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UBGs: Fill necessary Worksheets 3a, 3b, and 3c for each

from the latest return filed for that tax year.

member of the group who has disposed of assets outside of the

UBGs: Fill set of Worksheets 4a, 4b , and 4c for each member

group, which triggered an SBT ITC recapture in the current

of the group who disposed of assets that triggered SBT ITC

filing period.

recapture in the current tax year.

• Method A:

○ Worksheet 4b, line 5, columns A and B: Starting

○ Worksheet 4a, line 4, columns A through D: Enter

with Form 4569 for the earliest 2008 and latest 2009

applicable MBT filing period, enter the information

in the tax year end date of each acquisition year of

requested on table. If more than one return was filed for

disposed assets that triggered SBT ITC recapture.

the same tax year (that is, the taxpayer filed an amended

(Those dates should be the same as appear in column A

of Worksheet 3a through 3c.)

return), use only the information from the latest return

filed for that tax year.

For each year displayed in column A, enter Form

C-8000ITC information required in the appropriate

NOTE: For MBT tax years the taxpayer filed Form 4567 and

column, using return data specific from each applicable

no Form 4569, enter on line 5A the taxable year end date, and

tax year. If the amount of column C is zero for a

enter zero for line 5B. Do not enter any information on lines

particular year, and the amount on C-8000ITC, line

5A and 5B for MBT years in which the taxpayer filed nothing or

10 for that year is larger than zero, taxpayers may not

filed a Form 4583. See Note on Using Simplest Method under

enter zero on column E if the taxpayers fall in either

the heading Calculation of SBT ITC Recapture Rates on this

of the two categories explained below, and must do the

instructions. Not filing a Form 4567 does not allow a taxpayer to

appropriate calculations as follows:

preserve SBT credit carryforward from one year to the next.

Taxpayers used the straight method to

UBGs: During tax years ending in 2008 and 2009, UBG groups

calculate the SBT liability for that taxable year:

were allowed to offset the group liability by claiming member’s

calculate the credit rate as instructed on C-8000ITC,

SBT ITC credit carryforward. When completing Worksheet

line 26 for that taxable year, and enter the result on

4b, line 5, column B, enter the portion of the total group SBT

column E; or

ITC credit carryforward used by the group for each year that

pertains to the specific member that is disposing of SBT ITC

Taxpayer used the excess compensation

asset in the current tax year, as calculated on the example

reduction method to calculate the SBT liability for that

below. If the member completing Worksheet 4b was not part of

taxable year: calculate the credit rate on C-8000ITC,

a UBG in 2008 and/or 2009 tax years, and filed as a non-UBG

line 26, for that taxable year; subtract the percentage

filer, take care to report on Worksheet 4b, lines 5A and 5B

found on C-8000S, line 6, from 100%, and multiply the

information from the member’s singly filed returns.

result of that subtraction by the calculated credit rate on

C-8000ITC, line 26. Enter the result on column E.

Example: In 2008, group ABC files MBT return claiming

○ Worksheet 4b, line 5, columns A and B: Leave lines

$1,000,000 in SBT ITC credit carryforward. The group

consisted of Company 1, Company 2, Company 3, and

blank.

Company 4. Company 4’s tax year ended after the tax year of

○ Worksheet 4a, line 4, Column E: Divide the amount in

the group’s Designated Member, so Company 4’s data was

column C by the amount in column B, for each taxable

not included in group ABC’s 2008 MBT return, even though

year in column A, and enter as a percentage.

Company 4 was part of the UBG. The total $1,000,000 in SBT

○ Worksheet 4c, lines 6, 7, and 8: leave all columns

ITC credit carryforward resulted from the sum of $200,000 in

blank.

SBT ITC credit carryforward from Company 1, $300,000 from

Company 2, and $500,000 from Company 3. In the current year,

• Method B:

companies 2, 3 and 4 dispose of capital investment outside of

○ Worksheet 4a, line 4, columns A through D: Gather

the group, which triggers SBT ITC credit recapture. Therefore,

all C-8000ITC forms filed for tax years beginning on

Group ABC fills a Form 4902 to report the sum of SBT ITC

or after January 1, 2000. (If an amended C-8000ITC

credit recapture from Company 2, Company 3, and Company 4.

was filed, use the figures from the amended form, not

When filling the Worksheet 4b, line 5, column B for Company

the original.) Sort all the returns in chronological order

2, report $200,000 – which represents the portion of the total

of taxable year end date, from earliest to latest date.

SBT ITC credit carryforward claimed by the group in 2008 that

Starting with the Form C-8000ITC for the earliest

corresponds only to Company 2’s SBT ITC credit carryforward

applicable SBT filing period, enter the information

in 2008. When filling Worksheet 4b, line 5, column B for

requested on the table for each taxable year (use one

Company 3, report $500,000 – which represents Company 3’s

row for each return).

portion of the total SBT ITC credit carryforward claimed by the

NOTE: For SBT tax years when the taxpayer filed a C-8000

group in 2008. When filling Worksheet 4b, line 5, column B for

with no C-8000ITC, or a C-8030, enter on line 4A the taxable

Company 4, report $0 – which represents Company 4’s portion

year end date, and enter zero for lines 4B, 4C, and 4D. Do not

of the total SBT ITC credit carryforward claimed by the group

enter any information on lines 4A through 4D for SBT tax

in 2008.

years in which the taxpayer filed nothing OR filed a C-8044.

○ Worksheet 4a, Column E: For each taxable year, enter

If more than one return was filed for the same tax year (that is,

the rates calculated on Worksheet 4c, line 8, column M..

the taxpayer filed an amended return), use only the information

Form 4902 - Michigan Corporate Income Tax Schedule Of Recapture Of Certain Business Tax Credits - 2014 Page 12

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