Form 4596 - Business Tax Miscellaneous Credits For Insurance Companies

Line 4: To claim this credit, include a copy of the MBT Film

assignment of all or a portion of the credit or may convey the

right to the assignment on a form provided by MEGA, which

Credit Assignment (Form 4589) to the return.

will then issue assignment certificates to the assignee(s).

PART 2: NONREFUNDABLE CREDITS

A taxpayer or assignee that claims a credit and subsequently

SBT Credit Carryforward

fails to meet the requirements of the act or any other conditions

The

Historic

Preservation

Credit

and

Brownfield

established by MEGA in the agreement may, as determined

Redevelopment Credit carryforwards from SBT may be

by MEGA, have its credit reduced or terminated or have a

claimed against MBT tax liability for the remaining years the

percentage of the credit previously claimed added back to the

carryforward would have been available under the SBT Act.

tax liability of the taxpayer in the tax year that the taxpayer or

assignee fails to comply. Credit recapture is reported on Form

Compensation Credit

4587.

An insurance company may claim a credit equal to a

percentage of compensation in Michigan, not to exceed

A taxpayer certified to take the polycrystalline silicon

65 percent of the insurance company’s tax liability for the tax

credit under Michigan Compiled Laws (MCL) 208.1432 is

year after claiming the other credits allowed under Chapter

disqualified from taking this credit.

2A of the MBT Act.

Beginning January 1, 2012, this credit is available as a

Line 7: Enter compensation payments made in the tax year

certificated credit to the extent that the taxpayer has entered

on behalf of or for the benefit of employees, officers, or

into an agreement with MEGA by December 31, 2011, but the

directors as defined in MCL 208.1107(2). Generally, under

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

this definition, compensation includes, but is not limited

2012. An insurance company assignee must claim this credit

to, payments that are subject to or specifically exempt or

beginning with it’s first tax year ending after December 31,

excepted from withholding under Internal Revenue Code

2011, in order to remain taxable under the MBT and claim the

(IRC) § 3401 through § 3406.

credit.

Compensation also includes fringe benefits and any earnings

Line 3: To claim this credit, attach a copy of the assignment

that are net earnings from self-employment, as defined under

certificate received from MEGA. (If the certificate is not

IRC § 402, of the taxpayer or partner or LLC member of the

attached, the credit will be disallowed.)

taxpayer. Wages, salaries, fees, bonuses, commissions, and

other payments made in the tax year on behalf of or for the

Film Production Credit

benefit of employees, officers, or directors as well as self-

This credit is available to an insurance company as an assignee

employment earnings must be reported on a cash basis.

only.

Payments made to a pension plan, retirement or profit

The Michigan Film Office, with the concurrence of the State

sharing plan, employee insurance plans, and payments

Treasurer, may enter into an agreement with an eligible

under health and welfare benefit plans, as well as the

production company providing the company with a refundable

administration fees paid for the administration of the health

credit against MBT tax liability or against taxes withheld under

and welfare benefit plan, are compensation. Compensation

Chapter 7 of the Michigan Individual Income Tax Act of 1967.

also includes certain payments made by licensed taxpayers

that are statutorily identified. These compensation payments

A Post-Production Certificate of Completion will be issued

are calculated on a cash or accrual basis consistent with

verifying the amount of the credit to be claimed once the

the taxpayer’s method of accounting for federal income

Michigan Film Office is satisfied that company expenditures

taxes. The statute provides for certain exclusions from

and eligibility are adequately met.

compensation including employee discounts on merchandise

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

and services, payments for state and federal unemployment

Post-Production Certificate of Completion is received but such

compensation and federal insurance contributions, and

assignment is irrevocable. The credit must first be claimed in

payments made to independent contractors.

the year of assignment.

Expense incurred for the benefit of the taxpayer rather than for

Beginning January 1, 2012, this credit is available as a

the benefit of employees of the taxpayer is not compensation.

certificated credit to the extent that the taxpayer has entered

Noncompensation expenses might include payments reported

into an agreement with the Michigan Film Office with the

on a Form 1099 to an employee for the rental of a building or

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

for interest income.

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

This credit is calculated against the taxpayer’s Michigan

2012. An insurance company assignee must claim this credit

beginning with it’s first tax year ending after December 31,

compensation.

2011, in order to remain taxable under the MBT and claim the

Compensation is “in this state” if (a) the individual’s service

credit.

is performed entirely within Michigan, or (b) the individual’s

service is performed both within Michigan and outside

For

information,

contact

the

Michigan

Film

Michigan, but the services performed outside Michigan are

Office

1-800-477-3456

visit

the

Web

site

incidental to the individual’s service within Michigan.

Form 4596 - Business Tax Miscellaneous Credits For Insurance Companies - 2012 Page 4

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