Looking for a Michigan Department Of Treasury Forms And Templates? Download it for free!

Small Business Alternative Credit Calculation for the Corporate Income Tax

Worksheet for the 2013 Michigan Business Tax

The Small Business Alternative Credit is NOT available if any

The Small Business Alternative Credit must be reduced

of the following conditions exist:

if any of the following conditions exist:

• Gross receipts exceed $20,000,000; or

• Any shareholder or officer has allocated income after

loss adjustment of over $160,000 but not over $180,000,

• Adjusted business income after loss adjustment exceeds

as determined on Form 4894.

$1,326,000; or

• Gross receipts exceed $19,000,000 but are less than

• Any shareholder or officer has allocated income after loss

$20,000,000.

adjustment of over $180,000, as determined on the MBT

Schedule of Shareholders and Officers (Form 4894).

• Compensation and director fees of a shareholder or officer

exceed $180,000.

1. Gross Receipts (see instructions)..........................................................................................................................

2. Tax liability prior to this credit from Form 4946, line 27 .........................................................................................

Adjusted Business Income

3. Business Income from Form 4946, line 10 ............................................................................................................

4. Carryback or carryover capital loss. Enter as a positive number (see instructions) ..............................................

5. Carryback or carryover of a federal net operating loss from Form 4946, line 13. Enter as a positive number .....

6. Subtotal. Add lines 3, 4 and 5 ...............................................................................................................................

7. Compensation and director fees of active shareholders from Form 4894, line 1 .................................................

8. Compensation and director fees of officers from Form 4894, line 2 .....................................................................

9. Adjusted Business Income. Add lines 6, 7 and 8...................................................................................................

Small Business Alternative Credit Calculation

10. Small Business Alternative Tax. Multiply line 9 by 1.8% (0.018). If less than zero, enter zero ............................

10.

11. Small Business Alternative Credit. Subtract line 10 from line 2. If less than zero, enter zero .......................

11.

12. Allocated income used for reduction (see instructions) ......................................... 12.

13. Reduction percentage from Reduced Credit Table at bottom of this page (based on amount from line 12) .......

13.

14. Reduced Credit. Multiply the percentage on line 13 by the credit on line 11. If gross receipts from line 1 are

less than or equal to $19,000,000, carry amount to Form 4946, line 28 (see instructions) ...................................

14.

Reduction Based on Gross Receipts

Complete this section if gross receipts are more than $19,000,000 but not more than $20,000,000.

15. Excess gross receipts. Subtract $19,000,000 from line 1 ....................................................................................

15.

16. Excess percentage. Divide line 15 by $1,000,000.................................................................................................

16.

17. Allowable percentage. Subtract line 16 from 100% ...............................................................................................

17.

18. Small Business Alternative Credit. Multiply the percentage on line 17 by the credit on line 14.

Carry amount to Form 4946, line 28 ......................................................................................................................

18.

REDUCED CREDIT TABLE

If allocated* income is:

The reduced credit is:

$0 - $160,000 ........................ 100% of the Small Business Alternative Credit

$160,001 - $164,999 ........... 80% of the Small Business Alternative Credit

$165,000 - $169,999 ........... 60% of the Small Business Alternative Credit

$170,000 - $174,999 ........... 40% of the Small Business Alternative Credit

$175,000 - $180,000 ........... 20% of the Small Business Alternative Credit

* See instructions for tax years less than 12 months.