84b. 00
c. This credit is no longer available. Skip to line 84d....................................... 84c. X X X X X X X X 00
d. MEGA Battery Manufacturing Facility Credit ............................................... 84d. 00
e. This credit is no longer available. Skip to line 84g....................................... 84e. X X X X X X X X 00
f. This credit is no longer available. Skip to line 84g....................................... 84f. X X X X X X X X 00
g. Total of all available credits. Add lines 84a, 84b and 84d .................................................................................. 84g. 00
85. Tax After Current Period Credit. Subtract line 84g from line 82. If less than zero, enter zero here and complete
line 86; Otherwise, skip to line 87 ........................................................................................................................... 85. 00
86. If line 84g is greater than line 82, elect a refund or carryforward of credit by entering the difference on either
line 86a or line 86b.
a. Refundable Amount. Carry amount to Form 4574, line 22 .......................... 86a. 00
b. Carryforward Amount................................................................................... 86b. 00
87. Total Credit Carryforward. Add lines 83 and 86b .............................................. 87. 00
88. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA
Battery Credit. Subtract line 85 from line 77. Carry amount to Form 4573,
line 81 ............................................................................................................... 88. 00

+ 0000 2022 71 04 27 9

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                                            Instructions for Form 4584 
Michigan Business Tax (MBT) Election of Refund or Carryforward of Credits

Purpose                                                               Line-by-Line Instructions
Beginning  January  1,  2012,  only  those  taxpayers  with  a        Lines not listed are explained on the form.
certificated credit, which is awarded but not yet fully claimed       NOTE: Although qualification for certain credits is reviewed 
or utilized, may elect to be MBT taxpayers.                           and  approved  by  the  Michigan  Economic  Growth  Authority 
The  purpose  of  this  form  is  to  allow  standard  taxpayers      (MEGA),  in  many  cases  the  certificates  for  such  credits  are 
to  claim  certain  “hybrid”  credits  that,  if  greater  than  the  issued  by  the  Michigan  Economic  Development  Corporation 
tax  liability,  can  either  be  refunded  or  carried  forward  to  (MEDC).
offset  future  liabilities  (historic  preservation  and  brownfield Name and Account Number:  Enter  the  name  and  account 
certificated credits are the exception to this, see below for more    number as reported on page 1 of the applicable MBT annual 
detail). Credits and any overpayments are calculated here and         return (either the MBT Annual Return (Form 4567) for standard 
then  carried  to  either  the MBT Miscellaneous Nonrefundable        taxpayers,  the MBT Annual  Return for Financial  Institutions 
Credits  (Form  4573)  or  the MBT Refundable Credits  (Form          (Form  4590),  or  the Insurance  Company  Annual  Return  for 
4574), depending on the election chosen.                              Michigan Business and Retaliatory Taxes (Form 4588)). 
Financial  institutions  and  insurance  companies  may  use  this    UBGs: Complete one form for the group. Enter the DM name 
form to claim the Historic Preservation Credit and Brownfield         in the Taxpayer Name field and the DM account number in the 
Redevelopment Credit only.                                            Federal Employer Identification Number (FEIN) field.
The election to treat the credit as refundable or non-refundable 
                                                                      Historic Preservation Credit 
must be made on the original return filed for the year in which 
the  credit  was  earned.  No  amendment  will  be  allowed  to       The  Historic  Preservation  Credit  provides  tax  incentives  for 
change  this  election.  Amounts  elected  to  be  carried  forward   homeowners, commercial property owners, and businesses to 
may  not  be  subsequently  refunded,  nor  can  assigned  credits    rehabilitate historic resources located in the State of Michigan. 
be refunded. Treatment of any excess credit may not be split          Rehabilitation projects must be certified by the State Historic 
between a refund and carryforward.                                    Preservation Office (SHPO).
                                                                      Beginning January 1, 2012, the historic preservation credit is 
Special Instructions for Unitary Business 
                                                                      available  to  the  extent  that  a  taxpayer  had  a  part  2  approval, 
Groups (UBGs)
                                                                      approved rehabilitation plan, approved high community impact 
If  a  member  of  a  UBG  has  a  qualifying  certificated  credit,  rehabilitation  plan  or  preapproval  letter  before  by  December 
the  group,  and  not  the  member,  must  make  the  election        31,  2011,  but  has  not  fully  claimed  the  credit  before  January 
to  file  under  the  MBT.  The  election  should  be  made  by  the  1,  2012.  The  credit  may  be  claimed  as  either  a  refundable 
designated  member  (DM)  of  the  UBG  by  filing  an  MBT           accelerated credit (on Form 4889) or a non-refundable credit.  
return.    Once  the  group  makes  the  election,  all  members  of  Non-refundable  credits  and  non-refundable  carryforwards 
the group are required to file and pay the MBT until claimed          of the credit are claimed here. A taxpayer may elect to claim 
certificated credits and any carryforward of those credits are        a certificated historic preservation credit in the year in which 
extinguished.                                                         a credit is available and will be taxable under the MBT until 
                                                                      the  qualifying  credit  and  any  carryforward  of  the  credit  are 
Credits  on  this  form  are  earned  and  calculated  on  an  entity-
                                                                      extinguished.  The  credit  must  first  be  claimed  in  the  year 
specific  basis,  as  determined  by  relevant  statutory  provisions 
                                                                      that  the  certificate  of  completed  rehabilitation  of  the  historic 
for  the  respective  credits.  Intercompany  transactions  are  not 
                                                                      resource was issued.
eliminated, and the credits are applied against the tax liability 
of the UBG.                                                           A qualified taxpayer that has made the election to remain taxable 
                                                                      under the MBT with a certificated credit and has a rehabilitation 
If  the  group  has  made  the  election  to  remain  in  the  MBT, 
                                                                      plan certified before January 1, 2008, under the Single Business 
a  member of a UBG may claim any of the applicable credits 
                                                                      Tax (SBT) for the rehabilitation of a historic resource for which 
contained  on  this  form  by  attaching  the  member’s  credit 
                                                                      a certification of completed rehabilitation has been issued after 
certificate to the return. If more than one member is claiming 
                                                                      the end of the taxpayer’s last tax year under SBT may also claim 
the same credit, the total amount from all claiming members 
                                                                      such credit on this form, even though this historic preservation 
should  be  entered  on  each  corresponding  line  on  this  form. 
                                                                      credit is not a certificated credit.
Line-by-line  instructions  indicate  additional  information 
required for UBGs.                                                    Qualified taxpayers may receive a Basic Michigan Credit equal to 
                                                                      25 percent of their qualified expenditures. For taxpayers eligible 
See  the  “Supplemental  Instructions  for  Standard  Members  in     for  the  federal  Rehabilitation  Credit  under  Internal  Revenue 
UBGs”  section  in  Form  4600  for  information  on  the  effects    Code (IRC) § 47(a)(2), the Basic Michigan Credit is 25 percent 
of  members  leaving  or  joining  a  UBG  on  certificated  credit   of the qualified expenditures less the amount of the federal credit 
carryforwards.                                                        claimed. For example, if the federal credit is 20 percent, the State 
                                                                      credit is 5 percent of the qualified expenditures.

                                                                                                                            129

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A qualified MBT taxpayer may take one of two additional enhanced credit issued after December 1, 2008, is revoked;
credits. The Enhanced Credit is equal to a percentage of or a historic resource is sold or disposed of less than five
qualified expenditures, not to exceed 15 percent, established in years after the historic resource is placed in service during a
a preapproval letter issued by SHPO. tax year beginning after December 31, 2008.

The Special Consideration Credit is equal to a percentage 100 percent If less than 1 year
of qualified expenditures, not to exceed 15 percent, recorded
80 percent If at least 1 year, but less than 2 years
on the Certificate of Completion awarded by SHPO. Special
Consideration Credits are granted to rehabilitation plans 60 percent If at least 2 years, but less than 3 years
expected to have a high community impact and to have 40 percent If at least 3 years, but less than 4 years
significantly greater historic, social, and economic impact 20 percent If at least 4 years, but less than 5 years
than those plans that earn Enhanced Credits. The maximum
amount of credit that may be claimed during a tax year is
$3,000,000 per project, with the excess being carried forward If the credit has been assigned, the recapture is the
until used up. The Enhanced and Special Consideration responsibility of the qualified taxpayer that received the
Credits are taken in addition to the Basic Credit. All three certificate of completed rehabilitation, not the assignee.
are calculated on Michigan Historic Preservation Tax Credit NOTE: A recapture is not required if the qualified taxpayer
(Form 3581). enters into a written agreement with SHPO that allows for the
A qualified taxpayer may assign all or a portion of its credit transfer or sale of the historic resource.
to any assignee. The credit assignment cannot be revoked, UBGs: If any member of the UBG is reporting recapture,
but an assignee may subsequently reassign a credit, or any a statement must be attached to this form identifying the
portion of an assigned credit, to one or more assignees. reporting member.
Generally, both the initial assignment of the Michigan
Historic Preservation Tax Credit by the qualified taxpayer to Line 4: Enter the amount of Basic/Enhanced credit carryforward
the first assignee(s) and the subsequent reassignment by the from the prior year MBT Form 4584, if any. Available SBT
first assignee(s) to reassignee(s) must be done in the tax year credit carryforward is claimed separately on Form 4569.
in which the certificate of completed rehabilitation is issued. UBGs: Standard taxpayers, enter the carryforward amount
For information on assignments, contact the State Historic from Form 4580, Part 2B, line 48, column C. Financial
Preservation Office (SHPO). institutions, enter the combined total of carryforward amounts
For Basic, Enhanced and Special Consideration credits for reported on the UBG Combined Filing Schedule for Financial
which a certificate of completed rehabilitation is issued for a Institutions (Form 4752), line 28, by all members of the group.
tax year beginning after December 31, 2007 and ending before Line 7: Enter amount of Special Consideration credit
January 1, 2012, an assignment by a qualified taxpayer of all carryforward from prior year MBT Form 4584, if any. The
or any portion of a credit allowed may be made within the Special Consideration credit carryforward must be separately
12 months immediately succeeding the tax year in which the recorded because, unlike the Basic/Enhanced Credit
certificate of completed rehabilitation is issued. carryforward, it may be carried forward until used up. It does
An unused carryforward of a Historic Preservation Credit not expire after 10 years.
generated under SBT may be claimed against the tax imposed UBGs: Standard taxpayers, enter the carryforward amount
by MBT for the years the carryforward would have been from Form 4580, Part 2B, line 49, column C. Financial
available under SBT (maximum ten years) if the taxpayer has institutions, enter the combined total of carryforward amounts
made the election to remain taxable under the MBT with a reported on Form 4752, line 29, by all members of the group.
certificated credit. This carryforward is claimed on the MBT
Single Business Tax Credit Carryforwards (Form 4569). Line 10: Basic/Enhanced Credit. If the Historic Preservation
Credit has been assigned, include the approval letter received
Line 2: Recapture. Enter the sum of all SBT and MBT from the Michigan Department of Treasury (Treasury) in the
Historic Preservation Credit recapture amounts. If a recapture return. (If not attached, the credit will be disallowed.)
event occurs, in the year of the event the following percentage
of the credit amount previously claimed must be added back NOTE: If the taxpayer assigned part, but not all, of the credit,
to the tax liability of the qualified taxpayer that received the include here the amount of credit retained by the taxpayer. To
certificate of completed rehabilitation or preapproved letter. For this extent the assignor is also an assignee.
tax years beginning after December 31, 2008, a recapture event Line 13: Special Consideration Credit. If the Historic
occurs if: Preservation Credit has been assigned, attach the approval
• A certificate of completed rehabilitation is revoked or a letter received from Treasury to the return. (If the approval
preapproval letter for an enhanced credit is revoked or a letter is not attached, the credit will be disallowed.)
historic resource is sold or disposed of less than five years NOTE: If the taxpayer assigned part, but not all, of the credit,
after the historic resource is placed in service (as defined in include here the amount of credit retained by the taxpayer. To
IRC § 47(b)(1) and related federal regulations); or this extent the assignor is also an assignee.
• A certificate of completed rehabilitation issued after
Line 25: Add line 6 and 12. This amount is the Prior year and
December 1, 2008, is revoked; or a preapproval letter for an

