Form 4573 - Business Tax Miscellaneous Nonrefundable Credits

Eligible taxpayer means a taxpayer that is a private equity

owned or under common control of an entity that is delinquent.

fund which serves as a conduit for the investment of private

A credit cannot be claimed for any direct expenditure for which

securities not listed on a public exchange by accredited

a Film Production Credit was claimed for either an MBT or

investors or qualified purchasers at any time during which the

withholding tax liability.

investment is acquired or subsequently used to claim the credit

Line 64: UBGs: Enter the unused credit amount from Form

under this section.

4580, Part 2B, line 55, column C.

Accredited investor means that term as defined under Section 2

Line 68: If line 65 is greater than line 62, enter the difference.

of the Securities Act of 1933, 15 USC 77b.

This is a credit carryforward to be used on the taxpayer’s next

Qualified purchaser means that term as defined under

MBT return.

Section 2 of the Investment Company Act of 1940, 15 United

For

information,

contact

the

Michigan

Film

States Code (USC) 80a-2.

Office

1-800-477-3456

visit

the

Web

site

Line 58: Private equity fund manager means the person or

persons responsible for the management of the investments of

Film Infrastructure Credit

the eligible taxpayer.

An eligible taxpayer may claim a credit for investment in

a qualified film and digital media infrastructure project of

For purposes of this credit, the location of the activity of the

private equity fund manager is based on the location of the

up to 25 percent of the base investment expenditures for the

office from which the fund manager conducts management

project, provided the taxpayer enters into an agreement with

the Michigan Film Office, concurred in by the State Treasurer.

activity for the eligible taxpayer.

The credit is reduced by the amount of any Brownfield

UBGs: If the eligible taxpayer is a member of a UBG, enter only

Redevelopment Credit claimed under Section 437 of the

the activity of the eligible fund manager conducted in Michigan.

MBT Act for the same base investment. If the credit exceeds

the taxpayer’s tax liability for the tax year, the excess may be

Line 59: If the eligible taxpayer is a member of a UBG,

carried forward to offset tax liability in subsequent years for a

enter only the activity of the eligible fund manager conducted

maximum of ten years.

everywhere.

Upon verification that the taxpayer has complied with the

Line 61: If the taxpayer engages in both private equity fund

agreement terms and investment expenditures and eligibility

activities as well as other activities, the amount on line 70

are met, the Film Office will issue an Investment Expenditure

cannot be used. Instead, the taxpayer must do a pro forma

Certificate stating the amount of the credit. The certificate must

calculation of the tax before this credit based solely on the

be attached to the return.

private equity fund activities.

The credit may be assigned in the tax year in which the

UBGs: To the extent that a private equity fund is part of

Investment Expenditure Certificate is received but any such

a UBG, the Private Equity Fund Credit is equal to the tax

assignment is irrevocable. The MBT Film Credit Assignment

liability of the eligible member prior to this credit, multiplied

(Form 4589) must be attached to the return on which the credit

by a fraction which is the Michigan activities of the manager

is claimed.

over the activities of the manager everywhere. A pro forma

calculation must be performed to determine the tax liability of

An assigned credit amount must be claimed against the

the eligible UBG member prior to this credit. See guidance on

assignee’s MBT liability during the assignee’s tax year in

pro forma calculations in the UBG note under line 2.

which the credit was assigned.

NOTE: Beginning January 1, 2012, this credit is available as

Film Job Training Credit

a certificated credit to the extent that the taxpayer has entered

An eligible production company may claim a credit of up to

into an agreement with the Michigan Film Office with the

50 percent of qualified job training expenditures in film and

concurrence of the State Treasurer by December 31, 2011, but

digital media for qualified personnel, provided the taxpayer

the credit has not been fully claimed or paid prior to January 1,

enters into an agreement with the Michigan Film Office,

2012. This credit must be claimed beginning with the taxpayer’s

concurred in by the State Treasurer. If the credit exceeds the

first tax year ending after December 31, 2011, in order for the

taxpayer’s tax liability for the tax year, the excess may be

taxpayer to remain taxable under the MBT and claim the credit.

carried forward to offset tax liability in subsequent years for a

NOTE: To qualify for the credit, a taxpayer must not be

maximum of ten years.

delinquent in a tax or other obligation owed to Michigan nor be

Line 63: Upon verification that the taxpayer has complied

owned or under common control of an entity that is delinquent.

with the agreement terms and the qualified job training

A credit cannot be claimed for any direct expenditure for which

expenditures and eligibility are met, the Film Office will issue

a Film Production Credit was claimed against either an MBT or

a Qualified Job Training Expenditure Certificate verifying the

withholding tax liability.

amount of the credit to be claimed. The certificate must be

If the taxpayer originally awarded this credit sells or otherwise

attached to the return to receive the credit.

disposes of any tangible assets, the cost of which were included

NOTE: To qualify for the credit, a taxpayer must not be

in the base investment, that taxpayer must recapture part of the

delinquent in a tax or other obligation owed to Michigan nor be

credit in the year of disposition. Credit recapture is reported on

Form 4573 - Business Tax Miscellaneous Nonrefundable Credits - 2014 Page 10

Related Articles

Related forms

Related Categories