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• Method C:

reported the SBT ITC credit recapture from each member.

When filling Form 4585,line 5, column B for Company

○ Line 4, columns A through D: Fill column A, and

2, report $200,000 – which represents the portion of the

leave all others blank.

total SBT ITC credit carryforward claimed by the group

○ Line 5, columns A and B: Leave lines blank.

in 2008 that corresponds only to Company 2’s SBT ITC

○ Line 4, column E: Enter results from the taxpayer’s

credit carryforward in 2008. When filling Form 4585,

own software of choice (that is, a non-Treasury Web

line 5, column B for Company 3, report $500,000 – which

tool) or the taxpayer’s own calculation that reflects the

represents Company 3’s portion of the total SBT ITC credit

MBT statute. Retain records to substantiate figures

carryforward claimed by the group in 2008. When filling

entered in the filed return.

Form 4585, line 5B for Company 4, report $0 – which

represents Company 4’s portion of the total SBT ITC credit

PART 3: CALCULATION OF SBT ITC RECAPTURE AMOUNTS

carryforward claimed by the group in 2008.

Line 6: Follow the instructions below:

○ Line 4, column E: For each taxable year, enter the rates

Column A: Enter in chronological order, beginning with

calculated on Table I, line 9, column M.

the earliest, the tax year end date of each acquisition year of

○ Filling Table I at the end of these Instructions (lines

disposed assets that triggered SBT ITC recapture from lines 1-3.

and columns not listed are explained on the table):

Column B: Separately for each acquisition year listed in

• Line 7, column A: Enter only taxable years in

which SBT ITC disposed assets were acquired.

column A, combine the corresponding amounts in line 1,

column F, line 2, column F, and line 3, column B for all

Dates should match those listed on lines 1, 2, and 3,

disposed assets that triggered SBT ITC recapture.

columns A. List each date only once.

Column C: For each acquisition year listed in column A, enter

• Line 7, column C: For each taxable year on line 6,

the corresponding SBT ITC effective rate from line 4, column

column A, find the corresponding SBT ITC amount

E. Match the acquisition year in line 6, column A, with the

reported on line 4, column C, and Net Capital

corresponding acquisition year in line 4, column A.

Investment amount reported on line 4, column B.

Divide amounts from line 4, column C by amounts

Column D: Multiply column B by column C for each

from line 4, column B for each taxable year and

acquisition year.

enter results here. If the quotient of that division

Line 7: Add up figures in each row of line 6, column D, and

for a particular tax year listed equals zero, and the

carry the amount to Form 4570, line 19.

amount on line 7, column B is positive, instead of

zero, enter the following on line 7, column C as

Include completed Form 4585 as part of the tax return filing.

appropriate:

1) Taxpayer used the straight method to calculate the

SBT liability for that taxable years: calculated the

credit rate on C-8000ITC, line 26 for that taxable

year, and enter the result here;

2) Taxpayer used the excess compensation reduction

method to calculate the SBT liability for that taxable

year: calculate the credit rate on C-8000ITC, line

26, for that taxable year; subtract the percentage

found on C-8000S, line 6, from 100%, and multiply

the result of that subtraction by the calculated credit

rate on C-8000ITC, line 26. Enter the result here.

• Line 9, column J: Enter amount of ITC credit

used provided by the webtool that corresponds

to each taxable year displayed on line 9, column

I. Access the Michigan Department of Treasury

(Treasury) Web tool by going to the Treasury site

( ), and enter the

necessary information as instructed).

• Line 9, column M: For each taxable year on line

9, column I, multiply line 7, column C by line 9,

column L. Enter results here. Match the taxable

year on line 9, column I with the taxable year on

line 4, column A, and carry amount from line 9,

column M to line 4, column E for each appropriated

tax year line.

145

Form 4585 - Michigan Business Tax Investment Tax Credit Recapture From Sale Of Assets Acquired Under Single Business Tax - 2013 Page 7

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