130

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Assigned  Basic/Enhanced  credit  carryforward  to  be  used  on         Beginning  January  1,  2012,  the  Brownfield  Redevelopment 
the next MBT return.                                                     Credit  may  be  claimed  as  a  certificated  credit  if  a  taxpayer 
                                                                         has  a  preapproval  letter  by  December  31,  2011,  but  has  not 
Line 26: Add lines 9, 15, and 23. This amount is the Special 
                                                                         fully claimed the credit by January 1, 2012.   The credit may 
Consideration Credit carryforward to be used on the taxpayer’s 
                                                                         be claimed as either a refundable accelerated credit (on Form 
next MBT return.
                                                                         4889)  or  a  non-refundable  credit.    Non-refundable  credits 
Line 27: Add lines 25 and 20. This amount is the total Basic/            and  non-refundable  carryforwards  of  the  credit  are  claimed 
Enhanced  credit  carryforward  to  be  used  on  the  next  MBT         here. The credit must first be claimed in the year in which the 
return.                                                                  certificate of completion is issued.
MEGA Federal Contract Credit                                             A  qualified  taxpayer  that  has  made  the  election  to  remain 
                                                                         taxable  under  the  MBT  with  a  certificated  credit  and  has 
The MEGA Federal Contract Credit is available for a qualified            received a pre-approval letter prior to January 1, 2008, under 
taxpayer  or  collective  group  of  taxpayers  that  have  been         the SBT Act to receive a Certificate of Completion may claim 
awarded a federal procurement contract from the United States            the  credit  (which  is  not  a  certificated  credit)  on  this  form, 
Department of Defense, Department of Energy, or Department               provided that all other requirements are met.
of Homeland Security, resulting in a minimum of 25 new full-
time  jobs.  The  credit  amount  is  100  percent  of  the  qualified   For  projects  approved  or  amended  by  MEGA,  prior  to  April 
taxpayer’s  payroll  attributable  to  employees  who  perform           8, 2008, the credit is limited to  10 percent of the cost of the 
qualified new jobs as a result of the contract multiplied by the         eligible  investment.  For  projects  approved  or  amended  on  or 
Michigan  Individual  Income  Tax  rate.  Beginning  January  1,         after April 8, 2008, the credit is authorized for a percentage of 
2012, this credit is available as a certificated credit to the extent    the cost of eligible investment to be determined by MEGA, up 
that the taxpayer has entered into an agreement with MEGA by             to 20 percent of the cost.
December 31, 2011, but the credit has not been fully claimed             A  taxpayer  claiming  a  nonrefundable  certificated  brownfield 
or paid prior to January 1, 2012. This credit must be claimed            credit may make the election in the year in which a credit is 
beginning  with  the  taxpayer’s  first  tax  year  ending  after        available  and  will  remain  taxable  under  the  MBT  until  the 
December 31, 2011, in order for the taxpayer to remain taxable           qualifying  credit  and  any  carryforward  of  the  credit  are 
under the MBT and claim the credit.                                      extinguished.  A taxpayer with a multiphase brownfield credit 
This credit may be taken for a period of up to seven years, as           under MCL 208.1437(10), that makes the election, is required 
determined by MEGA. Any amount that exceeds the taxpayer’s               to  continue  to  file  and  pay  the  MBT  until  the  certificated 
tax liability may be refunded or carried forward for ten years           credit  is  complete  and  the  credit  is  used  up.      Except  for  a 
or until it is used up, whichever occurs first. To be eligible for       multiphase  project,  the  Brownfield  Redevelopment  Credit 
the credit, a taxpayer must enter into an agreement with MEGA            must first be claimed in the tax year in which the Certificate 
and be certified by MEGA. If a misrepresentation is made on              of Completion is issued. For credits for a project approved by 
the  application  for  this  credit,  the  designation  of  a  qualified MEGA with total credits greater than $10,000,000, the credits 
taxpayer  may  be  revoked  and  the  taxpayer  may  be  required        must  be  claimed  at  the  rate  of  10  percent  per  year  for  ten 
to  refund  or  recapture  credits  received.  Credit  recapture  is     years, beginning with the first year specified by MEGA on the 
calculated on Form 4587.                                                 Certificate of Completion.
For more information, contact MEDC at (517) 373-9808 or visit            If  a  Brownfield  Redevelopment  Credit  exceeds  a  taxpayer’s 
the MEDC Web site at http://www.michiganadvantage.org/.                  tax liability for the year, the excess may be carried forward to 
                                                                         offset tax liability in subsequent tax years for a maximum of 
Line  30: UBGs:  Enter  the  unused  credit  amount  from  Form          ten years.
4580, Part 2B, line 51, column C.
                                                                         NOTE: An unused SBT credit carryforward may be claimed 
Line  33:  Approved  businesses  receive  a  certificate  from           against  the  tax  imposed  under  the  MBT  for  the  same  years 
MEGA  each  year  showing  the  total  amount  of  tax  credit           the carryforward would have been available under SBT, if the 
allowed. Attach the Defense Contracting Tax Credit Certificate           taxpayer  has  made  the  election  to  remain  taxable  under  the 
to the return. (If the certificate is not attached, the credit will      MBT  with  a  certificated  credit,  but  it  expires  after  ten  years 
be disallowed.)                                                          (combined SBT and MBT years). This carryforward is claimed 
Line  36:  Add  lines  32  and  35b.  This  is  the  MEGA  Federal       on Form 4569. 
Contract Credit carryforward to be used on the taxpayer’s next           All or a portion of the credit may be assigned. The assignment 
MBT return.                                                              of the credit is irrevocable, and except for an assignment based 
                                                                         on a multiphase project, must be made in the tax year in which 
Brownfield Redevelopment Credit                                          the Certificate of Completion was issued.  If proper assignment 
The  Brownfield  Redevelopment  Credit  encourages  businesses           is  completed,  the  assignee  may  make  the  election  to  remain 
to make an investment in eligible Michigan property that was             taxable under the MBT on the basis of the assigned brownfield 
used or is currently used for commercial, industrial, public, or         certificated  credit  in  the  year  of  assignment,  provided  that 
residential  purposes  and  is  either  a  facility  (environmentally    credit amount is available in that year.
contaminated property), functionally obsolete, or blighted.              The  administration  of  the  Brownfield  Redevelopment  Credit 

                                                                                                                      131

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program is assigned to MEGA. For more information on the Line 60: For tax years ending after December 31, 2014,
approval process, contact the MEDC at (517) 373-9808. this credit is no longer available. However, unused credit
carryforward from the immediately preceding tax year may
Line 38: Enter tax liability before Brownfield Redevelopment
still be claimed on line 57, if available.
Credit from Form 4573, line 55, or Form 4596, line 19.
Line 63: Enter the amount from line 59. This is the MEGA
Line 39: Recapture. The disposal or transfer to another
Plug-In Traction Battery Manufacturing Credit carryforward to
location of personal property used to calculate this credit will
be used on the taxpayer’s next MBT return.
result in an addition to the tax liability of the qualified taxpayer
that was originally awarded the credit in the year in which
the disposal or transfer occurs. This is true even if the credit Anchor Company Payroll Credit
was assigned to someone else. This additional liability will The Anchor Company Payroll Credit is available for a qualified
be calculated by multiplying the same percentage as is used taxpayer that was designated by MEGA as an anchor company
to calculate the credit (e.g., 10 percent) times the federal basis within the last five years and that has influenced a new
of the property used to calculate gain or loss [as calculated for qualified supplier or customer to open, locate, or expand in
federal purposes] as of the date of the disposition or transfer. Michigan. Beginning January 1, 2012, this credit is available as
The amount otherwise added to the tax liability may also be a certificated credit to the extent that the taxpayer has entered
used to reduce any carryforward of credits available to the into an agreement with MEGA by December 31, 2011, but
taxpayer. the credit has not been fully claimed or paid prior to January
UBGs: If any member of the UBG is reporting recapture, 1, 2012. This credit must be claimed beginning with the
a statement must be attached to this form identifying the taxpayer’s first tax year ending after December 31, 2011, in
reporting member. order for the taxpayer to remain taxable under the MBT and
claim the credit.
Line 40: Enter only the unused credit from a previous period
MBT return. Available SBT credit carryforward is claimed A qualified taxpayer may take a credit up to 100 percent of its
separately on Form 4569. supplier’s or customer’s payroll for employees who perform
qualified new jobs multiplied by the Michigan Individual
UBGs: Standard taxpayers, enter the unused credit amount Income Tax rate. This credit may be taken for a period of up to
from Form 4580, Part 2B, line 54, column C. Financial five years, as determined by MEGA. Any amount that exceeds
institutions, enter the combined total of carryforward amounts the taxpayer’s tax liability may be refunded or carried forward
reported on Form 4752, line 31, by all members of the group. for ten years or until it is used up, whichever occurs first. To be
Line 43: If the Brownfield Redevelopment Credit has been eligible for the credit, a taxpayer must be certified by MEGA.
assigned, attach the MBT Brownfield Redevelopment Credit MEGA also may provide that qualified sales to a qualified
Assignment Certificate to the return. (If the certificate is not customer not be considered in calculating the sales factor for
attached, the credit will be disallowed.) the tax year for which a credit is provided.
Line 46: For the credit to be valid, attach the Certificate The statute provides for reduction, termination, or recapture of
of Completion, issued after the completion of the approval the credit if the taxpayer fails to comply with its agreement or
process, to the return. (If the certificate is not attached, the the statute. Credit recapture is calculated on Form 4587.
credit will be disallowed.) For more information, contact MEDC at (517) 373-9808 or visit
Line 54: Add lines 51 and 53. This amount is the Brownfield the MEDC Web site at http://www.michiganadvantage.org/.
Redevelopment credit carryforward to be used on the Line 65: UBGs: Enter unused credit amount from Form 4580,
taxpayer’s next MBT return. Part 2B, line 58, column C.
MEGA Plug-In Traction Battery Manufacturing Line 68: Approved businesses receive a certificate from
Credit MEGA each year showing the total amount of tax credit
allowed. Attach the Anchor Jobs Tax Credit Certificate to the
The MEGA Plug-In Traction Battery Manufacturing Credit
return. (If the certificate is not attached, the credit will be
encourages investment in the development, manufacture,
disallowed.)
commercialization, and affordability of advanced automotive
high-power energy batteries. The credit is available only to Line 71: Add lines 67 and 70b. This amount is the Anchor
a taxpayer that has entered into an agreement with MEGA Company Payroll credit carryforward to be used on the
that provides that the taxpayer will manufacture plug-in taxpayer’s next MBT return.
traction battery packs in Michigan. This credit is no longer
available. However, unused credit carryforward from the Anchor Company Taxable Value Credit
immediately preceding tax year may still be claimed, if The Anchor Company Taxable Value Credit is available for a
available. qualified taxpayer that was designated by MEGA as an anchor
For more information, contact MEDC at (517) 373-9808 or visit company within the last five years and that has influenced a
the MEDC Web site at http://www.michiganadvantage.org/. new qualified supplier or customer to open, locate, or expand
in Michigan.
Line 57: UBGs: Enter the unused credit amount from Form
4580, Part 2B, line 57, column C. Beginning January 1, 2012, this credit is available as a

132

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certificated credit to the extent that the taxpayer has entered Large Scale Battery Credit is no longer available.
into an agreement with MEGA by December 31, 2011, but
However, unused credit carryforward of these credits from
the credit has not been fully claimed or paid prior to January
the immediately preceding tax year may still be claimed, if
1, 2012. This credit must be claimed beginning with the
available.
taxpayer’s first tax year ending after December 31, 2011, in
order for the taxpayer to remain taxable under the MBT and Line 81a-f: Enter unused credit amount from a previous period
claimed the credit. MBT return for the appropriate credit.
A qualified taxpayer may take a credit in an amount up to 5 UBGs: Enter the unused credit amount from Form 4580, Part
percent of its supplier’s or customer’s taxable property value 2B, for the appropriate credit.
within a ten mile radius of the qualified taxpayer. This credit
Line 81a-f: Enter unused credit amount from a previous period
may be taken for a period of up to five years, as determined
MBT return for the appropriate credit.
by MEGA. Any amount that exceeds the taxpayer’s tax liability
may be refunded or carried forward for five years or until it is Line 84a-f: Approved businesses receive a certificate from
used up, whichever occurs first. To be eligible for the credit, a MEGA each year showing the total amount of tax credit
taxpayer must be certified by MEGA. MEGA also may provide allowed. Attach the certificate to the return. (If the certificate
that qualified sales to a qualified customer not be considered in is not attached, the credit will be disallowed.)
calculating the sales factor for the tax year for which a credit is
NOTE: Line 84e: For tax years ending after December 31,
provided.
2017, the MEGA Large Scale Battery Credit is no longer
The statute provides for reduction, termination, or recapture available.
of the credit if the taxpayer fails to comply with its agreement
NOTE: Line 84f: For tax years ending after December 31,
or the statute. Credit recapture is calculated on the MBT
2016, the MEGA Advanced Lithium Ion Battery Credit is
Schedule of Recapture of Certain Business Credits and
no longer available.
Deductions (Form 4587). For more information, contact the
MEDC at (517) 373-9808 or visit the MEDC Web site at NOTE: Line 84c: For tax years ending after December 31,
http://www.michiganbusiness.org/. 2014, the MEGA Advanced Battery Engineering Credit,
line 84c, is no longer available.
Line 73: Enter unused credit amount from a previous period
MBT return. Line 87: Add lines 83 and 86b. This amount is the MEGA
Poly-Silicon Energy Cost Credit and/or Miscellaneous MEGA
UBGs: Enter the unused credit amount from Form 4580, Part
Battery Credits carryforward to be used on the taxpayer’s next
2B, line 59, column C.
MBT return.
Line 76: Approved businesses receive a certificate from
NOTE: The MEGA battery manufacturing facility credit now
MEGA each year showing the total amount of tax credit
has a limited accelerated option. For more information on
allowed. Attach the Anchor District Tax Credit Certificate to
accelerated certificated credits, see Form 4589.
the return. (If the certificate is not attached, the credit will be
disallowed.) Include completed Form 4584 as part of the tax return filing.
Line 79: Add lines 75 and 78b. This amount is the Anchor
Company Taxable Value credit carryforward to be used on the
taxpayer’s next MBT return.

MEGA Poly-Silicon Energy Cost Credit and
Miscellaneous MEGA Battery Credits
Beginning January 1, 2012, these credits are available as
certificated credits to the extent that the taxpayer has entered
into an agreement with MEGA by December 31, 2011, but
the credit has not been fully claimed or paid prior to January
1, 2012. These credits must be claimed beginning with the
taxpayer’s first tax year ending after December 31, 2011, in
order for the taxpayer to remain taxable under the MBT and
claim the credit.
For tax years ending after December 31, 2014, the MEGA
Advanced Battery Engineering Credit is no longer
available.
For tax years ending after December 31, 2016, the MEGA
Advanced Lithium Ion Battery Credit is no longer
available.
For tax years ending after December 31, 2017, the MEGA

133

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- 137 -

Michigan Department of Treasury                                                                                              Attachment 05
4585 (Rev. 04-22), Page 1 of 2

2022 MICHIGAN Business Tax Investment Tax Credit Recapture
From Sale of Assets Acquired Under Single Business Tax
Issued under authority of Public Act 36 of 2007.
Taxpayer Name (If Unitary Business Group, Name of Designated Member)                          Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only:  Name of Unitary Business Group Member Reporting on This Form   Federal Employer Identification Number (FEIN) or TR Number

PART 1:  CALCULATION OF SINGLE BUSINESS TAX (SBT) INVESTMENT TAX CREDIT (ITC) RECAPTURE BASES
Each row in lines 1-3 is for assets acquired in an SBT tax year and disposed of this year. Enter years in date order, with the oldest listed first. Columns B 
and C are totals by acquisition year. Line 1, column D, and Line 2, column E: For all years, enter MBT apportionment percentage from Form 4567, line 11c. 
Enter amounts in whole dollars (no cents).
Depreciable Tangible Assets
1. A                            B                       C                                   D       E                        F
Taxable Year (End Date)                                                                             Apportioned              SBT ITC Recapture
 In Which Disposed      Combined Sales Price                               Apportionment            Gain/Loss                (Base 1)
Assets Were Acquired    of Disposed Assets by           Net Gain/Loss From Percentage               Multiply Column C        Subtract Column E
   (MM-DD-YYYY)               Year of Acquisition       Sale of Assets     From Form 4567, line 11c by Column D              From Column B

Depreciable Mobile Tangible Assets
2. A                            B                       C                                   D       E                        F
Taxable Year (End Date)                                                                                                      SBT ITC Recapture
 In Which Disposed      Combined Sales Price of                            Adjusted Proceeds        Apportionment            (Base 2)
Assets Were Acquired          Disposed Assets by        Net Gain/Loss From Subtract Column C        Percentage               Multiply Column D
   (MM-DD-YYYY)               Year of Acquisition       Sale of Assets     From Column B            From Form 4567, line 11c by Column E

Assets Transferred Outside Michigan
3. A                                            B
Taxable Year (End Date)         SBT ITC Recapture 
 In Which Disposed            Combined Adjusted Federal Basis of 
Assets Were Acquired          Disposed Assets by Year of Acquisition
   (MM-DD-YYYY)                                 (Base 3)

+ 0000 2022 75 01 27 7                                                                                                       Continue on Page 2.

