Instructions For Michigan Business Tax (Mbt) Schedule Of Recapture Of Certain Business Tax Credits And Deductions Form 4587 printable pdf download

Instructions for Form 4587, Michigan Business Tax (MBT)

Schedule of Recapture of Certain Business Tax Credits and Deductions

Line 2b: The SBT MEGA Employment Tax Credit is no

Purpose

longer subject to recapture. Leave this line blank.

Complete this schedule for any recapture in this tax year of

Line 2c: The SBT MEGA Business Activity Credit is no

previously claimed tax credits listed on this schedule. Recapture

longer subject to recapture. Leave this line blank.

of some tax credits occurs at the same point in the forms as

the credit is calculated. The credits on this form, however, are

Line 3: The Entrepreneurial Credit is no longer subject to

required by statute to be recaptured at a later point in the tax

recapture. Leave this line blank.

calculation process. This form is also used to report a required

Line 4: Enter the total amount of MEGA Federal Contract

recapture of an Affordable Housing Deduction.

Credit claimed on previously filed MBT Election of Refund

Attachments in support of these recapture amounts are not

or Carryforward of Credits forms (Form 4584) subject to

required. Maintain the recapture calculation information in

recapture.

your files for review during audit.

NOTE: The MEGA Federal Contract Credit is claimed through

an agreement with MEGA. If a taxpayer claims this credit and

Special Instructions for Unitary Business Groups

subsequently fails to meet requirements of the MBT Act or

If any member of the Unitary Business Group (UBG) is

conditions of the agreement, the taxpayer must recapture the

reporting recapture, a statement must be attached to this form

entire amount of such credit previously claimed.

identifying the reporting member and the amount of recapture

Line 5: Enter the total amount of the MEGA Photovoltaic

for each applicable credit. If more than one member is

Technology Credit claimed on previously filed 4574 forms

reporting recapture, requested information should be provided

subject to recapture.

in the statement on a per member basis. The total amount from

all reporting members will be entered on each corresponding

Line 6: Enter the total amount of the Biofuel Infrastructure

line on this form.

Credit claimed on previously filed 4573 forms subject to

recapture.

Line-by-Line Instructions

Line 8: The Film Infrastructure Credit is available through an

Lines not listed are explained on the form.

agreement between the taxpayer and the Michigan Film Office,

Dates must be in MM-DD-YYYY format.

with the concurrence of the State Treasurer. The credit amount

is up to 25 percent of the base investment expenditures in a

Name and Account Number: Enter name and account number

qualified film and digital media infrastructure project. If the

as reported on page 1 of the applicable MBT annual return

taxpayer sells or otherwise disposes of a tangible asset that was

(either the MBT Annual Return (Form 4567) for standard

paid for or accrued after December 31, 2007, and whose cost

taxpayers, the MBT Annual Return for Financial Institutions

is included in the base investment, the taxpayer must report

(Form 4590), or the Insurance Company Annual Return for

recapture equal to 25 percent of the gross proceeds or benefit

Michigan Business and Retaliatory Taxes (Form 4588)).

from the sale or disposition, adjusted by the apportioned gain

UBGs: A UBG reporting recapture should include only

or loss.

one copy of this form as part of its annual return. Enter the

NOTE: A sale of qualifying property reported on the

Designated Member (DM) name in the Taxpayer Name

installment method for federal income tax purposes causes

field and the DM account number in the Federal Employer

recapture of the entire gross proceeds (including the amount of

Identification Number (FEIN) field.

the note) in the year of sale, less any gain reflected in federal

Line 1: The Research and Development Credit that is certified

taxable income (as defined for MBT purposes) in the year of

by Michigan Economic Growth Authority (MEGA) is no

the sale. In each subsequent year of the installment note, enter

longer subject to recapture. Leave this line blank.

zero in line 8a, column E, and enter the gain reflected in federal

taxable income (as defined for MBT purposes) in column

Line 2: If a taxpayer claims an MBT or Single Business Tax

F. For property placed in service prior to January 1, 2008,

(SBT) MEGA Employment Tax Credit or an SBT MEGA

gain reflected in federal taxable income (as defined for MBT

Business Activity Credit for a previous tax period under an

purposes) is equal to the gain reported for federal purposes.

agreement with MEGA based on qualified new jobs, and then

removes 51 percent or more of those qualified new jobs from

Line 8a: Enter all dispositions of depreciable tangible assets

Michigan within three years after the first year in which the

included in base investment expenditures that were paid or

taxpayer claims such a credit, the taxpayer must recapture an

accrued after December 31, 2007, and were sold or otherwise

amount equal to the total of all such credits claimed on prior

disposed of during the tax year.

returns.

• Columns A through D: Enter a brief description of the

Line 2a: Enter the total amount of the MBT MEGA

asset, the city or township in which the asset is located, and

Employment Tax Credit claimed on previously filed 4574 forms

the dates that the asset was paid for or accrued and disposed

subject to recapture.

of or sold. To list multiple disposition as one entry, the

date the assets were acquired and sold must be the same;

151

Instructions For Michigan Business Tax (Mbt) Schedule Of Recapture Of Certain Business Tax Credits And Deductions Form 4587

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