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Instructions for Form 4587, Michigan Business Tax (MBT)

Schedule of Recapture of Certain Business Tax Credits and Deductions

Business Activity Credit for a previous tax period under an

Purpose

agreement with MEGA based on qualified new jobs, and then

Complete this schedule for any recapture in this tax year of

removes 51 percent or more of those qualified new jobs from

Michigan within three years after the first year in which the

previously claimed tax credits listed on this schedule. Recapture

of some tax credits occurs at the same point in the forms as

taxpayer claims such a credit, the taxpayer must recapture an

the credit is calculated. The credits on this form, however, are

amount equal to the total of all such credits claimed on prior

required by statute to be recaptured at a later point in the tax

returns.

calculation process. This form is also used to report a required

recapture of an Affordable Housing Deduction.

Line 2a: Enter the total amount of the MBT MEGA

Employment Tax Credit claimed on previously filed 4574 forms

Attachments in support of these recapture amounts are not

subject to recapture.

required. Maintain the recapture calculation information in

your files for review during audit.

Line 2b: The SBT MEGA Employment Tax Credit is no

longer subject to recapture. Leave this line blank.

Special Instructions for Unitary Business Groups

Line 2c: The SBT MEGA Business Activity Credit is no

longer subject to recapture. Leave this line blank.

If any member of the Unitary Business Group (UBG) is

reporting recapture, a statement must be attached to this form

Line 3: If the new jobs by which a taxpayer earns an

identifying the reporting member and the amount of recapture

Entrepreneurial Credit are relocated outside of Michigan

for each applicable credit. If more than one member is

within five years after claiming the credit, or if a taxpayer

reporting recapture, requested information should be provided

reduces employment levels by more than 10 percent of the jobs

in the statement on a per member basis. The total amount from

by which the taxpayer earned the credit, the taxpayer must

all reporting members will be entered on each corresponding

recapture an amount equal to the total of all Entrepreneurial

line on this form.

Credits received.

Line-by-Line Instructions

Enter the total amount of the Entrepreneurial Credit claimed

on previously filed MBT Miscellaneous Nonrefundable Credits

Lines not listed are explained on the form.

forms (Form 4573) subject to recapture.

Dates must be in MM-DD-YYYY format.

Line 4: Enter the total amount of MEGA Federal Contract

Credit claimed on previously filed MBT Election of Refund

Name and Account Number: Enter name and account number

as reported on page 1 of the applicable MBT annual return

or Carryforward of Credits forms (Form 4584) subject to

(either the MBT Annual Return (Form 4567) for standard

recapture.

taxpayers, the MBT Annual Return for Financial Institutions

NOTE: The MEGA Federal Contract Credit is claimed through

(Form 4590), or the Insurance Company Annual Return for

an agreement with MEGA. If a taxpayer claims this credit and

Michigan Business and Retaliatory Taxes (Form 4588)).

subsequently fails to meet requirements of the MBT Act or

UBGs: A UBG reporting recapture should include only

conditions of the agreement, the taxpayer must recapture the

one copy of this form as part of its annual return. Enter the

entire amount of such credit previously claimed.

Designated Member (DM) name in the Taxpayer Name

Line 5: Enter the total amount of the MEGA Photovoltaic

field and the DM account number in the Federal Employer

Technology Credit claimed on previously filed 4574 forms

Identification Number (FEIN) field.

subject to recapture.

Line 1: There are two Research and Development Credits in

Line 6: Enter the total amount of the Biofuel Infrastructure

MBT. The one reported on the MBT Credits for Compensation,

Credit claimed on previously filed 4573 forms subject to

Investment, and Research and Development (Form 4570)

recapture.

does not apply here. Report on this line only recapture of the

Research and Development Credit that is certified by Michigan

Line 8: The Film Infrastructure Credit is available through an

agreement between the taxpayer and the Michigan Film Office,

Economic Growth Authority (MEGA) and claimed on MBT

Refundable Credits (Form 4574).

with the concurrence of the State Treasurer. The credit amount

is up to 25 percent of the base investment expenditures in a

The credit is earned under an agreement with MEGA. If

qualified film and digital media infrastructure project. If the

MEGA determines that there has not been compliance with

taxpayer sells or otherwise disposes of a tangible asset that was

the terms of the agreement, the taxpayer must report recapture.

paid for or accrued after December 31, 2007, and whose cost

Enter recapture amount equal to 125 percent of the total of

is included in the base investment, the taxpayer must report

all MEGA Research and Development Credits claimed on

recapture equal to 25 percent of the gross proceeds or benefit

previously filed 4574 forms.

from the sale or disposition, adjusted by the apportioned gain

Line 2: If a taxpayer claims an MBT or Single Business Tax

or loss.

(SBT) MEGA Employment Tax Credit or an SBT MEGA

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Form 4587 - Michigan Business Tax Schedule Of Recapture Of Certain Business Tax Credits And Deductions - 2014 Page 3

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