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2022 Form 4585, Page 2 of 2                                                    FEIN or TR Number
                                                                   UBG Member FEIN or TR Number

PART 2:  CALCULATION OF SBT ITC RECAPTURE RATES
Enter amounts from ALL prior SBT C-8000ITC forms filed for tax years beginning on or after January 1, 2000. Enter SBT tax years in date order. Enter 
amounts in whole dollars only (no cents).
4. A                                     B                                   C                                      D                 E
   Return For
   Taxable Year                                                                                                                Effective 
   Ending                   Net Capital Investment                 SBT ITC                                       SBT ITC Used  Percentage Rate of 
   (MM-DD-YYYY)             (C-8000ITC, Line 24)            (C-8000ITC, Line 33)                     (C-8000ITC, Line 36)      SBT ITC by Year
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %
                                                                                                                                                 %

Enter amounts from Form 4569, line 3, for all periods ending in 2008 or 2009.
5. A                                           B
   Return For
   Taxable Year
   Ending                   SBT ITC Carryforward Used
   (MM-DD-YYYY)                          (Form 4569, line 3)

PART 3:  CALCULATION OF SBT ITC RECAPTURE AMOUNTS
Enter amounts in whole dollars only (no cents).
6. A                                           B                               C                                              D
Taxable Year (End Date) 
 In Which Disposed          Total SBT ITC Recapture Base                     Year-Specified Recapture 
Assets Were Acquired         by Year of Acquisition                          Percentage Rate from                     Recapture Amount
   (MM-DD-YYYY)             Add Amounts from Columns 1F, 2F and 3B             Line 4, Column E                     Multiply Column B by Column C
                                                                                                %
                                                                                                %
                                                                                                %
                                                                                                %
                                                                                                %
                                                                                                %
                                                                                                %
                                                                                                %
                                                                                                %

   7. TOTAL. Enter total of Line 6, column D. Add this amount to the total of Form 4570, Worksheet 2 
   (in instructions), column U, if applicable, and carry the sum to Form 4570, line 19 ......................... 7.                              00

+ 0000 2022 75 02 27 5

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                                            Instructions for Form 4585 
              Michigan Business Tax (MBT) Investment Tax Credit Recapture  
                  From Sale of Assets Acquired Under Single Business Tax
Purpose                                                                   benefit  derived)  from  the  disposition  of  tangible,  depreciable 
                                                                          real  or  personal  property  that  was  acquired  in  a  tax  year 
To calculate the Investment Tax Credit (ITC) recapture amount             beginning after 1999 and prior to 2008, and the recapture for 
for  the  disposition  or  transfer  of  tangible,  depreciable  real  or property moved out of state. The calculation of gross proceeds 
personal property acquired in tax years beginning after 1999 and          may be reduced by selling expenses. Lines 1, 2, and 3 represent 
prior to 2008 which must be recaptured to the extent used and at          three  different  categories  of  SBT  ITC  assets,  categorized  by 
the rate used under the Single Business Tax (SBT) or MBT. Form            type of asset or nature of disposition.
4585 must be filed as a supporting form for the total recapture 
                                                                          NOTE: A sale of qualifying property reported on the installment 
amount  reported  on  the MBT  Credits  for  Compensation, 
                                                                          method  for  federal  income  tax  purposes  causes  a  recapture  of 
Investment and Research and Development (Form 4570).
                                                                          the entire gross proceeds in the year of the sale. The recapture 
NOTE: Recapture is mandatory even if a taxpayer is otherwise              is  reduced  by  any  gain  reported  in  federal  taxable  income  in 
not required to file a return because it does not meet the filing         the year of the sale. The gain attributable to the installment sale 
threshold of $350,000.                                                    that is reported in subsequent years increases the credit base (or 
                                                                          reduces other sources of recapture) for those years, and must be 
Public Act 282 of 2014                                                    reported either on line 1, column C, or line 2, column C, based on 
PA  282  of  2014 provides  for  a  change  to  the  Investment  Tax      the type of asset.
Credit  (ITC)  Recapture.  For  assets  purchased,  acquired,             Line 1: For depreciable tangible assets located in Michigan that 
or  transferred  into  Michigan  in  a  tax  year  beginning  after       were acquired or moved into Michigan after acquisition in a tax 
December 31, 2007, that were sold or otherwise disposed of, or            year beginning after 1999 and prior to 2008, and were sold or 
transferred  outside  Michigan  during  the  tax  year,  recapture  is    otherwise disposed of during the tax year, enter the following: 
now required to the extent and at the rate the credit was used 
under the MBT. The amount on line 7 of this form will be used             • Column A:  Separate  the  depreciable  tangible  assets  that 
on Form 4570. Taxpayers need to take special care to read the               were  disposed  of  during  the  filing  period  by  the  tax  year 
instructions for Form 4570, line 19.                                        in which  they  were  acquired.  Use a  separate  row  for  each 
                                                                            acquisition year. Enter the tax years of acquisition (end dates 
                                                                            only) in chronological order, starting with the first tax year 
Line-by-Line Instructions
                                                                            beginning  after  1999.  An  acquisition  year  for  which  there 
Lines not listed are explained on the form.                                 were  no  dispositions  of  depreciable  tangible  assets  during 
                                                                            the filing period may be omitted. However, do not omit the 
REMINDER: Report all amounts in whole dollars. Round 
                                                                            acquisition  year  of  depreciable  tangible  assets  that  have 
down  amounts  of  49  cents  or  less.  Round  up  amounts  of  50 
                                                                            been sold on an installment method if gains attributable to 
cents  or  more.  If  cents  are  entered  on  the  form,  they  will  be 
                                                                            installment  payments  received  during  the  current  filing 
treated as whole dollar amounts.
                                                                            period must be reported.
Dates must be entered in MM-DD-YYYY format.                               • Column B: Total gross proceeds from all depreciable tangible 
Name and Account Number: Enter name and account number                      assets  that  were  acquired  in  the  same  taxable  year  and 
as reported on page 1 of Form 4567.                                         disposed of during the filing period. If a qualifying asset was 
                                                                            sold on an installment sale in a prior filing period, the entire 
UBGs: Complete one form for each member that disposed of                    sale price was reported for recapture purposes in the year of 
capital assets that trigger SBT ITC credit recapture.  Enter the            sale. Therefore, if a payment was received on that installment 
Designated  Member  (DM)  name  in  the  Taxpayer  Name  field              sale in the current filing period, do not report that amount as 
and  the  specific  member  of  the  UBG  for  which  this  form  is        gross proceeds for this period. See Column C, however, with 
filed on the line below. On the copy filed to report the DM’s               respect to the gain from that installment payment.
data (if applicable), enter the DM’s name and account number 
on each line.                                                             • Column C:  Net  total  gains/losses  reflected  in  federal 
                                                                            taxable  income  from  all  depreciable  tangible  assets  that 
UBGs: If capital asset subject to recapture is from a member                were  acquired  in  the  same  taxable  year  and  disposed  of 
that  was  not  part  of  the  group  in  the  tax  year  the  asset  was   during  the  filing  period.  Report  also  in  column  C  any 
acquired  (and  other  years  since  the  acquisition),  take  care         gain  reflected  in  federal  taxable  income  that  is  attributed 
to report in this line (and the others that pertain to years the            to  an  installment  payment  received  during  the  current 
member  was  not  part  of  the  group)  information  requested  in         MBT  filing  period,  from  a  prior  installment  sale  of  an 
each  column  only  from  the  member’s  single  filings,  not  the         asset  that  was  of  a  type  and  acquisition  date  covered  by 
group’s.                                                                    line  1.  For  property  placed  in  service  prior  to  January  1, 
                                                                            2008, gain reflected in federal taxable income is equal to the 
PART 1: CALCULATION OF SBT ITC RECAPTURE BASES                              gain reported for federal purposes.
In Part 1, compute the adjusted proceeds (proceeds include any 

                                                                                                                              137

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Keep in your files a separate worksheet with the appropriate • Column C: Net total gains/losses reflected in federal
information regarding each depreciable tangible asset located taxable income from all depreciable mobile tangible assets
in Michigan that was acquired or moved into Michigan after that were acquired in the same taxable year and disposed
acquisition in a tax year beginning after 1999 and prior to of during the filing period. Report also in column C any
2008, and was sold or otherwise disposed of during the tax gain reflected in federal taxable income that is attributed
year. Sum the total gross proceeds and gain or loss for all to an installment payment received during the current
disposed assets acquired in the same taxable year. Enter in MBT filing period, from a prior installment sale of an
this form only the total sum of gross proceeds and gain/loss asset that was of a type and acquisition date covered by
grouped by taxable year the assets were acquired. Use one row line 2. For property placed in service prior to January 1,
per group of disposed assets acquired in the same taxable year. 2008, gain reflected in federal taxable income is equal to the
Start from the earliest acquisition year. gain reported for federal purposes.
• Column D: Enter the apportionment percentage from Form Keep in your files a separate worksheet with the appropriate
4567, line 11c. If not apportioning, enter 100 percent. Enter information regarding each depreciable mobile tangible asset
the same apportionment percentage for each row completed. acquired in a tax year beginning after 1999 and prior to 2008,
and sold or otherwise disposed of during the tax year. Sum the
• Column F: Subtract column E from column B for each row.
total gross proceeds and gain or loss for all disposed assets
If column E is a loss, add its positive value to column B for
acquired in the same taxable year. Enter in this form only
each appropriate row. A loss in column E will increase the
the total sum of gross proceeds and gain or loss grouped by
recapture base.
taxable year the assets were acquired. Use one row per group
Line 2: Mobile tangible assets are all of the following: of disposed assets acquired in the same taxable year. Start from
the earliest acquisition year.
• Motor vehicles that have a gross vehicle weight rating of
10,000 pounds or more and are used to transport property or • Column D: Subtract figures in column C from figures in
persons for compensation; column B for each row. If column C is a loss, add its positive
• Rolling stock (railroad freight or passenger cars, value to column B for each appropriate row. A loss in
locomotives or other railcars), aircraft, and watercraft column C will increase the recapture.
used by the owner to transport property or persons for • Column E: Enter the apportionment percentage from Form
compensation or used by the owner to transport the owner’s 4567, line 11c. Enter the same apportionment percentage for
property for sale, rental, or further processing; each row you have filled columns A through D.
• Equipment used directly in completion of, or in construction • Column F: Multiply figures in column D by column E for
contracts for, the construction, alteration, repair, or each row.
improvement of property. Line 3: For depreciable tangible assets other than mobile
For depreciable mobile tangible assets that were acquired in tangible assets acquired in tax years beginning after 1996
a tax year beginning after 1999 and prior to 2008, and were and prior to 2008, that were eligible for the ITC in tax years
sold or otherwise disposed of during the tax year, enter the beginning after 1999 and prior to 2008, and were transferred
following: outside Michigan during the tax year, enter the following:
• Column A: Separate the depreciable mobile tangible assets Column A: Separate the depreciable tangible assets other
•
than mobile tangible assets that were transferred out of
that were disposed of during the filing period by the tax year
Michigan during the filing period by the tax year in which
in which they were acquired. Use a separate row for each
they were acquired. Use a separate row for each acquisition
acquisition year. Enter the tax years of acquisition (end dates
year. Enter the tax years of acquisition (end dates only)
only) in chronological order, starting with the first tax year
in chronological order, starting with the first tax year
beginning after 1999. An acquisition year for which there
beginning after 1999. An acquisition year for which there
were no dispositions of depreciable mobile tangible assets
were no transfers of depreciable tangible assets out of
during the filing period may be omitted. However, do not
Michigan during the filing period may be omitted.
omit the acquisition year of depreciable mobile tangible
assets that have been sold on an installment method if gains • Column B: Total sum of adjusted federal basis from all
attributable to installment payments received during the depreciable tangible assets acquired in the same taxable year
current filing period must be reported. and transferred out of Michigan during the filing period.
• Column B: Total gross proceeds from all depreciable mobile Keep in your files a separate worksheet with the appropriate
tangible assets that were acquired in the same taxable year information regarding each depreciable tangible asset other than
and disposed of during the filing period. If a qualifying asset mobile tangible assets acquired in tax years beginning after 1999
was sold on an installment sale in a prior filing period, the and prior to 2008, that were eligible for the ITC in tax years
entire sale price was reported for recapture purposes in the beginning after 1999 and prior to 2008, and were transferred
year of sale. Therefore, if a payment was received on that outside Michigan during the tax year. Sum the total adjusted
installment sale in the current filing period, do not report federal basis for all such transferred assets acquired in the same
that amount as gross proceeds for this period. See Column taxable year. Enter in this form only the total sum of adjusted
C, however, with respect to the gain from that installment federal basis grouped by taxable year the assets were acquired.
payment. Use one row per group of such transferred assets acquired in the
same taxable year. Start from the earliest taxable year.

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PART 2: CALCULATION OF SBT ITC RECAPTURE RATES                       The simplest method that can be used is Method A. Taxpayers 
Recapture  rates  can  be  calculated  using  any  of  3  methods    that meet any of the situations above should use Method A.  It 
described in the “Method Summary Table”  below. The Table            provides  correct  results  using  the  least  amount  of  data  input 
highlights the methods’ pros and cons.  Choose your method,          from the taxpayer.
and follow the appropriate instructions to calculate the rates on 
                                                                     Complete line 4 and line 5 according to the method chosen, as 
line 4, column E.
                                                                     explained below:
NOTE:  Whichever  method  used,  the  calculated  effective 
                                                                     • Method A:  
recapture rate of SBT ITC by year cannot be higher than the 
figure calculated under Method A for any year.                         ○ Line 4, columns A through D: Enter the tax year end 
                                                                         date  of  each  acquisition  year  of  disposed  assets  that 
NOTE ON USING SIMPLEST METHOD:  When  amount                             triggered SBT ITC recapture.  (Those dates should be 
of SBT ITC used equals the amount of SBT ITC created, the                the same as appear in column A of lines 1-3.)  For each 
three methods yield the same result. This occurs in any of the           year  displayed  in  column  A,  enter  Form  C-8000ITC 
following situations:                                                    (SBT  Investment  Tax  Credit)  information  required  in 
•  Calendar  year  filer(*):  2009 MBT Single Business Tax               the  appropriate  column,  using  return  data  specific 
   Credit Carryforwards (Form 4569), lines 2 and 3, are equal            from each applicable tax year. If the amount of column 
   for the latest 2009 tax year return filed;                            C  is  zero  for  a  particular  year,  and  the  amount  on 
                                                                         C-8000ITC,  line  10  for  that  year  is  larger  than  zero, 
•  Fiscal  year  filer(*):  2008  MBT  Form  4569,  line 4,  equals 
                                                                         taxpayers  may  not  enter  zero  on  column  E  if  the 
   zero for the latest 2009 tax year return filed;
                                                                         taxpayers fall in either of the two categories explained 
•  Filers(**)  who  created  SBT  ITC  credits  and  have  filed  an     below,  and  must  do  the  appropriate  calculations  as 
   MBT Simplified Return (Form 4583) for either 2008 or 2009             follows:
   tax year; or
                                                                       1)  Taxpayers used the straight method to calculate the SBT 
•  Filers(**)  who  created  SBT  ITC  credits,  have  NOT  filed        liability for that taxable year:  calculate the credit rate as 
   2008 or 2009 MBT return, and have filed MBT return(s) for             instructed on C-8000ITC, line 26 for that taxable year, 
   tax year(s) after 2009.                                               and enter the result on column E; or
(*) For UBGs, the condition applies only for groups where all          2)  Taxpayer  used  the  excess  compensation  reduction 
members were included in every 2008 and 2009 MBT return                  method  to  calculate  the  SBT  liability  for  that  taxable 
filed by the group.                                                      year:  calculate  the  credit  rate  on  C-8000ITC,  line  26, 
                                                                         for that taxable year; subtract the percentage found on 
(**) Filers refers to single filers (non-UBGs) or  UBG members 
                                                                         C-8000S,  line  6,  from  100%,  and  multiply  the  result 
in the current tax year who were not part of a group in 2008 
                                                                         of  that  subtraction  by  the  calculated  credit  rate  on 
or  2009  and  were  single  filers  then.  To  preserve  the  SBT 
                                                                         C-8000ITC, line 26.  Enter the result on column E. 
credit carryforward from one year to the next the taxpayer is 
required to file Form 4567.                                            ○ Line 5, columns A and B:  Leave lines blank.  

