Fillable Printable Form 4574, 2011 Michigan Business Tax Refundable Credits
Fillable Printable Form 4574, 2011 Michigan Business Tax Refundable Credits
Form 4574, 2011 Michigan Business Tax Refundable Credits
Michigan Department of Treasury
4574 (Rev. 12-11), Page 1
Attachment 14
2011 MICHIGAN Business Tax Refundable Credits
Issued under authority of Public Act 36 of 2007.
Name Federal Employer Identication Number (FEIN) or TR Number
PERSONAL PROPERTY TAX CREDIT. If not claiming this credit, skip to line 8.
NOTE: Only taxes paid by December 31, 2011, are eligible for the Personal Property Tax Credit.
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
WORKERS’ DISABILITY SUPPLEMENTAL BENEFIT (WDSB) CREDIT. If not claiming this credit, skip to line 9.
00
8. WDSB Credit allowed by the Workers’ Compensation Agency ............................................................................ 8.
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 4.35% (0.0435) ........................................................................
11. 00
MEGA EMPLOYMENT TAX CREDIT.
If not claiming this credit, skip to line 13.
00
12. Credit amount from MEDC Annual Tax Credit Certicate (attach) ........................................................................
12.
HISTORIC PRESERVATION CREDIT. If not claiming this credit, skip to line 14.
13. Credit amount from Form 4584, line 27b ...............................................................................................................
13. 00
NASCAR SAFETY CREDIT.
If not claiming this credit, skip to line 15.
00
14. NASCAR Safety Credit. Expenses incurred to ensure trafc and pedestrian safety at motorsports events .......
14.
HYBRID TECHNOLOGY RESEARCH AND DEVELOPMENT CREDIT. If not claiming this credit, skip to line 16.
00
15. Credit amount from MEDC Annual Tax Credit Certicate (attach). Cannot exceed $2,000,000 ...........................
15.
FARMLAND PRESERVATION CREDIT. If not claiming this credit, skip to line 17.
00
16. Credit amount from Form 4594, line 30 .................................................................................................................
16.
MEGA FEDERAL CONTRACT CREDIT. If not claiming this credit, skip to line 18.
00
17. Credit amount from Form 4584, line 36a ...............................................................................................................
17.
MEGA PHOTOVOLTAIC TECHNOLOGY CREDIT. If not claiming this credit, skip to line 19.
00
18. Credit amount from Certicate provided by MEDC (attach) or assigned credit amount ........................................
18.
BROWNFIELD REDEVELOPMENT CREDIT. If not claiming this credit, skip to line 20.
00
19. Credit amount from Form 4584, line 54a ...............................................................................................................
19.
FILM PRODUCTION CREDIT. If not claiming this credit, skip to line 21.
00
20. Credit amount from Post-Production Certicate of Completion provided by Michigan Film Ofce (attach)
or assigned credit amount (see instructions) ......................................................................................................... 20.
MEGA PLUG-IN TRACTION BATTERY MANUFACTURING CREDIT. If not claiming this credit, skip to line 22.
0021. Credit amount from Form 4584, line 63a ............................................................................................................... 21.
ANCHOR COMPANY PAYROLL CREDIT. If not claiming this credit, skip to line 23.
0022. Credit amount from Form 4584, line 71a ............................................................................................................... 22.
ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming this credit, skip to line 24.
0023. Credit amount from Form 4584, line 79a ............................................................................................................... 23.
+ 0000 2011 39 01 27 6
Continue on Page 2.
4574, Page 2
FEIN or TR Number
TOBACCO SELLER’S CREDIT. If not claiming this credit, skip to line 31.
NOTE: This credit allows the taxpayer to recalculate their modied gross receipts for 2008 and 2009 to exclude all of the tobacco excise tax included
in their gross receipts. You may not claim this credit for any excise tax paid to another company as part of the purchase price of the tobacco product.
