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

• For a tax year that begins within the final year of

percentage from Form 4580, Part 2A, line 16a, for the member

whose activity is reported on this copy of Form 4595.

designation as a Renaissance Zone, 25 percent of the

normally calculated credit is allowed.

Insurance companies and financial institutions: Unlike

standard taxpayers, these types of taxpayers do not apportion

Line 25b: Multiply line 24 by the reduced credit percentage

their tax base by a sales factor. For Renaissance Zone credit

provided in the Reduced Credit Table. Carry amount to line 14

purposes, however, they must calculate pro forma sales in

of the MBT Miscellaneous Nonrefundable Credits (Form 4573),

Michigan and sales everywhere, and enter here a pro forma

or line 15 of the MBT Miscellaneous Credits for Insurance

apportionment percentage based on those figures. See

Companies (Form 4596).

instructions for Form 4567 for guidance on the definition of

If filing multiple 4595 forms, enter the total of line 25b for

sales and applicable sourcing provisions.

all Zones on Form 4573, line 14, or Form 4596, line 15, as

Line 20: Enter amount from line 18, or, if the taxpayer is an

applicable.

Individual, Partnership, S Corporation, or an LLC federally taxed

Include completed Form 4595 as part of the tax return filing.

as a Partnership or S Corporation, enter amount from line 19e.

TAXPAYERS FIRST LOCATED WITHIN THE

RENAISSANCE ZONE BEFORE 12-31-2002 ONLY

Due to Public Act 282 of 2014, instructions that applied to

taxpayers first located within the Renaissance Zone before

12-31-2002 now apply to taxpayers first located within the

Renaissance Zone BEFORE 12-01-2002.

For a person located in the Zone before December 1, 2002,

that had no credit or no Michigan payroll in 2007, line 23

will calculate to zero. Therefore, such a person will not be

entitled to a Renaissance Zone Credit on the MBT Return. If

completing this form you must enter zero on line 24.

Line 22: Taxpayers first located within the Renaissance Zone

before December 1, 2002, ONLY (all others, leave lines 22a

through 22e blank). A taxpayer that is located and conducting

business activity in two Zones will prepare two copies of Form

4595. Base each copy on the taxpayer’s history in the Zone

being reported.

Line 24: The following is an adjustment due to Public

Act 282 of 2014. Follow these instructions for line 24; DO

NOT follow the instructions on the face of the form.

For taxpayers first located within the Zone before

December 1, 2002

Step 1: Determine the lesser of line 15 and line 21.

Step 2: Determine the greater of line 23 and the result of

Step 1. Enter this amount on line 24.

All other taxpayers

Enter the lesser of line 15 and line 21.

Lines 25a and 25b: For a tax year that begins within one of

the last three years of the Zone’s designation, a reduced credit

is allowed, as follows:

• For a tax year that begins within the second year before the

final year of designation as a Renaissance Zone, 75 percent

of the normally calculated credit is allowed.

• For a tax year that begins within the year before the final

year of designation as a Renaissance Zone, 50 percent of the

normally calculated credit is allowed.

159

Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule Page 5

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