- 2 -
|
INSTRUCTIONS FOR SCHEDULE RZ OF GR-1120
CORPORATION RENAISSANCE ZONE DEDUCTION
Many geographic areas within Grand Rapids have been designated as Line 3. In column 1, enter the average net book value of all real and
Renaissance Zones. This designation grants tax relief to a qualified tangible personal property owned and located in Grand Rapids.
corporation located and conducting business activity within a Grand In column 2, enter the average net book value of the real and
Rapids Renaissance Zone. In conjunction with the designation of these tangible personal property owned and located in a Grand
zones, the Grand Rapids Income Tax Ordinance was amended, Rapids Renaissance Zone. The average net book value of real
effective January 1, 1997, to include a Renaissance Zone deduction. and tangible personal property may be determined by adding
the net book value at the beginning of the year to the net book
WHO MAY CLAIM A RENAISSANCE ZONE value at the end of the year and dividing the sum by two, or if
the business was located in the Renaissance Zone for less
DEDUCTION than a year, on a monthly average basis.
A corporation located and conducting business activity in a Grand Line 4. Enter in column 1 the gross annual rent multiplied by 8 for all
Rapids Renaissance Zone is qualified to claim the deduction. rented real property located in Grand Rapids. In column 2 show
the gross annual rent multiplied by 8 for rented real property
RENAISSANCE ZONE DEDUCTION DISQUALIFIERS located in a Grand Rapids Renaissance Zone.
A corporation is not qualified to claim a Renaissance Zone deduction if Line 5. For columns 1 and 2 enter the sum of the amounts on lines 3
the corporation: and 4 of the column. In column 3 enter the percentage, column
1. Is delinquent in filing or paying any of the following state or local 2 by column 1.
taxes: Michigan single business tax, Michigan income tax, city Line 6. Enter in column 1 compensation paid to employees for work or
income tax, Act 198 industrial abatement tax, commercial abatement services performed within Grand Rapids. In column 2, enter
tax, enterprise zone tax, city utility tax or general property taxes. compensation paid to employees for work or services
2. Owns residential rental property and did not file an affidavit with the performed within a Grand Rapids Renaissance Zone. In
Grand Rapids City Treasurer’s Office by December 31 of the prior tax column 3, enter the percentage, column 2 divided by column 1.
year attesting that the property is in substantial compliance with all Line 7. Total the percentages on line 5 and line 6.
applicable state and local zoning, building and housing laws or Line 8. Calculate and enter the Renaissance Zone percentage by
codes. dividing line 7 by 2.
3. Is located within Grand Rapids outside of a Renaissance Zone and
moves to a location within a Renaissance Zone in Grand Rapids CALCULATION OF RENAISSANCE ZONE DEDUCTION
without approval of the City. (For both fiscal and calendar year taxpayers)
4. Relocates more than twenty five (25) full-time equivalent jobs from The Renaissance Zone designation starts on January 1 of the first year
one or more non-renaissance zone local governmental units (city, of designation and ends on December 31 of the final year of designation.
village or township) and any of the local government units from which The deduction is reduced during the last 3 calendar years of a zone's
a job was relocated adopts a resolution objecting to the relocation designation. The deduction allowance factor is: 100% for all but the last
within 60 days of being notified of the job relocation by the business. three years of a zone's designation; 75% for the tax year that is 2 years
before the final year of designation; 50% for the tax year immediately
QUALIFICATION DATE preceding the final year of designation; and 25% for the final year of
designation. For example, properties within Zones 1 through 6, began
RENAISSANCE ZONES 1 THROUGH 6 - Designation as Renaissance having reduced deductions in 2009 (unless a specific property was
Zones expired on December 31, 2011 for property located zones 1 granted an extension of its designation).
through 6. A few properties located in these zones had their Line 9. Enter the net income from GR-1120, page 1, line 9.
Renaissance Zone designations extended for a short period of time. Visit
the Grand Rapids website, www.grcity.us, and search for Renaissance Line 10. Calculate and enter the Renaissance Zone Deduction base by
Zones for maps of the zones and a portal to the Assessor’s records for multiplying line 9 by line 8.
checking to see if a property in these zones had its designation Line 11. Enter the number of months of the tax year, or short tax year in
each of the three columns based upon the time frame of the
extended. column. Calendar year taxpayers enter 12 in column 1 and
RENAISSANCE ZONES 7 THROUGH 10 - A corporation located in calculate only the totals from column 1.
Renaissance Zones 7 through 10 becomes a qualified taxpayer on the Line 12. Calculate and enter the taxable income for each column by
first day after December 31, 2002, that the corporation is located and multiplying line 9 by line 11 and then dividing the result by the
conducting business activity in a Grand Rapids Renaissance Zone. The total number of months in the tax year (or short tax year) for
qualification continues until the corporation ceases to be located and each column.
conducting business activity in a Grand Rapids Renaissance Zone or Line 13. Enter the Renaissance Zone deduction allowance factor in
until expiration of the Renaissance Zone designation on December 31, each of the columns based on the time period for the column.
2017. Line 14. Calculate and enter the Renaissance Zone deduction allowed
Additional Renaissance Zones have been designated for periods from 5 for each period of the tax year by multiplying line 10 by line 11,
to 15 years. For more information, go to the Grand Rapids website, then divide the result by the total number of months in the tax
year (or short tax year) and multiply the result by the
www.grcity.us, and search for Renaissance Zones. percentage on line 13 for each column.
DEDUCTIBLE INCOME Line 15. Calculate and enter the Renaissance Zone deduction for the
A corporation may deduct that portion of its net income from business tax year, add line 4 of each column. Also enter the
activity within a Renaissance Zone. Business activity carried on within a Renaissance Zone deduction on Form GR-1065, page 1, line
Grand Rapids Renaissance Zone is determined via a two-factor 10.
Renaissance Zone Apportionment factor, property and payroll within a
Renaissance Zone to that in Grand Rapids. Income used to calculate ASSISTANCE
any other deduction allowed by the income tax ordinance and income If you have questions not answered in these instructions, or if you need
derived from illegal activity shall not be used to calculate this deduction. assistance in preparing your return call (616) 456-3415. Questions by
mail should be directed to: Grand Rapids Income Tax Office, PO Box
LINE BY LINE INSTRUCTIONS 109, Grand Rapids, Michigan 49501-0109.
Before filling in Schedule RZ, complete Form GR-1120 through line 9.
On Schedule RZ enter corporation’s name and federal employer WEBSITE
identification number (FEIN) as shown on their Grand Rapids income tax Income tax forms, instructions and additional information are available
return, Form GR-1120. under the Income Tax Office section of the City of Grand Rapids
Line 1. Enter the address of each location in a Grand Rapids website, www.grcity.us/incometax.
Renaissance Zone.
Line 2. Enter the beginning date and ending date the corporation was NOTICE
qualified to claim the Renaissance Zone Deduction for the tax These instructions are interpretations of the Grand Rapids Income Tax
year. Ordinance. The Ordinance will prevail in any disagreement between the
instructions and the Ordinance.
RENAISSANCE ZONE APPORTIONMENT
PERCENTAGE
The Renaissance Zone apportionment percentage is used by
corporations doing business in Grand Rapids inside a Renaissance
Zone and outside the Renaissance Zones.
Revised 04/01/2013
|