You may claim this credit only on excise taxes you paid directly to the federal government or State of Michigan. In April 2009, a oor tax was included
in the calculation of gross receipts for all tobacco sellers. Therefore, to the extent you were required to include the oor tax in gross receipts, you may
compute the credit for 2009.
24. Modied gross receipts tax liability for 2008 tax year, from 2008 MBT Form 4567, line 20 .................................. 24. 00
25. Pro forma modied gross receipts tax liability for 2008 tax year, excluding 100% of tobacco excise taxes from
gross receipts ........................................................................................................................................................ 25. 00
26. Subtract line 25 from line 24 .................................................................................................................................. 26. 00
27. Modied gross receipts tax liability for 2009 tax year. (Fiscal years ending in 2009, from 2008 MBT Form 4567,
line 20. For 2009 calendar years, from 2009 MBT Form 4567, line 27.) ............................................................... 27. 00
28. Pro forma modied gross receipts tax liability for 2009 tax year, excluding 100% of tobacco excise taxes from
gross receipts ........................................................................................................................................................ 28. 00
29. Subtract line 28 from line 27 .................................................................................................................................. 29. 00
30. Tobacco Seller’s Credit. Add lines 26 and 29 ..................................................................................................... 30. 00
TOTAL REFUNDABLE CREDITS
00
31. Add lines 7, 8, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 30. Enter total here and carry to Form
4567, line 61; Form 4583, line 25; or Form 4590, line 34 ...................................................................................... 31.
+ 0000 2011 39 02 27 4
Purpose
To allow standard taxpayers to claim certain credits. Unless
otherwise specied, if the amount of the credit exceeds the tax
liability of the taxpayer for the tax year, that excess is refunded.
NOTE: This form may also be used by nancial institutions to
claim a limited number of credits:
• Michigan Economic Growth Authority (MEGA) Employment
Tax Credit.
• Historic Preservation Credit.
• Assigned MEGA Photovoltaic Technology Credit.
• Browneld Redevelopment Credit.
• Assigned Film Production Credit.
Insurance companies use the Miscellaneous Credits for
Insurance Companies (Form 4596) to claim credits for which
they are eligible.
Fiscal Year Filers: See “Supplemental Instructions for
Standard Fiscal MBT Filers” on page 145.
Special Instructions for Unitary Business Groups
Credits are earned and calculated on either an entity-specic or
a group basis, as determined by relevant statutory provisions
for the respective credits. Inter-company transactions are not
eliminated for the calculation of most credits. Credits earned or
calculated on either an entity-specic or group basis by Unitary
Business Group (UBG) members are generally applied against
the tax liability of the UBG, unless otherwise specied by
statute or these instructions.
Entity-specic provisions are applied on a member-by-member
basis. In none of these cases does a taxpayer that is a UBG take
the organization type of its parent, Designated Member (DM), or
any member of the UBG. A UBG taxpayer will not be attributed
an organization type based on the composition of its members.
If any member of the UBG is eligible for an entity-specic
credit, a statement must be attached to the form identifying the
eligible member and any information requested for the credit.
If more than one member is eligible, requested information
should be provided in the statement on a per member basis.
The total amount from all eligible members will be entered on
each corresponding line on this form. Line-by-line instructions
indicate credits requiring entity-specic information.
Line-by-Line Instructions
Lines not listed here are explained on the form.
NOTE: Although qualication for certain credits is reviewed
and approved by MEGA, in many cases the certicates for such
credits are issued by the Michigan Economic Development
Corporation (MEDC).
Name and Account Number: Enter name and account
number as reported on page 1 of the applicable MBT annual
return (either the MBT Annual Return (Form 4567) or the MBT
Simplied Return (Form 4583) for standard taxpayers or the
MBT Annual Return for Financial Institutions (Form 4590)).
UBGs: Complete one form for the group. Enter the DM name
in the Taxpayer Name eld and the DM account number in the
Federal Employer Identication Number (FEIN) eld.
