Form 4596 - Business Tax Miscellaneous Credits For Insurance Companies - 2012 Page 3

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Instructions for Form 4596
Michigan Business Tax (MBT) Miscellaneous Credits for Insurance Companies
in Michigan. For a period of time not to exceed 20 years, a
Purpose
taxpayer that is an authorized business or an eligible taxpayer
To allow insurance companies to calculate certain miscellaneous
may claim a credit equal to the amount certified each year by
credits. There are strict eligibility requirements, so review
MEGA.
the descriptions carefully before claiming a credit. Follow the
Beginning January 1, 2012, this credit is available as a
instructions on the form for each credit.
certificated credit to the extent that the taxpayer has entered
Historic Preservation Credit
into an agreement with MEGA by December 31, 2011, but
the credit has not been fully claimed or paid prior to January
Beginning January 1, 2012, the historic preservation credit is
1, 2012.
This credit must be claimed beginning with the
available to the extent that a taxpayer had a Part 2 approval,
taxpayer’s first tax year ending after December 31, 2011, in
approved rehabilitation plan, approved high community impact
order for the taxpayer to remain taxable under the MBT and
rehabilitation plan or preapproval letter before by December
31, 2011, but has not fully claimed the credit before January
claim the credit.
1, 2012. The credit may be claimed as either a refundable
NOTE: MEGA may certify a credit based on an agreement
accelerated credit on the Request for Accelerated Payment
entered into prior to January 1, 2008, under the Single Business
for the Brownfield Redevelopment Credit and the Historic
Tax (SBT). The number of years for which the credit may be
Preservation Credit (Form 4889) or a non-refundable credit.
claimed for MBT will be equal to the maximum number of
Non-refundable credits and non-refundable carryforwards of
years designated in the resolution reduced by the number of
the credit are claimed here. A taxpayer may elect to claim a
years for which a credit has been claimed or could have been
certificated historic preservation credit in the year in which
claimed under SBT.
a credit is available and will taxable under the MBT until
NOTE: A taxpayer that claimed a credit under either SBT or
the qualifying credit and any carryforward of the credit are
extinguished. The credit must first be claimed in the year
MBT that had an agreement with MEGA based on qualified
that the certificate of completed rehabilitation of the historic
new jobs as defined in the MEGA Act, and that removes 51
resource was issued.
percent or more of those qualified new jobs from Michigan
within three years after the first year in which the taxpayer
claimed a credit must pay an amount equal to the total of all
Line-by-Line Instructions
credits claimed no later than 12 months after those qualified
Lines not listed are explained on the form.
new jobs are removed from Michigan. Recapture is reported
on the MBT Schedule of Recapture of Certain Business Tax
NOTE: Beginning January 1, 2012, only those taxpayers with
Credits and Deductions (Form 4587).
a certificated credit, which is awarded but not yet fully claimed
or utilized, may elect to be MBT taxpayers.
For
more
information,
call
the
Michigan
Economic
Development Corporation (MEDC) at (517) 373-9808 or visit
PART 1: REFUNDABLE CREDITS
the MEDC Web site at
Workers’ Disability Supplemental Benefit (WDSB)
Credit
Line 2: Approved businesses receive a certificate from MEGA
The WDSB Credit is available to an insurance company
each year showing the total amount of tax credit allowed.
subject to the Workers’ Disability Compensation Act of 1969.
Attach the Annual Tax Credit Certificate to the return. (If the
The credit is equal to the amount paid during that tax year by
certificate is not attached, the credit will be disallowed.)
the insurance company pursuant to Section 352 of the act, as
MEGA Photovoltaic Technology Credit
certified by the director of the Workers’ Compensation Agency,
The MEGA Photovoltaic Technology Credit is available to a
Department of Licensing and Regulatory Affairs (LARA),
qualified taxpayer that enters into an agreement with MEGA
during the tax year. The amount of the credit is provided to
to construct and operate a new facility in Michigan which
taxpayers by LARA.
serves to develop and manufacture photovoltaic energy,
For
more
information
on
WDSB
credit
eligibility,
photovoltaic systems, or other photovoltaic technology. This
contact
LARA,
Workers’
Compensation
Agency,
at
credit is available to an insurance company as an assignee
(517) 322-1879 or 1-888-396-5041 or visit the LARA Web site
only. Photovoltaic energy, systems, or technology rely on
at
solar power. The credit is available for 25 percent of the
taxpayer’s capital investment in the new facility during the
Line 1: Attach a copy of the document provided by LARA to
the return to substantiate the claim for this credit.
tax year.
The credit generally must be taken in equal installments
MEGA Employment Tax Credit
over a two-year period beginning in the tax year in which
The
Michigan
Economic
Growth
Authority
(MEGA)
the certificate is issued. A taxpayer may make an irrevocable
Employment Tax Credit promotes economic growth and jobs
17

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