                                                  METHOD SUMMARY TABLE
TYPE OF METHOD              PROS                                                     CONS
Method A                    • Easy to calculate.                                     • Method does not take into account the extent to 
                            • Taxpayer  or  UBG  member  disposing  of  ITC            which the ITC was used.
                              asset  only  need  to  enter  information  on  line  4 
                              for years in which assets that trigger recapture 
                              were acquired.

Method B                    • Takes into account the extent to which the ITC         • Taxpayers  must  fill  lines  4,  5,  6,  Table  I 
                              was used.                                                at  the  end  of  the  instructions,  and  enter 
                                                                                       necessary  information  in  Treasury  webtool. 
                                                                                       (www.michigan.gov/mbt4585tool)
                                                                                     • Information  on  line  4  must  be  entered  for  all 
                                                                                       years  in  which  assets  were  bought  and  ITC 
                                                                                       was claimed, whether or not those assets were 
                                                                                       disposed in the current tax year.

Method C                    • Taxpayers complete line 4, column E.                   • Taxpayer  needs  to  develop  own  calculation 
                                                                                       procedure that reflects the MBT statute.  Retain 
                                                                                       records to substantiate calculation. 

                                                                                                                            139

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   ○ Line  4,  column E:  Divide  the  amount  in  column  C               than  one  return  was  filed  for  the  same  tax  year  (that 
     by  the  amount  in  column  B,  for  each  taxable  year  in         is, the taxpayer filed an amended return), use only the 
     column A, and enter as a percentage.                                  information from the latest return filed for that tax year.
• Method B:                                                              NOTE: For MBT tax years the taxpayer filed Form 4567 and no 
   ○ Line 4, columns A through D: Gather all C-8000ITC                   Form 4569, enter on line 5A the taxable year end date, and enter 
     forms filed for tax years beginning on or after January             zero for line 5B. Do not enter any information on lines 5A and 
     1,  2000.  (If  an  amended  C-8000ITC  was  filed,  use  the       5B for MBT years in which the taxpayer filed nothing or filed 
     figures  from  the  amended  form,  not  the  original.)  Sort      a Form 4583. See Note on Using Simplest Method under the 
     all the returns in chronological order of taxable year end          heading Calculation of SBT ITC Recapture Rates  on  these 
     date, from earliest to latest date.  Starting with the Form         instructions. Not filing a Form 4567 does not allow a taxpayer to 
     C-8000ITC for the earliest applicable SBT filing period,            preserve SBT credit carryforward from one year to the next.  
     enter  the  information  requested  on  the  table  for  each         UBGs: During tax years ending in 2008 and 2009, UBG 
     taxable year (use one row for each return).                           groups  were  allowed  to  offset  the  group  liability  by 
NOTE: For SBT tax years when the taxpayer filed a C-8000                   claiming  member’s  SBT  ITC  credit  carryforward.  When 
(SBT Annual Return)  with  no  C-8000ITC,  or  a  C-8030  (SBT             completing line 5, column B, enter the portion  of the total 
Notice of No SBT Return Required),  enter  on  line  4A  the               group  SBT  ITC  credit  carryforward  used  by  the  group 
taxable year end date, and enter zero for lines 4B, 4C, and 4D.            for each year that pertains to the specific member that is 
Do not enter any information on lines 4A through 4D for SBT                completing  Form  4585.  If  the  member  completing  Form 
tax years in which the taxpayer filed nothing OR filed a C-8044            4585 was not part of a UBG in 2008 and/or 2009 tax years, 
(SBT  Simplified  Return).    If  more  than  one  return  was  filed      and filed as a non-UBG filer, take care to report on lines 
for  the  same  tax  year  (that  is,  the  taxpayer  filed  an  amended   5A  and  5B  information  from  the  member’s  singly  filed 
return), use only the information from the latest return filed for         returns.  Likewise,  if  the  member  completing  Form  4585 
that tax year.                                                             was part of another UBG in 2008 and/or 2009 tax years, 
                                                                           take care to report on line 5A and 5B member information 
   ○ Line 5, columns A and B: Starting with Form 4569 for 
                                                                           resulting from using the other UBG’s returns information.
     the earliest 2008 and latest 2009 applicable MBT filing 
     period, enter the information requested on table. If more             Example: In 2008, group ABC files MBT return claiming 

Table I: Determining Credit Amount that Offsets Credit Recapture
7.   A                       B                                           C                  D
   Taxable Year 
   (End Date)
  In Which MBT ITC                                         SBT ITC Credit Rate
 Disposed Asset Was     SBT Capital                Divide line 4, column C,         Gross SBT ITC Credit Amount 
     Acquired           Investment Amount                  by line 4, column B            Multiply column B 
   (MM-DD-YYY)          (C-8000ITC, line 10)       (See Instructions if zero)             by column C

8.   E                       F                                           G                  H
   Taxable Year         SBT Recapture Capital                                       SBT Recapture Amount Offset 
   (repeat from         Investment Amount          Gross SBT ITC Credit Recapture         by Credit 
    column A)           (C-8000ITC, line 23)       Multiply column F by column C          Lesser of columns D and G

9.   I                       J                                           K                L                        M
                                                                                                            SBT ITC Recapture Rate 
                                                                                    Extent Credit Used Rate        Multiply columns C 
   Taxable Year         SBT ITC Credit Amount                                             Divide column K   and L. Carry amount to 
   (repeat from         That offsets SBT liability Total SBT ITC Credit Amount Used       by column D       Worksheet 4a, line 4, 
    column A)           (from webtool)                     Add columns J and H      (cannot be more than 1)        column E

140

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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 as instructed).
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 M to line 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 B for Company 3, report $500,000 – which own software of choice (that is, a non-Treasury Web
represents Company 3’s portion of the total SBT ITC credit tool) or the taxpayer’s own calculation that reflects the
carryforward claimed by the group in 2008. When filling MBT statute. Retain records to substantiate figures
Form 4585, line 5B for Company 4, report $0 – which entered in the 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 disposed assets that triggered SBT ITC recapture from lines 1-3.
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 A. List 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 to calculate 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.

141

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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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No text to extract.

- 147 -

                   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.

                                                                                                                                145

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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

146

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Michigan Department of Treasury Attachment 12
4595 (Rev. 04-22), Page 1 of 2

2022 MICHIGAN Business Tax Renaissance Zone Credit Schedule
Issued under authority of Public Act 36 of 2007.

Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability before Renaissance Zone Credit. Enter amount from Form 4573, line 13, or Form 4596, line 14 ...... 1. 00
2. Enter property information below. If operating in multiple Zones, file a separate Form 4595 for each Zone:
Street Address Zone or Subzone
Check if a
City Parcel Number certificated credit
(see instructions)
3. Average value of property owned within the Zone ................................................................................................. 3. 00
4. Multiply rent paid for property within the Zone by 8 and enter the result ................................................................ 4. 00
5. Total property value within the Zone. Add lines 3 and 4 ......................................................................................... 5. 00
6. Average value of all property owned in Michigan ................................................................................................... 6. 00
7. Multiply rent paid for property in Michigan by 8 and enter the result ...................................................................... 7. 00
8. Total property value in Michigan. Add lines 6 and 7 ............................................................................................... 8. 00
9. Divide line 5 by line 8 and enter as a percentage................................................................................................... 9. %
10. Total payroll for services performed within the Zone .............................................................................................. 10. 00
11. Total Michigan payroll ............................................................................................................................................. 11. 00
12. Divide line 10 by line 11 and enter as a percentage ............................................................................................... 12. %
13. Add lines 9 and 12 and enter as a percentage ....................................................................................................... 13. %
14. Business Activity Factor. Divide line 13 by 2 and enter as a percentage ............................................................... 14. %
15. Credit based on the Business Activity Factor. Multiply line 14 by line 1 ................................................................. 15. 00
Adjusted Services Performed in the Renaissance Zone
16. Enter amount from line 10 ................................................................................ 16. 00
17. Enter depreciation for tangible property in the Zone exempt under MCL
211.7ff. Claim property exempt in tax year; also claim new property that will
be exempt in immediately following tax year (see instructions)........................ 17. 00
18. Add lines 16 and 17 ........................................................................................................................................... 18. 00
19. Partnerships, S Corporations and Individuals Only (see instructions); UBGs, see instructions
a. Business income from Form 4567, line 28. If less than zero, enter zero ........ 19a. 00
b. Apportionment percentage from Form 4567, line 11c ................................. 19b. %
c. Enter percentage from line 14 ..................................................................... 19c. %
d. Multiply line 19a by line 19b by line 19c ...................................................... 19d. 00
e. Add lines 18 and 19d ................................................................................... 19e. 00
20. Enter amount from line 18, or, if taxpayer is a Partnership,
S Corporation or Individual, enter amount from line 19e .................................. 20. 00
21. Credit based on adjusted services performed in the Zone. Multiply line 20 by 10% (0.10) ............................... 21. 00
22. Taxpayers first located within the Renaissance Zone before 12-01-2002 ONLY.
(All others, leave lines 22a-e and line 23 blank.)
a. Renaissance Zone Credit allowed in 2007 .................................................. 22a. 00
b. Michigan payroll in 2007 .............................................................................. 22b. 00
c. Business Activity Factor for tax year 2007 and enter as a percentage........ 22c. %
d. Divide line 11 by line 22b and enter as a percentage .................................. 22d. %
e. Divide line 14 by line 22c and enter as a percentage .................................. 22e. %
23. Multiply line 22a by line 22d by line 22e ........................................................................................................... 23. 00
24. Tentative Renaissance Zone Credit. Taxpayers first located in Zone before 12-01-2002, enter the greater of
(i) line 23 or (ii) the lesser of lines 15 and 21. All others, enter the lesser of lines 15 and 21 ............................... 24. 00
25. a. Reduced credit percentage from Reduced Credit Table on page 2 ............. 25a. %
b. Reduced Renaissance Zone Credit. Multiply line 24 by the reduced credit percentage on line 25a.
Carry amount to Form 4573, line 14, or Form 4596, line 15............................................................................ 25b. 00

+ 0000 2022 95 01 27 5

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2022 Form 4595, Page 2 of 2

                                    REDUCED CREDIT TABLE

  If this tax period begins in the:                               The reduced credit is:

  Final year of designation as a Renaissance Zone.................25 percent (0.25) of tentative credit on line 24.

  Year immediately preceding the final year of designation  
  as a Renaissance Zone .........................................................50 percent (0.50) of tentative credit on line 24.

  Second year before the final year of designation as a 
  Renaissance Zone................................................................ 75 percent (0.75) of tentative credit on line 24.

  Third (or greater) year before the final year of designation 
  as a Renaissance Zone ........................................................ 100 percent (1.00) of the tentative credit on  
                                                                  line 24.

