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Instructions for Form 4889,

2012 Request for Accelerated Payment

for the Brownfield Redevelopment Credit and the Historic Preservation Credit

rehabilitation,

assignment

certificate,

reassignment

Purpose

certificate issued under section 435 for a tax year(s) beginning

To claim an accelerated payment of a credit, and an accelerated

after December 31, 2011.

payment of multiyear credit, for a qualified Michigan Business

NOTE: A taxpayer is still entitled to claim 90% of the Special

Tax (MBT) Brownfield Redevelopment or MBT Historic

Consideration Credit allowed. However, this claim would

Preservation projects that received a certificate for a tax year

be limited to the amount payable in the tax year claimed as

beginning after December 31, 2011.

described above.

Refund Requirements

For tax years ending after December 31, 2011, a taxpayer may

A taxpayer with a certificated credit under section 435 or 437 of

not claim a refundable credit under section 437(18) or section

the Michigan Business Tax Act (MBTA) may claim that credit

435(9) of the MBTA and may only claim a refundable credit

in a tax year ending after December 31, 2011, by electing to

issued under sections 437 or 435 of the MBTA under section

pay the tax imposed by the MBTA in the tax year in which that

510 of the MBTA and this form.

certificated credit may be claimed in lieu of the tax imposed

A credit issued under section 437(10) is not eligible for an

under Part 2 of the income tax act of 1967, the Corporate

accelerated payment.

Income Tax (CIT). If this form is filed, the taxpayer is required

to file and pay the tax imposed by the MBTA in the tax year

Special Instructions for Unitary Business

this form is filed and must continue to file under the MBTA

Groups

until the balance of any certificated credits is exhausted.

If the person with the certificated credit under section 435 or

If a certificate of completion, assignment certificate, or

437 of the MBTA is part of a Unitary Business Group (UBG)

component completion certificate is issued under section 437 to

as defined under the MBTA, the UBG is required to make

a taxpayer for a tax year beginning after December 31, 2011,

the election for the group claiming the credit. To do this,

or, if a certificate of completed rehabilitation, assignment

the Designated Member will file this form on behalf of the

certificate, or reassignment certificate is issued under section

submember of the UBG that is entitled to claim the credit at

435 to a taxpayer for a tax year beginning after December 31,

issue. If the UBG makes this election, then the entire UBG —

2011, then beginning after December 31, 2011, that taxpayer

which would include all members that satisfy the definition

may elect to claim a refundable credit for 90 percent of the

of UBG under the MBTA — will be taxed under the MBTA.

amount of that certificate.

Because of this, in the year this form is filed the UBG must file

The claim for an accelerated payment of one of these credits is

under the MBTA and pay the tax due under the MBTA, and

made on Form 4889. This form may be filed before the end of

must continue to file under the MBTA until the balance of any

the tax year, and the department shall pay the refundable credit

certificated credits is exhausted.

within 60 days after receiving the claim. A taxpayer claiming a

The designated member is required to file this form on

credit under this reduced refundable payout option shall forgo

behalf of the UBG even if the person with the credit is a

the remaining 10 percent of the credit. If a taxpayer is claiming

submember of the UBG. If a member of a UBG other than the

more than one credit, a separate form must be completed for

Designated Member files this form without disclosing they are a

each credit.

part of a UBG, then the UBG will be treated as having elected

If section 437 or 435 provides that payment of a credit will be

to be taxed under the MBTA. If this is the case, the entire UBG

made over a period of years or limits the annual amount of a

— which would include all members that satisfy the definition

payment, an accelerated payment of this refundable credit may

of UBG under the MBTA — will be taxed under the MBTA.

only be claimed for the amount payable in the year claimed.

General Instructions

A taxpayer may elect for an accelerated payment of this

refundable credit for the amount payable in that tax year. This

Only one credit may be claimed on each Form 4889. If the

election may be made in each year that a credit is payable under

taxpayer has received more than one certificate entitling it to an

section 437 or 435.

accelerated payment of a refund in the tax year included on this

form it must file a separate Form 4889 for each eligible credit.

However, a taxpayer claiming the Special Consideration

Historic Preservation Credit under section 435(20) may elect

Amount eligible for an accelerated payment. If section

to claim an accelerated payment of the total balance of unused

437 or 435 provides that payment of the credit at issue will

credit issued for a tax year(s) beginning after December 31,

be made over a period of years or limits the annual amount

2011, notwithstanding the 3 million dollar annual cap provided

of a payment, the taxpayer is only entitled to an accelerated

for in section 435(20). The amount of that refund will be equal

payment of the amount payable in the tax year included on this

to 86 percent of the total amount of the credit and the taxpayer

form. This taxpayer is entitled to make a separate claim for an

shall forgo the remaining 14 percent of the credit. As with

accelerated payment in each subsequent tax year it is entitled to

the other credits eligible for an accelerated payment, to be

a payment under section 437 or 435.

eligible the taxpayer must receive a certificate of completed

Form 4889 - Request For Accelerated Payment For The Brownfield Redevelopment Credit And The Historic Preservation Credit - 2012 Page 3

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