Form 4573 - Michigan Business Tax Miscellaneous Nonrefundable Credits

to 206.711. A fiduciary organization is a 501(c)(3) exempt,

• Have more than 3,000 credentialed journalists, including

charitable organization approved by the Michigan State Housing

international journalists, who attend the auto show.

Development Authority (MSHDA) to manage a reserve fund. A

A taxpayer claiming the International Auto Show Credit must

reserve fund is a fund established and managed by a fiduciary

maintain in its records proof that the international auto show

organization housed at a financial institution.

satisfies all of the above criteria.

Line 54: The credit is equal to the qualified taxpayer’s entire

This credit is nonrefundable but may be carried forward up to

ten years. The credits, combined with the equivalent credits

MBT liability or $250,000, whichever is less.

found in the Individual Income Tax Act in MCL 206.276,

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

may not exceed $1 million annually for all taxpayers. The

forma tax calculation must be attached showing the individual

determination of whether the annual limit is reached will be

member’s tax liability. This credit is equal to the lesser of the

made by MSHDA, which must certify contributions eligible

member’s entire MBT liability or $250,000, whichever is less.

for a credit, in accordance with the Individual or Family

See guidance on pro forma calculations in the UBG note under

Development Account Program Act.

line 2.

Attach the certificate issued by MSHDA for this credit to the

Brownfield Redevelopment Credit

return to substantiate a claim. (If the certificate is not attached,

the credit will be disallowed.)

The Brownfield Redevelopment Credit encourages businesses

to make investment on eligible Michigan property that was

NOTE: For purposes of this credit, qualified financial

used or is currently used for commercial, industrial, public, or

institution is defined by reference to the definition of financial

residential purposes and is either a facility (environmentally

institution in the Individual or Family Development Account

contaminated property), functionally obsolete, or blighted.

Program Act, rather than the MBT Act. Financial institution

for this credit is defined as “a state chartered bank, state

NOTE:

Beginning

January

2012,

the

Brownfield

redevelopment credit may be claimed as a certificated credit if

chartered savings bank, savings and loan association, credit

union, or trust company; or a national banking association or

a taxpayer has a preapproval letter by December 31, 2011, but

federal savings and loan association or credit union.”

has not fully claimed the credit by January 1, 2012. The credit

may be claimed as either a refundable accelerated credit (on

Line 45: UBGs: Enter the unused credit amount from Form

Form 4889) or a non-refundable credit. Non-refundable credits

4580, Part 2B, line 52, column C.

and non-refundable carryforwards of the credit are claimed

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

Bonus Depreciation Credit

certificate of completion is issued.

For tax years beginning after December 31, 2008, and ending

before January 1, 2011, a taxpayer may claim a credit equal

A taxpayer claiming a nonrefundable certificated brownfield

to 0.42 percent of the amount of the IRC § 168(k) deduction

credit may make the election in the year in which a credit is

claimed on the taxpayer’s federal return for the 2008 tax year

available and will remain taxable under the MBT until the

apportioned to Michigan. If the credit exceeds the taxpayer’s

qualifying credit and any carryforward of the credit are

MBT liability, the excess may be carried forward for ten years

extinguished.

or until used up, whichever comes first. This credit applies to

Line 56: Complete Form 4584 to claim this credit and elect a

all standard taxpayers other than regulated utilities.

carryforward of any excess credit.

Because no new Bonus Depreciation credit can be created after

The administration of the Brownfield Redevelopment Credit

tax year 2011, only the carryforward line remains for this credit.

program is assigned to MEGA. For more information on the

Line 50: Enter the unused credit amount from previous year.

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

UBGs: Enter the unused credit amount from Form 4580, Part

Private Equity Fund Credit

2B, line 53, column C.

An eligible taxpayer may claim a Private Equity Fund Credit

equal to the eligible taxpayer’s tax liability attributable to the

International Auto Show Credit

activities as an eligible taxpayer for the tax year after claiming

A taxpayer who owns, operates, or controls an international

any other credits allowed under the MBT Act multiplied by

auto show in Michigan that meets certain criteria may claim

a fraction, the numerator of which is the total activity of the

a credit. An international auto show must meet all of the

private equity fund manager conducted in Michigan during the

following criteria:

tax year and the denominator of which is the total activity of

• Promote, advertise, or display the design or concept of

the private equity fund manager conducted everywhere during

products that are designed, manufactured, or produced, in

the tax year.

whole or in part, in this State and are available for sale to the

Eligible taxpayer means a taxpayer that is a private equity

general public.

fund which serves as a conduit for the investment of private

• Use more than 100,000 square feet of floor space.

securities not listed on a public exchange by accredited

• Be open to the general public for at least seven consecutive

investors or qualified purchasers at any time during which the

days in a calendar year.

investment is acquired or subsequently used to claim the credit

• Have attendance exceeding 500,000.

under this section.

Form 4573 - Michigan Business Tax Miscellaneous Nonrefundable Credits - 2013 Page 9

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