Personal Property Tax Credit
The Personal Property Tax Credit is available against personal
property taxes paid in the tax year on eligible industrial
personal property, eligible telephone personal property, and
eligible natural gas pipeline property. The Personal Property
Tax Credit is available only to the taxpayer who timely les the
required statements or reports, to whom an assessment or bill
is issued, and who pays the taxes in the tax year. A taxpayer
that disagrees with the assessor’s classication of property
must pursue a change of classication through the property
tax appeals process. Treasury will not revise a property
classication for purposes of these credits.
Line 1: Eligible industrial personal property is property
classied as industrial personal property under Section 34c of
the General Property Tax Act (Michigan Compiled Law (MCL)
211.34c). Under MCL 211.34c, the assessor is charged with the
responsibility of classifying property. The taxes must have
been levied after December 31, 2007.
Line 3: Eligible telephone personal property is dened as
personal property of a telephone company subject to the tax
levied under MCL 207.1 to 207.21.
Line 4: For eligible telephone personal property levied and
paid in the tax year the credit is equal to 13.5 percent of the
taxes paid.
Line 5: Eligible natural gas pipeline property is dened as
natural gas pipelines that are classied as utility personal
property under Section 34c of the General Property Tax Act
and are subject to regulation under the Natural Gas Act. The
taxes must have been levied after December 31, 2007.
Line 7: The taxpayer claiming a Personal Property Tax Credit
must attach to the MBT return copies of property tax bills
that properly identify “eligible” property and provide proof of
payment of the tax in the tax year.
UBGs: Add up the property tax bills for all members and enter
the total amount on the corresponding line. The requested
tax bills and proof of payment for each member claiming the
Personal Property Tax Credit should be attached to the group’s
annual return.
Workers’ Disability Supplemental Benet (WDSB) Credit
The WDSB Credit is available to self-insured taxpayers for
the amount authorized by the Department of Licensing and
Regulatory Affairs (LARA) during the tax year. The amount of
the credit is provided to taxpayers by LARA.
Instructions for Form 4574
Michigan Business Tax (MBT) Refundable Credits
Fiscal Year Filers: See “Supplemental Instructions for Standard Fiscal MBT Filers” on page 145.
For more information on WDSB credit eligibility,
contact LARA, Workers’ Compensation Agency at
(517) 322-1879 or 1-888-396-5041 or visit the LARA Web site
at www.michigan.gov/lara.
Line 8: Attach to the return a copy of the document provided
by LARA to substantiate a claim for this credit.
UBGs: Enter total amount authorized for all members on line 8
and attach LARA documentation for each member.
Next Energy Payroll Credit
Next Energy Payroll Credit provides a payroll-based credit to
a taxpayer located within an alternative energy Renaissance
Zone. The credit is equal to the payroll amount for the tax
year attributable to employees who are working on alternative
energy-related research, development, or manufacturing
and whose regular place of employment is within the Zone,
multiplied by the Michigan Individual Income Tax (IIT) rate
for that year. (The Michigan Individual Income Tax rate can be
found at www.michigan.gov/taxes.)
UBGs: If any member of a UBG is claiming the Next Energy
Payroll Credit, attach a statement identifying the member(s)
and providing information requested on the form. Enter the
total payroll amount for all eligible members on line 10.
MEGA Employment Tax Credit
The MEGA Employment Tax Credit promotes economic
growth and jobs in Michigan. For a period of time not to
exceed 20 years, a taxpayer that is an authorized business or
an eligible taxpayer may claim a credit equal to the amount
certied each year by MEGA.
MEGA may certify a credit based on an agreement entered into
prior to January 1, 2008, under the Single Business Tax (SBT).
The number of years for which the credit may be claimed under
MBT will be equal to the maximum number of years designated
in the resolution reduced by the number of years for which a
credit has been claimed or could have been claimed under SBT.