+ 0000 2022 95 02 27 3

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                                        Instructions for Form 4595 
          Michigan Business Tax (MBT) Renaissance Zone Credit Schedule
Purpose                                                                 Certificated Credits (Form 4947).
                                                                        EXAMPLE 1: Taxpayer enters into a qualified collaborative 
To  allow  eligible  taxpayers  to  calculate  and  claim  the 
                                                                        agreement  with  the  MSF  and  locates  and  begins  conducting 
Renaissance Zone Credit. For standard taxpayers and financial 
                                                                        business in a tool and die renaissance zone on January 1, 2011. 
institutions,  the  credit  is  calculated  on  Form  4595  and  then 
                                                                        Taxpayer may elect to continue under the MBT on the basis of 
carried  to  the MBT Miscellaneous Nonrefundable Credits 
                                                                        this certificated renaissance zone credit.
(Form 4573). Insurance companies will carry this credit to the 
Miscellaneous Credits for Insurance Companies (Form 4596).              EXAMPLE 2:  Taxpayer  located  and  began  conducting 
                                                                        business in a designated renaissance zone on January 1, 2011; 
NOTE:  If  a  person  is  located  and  has  business  activity  in 
                                                                        however, the renaissance zone does not qualify as a certificated 
more than one Renaissance Zone, use a separate Form 4595 to 
                                                                        credit  for  purposes  of  the  MBT  election  (see  the  certificated 
calculate the credit for each Zone. For each line that requires 
                                                                        renaissance zone credits listed previously in these instructions). 
Zone-specific data, enter data based only on business activity 
                                                                        The taxpayer  also  holds  a certificated  anchor  company credit. 
in the Zone identified on line 2 of this copy of the form.
                                                                        Taxpayer  may  make  the  election  to  remain  taxable  under  the 
                                                                        MBT on the basis of its certificated anchor company credit and 
Renaissance Zone Credit                                                 continue  to  claim  the  non-certificated  renaissance  zone  credit 
The  Renaissance  Zone  Credit  encourages  businesses  and             once it has properly elected the MBT.
individuals to help revitalize a designated Zone by providing a         To obtain the credit an otherwise qualified taxpayer must file 
credit for businesses located and conducting business activity          an MBT annual return. The credit is equal to the lesser of the 
within  the  Zone.  The  method  of  calculating  the  credit  is       following:
different for businesses first locating and conducting business 
activity  within  the  Renaissance  Zone  before  December  31,         • The tax liability attributable to business activity conducted 
2002,  and  those  businesses  first  locating  and  conducting           within the Renaissance Zone in the tax year.
business activity within the Renaissance Zone after December            • 10 percent of adjusted services performed in the designated 
30, 2002.                                                                 Renaissance Zone.
Use  this  form  to  calculate  both  a  certificated  and  non-        • For a taxpayer located and conducting business activity in 
certificated  renaissance  zone  credit.  Check  the  certificated      the Renaissance Zone before December 1, 2002,       the credit is 
credit  box  if  the  credit  being  calculated  is  a  certificated    equal to the greater of the two results below:
renaissance  zone  credit.  File  a  separate  Form  4595  for  each      Result 1
zone and type (certificated or non-certificated) of credit.               ○ The lesser of 1) the business activity conducted within 
Beginning  January  1,  2012,  only  those  taxpayers  with  a            the  zone  (from  line  15)  OR  2)  the  adjusted  services 
certificated credit, which is awarded but not yet fully claimed           performed in the zone (from line 21)
or utilized, may elect to be MBT taxpayers. A taxpayer with               Result 2
a certificated renaissance zone credit may make the election to 
                                                                          ○ The product of the following:
remain taxable under the MBT for its first tax year ending after 
December 31, 2011.                                                           •          The Single Business Tax (SBT) Renaissance 
                                                                             Zone Credit claimed for the tax year ending in 2007.
The certificated renaissance zone credits are the following 
types  of  zones  for  which  the  taxpayer  has  a  development             •          The  ratio  of  the  taxpayer’s  payroll  in  this 
agreement with the Michigan Strategic Fund (MSF) before                      State in the tax year divided by the taxpayer’s payroll 
January 1, 2012:                                                             in this State in its SBT tax year ending in 2007.
• agricultural processing,                                                   •          The ratio of the taxpayer’s Renaissance Zone 
                                                                             Business Activity Factor for the tax year divided by the 
• border crossing,
                                                                             taxpayer’s Renaissance Zone Business Activity Factor 
• forest products processing,                                                for its SBT tax year ending in 2007.
• Michigan  strategic  fund  designated  renewable  energy 
                                                                        The credit allowed continues through the tax year in which the 
  renaissance zones,
                                                                        Renaissance Zone designation expires and is nonrefundable. 
• AND  the  tool  and  die  renaissance  zones  for  which 
  the  taxpayer  has  entered  into  a  qualified  collaborative        Business  activities  relating  to  a  casino,  including  operating 
  agreement with the MSF before January 1, 2012.                        a  parking  lot,  hotel,  motel,  or  retail  store,  cannot  be  used  to 
                                                                        calculate this credit. Businesses delinquent in filing or paying 
A taxpayer located in a designated renaissance zone that does           Property Tax, SBT, MBT or City Income Tax as of December 
not have a certificated renaissance zone credit but which makes         31 of the prior tax year are not eligible for this credit. Taxpayers 
the  election  to  remain  taxable  under  the  MBT  on  the  basis     will be notified if a claimed credit is disallowed. 
of  another  certificated  credit  may  also  claim  this  credit.  For 
more  information  on  certificated  credits  see  the Schedule of      For  more  information  on  Renaissance  Zones,  contact 

                                                                                                                              149

- 152 -

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        ADJUSTED SERVICES PERFORMED IN THE 
(UBG),  the  Renaissance  Zone  Credit  must  be  calculated  at         RENAISSANCE ZONE 
the member entity level. Calculation of the Renaissance Zone 
Credit  should  be  done  before  elimination  of  intercompany          Line  17:  Enter  the  amount  deducted  in  arriving  at  federal 
                                                                         taxable  income  (as  defined  for  MBT  purposes)  for  the  tax 
transactions,  such  as  rent  payments  by  the  member  claiming 
                                                                         year  for  depreciation,  amortization,  or  accelerated  write-
this credit to another member of the UBG.
                                                                         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 
                                                                         inventory property does not disqualify property).
When this form refers to “taxpayer,” it is referring to the UBG 
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 1 of the 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 a member that is located         return.  This  means  that  a  disregarded  entity  for  federal  tax 
and  has  business  activity  in  more  than  one  Zone).  Enter  the    purposes, including a single 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 its FEIN, 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 of property by averaging 
                                                                         sales and applicable sourcing provisions.
the  values  at  the  start  and  end  of  the  tax  period.  The  State 

150

- 153 -

Line 20: Enter amount from line 18, or, if the taxpayer is an 
Individual,  Partnership,  S  Corporation,  or  an  LLC  federally 
taxed  as  a  Partnership  or  S  Corporation,  enter  amount  from 
line 19e.

  TAXPAYERS FIRST LOCATED WITHIN THE 
  RENAISSANCE ZONE BEFORE 12-31-2002 ONLY
  Due to Public Act 282 of 2014, instructions that applied to 
  taxpayers first located within the Renaissance Zone before 
  12-31-2002 now apply to taxpayers first located within the 
  Renaissance Zone BEFORE 12-01-2002.

Line  22: Taxpayers first located within the Renaissance Zone 
before  December  1,  2002,  ONLY  (all  others,  leave  lines  22a 
through 22e blank). A taxpayer that is located and conducting 
business activity in two Zones will prepare two copies of Form 
4595.  Base  each  copy  on  the  taxpayer’s  history  in  the  Zone 
being reported.

  Line 24: The following is an adjustment due to Public Act 
  282 of 2014.
  For taxpayers first located within the Zone before 
  December 1, 2002
  Step 1: Determine the lesser of line 15 and line 21.
  Step 2: Determine the greater of line 23 and the result of 
  Step 1. Enter this amount on line 24.
  All other taxpayers
  Enter the lesser of line 15 and line 21.

Lines  25a and 25b: For a tax year that begins within one of 
the last three years of the Zone’s designation, a reduced credit 
is allowed, as follows:
• For a tax year that begins within the second year before the 
  final year of designation as a Renaissance Zone, 75 percent 
  of the normally calculated credit is allowed.
• For  a  tax  year  that  begins  within  the  year  before  the  final 
  year of designation as a Renaissance Zone, 50 percent of the 
  normally calculated credit is allowed.
• For  a  tax  year  that  begins  within  the  final  year  of 
  designation  as  a  Renaissance  Zone,  25  percent  of  the 
  normally calculated credit is allowed.
Line  25b: Multiply  line  24  by  the  reduced  credit  percentage 
provided in the Reduced Credit Table. Carry amount to line 14 
of the MBT Miscellaneous Nonrefundable Credits (Form 4573), 
or  line  15  of  the MBT Miscellaneous Credits for Insurance 
Companies (Form 4596). 
If  filing  multiple  4595  forms,  enter  the  total  of  line  25b  for 
all  Zones  on  Form  4573,  line  14,  or  Form  4596,  line  15,  as 
applicable.
Include completed Form 4595 as part of the tax return filing.

                                                                          151

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No text to extract.

- 155 -

                                  2022 Supplemental Instructions 
                for Standard Members in Unitary Business Groups (UBGs)
NOTE:  These  instructions  for  Unitary  Business  Groups               Before  completing  a  combined  return,  UBGs  should  first 
(UBGs)  are  meant  to  supplement  general  instructions  and           complete the Form 4580 or Form 4752. These forms are used 
form-specific  instructions  for  standard  taxpayers  of  the           to  gather  and  combine  data  from  each  member  included  in 
Michigan Business Tax (MBT), not to replace them.                        the  combined  filing  schedule  and  eliminate  intercompany 
                                                                         transactions  where  applicable,  to  support  the  primary  return. 
Standard taxpayers and standard members refer to all taxpayers 
                                                                         Insurance  companies  that  are  part  of  a  UBG  will  each  file 
or UBG members, respectively, other than financial institutions 
                                                                         a  separate  Form  4588,  but  should  be  listed  as  an  excluded 
or  insurance  companies.  Financial  institutions  that  are 
                                                                         affiliate with an incompatible tax base on Form 4580 or Form 
members of a UBG should see “Supplemental Instructions for 
                                                                         4752, as applicable.
Financial  Institution  Members  in  UBGs”  in  the MBT Forms 
and Instructions for Financial Institutions (Form 4599).                 NOTE: If a member of a UBG holds a certificated credit and 
                                                                         wishes  to  claim  that  credit,  the  group  and  not  the  member, 
There  is  not  a  corresponding  supplement  for  insurance 
                                                                         must make the election to remain taxable under the MBT.  The 
companies because, although they can be members of a UBG, 
                                                                         entire UBG will remain taxable until the certificated and any 
they do not file combined returns.
                                                                         carryforward of that credit is exhausted.
Introductory  pages  of  this  MBT  instruction  booklet  contain        The Designated Member (DM)
general  information  designed  to  assist  in  identifying 
the  existence  and  membership  of  a  UBG.  The  following             A UBG combined return of standard members is filed under 
instructions address:                                                    the name and Federal Employer Identification Number (FEIN) 
                                                                         or  Michigan  Treasury  (TR)  assigned  number  of  the  DM  of 
• Filing combined returns by different member types within a             the  standard  member  group.  Designated  Member  means  a 
  UBG.                                                                   UBG member that has nexus with Michigan and will file the 
• Understanding the role of the Designated Member (DM).                  combined MBT return on behalf of the standard members of 
                                                                         the  group.  In  a  brother-sister  controlled  group,  any  member 
For each type of UBG member that is reported on a combined 
                                                                         with nexus may be designated to serve as DM. In a parent-
return  (standard  and  financial  institution),  there  is  a  required 
                                                                         subsidiary  controlled  group  or  a  combined  controlled  group 
form  that  collects  data  that  is  necessary  for  preparation  of  a 
                                                                         (an interlocking combination of a parent-subsidiary group and 
combined return:
                                                                         a brother-sister group), the controlling member must serve as 
• The MBT Unitary Business Group Combined Filing                         DM if it has nexus with Michigan.  If it does not have nexus, 
  Schedule  for Standard Members  (Form  4580)  supports                 the controlling member may appoint any member with nexus 
  a combined return of standard members to be filed on the               with  Michigan  to  serve  as  DM.  That  DM  must  continue 
  MBT Annual Return (Form 4567).                                         to  serve  as  such  every  year,  unless  it  ceases  to  be  a  group 
• The MBT Unitary Business Group Combined Filing Schedule                member  or  the  controlling  member  attains  Michigan  nexus. 
  for Financial Institutions  (Form  4752)  supports  a  combined        The  filing  period  of  a  combined  return  is  based  on  the  tax 
  return of financial institution members to be filed on the MBT         year of the DM.
  Annual Return for Financial Institutions (Form 4590).                  If a UBG is comprised of both standard members and financial 
Guidance that is specific to only one form is contained in the           institutions, the UBG will have two DMs (one for the standard 
instructions  for  that  form,  in  sections  titled  either  “Special   members  completing  Form  4567  and  related  forms,  and  one 
Instructions for Unitary Business Groups” or simply “UBGs.”              for  the  financial  institution  members  completing  Form  4590 
With  the  exception  of  a  section  providing  supplemental            and related forms).  If the standard members are owned by a 
instructions  for  the MBT  Tax  Loss  Adjustment  for  the  Small       financial institution, they will file on the financial UBG return, 
Business  Alternative  Credit  (Form  4575),  the  following  are        Form 4590.
instructions that apply to more than one form.                           NOTE: If the UBG filed MBT in 2011 and elected to file MBT 
                                                                         in 2012, then the UBG must use the same DM if the DM still 
Special Instructions and the Designated Member                           has nexus and is still a member of the UBG in 2012. If the DM 
Special Instructions for the Annual Return                               no longer has nexus or is no longer a member of the UBG, then 
By definition, a UBG can include standard members, insurance             the UBG must select a new DM.
companies,  and  financial  institutions.  However,  in  some            Role  of the  DM:  The  DM  speaks,  acts,  and  files  the  MBT 
cases  not  all  members  of  the  UBG  will  be  included  on  the      return  on  behalf  of  the  group  for  MBT  purposes.  Only  the 
same  return.  All  standard  members  in  a  UBG  (except  those        DM may file a valid extension request for the group. Treasury 
owned by and unitary with a financial institution) file a single         maintains  the  group’s  MBT  tax  data  (e.g.,  prior  MBT 
combined return on Form 4567. Financial institution members              returns,  business  loss  carryforward,  tax  credit  carryforward, 
of  a  UBG  (and  any  standard  member  owned  by  and  unitary         overpayment credit forward) under the DM’s name and account 
with a financial institution in the group) file a combined return        number. The designated member must be of the same taxpayer 
on Form 4590. Insurance company members of a UBG each file               type  (standard  or  financial  institution)  as  the  members  for 
separately on Form 4588.                                                 which it files a combined return.

                                                                                                                  153

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Special Instructions for Supporting Forms                                                          Credit                     (A) (B) (C)
Most forms are completed by UBGs on a group basis. However,                 Film Production Credit                            E E N
the  following  forms  must  be  completed  with  entity-specific 
                                                                            Gross Receipts Filing Threshold Credit            G G N
data, rather than groupwide data:
                                                                            Historic Preservation Credit                      E E N
• Michigan Historic Preservation Tax Credit (Form 3581)
                                                                            Homeless Shelter/Food Bank Credit                 G G N
• MBT  Loss  Adjustment  for  the  Small  Business  Alternative 
                                                                            Hybrid Technology Research and Development Credit E E N
  Credit (Form  4575).  (In  some  circumstances,  a  separate 
  copy of Form 4575 also is completed with groupwide data.)                 Individual or Family Development Account Credit   G G N
• MBT Schedule of Shareholders and Officers (Form 4577)                     International Auto Show Credit                    E E N
• MBT Schedule of Partners (Form 4578)                                      Investment Tax Credit                             G G *
• MBT  Qualified  Affordable  Housing  Seller’s  Deduction                  Large Food Retailer Credit                        G G N
  (Form 4579)                                                               Low-Grade Hematite Credit                         G G N
• MBT Investment Tax Credit Recapture From Sale of Assets                   MEGA Advanced Lithium Ion Battery                 E E N
  Acquired Under Single Business Tax (Form 4585)                            MEGA Battery Cell Sourcing                        E E N
• MBT Schedule of Business Activity Protected Under Public                  MEGA Employment Tax Credit                        E E N
  Law  86-272  (Form  4586)  or      MBT Schedule  of  Business 
                                                                            MEGA Federal Contract Credit                      E E N
  Activity for Non-Designated Members of a Unitary Business 
  Group Protected Under Public Law 86-272 (Form 4581), as                   MEGA Photovoltaic Credit                          E E N
  applicable.                                                               MEGA Plug-In Traction Battery Integration         E E N
• Michigan Farmland Preservation Tax Credit (Form 4594)                     MEGA Plug-In Traction Battery Manufacturing       E E N
                                                                            Carryforward
• MBT Renaissance Zone Credit Schedule (Form 4595)
                                                                            MEGA Poly-silicon Energy Cost Credit              E E N
• Gross Receipts Worksheet (Worksheet 4700)
                                                                            Mid-size Food Retailer Credit                     G G N
• Business Income Worksheet (Worksheet 4746).
                                                                            NASCAR Speedway Credit                            E E N
If  more  than  one  member  completes  one  of  these  forms, 
                                                                            New Motor Vehicle Dealer Inventory Credit         E E N
multiple  copies  of  that  form  must  be  included  in  the  group’s 
combined return.                                                            Next Energy Business Activity Credit              E E N
                                                                            Next Energy Payroll Credit                        E E N
In addition, many credits require an entity-specific calculation 
of a credit amount. The following table provides a summary of               Personal Property Tax Credit                      G G N
UBG credit calculations, where:                                             Private Equity Fund Credit                        E E N
A) The test or criteria to qualify for the credit should be applied         Public Contribution Credit                        G G N
on a group basis (G) or a separate entity basis (E),                        Renaissance Zone Credit                           E E N
B)  If  the  qualification  test  is  satisfied,  the  calculation  of  the Research and Development Credit                   G G N
available  credit  amount  should  be  on  a  group  basis  (G)  or  a      Small Business Alternative Credit                 G G N
separate entity basis (E),                                                  Start-up Business Credit                          E E N
C)  Calculation  of  the  credit  should  be  done  after  elimination      Workers’ Disability Supplemental Benefit Credit   G G N
of intercompany transactions (Y or N). Note: This applies only 
to  the  calculation  of  the  credit.  The  tax  liability  of  the  UBG   *  Assets  transferred  between  members  of  the  group  are 
against  which  the  credit  will  be  applied  is  calculated  after       not  a  capital  investment  in  qualifying  assets  for  purposes 
elimination of all intercompany transactions from the tax bases             of  calculating  this  credit.  Intercompany  eliminations  are 
and apportionment.                                                          otherwise not applicable.

