Form 4574 - Michigan Business Tax Refundable Credits

UBGs: Add up the property tax bills for all members and enter

in the resolution reduced by the number of years for which a

the total amount on the corresponding line. The requested

credit has been claimed or could have been claimed under SBT.

tax bills and proof of payment for each member claiming the

A taxpayer that claimed a credit under either SBT or MBT that

Personal Property Tax Credit should be attached to the group’s

had an agreement with MEGA based on qualified new jobs as

annual return.

defined in the MEGA Act, and that removes 51 percent or more

Workers’ Disability Supplemental Benefit (WDSB) Credit

of those qualified new jobs from Michigan within three years

after the first year in which the taxpayer claimed a credit, must

The WDSB Credit is available to self-insured taxpayers for

pay back an amount equal to the total of all credits claimed no

the amount authorized by the Department of Licensing and

later than 12 months after those qualified new jobs are removed

Regulatory Affairs (LARA) during the tax year. The amount of

from Michigan. Recapture is reported on Form 4587.

the credit is provided to taxpayers by LARA.

For more information, contact MEDC at 1-888-522-0103 or

For more information on WDSB credit eligibility, contact

visit the MEDC Web site at

LARA, Workers’ Compensation Agency at (517) 322-1879

org/.

or 1-888-396-5041, or visit the LARA Web site at

Line 12: Approved businesses receive a certificate from

Line 8: Attach to the return a copy of the document provided

MEGA each year showing the total amount of tax credit

allowed. Attach the Annual Tax Credit Certificate to the return.

by LARA to substantiate a claim for this credit.

(If the certificate is not attached, the credit will be disallowed.)

UBGs: Enter total amount authorized for all members on line 8

UBGs: Enter the total amount of MEGA Employment Tax

and attach LARA documentation for each member.

Credits claimed by eligible members and provide the requested

Next Energy Payroll Credit

MEGA certification for each eligible member.

Next Energy Payroll Credit provides a payroll-based credit to

NASCAR Safety Credit

a taxpayer located within an alternative energy Renaissance

Zone. The credit is equal to the payroll amount for the tax

This credit is not available for tax years after 2011. Leave line

13 blank, and continue to line 14.

year attributable to employees who are working on alternative

energy-related research, development, or manufacturing

and whose regular place of employment is within the Zone,

Hybrid Technology Research and Development Credit

multiplied by the Michigan Individual Income Tax (IIT) rate

The Hybrid Technology Research and Development Credit

for that year. (The Michigan Individual Income Tax rate can be

is available for taxpayers who are engaged in research and

found at ) For the 2013 and 2014 tax

development of a qualified technology. The credit is equal to

years, the Michigan IIT rate is 4.25%.

3.9 percent of the compensation as defined in the MBT Act for

services performed in a qualified facility and paid to employees at

Line 11: Multiply line 10 by the Individual Income Tax rate of

the qualified facility in the tax year. To be eligible for this credit,

4.25% (0.0425).

the taxpayer must have entered into an agreement with MEGA

UBGs: If any member of a UBG is claiming the Next Energy

before April 1, 2007, agreeing to meet certain statutory conditions.

Payroll Credit, attach a statement identifying the member(s)

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

and providing information requested on the form. Enter the

certificated credit to the extent that the taxpayer has entered into

total payroll amount for all eligible members on line 10.

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

has not been fully claimed or paid prior to January 1, 2012.

MEGA Employment Tax Credit

This credit must be claimed beginning with the taxpayer’s

The MEGA Employment Tax Credit promotes economic

first tax year ending after December 31, 2011, in order for

growth and jobs in Michigan. For a period of time not to

the taxpayer to remain taxable under the MBT and claim the

exceed 20 years, a taxpayer that is an authorized business or

credit.

an eligible taxpayer may claim a credit equal to the amount

certified each year by MEGA.

A taxpayer claiming this credit may also claim the

Research and Development Credit on the MBT Credits for

NOTE: Beginning January 1, 2012, this credit is available as

Compensation, Investment, and Research and Development

a certificated credit to the extent that the taxpayer has entered

(Form 4570). However, a taxpayer may not claim both credits

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

for the same expenditures.

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

For more information, contact MEDC at 1-888-522-0103 or

1, 2012.

This credit must be claimed beginning with the

visit the MEDC Web site at

taxpayer’s first tax year ending after December 31, 2011, in

org/.

order for the taxpayer to remain taxable under the MBT and

claim the credit.

Line 14: Eligible taxpayers receive a certificate from MEGA

each year showing the total amount of tax credit allowed.

MEGA may certify a credit based on an agreement entered into

Attach the Annual Tax Credit Certificate to the return. (If the

prior to January 1, 2008, under the Single Business Tax (SBT).

certificate is not attached, the credit will be disallowed.) The

The number of years for which the credit may be claimed under

MBT will be equal to the maximum number of years designated

credit amount cannot exceed $2,000,000.

Form 4574 - Michigan Business Tax Refundable Credits - 2013 Page 4

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