Form 4596 - Business Tax Miscellaneous Credits For Insurance Companies

Example 1: Sales Co. employs Salesperson whose territory

historic resource is placed in service, a percentage of the credit

includes both Detroit, Michigan, and Toledo, Ohio. Salesperson

may be subject to recapture.

calls on customers located in both Michigan and Ohio. The

compensation paid to Salesperson is not “compensation in this

100 percent If less than 1 year

state” because Salesperson’s activity is not limited solely to

If at least 1 year, but less than 2 years

80 percent

Michigan, and calling on customers in Ohio is not incidental to

60 percent

If at least 2 years, but less than 3 years

Salesperson’s activity in Michigan.

If at least 3 years, but less than 4 years

40 percent

Example 2: Manufacturer employs Engineer at its Michigan

If at least 4 years, but less than 5 years

20 percent

facility. Several times a year, Engineer travels out of state to meet

with suppliers. Although Engineer performs services both within

Questions regarding federal and State certification may be

Michigan and outside Michigan, Engineer’s out-of-state services

directed to SHPO at (517) 373-1630. For additional information,

are incidental to Engineer’s services within Michigan. The

visit the SHPO Web site at

compensation paid to Engineer is “compensation in this state.”

Information about Federal Historic Preservation Tax Incentives

is available at

Renaissance Zone Credit

The Renaissance Zone Credit encourages businesses and

Brownfield Redevelopment Credit

individuals to move into a designated Zone to help revitalize

Beginning January 1, 2012, the brownfield redevelopment

the area by providing a credit for businesses located and

credit may be claimed as a certificated credit if a taxpayer has

conducting business activity within the Zone.

a preapproval letter by December 31, 2011, but has not fully

claimed the credit by January 1, 2012.

The credit may be

Line 15: Complete and include the MBT Renaissance Zone

claimed as either a refundable accelerated credit (on Form

Credit Schedule (Form 4595) to claim this credit.

4889) or a non-refundable credit.

Non-refundable credits

If located in more than one zone, complete and include a

and non-refundable carryforwards of the credit are claimed

separate Form 4595 for each zone. Add line 25b from each

here. The credit must first be claimed in the year in which the

Form 4595 and enter the sum on Form 4596, line 15.

certificate of completion is issued.

Claim

only

non-certificated

renaissance

zone

Line 20: Complete Form 4584 to claim this credit and

credit on this form. A certificated renaissance zone

carryforward the resulting overpayment.

credit is calculated on Form 4595 and claimed on

Schedule

Corporate

Income

Tax

Liability

The administration of the Brownfield Redevelopment Credit

the

for a Michigan Business Tax Insurance Filer (Form 4974).

program is assigned to MEGA. For more information on the

For more information on certificated and non-certificated

approval process, contact the MEDC at (517) 373-9808.

renaissance zone credits, see special instructions to Form 4595.

Film Infrastructure Credit

NOTE: Although Insurance companies do not normally

This credit is available to an insurance company as an assignee

calculate business income, or apportion their tax base

by a sales factor, both are required in the calculation of a

only.

Renaissance Zone credit. Use the Business Income Worksheet

An eligible taxpayer may claim a credit for investment in a

(Worksheet 4746) to calculate a pro forma business

qualified film and digital media infrastructure project equal

income, and calculate pro forma sales in Michigan and sales

to 25 percent of the base investment expenditures for the

everywhere. See instructions for the MBT Annual Return

project, provided the taxpayer enters into an agreement with

(Form 4567) for guidance on the definition of sales and

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

applicable sourcing provisions.

The credit is reduced by the amount of any Brownfield

Redevelopment Credit claimed under Section 437 of the

For more information on Renaissance Zones, contact

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

the MEDC at (517) 373-9808 or visit their Web site at

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

For information on the

carried forward to offset tax liability in subsequent years for a

MBT credit, contact the Michigan Department of Treasury,

maximum of ten years.

Customer Contact Division, MBT Unit, at (517) 636-6925.

Upon verification that the taxpayer has complied with the

Historic Preservation Credit

agreement terms and investment expenditures and eligibility

The Historic Preservation Credit provides tax incentives for

are adequately met, the Michigan Film Office will issue an

homeowners, commercial property owners, and businesses

Investment Expenditure Certificate stating the amount of the

to rehabilitate historic resources located in Michigan.

credit. The certificate received must be attached to the return.

Rehabilitation projects must be certified by SHPO.

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

Line 17: Complete Form 4584 to claim this credit and

Investment Expenditure Certificate is received but any such

carryforward the resulting overpayment, if any.

assignment is irrevocable. Form 4589 must be attached to the

Line 18a: Recapture from Form 4584, line 2. If the resource

return on which the credit is claimed.

is sold or the certification of completed rehabilitation or

preapproval letter is revoked less than five years after the

Form 4596 - Business Tax Miscellaneous Credits For Insurance Companies - 2012 Page 5

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