A taxpayer that claimed a credit under either SBT or MBT that
had an agreement with MEGA based on qualied new jobs as
dened in the MEGA Act, and that removes 51 percent or more
of those qualied new jobs from Michigan within three years
after the rst year in which the taxpayer claimed a credit, must
pay back an amount equal to the total of all credits claimed no
later than 12 months after those qualied new jobs are removed
from Michigan. Recapture is reported on Form 4587.
For more information, contact MEDC at (517) 373-9808 or visit
the MEDC Web site at http://www.michiganadvantage.org/.
Line 12: Approved businesses receive a certicate from
MEGA each year showing the total amount of tax credit
allowed. Attach the Annual Tax Credit Certicate to the return.
(If the certicate is not attached, the credit will be disallowed.)
UBGs: Enter the total amount of MEGA Employment Tax
Credits claimed by eligible members and provide the requested
MEGA certication for each eligible member.
Historic Preservation Credit
The Historic Preservation Credit provides tax incentives for
homeowners, commercial property owners, and businesses
to rehabilitate historic resources located in Michigan.
Rehabilitation projects must be certied by the State Historic
Preservation Ofce (SHPO). Questions may be directed to
SHPO at (517) 373-1630. For additional information, visit the
SHPO Web site at www.michigan.gov/shpo.
Line 13: Complete the MBT Election of Refund or
Carryforward of Credits (Form 4584) to claim this credit and
elect a refund of 90 percent of the balance or carryforward of
the resulting overpayment.
NOTE: Neither an assigned credit nor a credit carried forward
from a prior year is eligible to be refunded.
NASCAR Safety Credit
For the 2010 and subsequent tax years, this credit is equal
to the amount of necessary expenditures incurred in this
State by an eligible taxpayer including any professional fees,
additional police ofcers, and any trafc management devices
to ensure trafc and pedestrian safety while hosting the
requisite motorsports events each calendar year.
UBGs: An eligible taxpayer that is a member of a UBG should
enter the eligible expenditures of that member.
Hybrid Technology Research and Development Credit
The Hybrid Technology Research and Development Credit
is available for taxpayers who are engaged in research and
development of a qualied technology. The credit is equal to
3.9 percent of the compensation as dened in the MBT Act for
services performed in a qualied facility and paid to employees at
the qualied facility in the tax year. To be eligible for this credit,
the taxpayer must have entered into an agreement with MEGA
before April 1, 2007, agreeing to meet certain statutory conditions.
A taxpayer claiming this credit may also claim the
Research and Development Credit on the MBT Credits for
Compensation, Investment, and Research and Development
(Form 4570). However, a taxpayer may not claim both credits
for the same expenditures.
For more information, contact MEDC at (517) 373-9808 or visit
the MEDC Web site at http://www.michiganadvantage.org/.
Line 15: Eligible taxpayers receive a certicate from MEGA
each year showing the total amount of tax credit allowed.
Attach the Annual Tax Credit Certicate to the return. (If the
certicate is not attached, the credit will be disallowed.) The
credit amount cannot exceed $2,000,000.
UBGs: Enter the total amount for this credit claimed by
eligible members or $2,000,000, whichever is less, and provide
the requested MEGA certication for each eligible member.
Farmland Preservation Credit
Farmland Preservation Credit gives back to farmland owners
a portion of the property taxes paid on farmland. Farmland
owners qualify for the credit by agreeing to preserve the land
as farmland and not develop for another use.
To qualify for the credit, the taxpayer must meet the following
requirements:
• Taxpayer must own farmland,
• Taxpayer must have entered into a Farmland Development
Rights Agreement (FDRA) with the Michigan Department of
Agriculture (MDA), and
• Taxpayer must complete the Michigan Farmland
Preservation Tax Credit (Form 4594).
If agreements with MDA were entered into on or after
January 1, 1978, the gross receipts qualications in Part 1 of
Form 4594 must be satised.
