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Instructions for Form 4975

Schedule of Corporate Income Tax (CIT) Liability

for a Michigan Business Tax (MBT) Financial Filer

Line 5: Divide line 4 by the number of tax periods reported in

Restrictions for MBT Filers

the table and enter here.

Beginning January 1, 2012, only those taxpayers with a

UBGs: Enter here the sum of all members Form 4752, line

certificated credit, which is awarded but not yet fully claimed

25 after recalculation of lines 23, 24, and 25 on that form

or utilized, may elect to be MBT taxpayers.

using the Goodwill addback, as instructed under the “Special

Purpose

Instructions for UBGs”

To calculate the CIT liability for a financial institution filing

Part 2: Credits

under MBT and compare that calculation to the MBT liability

Line 8: Enter certificated nonrefundable credit from Form

as calculated on the MBT Annual Return for Financial

4947, line 11.

Institutions (Form 4590) to determine the greater of the two

Line 10: Enter total recapture of Certain Business Tax Credits

calculated tax liabilities.

from Form 4947, line 28.

Special Instructions for Unitary Business

Line 12: Enter certificated refundable credits from Form 4947,

Groups (UBGs)

line 39.

Leave lines 1 through 4 blank. Complete line 5 with combined

Line 13: Subtract line 12 from line 11. If less than zero, enter

data from the UBG Combined Filing Schedule for Financial

as a negative number. This is the CIT liability after certificated

Institutions (Form 4752), line 25, after recalculating line 25 by

refundable credits. A negative number here represents an

adding back Goodwill to the Net Capital for each member of

the UBG. On each UBG member’s Form 4752, add back the

overpayment. Carry this amount to line 17 of this form.

Goodwill reported on line 18 columns A thru E to the amounts

Part 3: MBT Calculation to Compare Against CIT for

reported on line 23 columns A thru E. Then recalculate line

Financial Filers

24 for each UBG member’s Form 4752 using the amount from

Line 14: Enter the total MBT liability from Form 4590, line 30.

line 23 including the amount for Goodwill. Recalculate line

25 of Form 4752 for each UBG member using the new amount

Line 15: Enter the total refundable credits from Form 4590,

calculated for line 24. Proceed with the rest of the lines on

line 37.

Form 4975 after entering recalculated combined amounts from

Line 16: Subtract line 15 from line 14. If less than zero, enter

Form 4752 line 25 on line 5 of Form 4975.

as a negative number. This is the MBT liability after refundable

Line-by-Line Instructions

credits. A negative number here represents an overpayment.

Line 17: If line 13 is greater than line 16 enter the difference. If

Lines not listed are explained on the form.

line 16 is greater than or equal to line 13, enter zero. Carry this

Enter the taxpayer’s name and Federal Employer Identification

amount to form 4590, line 31. This amount will be added to the

Number (FEIN) in the appropriate fields.

MBT Tax Liability to determine Total Tax Liability on Form

UBGs: In the Name field, enter the name of the DM for

4590.

the financial institutions. Enter the FEIN for the DM of the

Include completed Form 4975 as part of the tax return filing.

financial group.

Part 1: CIT Tax Before Credits

Line 1: Enter the amount from Form 4590, line 18, for each

corresponding column.

Line 2: Enter the amount taken as a subtraction for Goodwill

from Form 4590, line 12. This amount must be added back to

Net Capital to determine CIT liability because the Goodwill

deduction is not permitted under that tax.

Line 3: Add lines 1 and 2 in each column.

Line 4: Add lines 3A, 3B, 3C, 3D, 3E. If less than zero, enter

zero here and on line 7, skip to line 7.

Form 4975 - Michigan Schedule Of Corporate Income Tax Liability For A Michigan Business Tax Financial Filer - 2014 Page 3

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