Instructions For Miscellaneous Credits Form C-8000mc (Page 2 of 2) in pdf

Forms are available from 1-800-FORM-2-ME

The maximum lifetime brownfield credit for a taxpayer

(1-800-367-6263) or on the Michigan Department of

and its affiliates is $1,000,000. This can be received in the

Treasury Web site at:

first year or over a period of years.

Questions regarding federal and state certification may be

For the credit to be valid, attach completed Request for

directed to the State Historic Preservation Office at

Approval of Brownfield Redevelopment Credit (form

517-373-1630.

3397). This form must have a valid seal affixed. It has

Additional Information: The State Historic

been furnished to the local municipalities and is also

Preservation Office has a web page at:

available by calling 1-800-FORM-2-ME (1-800-367-6263)

and on the Michigan Department of Treasury Web site at:

Information about Federal Historic Preservation Tax

Incentives is available at:

www2.cr.nps.gov/

If the credit exceeds your tax liability for the year, the

The Old Brownfield Credit (MCL 208.38d)

difference may be carried forward for the next 10 tax

encourages businesses to make new investment on a

years. For information about eligibility requirements or

Michigan property where hazardous substances have been

how to file a Brownfield Redevelopment Plan, contact

released. Be sure to enter the street address or parcel

your local Brownfield Redevelopment Authority. For

number of the property before you begin the calculation.

questions about the credit, contact the Single Business Tax

This credit is equal to 10 percent of the cost of eligible

Division at 517-373-8030.

investment paid or accrued during the tax year. Eligible

The New Brownfield Credit (MCL 208.38g)

investments include costs for demolition, construction,

encourages businesses to make investment on eligible

restoration, alteration, renovation or improvement of

Michigan property that was used or is currently used for

buildings on the eligible property, and the addition of

commercial, industrial, or residential purposes and is

machinery, equipment and fixtures to the eligible property.

either a facility (environmentally contaminated property),

What is eligible investment? You may claim only that

functionally obsolete, or blighted. Functionally obsolete or

investment that meets all of the following criteria.

blighted property must be located in a qualified local

governmental unit. Eligible property for the purpose of the

- Investment made on a property that is designated within

SBT credit is designated by the local Brownfield

a brownfield plan as eligible property.

Redevelopment Financing Authority in an approved

Eligible property has had hazardous substances

brownfield plan.

released on it. Only investments made on that

A qualified taxpayer must own or lease eligible property

property, not adjacent or contiguous properties, are

and must certify that the Department of Environmental

eligible for this credit.

Quality (DEQ) has not sued or issued a unilateral order to

- The investment must be made after the brownfield plan

the taxpayer to compel response activity on that property.

designating the eligible property was adopted and after

In addition, DEQ may not have expended any State funds

eligible activities under the plan have begun.

for response activity to the property and then demanded

Eligible activities are one or more of the following:

reimbursement from the taxpayer.

a. baseline environmental assessment,

There is a two-step process for applying for the new

Brownfield Credit. First, a qualified taxpayer must apply

b. due care activities, or

for preapproval of a project. A preapproval letter must be

c. additional response activities.

issued by the State for a project before eligible investment

These eligible activities must be started before any

begins. When the project is completed, taxpayers must

investment you make can be claimed for an SBT

submit the cost of the eligible investment of each taxpayer

brownfield credit.

entitled to a credit for the project. Upon verification of the

- If you were in any way responsible for the release of

completion of the project, the State will issue a Certificate

hazardous substances on the property, you may not

of Completion. The credit must be taken in the year in

claim a credit for that property. When you claim this

which the Certificate of Completion is issued.

credit, you are stating that you are not liable for

For more information and copies of forms, visit the

response activity at the eligible property for which you

Department of Treasury Web site at:

are claiming a credit (P.A. 451 of 1994; MCL section

324.20126).

Forms are also available by calling 1-800-FORM-2-ME

Note: If tangible assets are sold or disposed of or

(1-800-367-6263).

transferred from eligible property to any other location

after a credit has been taken for the purchase of those

assets, 10% of the federal basis used for determining gain

or loss as of that date must be added to the tax liability.

Instructions For Miscellaneous Credits Form C-8000mc Page 2

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