Form 4893 - Corporate Income Tax Small Business Alternative Credit

Michigan Department of Treasury

Attachment 2

4893 (Rev. 06-12), Page 1

2012 MICHIGAN Corporate Income Tax Small Business Alternative Credit

Issued under authority of Public Act 38 of 2011.

Federal Employer Identification Number (FEIN)

Name

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

• Adjusted business income after loss adjustment exceeds

after loss adjustment of over $160,000 but not

over $180,000, as determined on Form 4894.

$1,300,000; or

Form 4894 must be included.

• Any shareholder or officer has allocated income after

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

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

CIT Schedule of Shareholders and Officers (Form 4894).

$20,000,000.

Form 4894 must be included.

• 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 4891, line 37 .........................................................................................

Adjusted Business Income

3. Business Income from Form 4891, line 18 ............................................................................................................

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 4891, line 21. Enter as a positive number .....

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

6a.

6b. Fiscal filers: If box 9h on Form 4891 is checked, multiply line 6a by the percentage from Form 4891, line 9k .....

6b.

6c. If box 9h on Form 4891 is checked, enter the amount from line 6b. All others, enter the amount from line 6a ....

6c.

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 6c, 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/distributive share of 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 4891, line 38 (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 4891, line 38 ......................................................................................................................

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.

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