Instructions For Form C-8000itc - Investment Tax Credit (Page 2 of 2) in pdf

Line 15, Apportioned Gains or (Losses). Multiply line

acquired in tax years beginning before January 1, 2000

13f by the percentage from Form C-8000H, line 16 or 19,

and the ITC recapture adjustments on line 23 of this form

whichever applies.

for assets acquired in tax years beginning after December

31, 1999. Adjusted gross receipts must be annualized if

Line 16, Apportioned Adjusted Proceeds. If line 15 is

the return is for a period of less than 12 months.

a gain, subtract it from 13e. If line 15 is a loss, add it to 13e.

Controlled groups must use the amount on Form

Line 17, Mobile Tangible Assets. Enter gross

C-8010AGR, SBT Adjusted Gross Receipts for

proceeds from all dispositions of depreciable mobile

Controlled Groups, line 6.

tangible assets that were acquired in a tax year

Important: For further information about adjusted

beginning after December 31,1999 and were sold or

gross receipts, see “Notice to Single Business Tax

otherwise disposed of during the tax year. Give all the

Filers” on page 77 of this booklet.

information required for each disposition in columns a-f. *

Line 27, Investment Tax Credit. Multiply line 26 by

Line 18, columns e and f. Enter the total gross

line 24, Net Capital Investment. If the result is a negative

proceeds in column e. In column f, enter the total gain or

number, do not complete Part 5, go to Part 6.

loss included in federal taxable income. Total gain is

before capital gain deduction.

Complete Part 5 only if a compensation reduction

was taken on Form C-8000S, SBT Reductions to

Line 19, Adjusted Proceeds. Subtract the total gain or

Adjusted Tax Base. If a compensation reduction was

add the total loss on line 18, column f, to the gross

not taken, go to part 6.

proceeds on line 18, column e. A loss on line 18, column f,

will increase the recapture.

PART 5: Compensation Reduction Adjustment to

Line 20, Apportioned Adjusted Proceeds. Multiply

Investment Tax Credit.

line 19 by the percentage from Form C-8000H, line 16 or

Line 29. Multiply line 28 by the percentage used on Form

19, whichever applies.

C-8000S, line 6. Please indicate that percentage on the

Line 21. Enter all the depreciable tangible assets

form.

other than mobile property acquired in tax years beginning

Line 30, Reduction. Multiply line 29 by line 27. This

after December 31, 1996 that were eligible for the ITC in

reduction cannot exceed the ITC reported on line 27. If

tax years beginning after December 31, 1999 and were

this amount is greater than line 27, a taxpayer is not

transferred outside Michigan during the tax year. Give

eligible for this credit and should enter zero on line 31.

all the information required for each disposition in columns

Line 31, Reduced Investment Tax Credit. Subtract

a-e. *

line 30 from line 27.

Line 23, Total Recapture of Capital Investments. If

taxable only in Michigan, add lines 14, 19 and 22. If

PART 6: Determining Tax Liability.

taxable in another state, add lines 16, 20 and 22.

Line 32. Enter the amount from Form C-8000, line 43,

Tax Before All Credits.

* Required information when including multiple

dispositions as one entry: For all dispositions, Date

Line 33. Enter the amount from either line 27 or 31,

Acquired must be the same and Date Sold or Date Transferred

whichever applies.

must be the same. All dispositions that have variable dates

Line 35. Add lines 33 and 34 and enter the total. If the

must be listed separately.

total is a negative amount, the tax liability will increase.

PART 3: Net Capital Investment

Line 36. Enter the smaller of lines 32 or 35.

Line 37, Tax Liability. Subtract line 36 from line 32. If

Line 24, Net Capital Investment. Subtract line 23,

line 36 is a negative number, it must be added to line 32 to

Total Recapture of Capital Investments from line 10,

determine tax liability. This amount is entered on Form

Total Capital Investments.

C-8000, line 44.

PART 4: Calculation of Investment Tax Credit

Line 38, Credit Carryforward. If the total of available

credit on line 35 is greater than the tax liability on line 32,

Line 26. Multiply the result of line 25 by the adjusted

enter the difference here. This amount can be carried

gross receipts percentage from the table below. Please

forward for nine years from the year it was created.

indicate that percentage on the form.

Attach this schedule to the return.

INVESTMENT

TAX

CREDIT

Adjusted Gross Receipts Percentage Table

Adjusted gross receipts

Use this percentage

$1,000,000 or less

2.3% (.023)

$1,000,001 - $2,500,000

1.5% (.015)

$2,500,001 - $5,000,000

1.0% (.01)

$5,000,001 and above

0.85% (.0085)

Adjusted gross receipts for the purpose of the ITC means

gross receipts, apportioned or allocated to Michigan, plus

recapture of the Capital Acquisition Deduction for assets

Instructions For Form C-8000itc - Investment Tax Credit Page 2

Related Articles

Related forms

Related Categories