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reflected in federal taxable income (as defined for MBT

A through F. In column A, enter the taxable year in which the

disposed assets were acquired. Enter combined gross sales

purposes) is equal to the gain reported for federal purposes.

price (net of costs of sale) in column B, and in column C, enter

For property placed in service after December 31, 2007, gain

total gain or loss included in calculating federal taxable income

reflected in federal taxable income (as defined for MBT

(as defined for MBT purposes).

purposes) is the gain reported federally except that it shall be

NOTE: Sales price includes any benefit derived from the sale.

calculated as if IRC § 168(k) were not in effect.

NOTE: Sales price includes any benefit derived from the sale.

Worksheet 1b — Depreciable Mobile Tangible Assets

Enter all dispositions of depreciable mobile tangible assets that

Worksheet 1c — Assets Transferred Outside Michigan

were acquired after 2007 and were sold or otherwise disposed

Enter all depreciable tangible assets other than mobile tangible

of during the current filing period. Give all information required

assets acquired after 2007 that were eligible for ITC and were

for each disposition in columns A through F. In column A, enter

transferred outside Michigan during the filing period. Give

the taxable year in which the disposed assets were acquired.

all information required for each disposition in columns A

Enter gross sales price (net of costs of sale) in column B, and in

through E. In column A, enter the taxable year in which the

column C, enter total gain or loss included in calculating federal

disposed assets were acquired, and in column B, enter adjusted

taxable income (as defined for MBT purposes).

basis as used for federal purposes. Do not use a recomputed

For property placed in service prior to January 1, 2008, gain

MBT basis for this purpose.

• Column H: Calculate possible recapture rate: divide column

Calculation of MBT ITC Recapture Rates

and Amounts

E by column G for each taxable year.

Complete Worksheet 2 (on the following page), entering each

• Column I: Calculate used recapture rate: if column H > 0,

taxable year (End Date) in which the disposed assets that

enter column H, otherwise enter 0 for each taxable year.

triggered MBT ITC credit recapture were acquired.

• Column J: MBT recapture of capital investment. Enter total

NOTE: Lines references on columns below are based

amount of recapture of capital investment reported on form

on 2010 MBT form 4579. Lines for 2008 MBT forms are

4570, line 16, for each taxable year listed on column I.

different, so if copying information from a 2008 MBT form,

• Column L: Gross MBT ITC credit recapture amount. Multiply

choose the appropriate lines.

column J by column K. This represents the total amount of ITC

Worksheet 2

credit recapture available to be reported in the tax year.

• Column A: Enter in chronological order, beginning with

• Column M: MBT ITC credit recapture amount offset by

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

credit. Enter the lesser of columns H and L. This is the amount

of disposed assets that triggered MBT ITC recapture from

of available ITC credit recapture that was offset by the total

Worksheet 1a through 1c.

amount of available ITC credit in the year.

UBGs: If capital asset subject to recapture is from a member

• Column O: SBT credit recapture amount. Enter total amount

that was not part of the group in the tax year the asset was

from Form 4570, line 19 for each taxable year listed on column N.

acquired, make a separate line entry for the tax year the

member filed outside of the group. Take care to report in this

• Column P: SBT ITC credit recapture amount offset by credit.

line information requested in each column only from the

Enter lesser of the amount on column O, and the amount of

member’s single filings, not the group’s.

column H minus column K. This is the amount of SBT ITC

credit recapture that was offset by the total amount of available

• Column B: Enter allowable MI compensation and ITC credits

ITC credit in the taxable year.

amount from Form 4570, line 26 with the corresponding

• Column Q: Total MBT ITC used. Add columns D, M, and

acquisition year in column A.

P. The total amount of MBT ITC used equals to the amount of

• Column C: Enter the MI compensation credit amount from

credit that offsets MBT ITC credit recapture, SBT ITC credit

Form 4570, line 3 with the corresponding acquisition year in

recapture, and the MBT liability.

column A.

• Column R: Extent used rate. Divide amounts on column Q

• Column D: Calculate net ITC credit amount: subtract column

by amounts on column H.

C from column B for each taxable year. If difference is less

• Column T: MBT recapture base. Enter total amount of

than zero (is negative), enter zero. This is the amount of ITC

credit that offsets MBT liability.

recapture capital investment from Worksheet 1a, column F;

Worksheet 1b, column F and Worksheet 1c, column B.

• Column F: MBT capital investment amount.

Enter total

• Column U: MBT recapture amount. Multiply amount in

amount of capital investment reported on Form 4570, line 9 for

each taxable year listed on column E.

column T by rates in column G, and in column R.

• Column G: ITC rate.

Enter 2.32% for taxable years on

Add up figures in each row of column U, and carry that amount

column E that end with 2008, otherwise enter 2.9%.

to Form 4902, line 1.

Form 4902 - Michigan Corporate Income Tax Schedule Of Recapture Of Certain Business Tax Credits - 2012 Page 7

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