                    Credit                           (A) (B) (C)            The  available  amount  of  each  of  the  above  credits  is  taken 
Anchor Company Payroll Credit                        E E N                  against  the  entire  group’s  tax  liability.  Additional  UBG 
                                                                            instructions  are  provided  on  forms  where  these  credits  are 
Anchor Company Taxable Value Credit                  E E N
                                                                            calculated. 
Arts and Culture Credit                              G G N
                                                                            If  the  UBG  is  comprised  of  both  standard  members  and 
Bottle Deposit Administration Credit                 E E N
                                                                            financial  institutions,  two  copies  of  supporting  forms  will  be 
Brownfield Redevelopment Credit                      E E N                  completed  (one  group  of  supporting  forms  for  the  standard 
Community or Education Foundation Credit             G G N                  members’ annual return and one group of supporting forms for 
Compensation Credit                                  G G N                  the financial institutions’ annual return).

Farmland Preservation Credit                         E E N                  Pro Forma Calculations for Certain Credits
Film Infrastructure Credit                           E E N
                                                                            For some credits, evaluation of whether a UBG is qualified to 
Film Job Training Credit                             E E N                  claim the credit is based on characteristics and activities of a 

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single member, rather than the group as a whole. Similarly, for             attributable  to  the  departing  member  and  existing  in  the 
some credits, after it is determined that a UBG is qualified to             departing  member’s  (or  the  group’s)  account  prior  to  leaving 
claim the credit, calculation of the amount of credit available is          the group typically will be applied first to the group return for 
based on data of a single member, rather than the group. Each               the group filing period that includes the end of the departing 
credit requiring this method is identified on the form on which             member’s  short  state  tax  year  that  ended  upon  leaving  the 
it is calculated. A pro forma MBT liability is required for the             group.  Any carryforward remaining after that application (i.e., 
member generating the credit.                                               neither consumed or expired) will, generally, be fully available 
                                                                            for use by the departing member.  
Where  a  pro  forma  calculation  is  required,  the  underlying 
objective  is  to  determine  what  the  tax  liability  (immediately       If the remaining UBG does not hold a certificated credit after 
prior to the credit) of the UBG member generating the credit                the departing member leaves with credit then the group is no 
would have been if that member was not included in the group.               longer  eligible  to  continue  under  the  MBT.  If  the  departing 
Therefore,  the  member  generating  the  credit  must  calculate           member  joins  another  UBG,  bringing  the  certificated  credit, 
its  pro  forma  tax  liability  as  if  it  was  a  singular,  stand-alone the  UBG  taxpayer  will  continue  to  apply  the  choice  it  made 
taxpayer in all aspects. This supporting pro forma calculation              concerning  the  credit  election.  (In  the  case  of  qualifying 
should  be  provided  in  a  statement  attached  to  the  return.          brownfield  and  historic  preservation  certificated  credits,  see 
However,  this  calculation  and  its  results  should  never  be           “Effects of Joining a Group” for more detail.)  If the departing 
transferred  to  Form  4567  or  displayed  in  a  layout  similar  to      member becomes a solo filer with remaining certificated credit, 
Form 4567.                                                                  that  member  will  continue  to  file  under  the  MBT  until  the 
                                                                            credit is used up.  These results do not change if the departing 
Effects of Members Joining a Group                                          member is the DM.  
When an entity becomes a member of a UBG part way through 
the member’s tax year, for MBT purposes the new member will                 Other UBG-Related Issues
experience a short tax year beginning on the date the member                An  affiliated  person  that  is  excluded  from  membership  in  a 
joins  the  group,  even  if  it  does  not  have  a  short  period  for    UBG because it is a foreign person, which has nexus and meets 
federal purposes.                                                           the applicable filing threshold, must file a separate MBT return.
For  both  the  UBG  return  and  the  new  member’s  separate 
                                                                            Supplemental Instructions for the MBT Loss 
short  period  return,  tax  bases  will  be  calculated  using  actual 
                                                                            Adjustment for the Small Business Alternative 
numbers from the applicable short period of the new member.
                                                                            Credit, Form 4575
If  a  member  that  is  new  to  the  group  brings  with  it  a           For the purpose of applying loss adjustment from a member’s 
certificated credit or carryforward of a certificated credit,  the          separately  filed  year,  when  members’  separate  years  share 
UBG  taxpayer  will  continue  to  apply  the  choice  it  made  for        a  common  year  end  and  the  amount  of  available  loss  from  a 
the first tax year ending after December 31, 2011, concerning               single tax year exceeds the amount needed to offset the UBG’s 
the  MBT  election.  Or,  in  the  case  of  a qualifying  historic         adjusted  business  income  (ABI)  disqualifier,  the  portion  of 
preservation,  brownfield  redevelopment,  or  farmland  credit,            available loss from that tax year used by each member to offset 
the election made by the group at a later time.  If the joining             the  group’s  disqualifier  must  reflect  the  proportion  of  each 
member brings a qualifying brownfield or historic preservation              member’s total loss available from that tax year with respect to 
credit  for  which  credit  amount  remains  available,  the  UBG           the total loss available to the UBG from the same tax year.
taxpayer may make the election to be taxable under the MBT 
in a year in which credit amount is available and must  remain              EXAMPLE: (Note that while the dates in the following 
taxable  under  the  MBT  for  all  years  in  which  brownfield  or        example don’t apply to a tax year 2021 return, the concept 
historic preservation credit amount is available if the election            remains the same.)  The  total  loss  adjustment  needed  to 
is made.                                                                    reduce  a  UBG’s  ABI  disqualifier  is  $65.  The  UBG  has  loss 
                                                                            available in the amount of $50 from its 2008 tax year, which 
Effects of Members Leaving a Group                                          had a tax year end of December 31, 2008. Member A, who was 
                                                                            included in the UBG’s 2008 tax year return, has loss available 
When  a  member  of  a  UBG  ceases  to  be  a  member  part 
                                                                            in the amount of $20 from its 2006 SBT tax year which ended 
way  through  the  member’s  tax  year,  for  MBT  purposes  the 
                                                                            September 30, 2006. Member B, who became a member of the 
departing member will experience a short tax year ending on 
                                                                            UBG during the current tax year due to a change in ownership, 
the departure date, even if it does not have a short period for 
                                                                            has loss available in the amount of $25 from its 2006 SBT tax 
federal purposes.
                                                                            year  which  ended  September  30,  2006,  and  loss  available  in 
For both the UBG return and the departing member’s separate                 the amount of $25 from its separate 2008 tax year which ended 
short  period  return,  tax  bases  will  be  calculated  using  actual     September 30, 2008. Member C also became a member of the 
numbers  from  the  applicable  short  period  of  the  departing           UBG during the current tax year and has loss available in the 
member.                                                                     amount  of  $75  from  its  separate  2008  tax  year  which  ended 
                                                                            September 30, 2008. 
When a member leaves the UBG other than at the end of its 
federal  tax  year,  any  available  certificated  credit  generated        In this example, three columns of the table will be populated: 
by  the  member  will  be  allocated  to  the  period  that  includes       one  column  with  a  tax  year  end  of  09-30-2006  and  available 
the  effective  date  of  the  certificate.    A  credit  carryforward      loss  of  $45;  a  second  column  with  a  tax  year  end  of  09-30-

                                                                                                                                       155

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2008  and  available  loss  of  $100;  and  a  third  column  with  a 
tax year end of 12-31-2008 and available loss of $50. Because 
loss is used on a first-in, first-out basis, the group will use the 
entire amount of loss available ($45) from the column with the 
09-30-2006 tax year end; that is, all of Member A’s available 
loss ($20) from its 2006 SBT year, as well as all of Member 
B’s  available  loss  from  its  2006  SBT  year  ($25).  The  use  of 
the  members’  losses  must  be  maintained  in  the  taxpayer’s 
records.  The  remaining  $20  of  loss  adjustment  needed  to 
reduce  the  groups’  ABI  disqualifier  will  be  subtracted  from 
the  loss  available  in  the  second  column  with  the  09-30-2008 
year end. Members B and C will account for this adjustment 
in their records in a proportional manner. That is, Member B 
will  record  a  $5  loss  adjustment  used  from  its  2008  separate 
tax  year,  or  the  remaining  loss  adjustment  needed  to  reduce 
the  group’s  ABI  disqualifier  ($20)  multiplied  by  a  fraction, 
the  numerator  of  which  is  Member  B’s  available  loss  ($25) 
and  the  denominator  of  which  is  the  total  loss  available  in 
the  second  column  ($100).  Likewise,  Member  C  will  record 
a loss adjustment used of $15. Thus, in subsequent  tax years, 
the  UBG  will  have  the  following  remaining  loss  available  to 
reduce  its  ABI  disqualifier:  Member  B’s  available  loss  in  the 
amount  of  $20  from  its  2008  separate  tax  year;  Member  C’s 
available loss in the amount of $60 from its 2008 separate tax 
year, and the UBG’s available loss in the amount of $50 from 
its 2008 tax year. The loss available to the UBG to reduce its 
ABI disqualifier will not be affected by Member B’s or C’s use, 
if any, of available loss from their separate tax years to reduce 
their respective shareholder income disqualifiers.

Further Guidance on Existence and Membership 
of a UBG
For further guidance, please consult the following:
• Online at www.michigan.gov/treasury/. Click on “Reports 
  and  Legal  Resources”  for  information  on  Revenue 
  Administrative  Bulletins  (RABs).  Of  particular  interest 
  are  RAB  2010-1,  MBT—Unitary  Business  Group  Control 
  Test,  and  RAB  2010-2,  MBT—Unitary  Business  Group 
  Relationship Tests.

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Michigan Department of Treasury FEIN or TR Number
4700 (06-22), Page 1
UBG Member FEIN or TR Number

Gross Receipts Worksheet
Complete the appropriate parts below based on the person’s organization type. Part 1 is for an Individual or Fiduciary; Part 2 is for a C Corporation (or a
person filing federal returns as a C Corporation); and Part 3 is for a Partnership or S Corporation (or a person filing a federal return as a Partnership or an
S Corporation). Parts 4 and 5 apply to all filers, independent of their organization type.
Gross receipts is not necessarily derived entirely from the federal return, however, this worksheet will calculate gross receipts as defined by law in most
circumstances. Taxpayers and tax professionals are expected to be familiar with uncommon situations within their experience, which produce gross receipts
not identified by specific lines on this worksheet, and report that amount on the most appropriate line. The Michigan Department of Treasury may adjust the
figure resulting from this worksheet to account properly for such uncommon situations. Complete and attach this worksheet to your return. Unitary Business
Groups (UBGs) must complete and attach a worksheet for each member.
Gross receipts, before applying the statutory exceptions, consists solely of positive amounts derived from transactions or events. Therefore, if any of the
federal return items utilized in Part 1, Part 2 or Part 3 is a net result of both negative and positive transactions, it must be recalculated for use here by counting
only the positive elements represented in that net figure.

INFORMATION DIRECTLY FROM SPECIFIC FEDERAL RETURNS

PART 1: INDIVIDUALS AND FIDUCIARIES
1. U.S. Form 1040, Schedule C or C-EZ gross receipts (net of returns) .................................................................. 1. 00
2. U.S. Form 1040, Schedule C, other income ......................................................................................................... 2. 00
3. U.S. Form 1040, Schedule D, short- and long-term sales price*........................................................................... 3. 00
4. U.S. Form 1040, Schedule E
a. Part I, total rents received ............................................................................................................................... 4a. 00
b. Total royalties received ................................................................................................................................... 4b. 00
5. U.S. Form 4797, gross sales price,* business assets ........................................................................................... 5. 00

6. Gross Receipts from Federal Return for Individuals and Fiduciaries.
Add lines 1 through 5. Carry amount to line 19 ..................................................................................................... 6. 00

PART 2: C CORPORATIONS
7. U.S. Form 1120, balance of gross receipts or sales less returns and allowances ................................................ 7. 00
8. U.S. Form 1120, sum of dividends, interest, gross rents and gross royalties ........................................................ 8. 00
9. U.S. Form 1120, other income ............................................................................................................................... 9. 00
10. U.S. Form 1120, Schedule D, short- and long-term sales price* ........................................................................... 10. 00
11. U.S. Form 4797, gross sales price* ....................................................................................................................... 11. 00

12. Gross Receipts from Federal Return for C Corporations.
Add lines 7 through 11. Carry amount to line 19 ................................................................................................... 12. 00

PART 3: PARTNERSHIPS AND S CORPORATIONS
13. U.S. Form 1065, or U.S. Form 1120S
a. Gross receipts (net of returns) ......................................................................................................................... 13a. 00
b. Other income/receipts ...................................................................................................................................... 13b. 00
14. U.S. Form 8825, gross income from real estate rentals ........................................................................................ 14. 00
15. U.S. Form 1065, or 1120S, Schedule D, short- and long-term sales price* .......................................................... 15. 00
16. U.S. Form 1065, or 1120S, Schedule K
a. Gross other rental income ............................................................................................................................... 16a. 00
b. Interest, dividend, royalty income .................................................................................................................... 16b. 00
c. Other income ................................................................................................................................................... 16c. 00
17. U.S. Form 4797, gross sales price*, business assets ........................................................................................... 17. 00

18. Gross Receipts from Federal Return for Partnerships and S Corporations.
Add lines 13 through 17. Carry amount to line 19 ................................................................................................ 18. 00

* See the definition of Gross Receipts under MCL § 208.1111.

