Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule (Page 3 of 5) in pdf

Instructions for Form 4595

Michigan Business Tax (MBT) Renaissance Zone Credit Schedule

NOTICE: Public Act 282 of 2014 resulted in a change to the Renaissance Zone Credit calculation for taxpayers first

located within the Zone before December 1, 2002. Complete line 24 using the instructions for that line in this

section. DO NOT follow the instructions on the face of the form for line 24.

A taxpayer located in a designated renaissance zone that does

Purpose

not have a certificated renaissance zone credit but which makes

To allow eligible taxpayers to calculate and claim the

the election to remain taxable under the MBT on the basis

Renaissance Zone Credit. For standard taxpayers and financial

of another certificated credit may also claim this credit. For

more information on certificated credits see the Schedule of

institutions, the credit is calculated on Form 4595 and then

Certificated Credits (Form 4947).

carried to the MBT Miscellaneous Nonrefundable Credits

(Form 4573). Insurance companies will carry this credit to the

EXAMPLE 1: Taxpayer enters into a qualified collaborative

Miscellaneous Credits for Insurance Companies (Form 4596).

agreement with the MSF and locates and begins conducting

business in a tool and die renaissance zone on January 1, 2011.

NOTE: If a person is located and has business activity in

more than one Renaissance Zone, use a separate Form 4595 to

Taxpayer may elect to continue under the MBT on the basis of

this certificated renaissance zone credit.

calculate the credit for each Zone. For each line that requires

Zone-specific data, enter data based only on business activity

EXAMPLE 2: Taxpayer located and began conducting

in the Zone identified on line 2 of this copy of the form.

business in a designated renaissance zone on January 1, 2011;

however, the renaissance zone does not qualify as a certificated

Renaissance Zone Credit

credit for purposes of the MBT election (see the certificated

renaissance zone credits listed previously in these instructions).

The Renaissance Zone Credit encourages businesses and

The taxpayer also holds a certificated anchor company credit.

individuals to help revitalize a designated Zone by providing a

Taxpayer may make the election to remain taxable under the

credit for businesses located and conducting business activity

MBT on the basis of its certificated anchor company credit and

within the Zone. The method of calculating the credit is

continue to claim the non-certificated renaissance zone credit

different for businesses first locating and conducting business

once it has properly elected the MBT.

activity within the Renaissance Zone before December 31,

2002, and those businesses first locating and conducting

To obtain the credit an otherwise qualified taxpayer must file

business activity within the Renaissance Zone after December

an MBT annual return. The credit is equal to the lesser of the

30, 2002.

following:

Use this form to calculate both a certificated and non-

• The tax liability attributable to business activity conducted

certificated renaissance zone credit. Check the certificated

within the Renaissance Zone in the tax year.

credit box if the credit being calculated is a certificated

• 10 percent of adjusted services performed in the designated

renaissance zone credit. File a separate Form 4595 for each

Renaissance Zone.

zone and type (certificated or non-certificated) of credit.

• For a taxpayer located and conducting business activity in

Beginning January 1, 2012, only those taxpayers with a

the Renaissance Zone before December 1, 2002, the credit is

certificated credit, which is awarded but not yet fully claimed

equal to the greater of the two results below:

or utilized, may elect to be MBT taxpayers. A taxpayer with

Result 1

a certificated renaissance zone credit may make the election to

○ The lesser of 1) the business activity conducted within

remain taxable under the MBT for its first tax year ending after

the zone (from line 15) OR 2) the adjusted services

December 31, 2011.

performed in the zone (from line 21)

The certificated renaissance zone credits are the following

types of zones for which the taxpayer has a development

Result 2

○ The product of the following:

agreement with the Michigan Strategic Fund (MSF) before

January 1, 2012:

•

The Single Business Tax (SBT) Renaissance

• agricultural processing,

Zone Credit claimed for the tax year ending in 2007.

• border crossing,

•

The ratio of the taxpayer’s payroll in this

• forest products processing,

State in the tax year divided by the taxpayer’s payroll

in this State in its SBT tax year ending in 2007.

• Michigan strategic fund designated renewable energy

•

renaissance zones,

The ratio of the taxpayer’s Renaissance Zone

• AND the tool and die renaissance zones for which

Business Activity Factor for the tax year divided by the

the taxpayer has entered into a qualified collaborative

taxpayer’s Renaissance Zone Business Activity Factor

agreement with the MSF before January 1, 2012.

for its SBT tax year ending in 2007.

157

Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule Page 3

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