Instructions For Michigan Business Tax (Mbt) Refundable Credits Form 4574

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Instructions for Form 4574
Michigan Business Tax (MBT) Refundable Credits
Purpose
Line-by-Line Instructions
To allow standard taxpayers to claim certain credits. Unless
Lines not listed here are explained on the form.
otherwise specified, if the amount of the credit exceeds the
Note: Although qualification for certain credits is reviewed
tax liability of the taxpayer for the tax year, that excess is
and approved by MEGA, in many cases the certificates for such
refunded.
credits are issued by the Michigan Economic Development
Corporation (MEDC).
Note: This form may also be used by financial institutions to
claim a limited number of credits:
Name and Account Number: Enter name and account number
as reported on page 1 of the applicable MBT annual return
• Michigan Economic Growth Authority (MEGA) Employment
(either the MBT Annual Return (Form 4567) for standard
Tax Credit.
taxpayers or the MBT Annual Return for Financial Institutions
• Assigned MEGA Photovoltaic Technology Credit.
(Form 4590)).
• Assigned Film Production Credit.
UBGs: Complete one form for the group. Enter the DM name
Insurance companies use the Miscellaneous Credits for
in the Taxpayer Name field and the DM account number in the
Insurance Companies (Form 4596) to claim credits for which
Federal Employer Identification Number (FEIN) field.
they are eligible.
Personal Property Tax Credit
Note: Refunds of the Brownfield Redevelopment Credit and
The Personal Property Tax Credit is available against
Historic Preservation Credit are no longer available on Form
personal property taxes paid in the tax year on eligible
4574. Taxpayers may apply for an accelerated payment of the
industrial personal property, eligible telephone personal
qualified credits by filing the Request for Accelerated Payment
property, and eligible natural gas pipeline property. The
for the Brownfield Redevelopment Credit and the Historic
Personal Property Tax Credit is available only to the
Preservation Credit (Form 4889).
taxpayer who timely files the required statements or reports,
Note: Beginning January 1, 2012, only those taxpayers with
to whom an assessment or bill is issued, and who pays the
a certificated credit, which is awarded but not yet fully claimed
taxes in the tax year. A taxpayer that disagrees with the
or utilized, may elect to be MBT taxpayers.
assessor’s classification of property must pursue a change
of classification through the property tax appeals process.
Fiscal Year Filers: See “Supplemental Instructions for
Treasury will not revise a property classification for purposes
Standard Fiscal MBT Filers” in the MBT Forms and
of these credits.
Instructions for Standard Taxpayers (Form 4600).
Line 1: Eligible industrial personal property is property
classified as industrial personal property under Section 34c of
Special Instructions for Unitary Business Groups
the General Property Tax Act (Michigan Compiled Law (MCL)
Credits are earned and calculated on either an entity-specific or
211.34c). Under MCL 211.34c, the assessor is charged with the
a group basis, as determined by relevant statutory provisions
responsibility of classifying property. The taxes must have
for the respective credits. Inter-company transactions are not
been levied after December 31, 2007, and the taxes must have
eliminated for the calculation of most credits. Credits earned or
been paid during the tax year included in this return.
calculated on either an entity-specific or group basis by Unitary
Line 3: Eligible telephone personal property is defined as
Business Group (UBG) members are generally applied against
personal property of a telephone company subject to the tax
the tax liability of the UBG, unless otherwise specified by
levied under MCL 207.1 to 207.21. The taxes on this property
statute or these instructions.
must have been paid during the tax year included in this return.
Entity-specific provisions are applied on a member-by-member
Line 4: For eligible telephone personal property levied and
basis. In none of these cases does a taxpayer that is a UBG
paid in the tax year the credit is equal to 13.5 percent of the
take the organization type of its parent, Designated Member
taxes paid.
(DM), or any member of the UBG. A UBG taxpayer will not be
attributed an organization type based on the composition of its
Line 5: Eligible natural gas pipeline property is defined as
members.
natural gas pipelines that are classified as utility personal
property under Section 34c of the General Property Tax Act and
If any member of the UBG is eligible for an entity-specific
are subject to regulation under the Natural Gas Act. The taxes
credit, a statement must be attached to the form identifying the
must have been levied after December 31, 2007, and the taxes
eligible member and any information requested for the credit.
must have been paid during the tax year included in this return.
If more than one member is eligible, requested information
Line 7: The taxpayer claiming a Personal Property Tax Credit
should be provided in the statement on a per member basis. The
total amount from all eligible members should be entered on
must attach to the MBT return copies of property tax bills
each corresponding line on this form. Line-by-line instructions
that properly identify “eligible” property and provide proof of
indicate credits requiring entity-specific information.
payment of the tax in the tax year.
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