Continued on Page 2

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4700, Page 2 FEIN or TR Number
UBG Member FEIN or TR Number

ADJUSTMENTS TO FEDERAL GROSS RECEIPTS

19. Gross Receipts as recorded on line 6, 12 or 18 ............................................................................................... 19. 00

PART 4: ADDITIONS TO GROSS RECEIPTS
To the extent EXCLUDED or DEDUCTED in arriving at the number used in line 19, include the following:
20. Proceeds from the sale of assets used in a business activity ............................................................................... 20. 00
21. Dividend and interest income ................................................................................................................................ 21. 00
22. Receipts from gratuities stipulated on a bill ........................................................................................................... 22. 00
23. Receipts from gross commissions earned............................................................................................................. 23. 00
24. Receipts from client reimbursed expenses not obtained in an agency capacity ................................................... 24. 00
25. Gross proceeds from intercompany sales ............................................................................................................. 25. 00
26. Rents ..................................................................................................................................................................... 26. 00
27. Royalties ................................................................................................................................................................ 27. 00
28. Sales of scrap and other similar items................................................................................................................... 28. 00
29. Other receipts not included in previous lines ......................................................................................................... 29. 00
30. Add lines 20 through 29......................................................................................................................................... 30. 00
31. SUBTOTAL Add line 19 and line 30 ................................................................................................................. 31. 00

PART 5: EXCLUSIONS FROM GROSS RECEIPTS
To the extent INCLUDED in arriving at line 31, enter the following receipts:
32. Proceeds from sales by a principal collected by the taxpayer in an agency capacity and delivered to the principal .... 32. 00
33. Amounts received on behalf of a principal that are received and expended by the taxpayer in an agency capacity
for the following:
a. Performance of service by third party for the benefit of the principal for service required by law to be performed by a
licensed person .................................................................................................................................................................... 33a. 00
b. Performance of service by a third party for the benefit of the principal that the taxpayer has not undertaken a
contractual duty to perform .................................................................................................................................................. 33b. 00
c. Payment of principal and interest under a mortgage loan or land contract, lease or rental payments, or taxes,
utilities, or insurance premiums relating to real or personal property owned or leased by the principal .................... 33c. 00
d. Capital asset that is or will become eligible for depreciation, amortization, or accelerated cost recovery by the
principal for federal income tax purposes, or real property owned or leased by the principal .................................... 33d. 00
e. Property not described above that is purchased by taxpayer on behalf of the principal, where taxpayer does
not take title to or use in the course of performing its contractual business activities ....................................... 33e. 00
f. Fees, taxes, assessments, levies, fines, penalties, or other payments established by law that are paid to a
governmental entity and that are the legal obligation of the principal ............................................................... 33f. 00
34. Amounts excluded from gross income of a foreign corporation engaged in the international operation of aircraft
under IRC § 883(a) ................................................................................................................................................ 34. 00
35. Amounts received by advertising agency used to acquire advertising media time, space, production, or talent
on behalf of another person................................................................................................................................... 35. 00
36. Amounts received by a newspaper to acquire advertising space not owned by that newspaper in another
newspaper on behalf of another person, excluding any consideration received by taxpayer for acquiring that
advertising space................................................................................................................................................... 36. 00
37. Amounts received by taxpayer that manages real property owned by a third party that are deposited into a
separate account kept in the name of that third party and that are not reimbursements to the taxpayer and are
not indirect payments for management services that the taxpayer provides to that third party ................................. 37. 00
38. For taxpayers that during tax year do NOT both buy and sell any receivables, proceeds from the taxpayer’s
transfer of an account receivable, if the sale that generated that receivable was included in Gross Receipts for
Federal Income Tax purposes ................................................................................................................................................. 38. 00
39. Proceeds from original issue of stock or equity instruments or equity issued by a regulated investment
company as defined in IRC § 851 ........................................................................................................................................... 39. 00
40. Proceeds from the original issue of debt instruments ......................................................................................................... 40. 00
41. Refunds from returned merchandise ...................................................................................................................................... 41. 00
42. Cash and in-kind discounts ................................................................................................................................... 42. 00

Continued on Page 3

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4700, Page 3 FEIN or TR Number
UBG Member FEIN or TR Number

PART 5: EXCLUSIONS FROM GROSS RECEIPTS — CONTINUED
43. Trade discounts ..................................................................................................................................................... 43. 00
44. Federal, state, or local tax refunds ........................................................................................................................ 44. 00
45. Security deposits ................................................................................................................................................... 45. 00
46. Payment of the principal portion of loans .............................................................................................................. 46. 00
47. Value of property received in a like-kind exchange ............................................................................................... 47. 00
48. Proceeds from a sale, transaction, exchange, involuntary conversion, maturity, redemption, repurchase,
recapitalization, or other disposition or reorganization of tangible or intangible property that are capital assets
and IRC § 1231(b) land:
a. Amount from such dispositions of capital assets as defined in IRC § 1221(a)
or land used in a trade or business as defined in IRC § 1231(b) ................... 48a. 00
b. Combined gains from each disposition in this category that produced a
gain that is included in that taxpayer’s federal taxable income. (Do not
net against dispositions that produced loss.).............................................. 48b. 00
c. Amount excluded from Gross Receipts. Subtract line 48b from line 48a .................................................... 48c. 00
49. Proceeds from a sale, transaction, exchange, involuntary conversion, maturity, redemption, repurchase,
recapitalization, or other disposition or reorganization of tangible or intangible property that is a hedging transaction(a) :
a. Amount from such dispositions of property used in a hedging transaction ..... 49a. 00
b. Amount of overall net gain from hedging transactions entered into during
the tax year ................................................................................................. 49b. 00
c. Amount excluded from Gross Receipts. Subtract line 49b from line 49a .................................................... 49c. 00
50. Proceeds from a sale, transaction, exchange, involuntary conversion, maturity, redemption, repurchase,
recapitalization, or other disposition or reorganization of tangible or intangible property that is investment and
trading assets managed as part of the person’s treasury function(b):
a. Amount from such dispositions of property that is investment and trading
assets managed as part of the person’s treasury function ......................... 50a. 00
b. Amount of overall net gain from treasury function incurred during tax year.. 50b. 00
c. Amount excluded from Gross Receipts. Subtract line 50b from line 50a .................................................... 50c. 00
51. Proceeds from an insurance policy, a settlement of a claim or a judgment in a civil action, less any proceeds
that are included in federal taxable income (as defined for MBT purposes) ......................................................... 51. 00
52. For a sales finance company, as defined in MCL § 492.102 and directly or indirectly owned in whole or in part
by a motor vehicle manufacturer as of January 1, 2008, and for a person that is a broker or dealer as defined
under 15 USC § 78c(a)(4) or (5), or a member of the UBG of that broker or dealer that buys and sells con-
tracts subject to 7 USC § 1 to 27f for its own account:
a. Amounts realized from the repayment, maturity, sale, or redemption of the principal of a loan, bond, or mutual fund,
certificate of deposit, or similar marketable instrument provided such instruments are not held as inventory .............. 52a. 00
b. Principal amount received under a repurchase agreement or other transaction properly characterized as a loan ... 52b. 00
53. For a mortgage company(c), proceeds representing the principal balance of loans transferred or sold ................ 53. 00
54. For a professional employer organization (d)(PEO), any amount charged that represents the actual cost of
wages and salaries, benefits, worker’s compensation, payroll taxes, withholding, or other assessments paid to
or on behalf of a covered employee by the PEO under a professional employer arrangement ............................ 54. 00
55. Any invoiced items used to provide more favorable floor plan assistance to a person subject to the MBT than
to a person not subject to the MBT and paid by a manufacturer, distributor, or supplier ....................................... 55. 00
56. For an individual, estate, or other person organized for estate or gift planning purposes:
a. Receipts from investment activity, including interest, dividends, royalties, and gains from an investment
portfolio or retirement account, if the investment activity is not part of the taxpayer’s trade or business ......... 56a. 00
b. Receipts from the disposition of tangible or intangible property held for personal use and enjoyment, such
as a personal residence or personal assets ..................................................................................................... 56b. 00
c. Other amounts received that are NOT from transactions, activities, and sources in the regular course of the
taxpayer’s trade or business ............................................................................................................................ 56c. 00
57. Receipts derived from investment activity by a person organized exclusively to conduct investment activity and
that does not conduct investment activity for any person other than an individual or a person related (e)to that
individual, or by a common trust fund established under MCL § 555.101 to 555.113 ........................................... 57. 00
58. Interest and dividends derived from obligations or securities of the United States government, this state, or any
governmental unit of this state (as defined under MCL § 141.1053) ..................................................................... 58. 00

Continued on Page 4

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4700, Page 4 FEIN or TR Number
UBG Member FEIN or TR Number

PART 5: EXCLUSIONS FROM GROSS RECEIPTS (CONT.)
59. Amounts attributable to an ownership interest in a pass-through entity, regulated investment company, real estate
investment trust, or cooperative corporation whose business activities are taxable under the modified gross
receipts tax or would be subject to the modified gross receipts tax if the business activities were in this state(f) ..... 59. 00
60. For a regulated investment company as that term is defined under IRC § 851, receipts derived from investment
activity by that regulated investment company ...................................................................................................... 60. 00
61. Only Health Maintenance Organizations (HMOs) holding contract with the State for Medicaid services may
complete this line: If applicable per MCL §208.1111(1) (dd), enter amounts received during the period that is
both within the tax year and within October 1, 2022, through September 30, 2023, for Medicaid premium or
reimbursement of costs associated with service provided to a Medicaid recipient or beneficiary. The State Budget
Director has until January 1, 2023, to certify that necessary rates provide explicit adjustment for MBT obligations,
in which case NO deduction will be allowed for any HMO holding contract with the State for Medicaid services(g).. 61. 00
62. For a taxpayer that provides health care management consulting services, amounts received by the taxpayer as
fees from its clients that are expended by the taxpayer to reimburse those clients for labor and nonlabor services
that are paid by the client and reimbursed to the client pursuant to a services agreement ........................................ 62. 00
63. Bad Debt amounts deducted for Federal Income Tax that correspond to items included in MGR tax base for
current or prior MBT return .................................................................................................................................... 63. 00
64a. Dividends and royalties received or deemed received from a foreign operating entity or a person other than a
U.S. person, including, but not limited to, the amounts determined under IRC § 78, or 951 through 964 ................ 64a. 00
64b. Exclusion of amounts attributed to the taxpayer pursuant to a discharge of indebtedness as described under
IRC 61(a)(12), including forgiveness of a nonrecourse debt. 64b. 00
65. Add lines 32 through 47, 48c, 49c, 50c, and 51 through 64b ............................................................................... 65. 00

To the extent INCLUDED in arriving at line 31, and to the extent NOT deducted as purchases from other
firms on the MBT Annual Return, Form 4567, lines 13, 14 or 15, (or, for UBG standard members, the MBT
UBG Combined Filing Schedule for Standard Members, Form 4580, lines 18, 19 or 20) enter:
66. Sales or use taxes collected from or reimbursed by a consumer or other taxes collected from or reimbursed by
a purchaser and remitted to a local, state, or federal tax authority........................................................................ 66. 00
67. In the case of receipts from the sale of motor fuel by a person with a motor fuel tax license or a retail dealer, the amount
equal to federal and state excise taxes paid by any person on such motor fuel under IRC § 4081 or applicable state law ... 67. 00
68. In the case of receipts from the sale of beer, wine, or intoxicating liquor by a person holding a license to sell,
distribute, or produce those products, the amount equal to federal and state excise taxes paid by any person
on or for such products under IRC Subtitle E or applicable state law ................................................................... 68. 00
69. In the case of receipts from the sale of communication, video, internet access and related services and
equipment, any government imposed tax, fee, or other imposition in the nature of a tax or fee required by law,
and authorized to be charged on a customer’s bill or invoice, but not including net income taxes, net worth
taxes, property taxes, or the MBT ......................................................................................................................... 69. 00
70. In the case of receipts from the sale of electricity, natural gas, or other energy source, any government imposed
tax, fee, or other imposition in the nature of a tax or fee required by law, and authorized to be charged on a
customer’s bill or invoice, but not including net income taxes, net worth taxes, property taxes, or the MBT ............ 70. 00
71. Any deposit required under the following:
a. 1976 IL 1, MCL § 445.571 to 445.576 ............................................................................................................... 71a. 00
b. R 436.1629 of the Michigan administrative code............................................................................................... 71b. 00
c. R 436.1723a of the Michigan administrative code............................................................................................. 71c. 00
d. Any substantially similar beverage container deposit law of another state ....................................................... 71d. 00
72. Excise tax collected from or reimbursed by a consumer and remitted pursuant to MCL § 207.371 to 207.383 ... 72. 00
In the case of receipts from the sale of cigarettes or tobacco products by a wholesale dealer, retail dealer,
73. distributor, manufacturer, or seller, the amount equal to the federal and state excise taxes paid by any person
on or for such products under IRC Subtitle E or applicable state law ................................................................... 73. 00
74. SUBTOTAL Add lines 66 through 73............................................................................................................... 74. 00

GROSS RECEIPTS FOR MBT PURPOSES

75. Subtract lines 65 and 74, from line 31. Carry this amount to Form 4567, line 12. Standard members of a UBG
will carry this amount to Form 4580, Part 2A, line 17 ............................................................................................ 75. 00

Superscript Explanations on Page 5

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4700, Page 5

Additional instructions
a) For purposes of this provision, a hedging transaction is one entered into by the taxpayer in the normal course of the taxpayer’s trade or business primarily 
to manage (i) risk of exposure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity, or investments in foreign operations; (ii) 
interest rate fluctuations; or (iii) commodity price fluctuations.  Transfer of title of real or tangible personal property is not a hedging transaction.  “Hedging 
transaction” means that term as defined under IRC § 1221 regardless of whether the transaction was identified by the taxpayer as a hedge for federal 
income tax purposes, provided, however, that transactions not identified as a hedge for federal income tax purposes shall be identifiable to the department 
by the taxpayer as a hedge in its books and records.
b) For purposes of this provision, a person principally engaged in the trade or business of purchasing and selling investment and trading assets is not 
performing a treasury function. “Treasury function” means the pooling and management of investment and trading assets for the purpose of satisfying cash 
flow or liquidity needs of the taxpayer’s trade or business.
c) “Mortgage company” means a person that is licensed under MCL § 445.1651 to 445.1684, or MCL § 493.51 to 493.81, and has greater than 90 percent 
of its revenues, in the ordinary course of business, from the origination, sale, or servicing of residential mortgage loans.
d) Professional employer organization is not the same thing as a staffing company, and it means an organization that provides the management and 
administration of the human resources of another entity by contractually assuming substantial employer rights and responsibilities through a professional 
employer agreement that establishes an employer relationship with the leased officers or employees assigned to the other entity by doing all of the 
following:
           • Maintaining a right of direction and control of employees’ work, although this responsibility may be shared with the other entity.
           • Paying wages and employment taxes of the employees out of its own accounts. 
           • Reporting, collecting, and depositing state and federal employment taxes for the employees.
           • Retaining a right to hire and fire employees.
e) For purposes of this provision, a person is related to an individual if that person is a spouse, brother or sister, whether of the whole or half blood or 
by adoption, ancestor, lineal descendent of that individual or related person, or a trust benefiting that individual or one or more persons related to that 
individual.
f) For this provision, the following definitions apply: Cooperative Corporation means those organizations described under subchapter T of the IRC; Pass-
through entity means a partnership, subchapter S Corporation, or other person, other than an individual, that is not classified for Federal Income Tax 
purposes as an association taxed as a corporation; Real estate investment trust means the term defined under IRC § 856; and Regulated investment 
company means the term defined under IRC § 851.

