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 

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 

                                                                            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   through   4                  disposition      of that  property. 
29  blank.  For  more information,                 please       see     the   instructions           to             • Performance      of services which                    constitute         business        activities.   
Part     Form     2 of 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   
UBGs:  Complete  one Form                    4946     for       the  group,       with all                            include                                                                                                
                                                                                                                                   interest, dividends, and other income from investment 
numbers entered            reflecting     the     total    amount            for  all   members      in               assets                                                                                          
                                                                                                                                and activities and from trading assets and activities.
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 
(FTEs):  Public         Act  233      of 2013 provides                  that,  in      the case      of           sales                                                                                                         
                                                                                                                             of the FTE. Proportionate sales between the taxpayer and                                           
                                                                                                                      a unitary     FTE,      and  between           FTEs  unitary with                 the  taxpayer,           
an   FTE  that made          the    election     to  remain             taxable   under       the                
MBT,  each  owner of      the FTE              that   does      not     file  as          a member                are                                CIT Unitary Relationships with Flow-
                                                                                                                        eliminated. See            
of       a unitary  business        group  with the             FTE     shall    disregard           all          Through Entities                                                                           
                                                                                                                                               (Form 4900) for further guidance.
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   the   of           CIT.    the If    taxpayer          filing        section   in    CIT for Standard Taxpayers  booklet  (Form 4890)                                           to   
this form     owns      an   interest   an   in      FTE         that    files  an   MBT            return        determine Michigan               sales.     
for the     FTE’s  tax     year      that  ends       with   within   or          this   taxpayer’s          
tax year,    the  taxpayer’s          distributive          share   income   of          (loss)       from        Line 1:                                                                                                       
                                                                                                                                 Enter Michigan sales                 that  are      directly      attributable              
such  FTE  will be        exempt         from    the      taxpayer’s         CIT   portion           of           to                                                                                                            
                                                                                                                        the taxpayer plus         the   proportionate                Michigan           sales,   after          
the MBT/CIT        comparison             calculation.           However,          do  not      exclude           eliminations,                                                                                                 
                                                                                                                                       from unitary FTEs.                  The       amount      of Michigan                 
the  exempt  income (loss)               on  lines    4      through 22       of      this form.                  sales                                                                                                      
                                                                                                                             to include       from   unitary FTEs                  is computed            on  CIT Form 
The corporate         income        tax   base     attributable   such   to          FTE           will      be   4900. 
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      subjectis     to          atax in   another         state   foreign   or           consideration         of    one  net ton        in   weight        or  one     passenger       the             
country       if the  taxpayer      issubject to     business     a          privilege        tax,   net   a      distance      of one mile.       

                                                                                                                                                                                                                          33 

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      orsecurities of   states                other      than     
the  CIT for Standard Taxpayers booklet  (Form  4890).                                                        Michigan  and  their political                     subdivisions        in      the same    amount            
NOTE:  Only  transportation  services  are  sourced  using  revenue                                           that                                                                                                        
                                                                                                                      was excluded from federal                    taxable          income   (as     defined       for    
miles.   To  the  extent the          taxpayer      has   business        activities        or                CIT                                                                                                          
                                                                                                                      purposes). Reduce this addition by any expenses related to   
revenue   streams not            from     transportation        services,       those                         the                                                                                                           
                                                                                                                      foregoing income that were disallowed on the federal return 
receipts  should      be sourced  accordingly.                                                                by                                        
                                                                                                                    IRC §   265 and §   291.
                                                                                                              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   the   of              MBT.    This       does     NOT        
unitary  FTEs      is computed  on  CIT  Form  4900.                                                          include the             Modified     Gross   Receipts             component   the   of       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                                                for  CIT purposes).            Enter    this   amount      as a     positive                
                                                                                                              defined
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      tobe 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      theof                  following: 
the  CIT.  Furthermore, the             tax  base    attributable               to the production               •    Is       a pass  through   another   of       transaction           between   third   a      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.                               •                      in double  taxation.       For     this  purpose,         double                      
                                                                                                                     Results
Line 6:     There    are  currently no           miscellaneous              items     to be                          taxation  exists      theif        transaction      issubject 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                       •           related  person  (recipient      theof                  transaction)      organizedis            
                                                                                                                     The
between    any  members                of the   UBG.      For  example,                  if the   UBG                               the  laws  of a      foreign nation         which      has   in force      a              
                                                                                                                     under
includes   standard      taxpayers  (not  owned  by and                     unitary         with          a                                    income  tax  treaty  with  the  United  States. 
                                                                                                                     comprehensive
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      theto           extent  that  income      includedis              on  line      and21       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 

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      ataxpayer                            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).                                                                                                                                                   If  apportioned or      allocated      gross        
                                                                                                           Line 27: IMPORTANT: 
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      amineral                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             
       of  income  (loss)  from              a non-unitary         flow-through  entity                    Alternative                                                                                      
                                                                                                                            Credit       Calculation for the            Corporate      Income    Tax        
       (FTE).   The  amount for           this  Item                1 can  be found         by             worksheet                                                
                                                                                                                         later   in these instructions.
       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 

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

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; or                                            •                   Any shareholder or officer has allocated income after 
•  Adjusted business income after loss adjustment exceeds                                                loss adjustment of over $160,000 but not over $180,000, 
   $1,521,000; or                                                                                        as determined on Form 4894. 
•  Any shareholder or officer has allocated income after loss                        •    Gross receipts exceed $19,000,000 but are less than 
   adjustment of over $180,000, as determined on the MBT                                                 $20,000,000. 
   Schedule of Shareholders and Officers (Form 4894). 
•  Compensation and director fees of a shareholder or officer 
   exceed $180,000. 

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. 

36 

                    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      through15                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       ofthe 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                                                                                 each  applicable  amount,  total  gross  receipts,  adjusted  
                                                                                                       Multiply
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      ofmonths in      the  tax  year.      theIf          
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       ofthe 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      theto     MBT  filing.       lossIf a        adjustment      used,is         the  
       (Retain      a pro forma        copy        of Form 4894   for    your    records,         if   taxpayer  must  retain      completeda            Form  4895      inits records.             Do  
       necessary.)                                                                                     not  attach  Form  4895 to      this  return. 
In  addition,  the Small         Business         Alternative    Credit            is reduced          UBGs: See                                                                                   
                                                                                                                          “Special Instructions for UBGs” for Form 4895.
if      a shareholder      or  an  officer has        allocated  income      after    loss                 A loss  adjustment  will  not  prevent      areduction 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.      willIt           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           
4894,  column    N.                                                                                    UBGs                                                                                             
                                                                                                                  calculate the gross        receipts     and   adjusted       business                 
                                                                                                       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      MBT.in                For      aUBG 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      entityan         taxed  federally      such)as         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;      notdo      attach  Form  4895      thisto     return. 

                                                                                                                                                                                                    37 

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  

38