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number at the top with only the additional applicable fields

table 2: Enter a short description (for example, equipment,

completed. Financial institutions and insurance companies do

automobile, etc.), city or township in which the asset is located,

not qualify for this credit.

date physically located in Michigan, and adjusted basis (as

calculated for federal purposes) as of the date moved of all

For tax years beginning after 2007, taxpayers may claim an

eligible depreciable tangible assets purchased or acquired

ITC for a percentage of the net costs paid or accrued in the

for use outside of Michigan after 2007 that were moved into

filing period for qualifying tangible assets physically located in

Michigan during the filing period for a business use. Do not

Michigan. The assets must be of a type that are or will become

include mobile tangible assets (see below).

eligible for depreciation, amortization, or accelerated capital

cost recovery for federal income tax. Mobile tangible assets

If multiple pages of Form 4570, Table 2, are included, carry the

(defined in the instructions for line 8), wherever located, are

grand total of all Table 2, column D, entries to line 5.

subject to apportionment in the same manner as the tax base.

table 3: Enter a short description (for example, construction

Assets purchased or acquired after 2007 for use outside of

equipment, aircraft, etc.), the state in which the asset primarily

Michigan and moved into Michigan during the filing period,

was based during the tax year, date acquired, and cost paid

also qualify for ITC. Disposition of an asset, or moving an

or accrued during the filing period for all depreciable mobile

asset out of Michigan, creates recapture that reduces the credit.

tangible assets that were acquired during the filing period,

If recapture exceeds the positive credit earned by acquisitions,

whether located in Michigan or outside Michigan.

the tax liability is increased.

Mobile tangible assets are all of the following:

Note: Recapture from dispositions during the filing period

of assets acquired (or moved into Michigan) after 1999 and

• Motor vehicles that have a gross vehicle weight rating of

before 2008 is calculated on the MBT Investment Tax Credit

10,000 pounds or more and are used to transport property or

Recapture from Sale of Assets Acquired Under Single Business

persons for compensation.

Tax (Form 4585).

• Rolling

stock

(railroad

freight

passenger

cars,

locomotives, or other railcars), aircraft, and watercraft used by

If, during the filing period, a taxpayer acquired depreciable real

the owner to transport property or persons for compensation or

or personal property or disposed of depreciable real or personal

used by the owner to transport the owner’s property for sale,

property that was acquired in a tax year beginning after 1999,

rental, or further processing.

complete this form and include it as part of the annual return. If

property disposed of during the filing period was acquired in a

• Equipment used directly in completion of, or in construction

tax year beginning after 1999 and before 2008, also complete

contracts

for,

the

construction,

alteration,

repair,

and include Form 4585.

improvement of property.

UBGs: If the taxpayer is a UBG, the ITC is calculated on

If multiple pages of Form 4570, Table 3, are included, carry the

combined assets of standard members of the UBG. Assets

grand total of all Table 3, column D, entries to line 6.

transferred between members of the group are not a capital

Recapture of Capital Investments (Dispositions)

investment in qualifying assets for purposes of calculating this

Use this section to compute credit recapture from disposition

credit. Intercompany eliminations are otherwise not applicable.

(or moving out of Michigan) of tangible, depreciable real or

The following instructions for the Part 2 “Capital Investments

personal property that was acquired in a tax year beginning

(Acquisitions)” and “Recapture of Capital Investments

after 2007. Recapture from the disposition of qualifying

(Dispositions)” sections provide information on completing the

property that was acquired in a tax year beginning after 1999

tables on pages 3 and 4 of this form. The instructions for Part 4

but before 2008 is calculated on Form 4585 and reported here.

follow these sections.

Note: A sale of qualifying property reported on the

Capital Investments (Acquisitions)

installment method for federal income tax purposes causes

Note: For tables 1 through 3, all events that have varying

a recapture based upon the entire sale price in the year of

dates must be listed separately. “Various” is not a valid entry in

the sale. The recapture is reduced by any gain reported in

federal taxable income (as defined for MBT purposes) in

a date field. Multiple acquisitions (or transfers) may be combined

the year of the sale. The gain attributable to the installment

as one entry, subject to the following: All combined events must

satisfy the terms of the table in which they are entered. “Date

sale that is reported in subsequent years increases the credit

Acquired” (or “Date Physically Located in Michigan”) must be

base (or reduces other sources of recapture) for those years.

For property placed in service prior to January 1, 2008, gain

the same for all events combined on a single line.

reflected in federal taxable income (as defined for MBT

Cost includes costs of fabrication and installation.

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

table 1: Enter a short description (for example, equipment,

UBGs: If the taxpayer is a UBG, the recapture of capital

building, etc.), city or township in which the asset is located,

investments is calculated on combined assets of standard

date acquired, and cost paid or accrued of all eligible

members of the UBG. Assets transferred between members of

depreciable tangible assets located in Michigan that were

the group are not a capital investment in qualifying assets for

acquired during the filing period.

purposes of calculating this credit or its recapture. However,

moving an asset outside of Michigan creates recapture, even if

If multiple pages of Form 4570, Table 1, are included, carry the

grand total of all Table 1, column D, entries to line 4.

the transfer is to a member of the UBG.

Form 4570 - Michigan Business Tax Credits For Compensation, Investment, And Research And Development - 2011 Page 6

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