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162

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Michigan Department of Treasury
4746 (04-21), Page 1                                                        FEIN or TR Number
                                                           UBG Member FEIN or TR Number

                                             Business Income Worksheet
Complete the appropriate parts below, based on the person’s organization type. Part 1 is for an Individual or Fiduciary; Part 2 is for a C Corporation (or a 
person filing federal returns as a C Corporation); and Part 3 is for a Partnership or S Corporation (or a person filing a federal return as a Partnership or an S 
Corporation). This worksheet will calculate business income as defined by law in most circumstances. Taxpayers and tax professionals are expected to be 
familiar with uncommon situations within their experience, which produce business income not identified by specific lines on this worksheet, and report that 
amount on the most appropriate line. Include an attachment explaining that line. The Michigan Department of Treasury may adjust the figure resulting from 
this worksheet to account properly for such uncommon situations. Complete and attach this worksheet to your return. Unitary Business Groups (UBG) must 
complete and attach a worksheet for each member.

PART 1: INDIVIDUALS AND FIDUCIARIES
1. U.S. Form 1040, Schedule C or C-EZ, net profit/loss............................................................................................                  1.   00
2. U.S. Form 1040, Schedule D, gain/loss  (a).............................................................................................................          2.   00
3. U.S. Form 1040, Schedule E, line 26 rent and royalty income/loss ......................................................................                          3.   00
4. U.S. Form 4797 gain/loss not included in Schedule D  (a).......................................................................................                  4.   00
5.  Domestic Production Activities deduction based on IRC § 199 reported on U.S. Form 8903, to the extent 
    deducted from federal taxable income  (d)...............................................................................................................        5.   00
6. Other Income. Include an attachment explaining this line. ....................................................................................                   6.   00
7.  Total business income before adjustment. Add lines 1 through 6 .....................................................................                            7.   00
8.  Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC. If adjustment is negative, 
    enter as negative:
    a. Net bonus depreciation adjustment (b) .............................................................................................................          8a.  00
    b. Gain/loss adjustment on the sale of an eligible depreciable asset (c) ..............................................................                         8b.  00
9. Add lines 8a and 8b.  If negative, enter as negative..............................................................................................               9.   00
10. Total business income after adjustment.  Add lines 7 and 9.  Carry amount to Form 4567, line 28. 
    For a UBG member, carry amount to Form 4580, Part 2A, line 30 .......................................................................                           10.  00

PART 2: C CORPORATIONS
11. Federal taxable income from U.S. Form 1120 .......................................................................................................              11.  00
12. Domestic Production Activities deduction based on IRC § 199 reported on U.S. Form 8903, to the extent 
    deducted from federal taxable income  (d)...............................................................................................................        12.  00
13. Miscellaneous. Include an attachment explaining this line ....................................................................................                  13.  00
14. Total business income before adjustment.  Add lines 11, 12 and 13 ...............................................................                               14.  00
15. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC. If adjustment is negative, 
    enter as negative:
    a. Net bonus depreciation adjustment (b) .............................................................................................................          15a. 00
    b. Gain/loss adjustment on the sale of an eligible depreciable asset (c) ..............................................................                         15b. 00
16. Add lines 15a and 15b.  If negative, enter as negative..........................................................................................                16.  00
17. Total business income after adjustment.  Add lines 14 and 16.  Carry amount to Form 4567, line 28. 
    For a UBG member, carry amount to Form 4580, Part 2A, line 30 .......................................................................                           17.  00

PART 3: PARTNERSHIPS AND S CORPORATIONS
18. U.S. Form 1065, or 1120S Schedule K, Income (loss):
    a. Ordinary income/loss ....................................................................................................................................... 18a. 00
    b. Net real estate rental income/loss ...................................................................................................................       18b. 00
    c. Net other rental income/loss ............................................................................................................................    18c. 00
    d. Interest, dividend, and royalty income .............................................................................................................         18d. 00
    e. Net short-term gain/loss ..................................................................................................................................  18e. 00
    f. Net long-term gain/loss....................................................................................................................................  18f. 00
    g. Other portfolio income/loss ..............................................................................................................................   18g. 00
    h. Guaranteed payments to partners or wages paid to a member of a LLC Partnership ....................................                                          18h. 00
    i. Other net gain/loss under section 1231 ...........................................................................................................           18i. 00
    j. Other income. Include an attachment explaining this line ...............................................................................                     18j. 00
19. Total income/loss. Add lines 18a through 18j ......................................................................................................             19.  00

                                                                                                                                                                         Continued on Page 2

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4746, Page 2 FEIN or TR Number
UBG Member FEIN or TR Number

PART 3: PARTNERSHIPS AND S CORPORATIONS (CONT.)
20. U.S. Form 1065 or 1120S, Schedule K, Deductions:
a. Charitable contributions ................................................................................................................................... 20a. 00
b. Section 179 expense ....................................................................................................................................... 20b. 00
c. Deductions related to portfolio income ............................................................................................................ 20c. 00
d. Other deductions, excluding deductions for domestic production activities (IRC § 199).(d) Include an attachment
explaining this line. ................................................................................................................................................ 20d. 00
21. Total deductions. Add lines 20a through 20d ...................................................................................................... 21. 00
22. Total business income before adjustments. Subtract line 21 from line 19 ....................................................... 22. 00
23. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC (If adjustment is negative,
enter as negative):
a. Net bonus depreciation adjustment (b) ............................................................................................................. 23a. 00
b. Gain/loss adjustment on the sale of an eligible depreciable asset (c) .............................................................. 23b. 00
24. Add lines 23a and 23b. If negative, enter as negative.......................................................................................... 24. 00
25. Total business income after adjustment. Add lines 22 and 24. Carry amount to Form 4567, line 28.
For a member of a UBG, carry amount to Form 4580, Part 2A, line 30 ................................................................ 25. 00

(a) U.S. Forms 1040D and 4797: Report only gains or losses from assets used in a business activity. Do not include personal gains and losses.

(b) For the computation of business income for Michigan Business Tax (MBT) purposes, persons who claimed a federal special depreciation deduction
under IRC § 168(k) on property first placed in service in 2008 or later must calculate the net bonus depreciation adjustment on those assets as follows:
net bonus depreciation adjustment in tax year equals the total federal depreciation claimed in tax year less the total amount of depreciation that would
be claimed in the federal return in the tax year if the person had elected not to utilize the bonus depreciation allowance at IRC § 168(k). A person may
not elect IRC § 179 expensing of an asset for MBT purposes if it did not elect to use IRC § 179 for that asset federally.
(c) For the computation of business income for MBT purposes, persons who claimed a federal special depreciation deduction under IRC § 168(k) on
property first placed in service in 2008 or later and subsequently disposed of that property in the current tax year must calculate the gain/loss adjustment
on the sale of those assets as follows: gain/loss adjustment in tax year equals the total amount of federal depreciation that would be claimed in the
federal return over the years (starting the year the asset was placed in service and ending on the current tax year) if the person had elected not to utilize
the bonus depreciation allowance at IRC § 168(k) on the property being disposed LESS the total federal depreciation claimed over the years (starting
the year asset was placed in service and ending on the current tax year). A person may not elect IRC § 179 expensing of an asset for MBT purposes if
it did not elect to use IRC § 179 for that asset federally.
(d) Generally, IRC 199 was repealed effective for tax years beginning after December 31, 2017. Therefore, most taxpayers will leave this line blank.
However, the federal deduction can still be taken in limited circumstances or it’s possible that a member of a UBG return includes in this return its tax year
beginning before January 1, 2018. In any case, to the extent a deduction was taken in this tax year’s federal taxable income, report that deduction here.

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                                                     Country Codes

Countries are identified by two-letter codes – Country Codes – which are required on some Michigan Business Tax (MBT) forms, 
including the annual returns. The following is a list of countries and their codes.

AF  Afghanistan             CK  Cook Islands         IN   India                    NR  Nauru                   SB  Solomon Islands
AX  Åland Islands           CR  Costa Rica           ID   Indonesia                NP  Nepal                   SO  Somalia
AL   Albania                CI   Côte D’ivoire       IR   Iran                     NL   Netherlands            ZA   South Africa
DZ   Algeria                HR  Croatia              IQ   Iraq                     AN  Netherlands Antilles    GS  S. Georgia, Sandwich
AS  American Samoa          CU  Cuba                 IE   Ireland                  NC  New Caledonia           KR  South Korea
AD  Andorra                 CY  Cyprus               IM   Isle Of Man              NZ  New Zealand             ES   Spain
AO  Angola                  CZ   Czech Republic      IL   Israel                   NI   Nicaragua              LK   Sri Lanka
AI   Anguilla               CD  Dem. Rep. of Congo   IT   Italy                    NE  Niger                   SD  Sudan
AQ  Antarctica              DK  Denmark              JM  Jamaica                   NG  Nigeria                 SR  Suriname
AG  Antigua & Barbuda       DJ   Djibouti            JP   Japan                    NU  Niue                    SJ   Svalbard, Jan Mayen
AR  Argentina               DM  Dominica             JE   Jersey                   NF  Norfolk Island          SZ   Swaziland
AM  Armenia                 DO  Dominican Republic   JO   Jordan                   KP  North Korea             SE  Sweden
AW  Aruba                   EC  Ecuador              KZ   Kazakhstan               MP  N. Mariana Islands      CH  Switzerland
AU  Australia               EG  Egypt                KE  Kenya                     NO  Norway                  SY   Syrian Arab Republic
AT   Austria                SV   El Salvador         KI   Kiribati                 OM  Oman                    TW  Taiwan
AZ   Azerbaijan             GQ  Equatorial Guinea    KW  Kuwait                    PK   Pakistan               TJ   Tajikistan
BS  Bahamas                 ER  Eritrea              KG  Kyrgyzstan                PW  Palau                   TZ   Tanzania
BH  Bahrain                 EE   Estonia             LA   Laos                     PS   Palestinian Occ. Terr. TH  Thailand
BD  Bangladesh              ET   Ethiopia            LV   Latvia                   PA   Panama                 TL   Timor-Leste
BB  Barbados                FK   Falkland Islands    LB   Lebanon                  PG  Papua New Guinea        TG  Togo
BY   Belarus                FO  Faroe Islands        LS   Lesotho                  PY   Paraguay               TK   Tokelau
BE  Belgium                 FJ   Fiji                LR   Liberia                  PE   Peru                   TO  Tonga
BZ   Belize                 FI   Finland             LY   Libya                    PH  Philippines             TT   Trinidad & Tobago
BJ   Benin                  FR   France              LI   Liechtenstein            PN  Pitcairn                TN  Tunisia
BM  Bermuda                 GF  French Guiana        LT   Lithuania                PL   Poland                 TR  Turkey
BT   Bhutan                 PF   French Polynesia    LU   Luxembourg               PT   Portugal               TM  Turkmenistan
BO  Bolivia                 TF   Fr. Southern Terr.  MO  Macao                     PR  Puerto Rico             TC   Turks & Caicos
BA  Bosnia, Herzegovina     GA  Gabon                MK  Macedonia                 QA  Qatar                   TV   Tuvalu
BW  Botswana                GM  Gambia               MG  Madagascar                RE  Réunion                 UG  Uganda
BV   Bouvet Island          GE  Georgia              MW        Malawi              RO  Romania                 UA  Ukraine
BR  Brazil                  DE  Germany              MY  Malaysia                  RU  Russian Federation      AE  United Arab Emir.
IO   Brit. Ind. Ocean Terr. GH  Ghana                MV  Maldives                  RW  Rwanda                  GB  United Kingdom
BN  Brunei Darussalam       GI   Gibraltar           ML  Mali                      BL   St. Barthélemy         US  United States
BG  Bulgaria                GR  Greece               MT  Malta                     SH  St. Helena              UM  U.S. Minor Out. Isl.
BF   Burkina Faso           GL  Greenland            MH  Marshall Islands          KN  St. Kitts & Nevis       UY  Uruguay
BI   Burundi                GD  Grenada              MQ  Martinique                LC   St. Lucia              UZ   Uzbekistan
KH  Cambodia                GP  Guadeloupe           MR  Mauritania                MF  St. Martin              VU  Vanuatu
CM  Cameroon                GU  Guam                 MU  Mauritius                 PM  St. Pierre & Miquelon   VE  Venezuela
CA  Canada                  GT  Guatemala            YT   Mayotte                  VC  St. Vincent, Grenad.    VN  Vietnam
CV  Cape Verde              GG  Guernsey             MX  Mexico                    WS  Samoa                   VG  Virgin Islands, British
KY  Cayman Islands          GN  Guinea               FM  Micronesia                SM  San Marino              VI   Virgin Islands, U.S.
CF  Cent. African Repub.    GW  Guinea-Bissau        MD  Moldova                   ST   Sao Tome & Principe WF  Wallis & Futuna
TD  Chad                    GY  Guyana               MC  Monaco                    SA  Saudi Arabia            EH  Western Sahara
CL   Chile                  HT  Haiti                MN  Mongolia                  SN  Senegal                 YE  Yemen
CN  China                   HM  Heard, McDonald Isl. ME  Montenegro                RS  Serbia                  ZM  Zambia
CX  Christmas Island        VA  Holy See (Vatican)   MS  Montserrat                SC  Seychelles              ZW  Zimbabwe
CC  Cocos Islands           HN  Honduras             MA  Morocco                   SL   Sierra Leone
CO  Colombia                HK  Hong Kong            MZ  Mozambique                SG  Singapore               XX Countries-Other
KM  Comoros                 HU  Hungary              MM  Myanmar                   SK  Slovakia
CG  Congo                   IS   Iceland             NA  Namibia                   SI   Slovenia

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