Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule

Instructions for Form 4595

Michigan Business Tax (MBT) Renaissance Zone Credit Schedule

Fiscal Year Filers: See “Supplemental Instructions for Standard Fiscal MBT Filers” on page 145.

31 of the prior tax year are not eligible for this credit. Taxpayers

Purpose

will be notified if a claimed credit is disallowed.

To allow eligible taxpayers to calculate and claim the

For more information on Renaissance Zones, contact

Renaissance Zone Credit. For standard taxpayers and financial

the

Michigan

Economic

Development

Corporation

institutions, the credit is calculated on Form 4595 and then

(MEDC) at (517) 373-9808 or visit their Web site at

carried to the MBT Miscellaneous Nonrefundable Credits

For information on the

(Form 4573). Insurance companies will carry this credit to the

MBT credit, contact the Michigan Department of Treasury,

Miscellaneous Credits for Insurance Companies (Form 4596).

Customer Contact Division, MBT Unit, at (517) 636-6925.

NOTE: If a person is located and has business activity in

more than one Renaissance Zone, use a separate Form 4595 to

Special Instructions for Unitary Business Groups

calculate the credit for each Zone. For each line that requires

If the entity located and conducting business activity in the

Zone-specific data, enter data based only on business activity

Renaissance Zone is a member of a Unitary Business Group

in the Zone identified on line 2 of this copy of the form.

(UBG), the Renaissance Zone Credit must be calculated at

Fiscal Year Filers: See “Supplemental Instructions for

the member entity level. Calculation of the Renaissance Zone

Standard Fiscal MBT Filers” on page 145.

Credit should be done before elimination of intercompany

transactions, such as rent payments by the member claiming

Renaissance Zone Credit

this credit to another member of the UBG.

The Renaissance Zone Credit encourages businesses and

Include this form as part of the UBG’s combined annual return.

individuals to move into a designated Zone to help revitalize

If more than one member is eligible for this credit, complete

the area by providing a credit for businesses located and

one Form 4595 for each eligible member (or multiple forms for

conducting business activity within the Zone. The method of

a member that is located and has business activity in multiple

calculating the credit is different for businesses first locating

Zones) and include all of them as part of the UBG’s annual

and conducting business activity within the Renaissance Zone

return. If filing multiples of Form 4595, enter the total of line

before December 31, 2002, and those businesses first locating

25b for all members on Form 4573, line 14.

and conducting business activity within the Renaissance Zone

after December 30, 2002.

When this form refers to “taxpayer,” it is referring to the UBG

member completing this form.

To obtain the credit an otherwise qualified taxpayer must file

an MBT annual return. The credit is equal to the lesser of the

Line-by-Line Instructions

following:

Lines not listed are explained on the form.

• The tax liability attributable to business activity conducted

within the Renaissance Zone in the tax year.

Name and Account Number: Enter name and account number

• 10 percent of adjusted services performed in the designated

as reported on page 1 of the annual return.

Renaissance Zone.

UBGs: Complete one form for each member for whom this

• For a taxpayer located and conducting business activity in

schedule applies (or multiple forms for a member that is located

the Renaissance Zone before December 31, 2002, the product

and has business activity in more than one Zone). Enter the

of the following:

Designated Member (DM) name in the Taxpayer Name field,

○ The Single Business Tax (SBT) Renaissance Zone

followed by the DM’s Federal Employer Identification Number

Credit claimed for the tax year ending in 2007.

(FEIN), and the specific member of the UBG for which this

form is filed, and its FEIN, on the line below. On the copy filed

○ The ratio of the taxpayer’s payroll in this State in the

to report the DM’s data (if applicable), enter the DM’s name

tax year divided by the taxpayer’s payroll in this State in

and account number on each line.

its SBT tax year ending in 2007.

○ The ratio of the taxpayer’s Renaissance Zone Business

Line 1: Enter the tax liability before the Renaissance Zone

Activity Factor for the tax year divided by the taxpayer’s

Credit.

Renaissance Zone Business Activity Factor for its SBT tax

UBGs: This must be a pro forma tax liability of the member

year ending in 2007.

whose activity is represented on the form. See guidance on

The credit allowed continues through the tax year in which the

pro forma calculations in the “Supplemental Instructions for

Renaissance Zone designation expires and is nonrefundable.

Standard Members in UBGs” section in the MBT Forms and

Instructions for Standard Taxpayers (Form 4600).

Business activities relating to a casino, including operating

a parking lot, hotel, motel, or retail store, cannot be used to

Line 2: Enter the street address and parcel number of the

calculate this credit. Businesses delinquent in filing or paying

property. Enter the name of the Zone or Subzone in which the

Property Tax, SBT, MBT or City Income Tax as of December

property is included.

Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule - 2011 Page 3

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