Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule (Page 4 of 5) in pdf

The credit allowed continues through the tax year in which the

property. Enter the name of the Zone or Subzone in which the

Renaissance Zone designation expires and is nonrefundable.

property is included.

Check the certificated credit box if the Renaissance Zone

Business activities relating to a casino, including operating

a parking lot, hotel, motel, or retail store, cannot be used to

designation is based on a Development Agreement or a

calculate this credit. Businesses delinquent in filing or paying

Qualified Collaboration Agreement.

Property Tax, SBT, MBT or City Income Tax as of December

BUSINESS ACTIVITY CONDUCTED WITHIN

31 of the prior tax year are not eligible for this credit. Taxpayers

THE RENAISSANCE ZONE

will be notified if a claimed credit is disallowed.

Line 3: Determine the average value of property by averaging

For more information on Renaissance Zones, contact

the values at the start and end of the tax period. The State

the

Michigan

Economic

Development

Corporation

Treasurer may require the periodic averaging of values during

(MEDC) at (517) 373-9808 or visit their Web site at

the tax year if reasonably required to reflect properly the

For information on the

average value of a taxpayer’s property. Property owned by the

MBT credit, contact the Michigan Department of Treasury,

taxpayer is valued at its original cost.

Customer Contact Division, MBT Unit, at (517) 636-6925.

Line 4: Property rented by the taxpayer is valued at eight (8)

times the net annual rental rate. Net annual rental rate is the

Special Instructions for Unitary Business Groups

annual rental rate paid by the taxpayer less any annual rental

If the entity located and conducting business activity in the

rate received by the taxpayer from subrentals.

Renaissance Zone is a member of a Unitary Business Group

ADJUSTED SERVICES PERFORMED IN THE

(UBG), the Renaissance Zone Credit must be calculated at

RENAISSANCE ZONE

the member entity level. Calculation of the Renaissance Zone

Line 17: Enter the amount deducted in arriving at federal

Credit should be done before elimination of intercompany

taxable income (as defined for MBT purposes) for the tax

transactions, such as rent payments by the member claiming

year for depreciation, amortization, or accelerated write-

this credit to another member of the UBG.

off for tangible property in a Zone exempt under Michigan

Include this form as part of the UBG’s combined annual return.

Compiled Law (MCL) 211.7ff. Claim property exempt in

If more than one member is eligible for this credit, complete

the tax year; also claim new property that will be exempt

one Form 4595 for each eligible member (or multiple forms for

in the immediately following tax year (i.e., property that

a member that is located and has business activity in multiple

has not been subject to, or exempt from, the collection of

Zones) and include all of them as part of the UBG’s annual

taxes under the General Property Tax Act and has not been

return. If filing multiples of Form 4595, enter the total of line

subject to, or exempt from, ad valorem property taxes levied

25b for all members on Form 4573, line 14.

in another state, except that receiving an exemption as

When this form refers to “taxpayer,” it is referring to the UBG

inventory property does not disqualify property).

member completing this form.

Line 19: Only a person reporting under an MBT organization

type of Individual, Partnership, or S Corporation should

Line-by-Line Instructions

complete line 19. This includes a Limited Liability Company

(LLC) that files its federal return as a Partnership or S

Lines not listed are explained on the form.

Corporation.

Name and Account Number: Enter name and account number

NOTE: A person that is a disregarded entity for federal income

as reported on page 1 of the annual return.

tax purposes under the internal revenue code shall be classified

as a disregarded entity for the purposes of filing the MBT annual

UBGs: Complete one form for each member for whom this

schedule applies (or multiple forms for a member that is located

return. This means that a disregarded entity for federal tax

purposes, including a single member LLC or Q-Sub, must file as if

and has business activity in more than one Zone). Enter the

Designated Member (DM) name in the Taxpayer Name field,

it were a sole proprietorship if owned by an individual, or a branch

followed by the DM’s Federal Employer Identification Number

or division if owned by another business entity.

(FEIN), and the specific member of the UBG for which this

Line 19a: UBGs: Enter the business income from the MBT

form is filed, and its FEIN, on the line below. On the copy filed

UBG Combined Filing Schedule for Standard Members,

to report the DM’s data (if applicable), enter the DM’s name

Form 4580, Part 2A, line 30, for the member whose activity is

and account number on each line.

reported on this copy of Form 4595.

Line 1: Enter the tax liability before the Renaissance Zone

Insurance companies and financial institutions: These types

Credit.

of taxpayers do not calculate business income as their tax base.

For Renaissance Zone credit purposes, however, they must

UBGs: This must be a pro forma tax liability of the member

calculate and enter here pro forma business income. Use the

whose activity is represented on the form. See guidance on

Business Income Worksheet (Worksheet 4746), in Form 4600,

pro forma calculations in the “Supplemental Instructions for

to calculate business income. Attach that worksheet to the

Standard Members in UBGs” section in the MBT Forms and

return. See MCL 208.1201 for further guidance.

Instructions for Standard Taxpayers (Form 4600).

Line 19b: UBGs: Enter the pro forma apportionment

Line 2: Enter the street address and parcel number of the

158

Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule Page 4

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