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• Receipts from the lease of transportation tangible personal described in Section 3 of the Shared Credit Rating Act, Public
property are in Michigan if the property is used in Michigan Act 227 of 1985, MCL 141.1053.
or if the extent of use of the property in Michigan cannot
Line 14: Under MCL 208.1261(s), United States obligations
be determined but the property has its principal base of
means all obligations of the United States exempt from taxation
operations in Michigan.
under 31 USC 3124(a) or exempt under the United States
UBGs: Carry amount from Form 4752, line 2C, to line 10a, and constitution or any federal statute, including the obligations
the amount from Form 4752, line 3C, to line 10b. of any instrumentality or agency of the United States that are
exempt from state or local taxation under the United States
PART 1: FRANCHISE TAX
constitution or any statute of the United States.
The following tax base calculation involves a five-year average
of net capital. Enter data from the current tax year and four Line 17a: If this taxpayer owns a subsidiary that is an
most recent MBT tax years to complete the five-year table. For authorized insurance company, enter the actual amount of the
purposes of this table, treat a partial year as a full year. If the capital fund maintained within that subsidiary. This does not
current and four preceding tax periods include any short periods, include a captive insurance company.
the years printed in column headings for this part will not apply Line 17b: Enter the minimum capital fund amount required by
accurately. For example, a financial institution has a fiscal year regulations for that insurance subsidiary.
end of June 30 and its current tax year is a short year ending Line 19: Add line 18, columns A through E. If that amount is
September 30, 2020. That financial institution reports the periods less than zero, enter zero.
ending September 30, 2020, June 30, 2020, June 30, 2019, June
30, 2018, and June 30, 2017. UBGs: Add the amount on Form 4752, line 24 for all members
and report the total here. If that combined number is less than
Short periods: For afiling period less than one full year, in lines zero, enter zero.
11 through 14, 17a, and 17b for each of the five columns enter the
actual number multiplied by a fraction, the numerator of which Line 20: Divide line 19 by 5; however, if the taxpayer has been
is the number of calendar months in the short period, and the in existence for fewer than 5 years. divide by the number of
denominator of which is 12. If the short period includes a partial years of the taxpayer’s existence. Number of years in existence
calendar month, round down for less than 16 days, and round up should equal the number of columns reported on this form.
for more than 15 days. Exception: If the entire short period is less UBGs: Divide line 19 by 5; however, if the taxpayer (UBG) has
than 16 days long, count that as one month. been in existence for fewer than 5 years. divide by the number
Leave lines 11 though 18 blank, complete line 19 with of years of the UBG’s existence.
UBGs:
combined data from Form 4752, line 24, and proceed with the Line 27: Enter nonrefundable credits from the MBT
rest of the lines on Form 4590. Nonrefundable Credits Summary (Form 4568), line 40. Note
that these credits have strict eligibility requirements, and only
Part 1; Lines 11-14, Line 17a and Line 17b: Fiscal Year
See “Supplemental Instructions for Fiscal MBT Filers the following are available to a financial institution:
Filers:
— Financial Institutions” in Form 4599. • SBT credit carryforwards (Single Business Tax (SBT) Credit
Carryforwards (Form 4569))
Line 11: Enter equity capital as of the last day of the filing
period, as computed in accordance with generally accepted • Compensation Credit (claimed on the MBT Credits for
accounting principles. If the financial institution does not Compensation, Investment, and Research and Development
maintain its books and records in accordance with generally (Form 4570))
accepted accounting principles, net capital must be computed • Renaissance Zone Credit (claimed on the MBT Renaissance
in accordance with the books and records used by the financial Zone Credit Schedule (Form 4595))
institution, so long as the method fairly reflects the financial • Individual or Family Development Account Credit (claimed
institution’s net capital for purposes of MBT. If the financial on the MBT Miscellaneous Nonrefundable Credits (Form
institution owns a subsidiary that is an authorized insurance 4573))
company, the equity capital of the insurance subsidiary is not • Brownfield Redevelopment Credit (calculated on the MBT
included in the financial institution’s equity capital. Attach Election of Refund or Carryforward of Credits (Form 4584))
supporting schedules.
• Historic Preservation Credit (calculated on Form 4584)
UBGs: In completing the combined return, a member of a • Film Infrastructure Credit (as assignee only)
unitary business group of financial institutions eliminates its
investment in the positive Equity Capital of other members of the Line 29: Recapture of certain credits is entered on MBT
same group. Eliminations occur to Equity Capital at the member Schedule of Recapture of Certain Business Tax Credits and
level. Because each member of the group must compute the Net Deductions (Form 4587). For a financial institution, these are the
Capital tax base in accordance with GAAP, each member should Michigan Economic Growth Authority (MEGA) Employment
represent a positive or zero Equity Capital before Eliminations. Tax Credit and Brownfield Redevelopment Credit. If the taxpayer
Thus, the resulting unitary return for MBT may not exactly experienced recapture of either of these credits during the filing
correlate to the group’s federal returns or consolidated GAAP period, complete Form 4587 and carry the result to this line.
equity but will comply with the requirements of the MBT.
Line 13: Under MCL 208.1261(k), Michigan obligations means
a bond, note, or other obligation issued by a governmental unit
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