Form 4590 - Michigan Business Tax Annual Return For Financial Institutions

Line 17a: If this taxpayer owns a subsidiary that is an

be determined but the property has its principal base of

operations in Michigan.

authorized insurance company, enter the actual amount of the

capital fund maintained within that subsidiary. This does not

UBGs: Carry amount from Form 4752, line 2C, to line 10a, and

include a captive insurance company.

the amount from Form 4752, line 3C, to line 10b.

Line 17b: Enter the minimum capital fund amount required by

PART 1: FRANCHISE TAX

regulations for that insurance subsidiary.

The following tax base calculation involves a five-year average

Line 23: If qualified to check box 8a and not part of a UBG,

of net capital. Enter data from the current tax year and four

most recent MBT tax years to complete the five-year table. For

enter the amount from line 22.

purposes of this table, treat a partial year as a full year. If the

UBGs: Calculate the pro forma tax liability of all members not

current and four preceding tax periods include any short periods,

subject to the surcharge to determine the amount of tax to enter

the years printed in column headings for this part will not apply

on this line. A copy of this calculation must be attached to the

accurately. For example, assuming no short periods for federal

tax filing.

purposes, a financial institution with a fiscal year end of August

Line 27: Enter nonrefundable credits from the MBT

31 would average net capital for the following tax year ending

Nonrefundable Credits Summary (Form 4568), line 40. Note

August 31, 2010, August 31, 2011, December 31, 2011, August 31,

that these credits have strict eligibility requirements, and only

2012, and August 31, 2013.

the following are available to a financial institution:

UBGs: Leave lines 11 through 19 blank, complete line 20 with

• SBT credit carryforwards (Single Business Tax (SBT) Credit

combined data from Form 4752, line 25, and proceed with the

Carryforwards (Form 4569))

rest of the lines on Form 4590.

• Compensation Credit (claimed on the MBT Credits for

Part 1; Lines 11-14, Line 17a and Line 17b: Fiscal Year

Compensation, Investment, and Research and Development

Filers: See “Supplemental Instructions for Fiscal MBT Filers

(Form 4570))

— Financial Institutions” in Form 4599.

• Renaissance Zone Credit (claimed on the MBT Renaissance

Zone Credit Schedule (Form 4595))

Line 11: Enter equity capital as of the last day of the filing

• Individual or Family Development Account Credit (claimed

period, as computed in accordance with generally accepted

accounting principles. If the financial institution does not

on the MBT Miscellaneous Nonrefundable Credits (Form

4573))

maintain its books and records in accordance with generally

accepted accounting principles, net capital must be computed

• Brownfield Redevelopment Credit (calculated on the MBT

in accordance with the books and records used by the financial

Election of Refund or Carryforward of Credits (Form 4584))

institution, so long as the method fairly reflects the financial

• Historic Preservation Credit (calculated on Form 4584)

institution’s net capital for purposes of MBT. If the financial

• Film Infrastructure Credit (as assignee only)

institution owns a subsidiary that is an authorized insurance

company, the equity capital of the insurance subsidiary is not

Line 29: Recapture of certain credits is entered on MBT

included in the financial institution’s equity capital. Attach

Schedule of Recapture of Certain Business Tax Credits and

Deductions (Form 4587). For a financial institution, these are the

supporting schedules.

Michigan Economic Growth Authority (MEGA) Employment

UBGs: In completing the combined return, a member of a

Tax Credit and Brownfield Redevelopment Credit. If the taxpayer

unitary business group of financial institutions eliminates its

experienced recapture of either of these credits during the filing

investment in the positive Equity Capital of other members

period, complete Form 4587 and carry the result to this line.

of the same group. Eliminations occur to Equity Capital at

the member level. Because each member of the group must

PART 2: PAYMENTS, REFUNDABLE CREDITS,

compute the Net Capital tax base in accordance with GAAP,

AND TAX DUE

each member should represent a positive or zero Equity Capital

UBGs: On lines 33 through 39, enter combined data for all

before Eliminations. Thus, the resulting unitary return for

members included on this combined return.

MBT may not exactly correlate to the group’s federal returns

Line 33: Enter overpayment credited from prior MBT return.

or consolidated GAAP equity but will comply with the

requirements of the MBT.

Line 34: Enter total payments made with the MBT Quarterly

Line 13: Under MCL 208.1261(k), Michigan obligations means

Return (Form 4548), the MBT estimates paid with the

Combined Return for Michigan Taxes (Form 160) or via

a bond, note, or other obligation issued by a governmental unit

Electronic Funds Transfer (EFT). Include all payments made

described in Section 3 of the Shared Credit Rating Act, Public

Act 227 of 1985, MCL 141.1053.

toward the current filing period.

Line 14: Under MCL 208.1261(s), United States obligations

Line 35: Enter the total withholding payments made on your

behalf by flow-through entities (FTEs). Include all withholding

means all obligations of the United States exempt from taxation

under 31 USC 3124(a) or exempt under the United States

payments made on returns that apply to the tax year included

constitution or any federal statute, including the obligations

in this return. Included on this line would be Flow-Through

Withholding (FTW) payments made by flow-through entities

of any instrumentality or agency of the United States that are

exempt from state or local taxation under the United States

whose tax years ended with or within the tax year included in

constitution or any statute of the United States.

this return. For example, consider an FTE partnership with a

Form 4590 - Michigan Business Tax Annual Return For Financial Institutions - 2013 Page 6

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