UBGs: UBG members claiming this credit should total all
amounts from Form 4594, line 30, and enter on line 16 Each
eligible member should submit Form 4594, which would be
calculated based upon that member’s respective property tax
obligation and its respective MBT Business Income Tax base.
MEGA Federal Contract Credit
This credit is available for a qualied taxpayer or collective
group of taxpayers that have been awarded a federal
procurement contract from the United States Department of
Defense, Department of Energy or Department of Homeland
Security resulting in a minimum of 25 new full-time jobs.
Complete Form 4584 to claim this credit and elect a refund or
carryforward of the resulting overpayment.
For more information, contact MEDC at (517) 373-9808 or visit
the MEDC Web site at http://www.michiganadvantage.org/.
MEGA Photovoltaic Technology Credit
The MEGA Photovoltaic Technology Credit is available to a
qualied taxpayer that enters into an agreement with MEGA to
construct and operate a new facility in Michigan which serves
to develop and manufacture photovoltaic energy, photovoltaic
systems, or other photovoltaic technology. Photovoltaic energy,
systems, or technology rely on solar power. The credit is
available for 25 percent of the taxpayer’s capital investment in
the new facility during the tax year.
The credit generally must be taken in equal installments
over a two-year period beginning in the tax year in which
the certicate is issued. A taxpayer may make an irrevocable
assignment of all or a portion of the credit or may convey the
right to the assignment on a form provided by MEGA, which
will then issue assignment certicates to the assignee(s).
A taxpayer or assignee that claims a credit and subsequently
fails to meet the requirements of the act or any other
conditions established by MEGA in the agreement may, as
determined by MEGA, have its credit reduced or terminated
or have a percentage of the credit previously claimed added
back to the tax liability of the taxpayer in the tax year that the
taxpayer or assignee fails to comply. Recapture is reported on
Form 4587.
A taxpayer certied to take the polycrystalline silicon credit
under MCL 208.1432 is disqualied from taking this credit.
Line 18: Approved businesses receive a certicate from MEGA
each year showing the total amount of tax credit allowed. Attach
the Annual Tax Credit Certicate to the return. A taxpayer
claiming an assigned MEGA Photovoltaic Technology Credit
must attach the assignment certicate to the return. (If the
certicate is not attached, the credit will be disallowed.)
Browneld Redevelopment Credit
The Browneld Redevelopment Credit encourages businesses
to make investment on eligible Michigan property that was
used or is currently used for commercial, industrial, public, or
residential purposes and is either a facility (environmentally
contaminated property), functionally obsolete, or blighted.
Prior to April 8, 2008, the credit amount and any unused
carryforward of the credit that exceeded the tax liability for
the tax year was not refunded, but could be carried forward
to offset tax liability in subsequent tax years for ten years
or until used up, whichever occurs rst. Beginning on and
after April 8, 2008, if this credit for the tax year exceeds the
qualied taxpayer’s tax liability for that tax year, the qualied
taxpayer can elect to have the excess refunded at the rate of 85
percent of the excess for the tax year and forgo the remaining
15 percent of the credit and any carryforward.
Complete Form 4584 to claim this credit and elect a refund or
carryforward of the resulting overpayment.
NOTE: Neither an assigned credit nor a credit carried forward
from a prior year is eligible to be refunded.
The administration of the Browneld Redevelopment Credit
program is assigned to MEGA. For more information on the
approval process, contact MEDC at (517) 373-9808.
Film Production Credit
The Michigan Film Ofce, with the concurrence of the State
Treasurer, may enter into an agreement with an eligible
production company providing the company with a refundable
credit against MBT tax liability or against taxes withheld under
Chapter 7 of the Michigan Individual Income Tax Act.
