Form 4594 - Michigan Farmland Preservation Tax Credit

4594, Page 6

4. The landowner does things which, considered in their

retains its original series throughout the term of the agreement.

However, a letter may be added to indicate that the agreement

total effect, show that he is materially and significantly

was split into multiple agreements. The final six numbers

involved in the production of farm commodities.

change when the agreement is shortened or extended. Always

ommodities.

use the contract number on the most recently recorded

If the taxpayer’s farm operation was incorporated during this

agreement, and attach a copy of each 2016 tax statement that

five-year period and the ownership before and after date of

corresponds to the agreement number listed. The expiration

incorporation is identical, report gross receipts for all five tax

date may never be earlier than the year of the return being

years. If the ownership changed, enter gross receipts only for

prepared.

those tax years since incorporation.

• Column B: For each agreement, check the box if paid

tax receipts for 2015 or 2016 are attached. The Farmland

PART 2: TAXES THAT CAN BE CLAIMED FOR CREDIT

Preservation Tax Credit will be issued jointly to the taxpayer

AND ALLOCATION TO EACH AGREEMENT

and the treasurer for the county where the property is located if

For taxpayers with four or fewer agreements: Using the

the receipts are not attached.

instructions below for line 19, columns A through D, complete

NOTE: In addition to paid tax receipts as described above,

lines 19A through 19D for each agreement, then enter in

attach copies of 2016 property tax statements. Be sure the

line 20D the total of column 19D. Using the total in

corresponding agreement number is written on each tax

line 20D, complete line 19E for each agreement. In line 20E,

statement.

enter the total of all percentages from column 19E, which must

• Column C: Enter the date each agreement was entered into

equal 100 percent.

(MM-DD-yyyy).

Then complete lines 21 through 29. Using the total credit

• Column D: Enter the total amount of tax on land and

reported on line 29, return to the table in line 19 and complete

structures under agreement from the property tax statements.

line 19F for each agreement. Finally, in line 20F, enter the

Do not include penalties, interest, or special assessments.

total of all allocated credits from column 19F, which must

Collection fees up to 1% of taxes may be included. If the

equal line 29.

taxpayer is a joint owner, enter only the taxpayer’s share of

Enter amounts in whole dollars only (no cents).

taxes.

NOTEs: If the property tax statement includes taxes for land

For taxpayers with five or more agreements: Using the

instructions below for line 19, columns A through D, complete

not covered by an FDRA, the taxes reported in column D

must be reduced accordingly. The amount of taxes that cannot

lines 19A through 19D on the primary copy of the form with

be claimed must be determined by the local assessor’s office

data from four agreements. Use additional copies of page 1

and submitted on his or her official letterhead. The 1 percent

of this form to report the remaining agreements. On each

collection fee may be included. Do not include penalties,

additional copy of page 1 that is used:

interest, or special assessments.

• Enter the taxpayer’s name on line 2 and FEIN/TR number

If the property tax statement includes taxes for land on more

on line 5.

than one agreement, the taxes reported in column D must be

• Leave all other fields (including line 20) blank, except line 19.

separated according to land in each agreement. The local

• Complete lines 19A through 19D for each agreement.

assessor will be able to determine what the breakdown is

based on the legal descriptions of the land enrolled under each

Then enter in line 20D of the primary copy of this form (the

agreement.

copy with all applicable fields filled) the total of columns 19D

from all copies. Using the total in line 20D of the primary copy,

line 20: If multiple copies of page 1 of Form 4594 are included,

complete line 19E for each agreement on all copies. In line 20E

leave line 20 blank on all copies except the primary copy (see

of the primary copy, enter the total of all percentages from

above, instructions for Part 2). Lines 20D, 20E, and 20F on the

columns 19E from all copies, which must equal 100 percent.

primary copy must reflect totals for all copies of the form.

Then complete lines 21 through 29. Using the total credit

line 21: Taxes on land enrolled after December 31, 1977. If

reported on line 29, return to the table in line 19 and complete

qualified under one of the gross receipts formulas (line 13 or

line 19F for each agreement on all copies. Finally, in line 20F

line 18), enter the taxes from column D on land and structures

of the primary copy, enter the total of all allocated credits from

enrolled after December 31, 1977. otherwise, enter zero.

column 19F from all copies, which must equal line 29.

PART 3: TAXES THAT CANNOT BE CLAIMED

Enter amounts in whole dollars only (no cents).

FOR CREDIT

line 19:

Enter on lines 24 through 28 the amounts for the tax year of

this claim (the year entered on line 1).

• Column a: Enter the farmland preservation agreement

number assigned by the MDARD. Agreement (or contract)

line 24: Enter the amount from Form 4567, line 49. This

number is found in the lower-right corner of each agreement.

amount can be less than zero.

The first two numbers are the county where the property is

Unitary Business Groups (UBGs): If the eligible taxpayer is a

located. The middle set of numbers is the actual contract

number. The final six numbers are the year of expiration, for

member of a UBG, a pro forma calculation must be performed

example, 123116 (December 31, 2016). The contract number

to determine the Business Income Tax base of the eligible

Form 4594 - Michigan Farmland Preservation Tax Credit - 2016 Page 6

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