To qualify for the credit, an eligible production company
must spend at least $50,000 in Michigan for the development,
preproduction, production, or postproduction costs of a
State-certied qualied production and must not be delinquent
in a tax or other obligation owed to Michigan nor be owned or
under common control of an entity that is delinquent.
A Post-Production Certicate will be issued verifying the
amount of the credit to be claimed once the Michigan Film
Ofce is satised that expenditure and eligibility requirements
are met.
The credit may be assigned in the tax year in which the
Post-Production Certicate is issued but such assignment is
irrevocable.
For more information, contact the Michigan Film
Ofce at 1-800-477-3456 or visit the Web site at
www.michiganlmofce.org.
Line 20: A taxpayer claiming a Film Production Credit must
attach the Post-Production Certicate to the return. A taxpayer
claiming an assigned Film Production Credit must attach to the
return an MBT Film Credit Assignment (Form 4589) approved
by Treasury. (If the certicate or approved assignment form is
not attached, the credit will be disallowed.)
UBGs: Enter the total amount for this credit claimed by all
eligible members and provide the requested post-production
certication or Form 4589 for each eligible member.
MEGA Plug-In Traction Battery Manufacturing Credit
The MEGA Plug-In Traction Battery Manufacturing Credit
encourages investment in the development, manufacture,
commercialization, and affordability of advanced automotive
high-power energy batteries. The credit is available only to a
taxpayer that has entered into an agreement with MEGA that
provides that the taxpayer will manufacture plug-in traction
battery packs in Michigan. The taxpayer must attach the
MEGA certicate to the MBT annual return on which the
credit is claimed.
For more information, contact MEDC at (517) 373-9808 or
visit the MEDC Web site at www.michiganadvantage.org
/MIAdvantage/Taxes-and-Incentives.
Line 21: Complete Form 4584 to claim this credit and elect a
refund or carryforward of the resulting overpayment.
Anchor Company Payroll Credit
This credit is available for a qualied taxpayer that was
designated by MEGA as an anchor company within the last
ve years and that has inuenced a new qualied 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 (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 qualied taxpayer that was
designated by MEGA as an anchor company within the last
ve years and that has inuenced a new qualied 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 (517) 373-9808 or visit
the MEDC Web site at http://www.michiganadvantage.org/.
Tobacco Seller’s Credit
This credit is available to a taxpayer that is a wholesale dealer,
retail dealer, distributor, manufacturer, or seller that had receipts
from the sale of cigarettes or tobacco products and paid the
federal and state excise taxes directly to the federal government
or State of Michigan on such cigarettes or tobacco products
during the 2008 and 2009 tax years. To calculate the credit:
UBGs: For UBGs with members that are entitled to this credit,
calculate the total credit at the member level. If in 2008 or
2009 the UBG contained a member that was entitled to this
credit but that member has since left the UBG, the right to
claim the credit will remain with that departed member. Only
the departed member may claim this credit. The departed
member will calculate its proper amount of credit based on the
information contained on its UBG Combined Filing Schedule
for Standard Members (Form 4580) for the year at issue.
Line 24: Enter the 2008 modied gross receipts tax liability
entered on line 20 of the 2008 MBT Form 4567.
Line 25: Calculate a “pro forma modied gross receipts tax
liability” for the 2008 tax year. When calculating this amount,
subtract from gross receipts the amount of federal and state
tobacco excise credits that were included when calculating the
2008 modied gross receipts tax liability.
Line 27: Enter the 2009 modied gross receipts tax liability.
For scal years ending in 2009, enter the amount on line 20 of
the 2008 MBT Form 4567. For 2009 calendar year taxpayers,
enter the amount on line 27 of the 2009 MBT Form 4567.
Line 28: Calculate a “pro forma modied gross receipts tax
liability” for the 2009 tax year. When calculating this amount
subtract from gross receipts the amount of federal and state
tobacco excise credits that were included when calculating the
2009 modied gross receipts tax liability.
Include completed Form 4574 as part of the tax return ling.
