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Calculation of MBT ITC Credit Recapture Amount

Calculation of MBT ITC Credit Recapture Bases

NOTE: A sale of qualifying property reported on the

installment method for federal income tax purposes causes

For each category of asset disposed (or moved out of

a recapture based upon the entire sale price in the year of the

Michigan) that triggers an MBT ITC credit recapture, enter the

sale. The recapture is reduced by any gain reported in federal

information requested below.

taxable income (as defined for MBT purposes) in the year of

the sale. The gain attributable to the installment sale that is

Due to PA 282 of 2014, use the worksheets below to

reported in subsequent years increases the credit base (or

report information ONLY on assets disposed (or moved

out of Michigan) in the current filing period that were

reduces other sources of recapture) for those years, and must

be reported on column C of the appropriate Worksheet based

purchased, acquired, or moved into Michigan in a

on the type of asset. For property placed in service prior to

PREVIOUS tax year beginning after December 31, 2007.

January 1, 2008, the gain reflected in federal taxable income

Use tables 4, 5, and 6 on the form to report assets that were

(as defined for MBT purposes) is equal to the gain reported for

disposed of or moved out of Michigan in the current filing

federal purposes.

period AND were also purchased, acquired, or moved into

Michigan in the same current filing period.

UBGs: The recapture of capital investments for UBGs is

calculated on combined assets of standard members of the

In each category of disposed/moved asset, group assets by

UBG. Assets transferred between members of the group are

taxable year in which they were acquired. All events that have

not a capital investment in qualifying assets for purposes

varying dates must be listed separately. Multiple dispositions

of calculating this credit or its recapture. Disposing of or

(or transfers) may be combined as one entry, subject to the

transferring an asset outside of the UBG triggers recapture.

following: all combined events must satisfy the terms of

Also, moving an asset outside of Michigan creates recapture,

the table in which they are entered. “Taxable Year in which

even if the transfer is to a member of the UBG.

disposed assets were acquired” must be the same for all events

Worksheet 1a — Depreciable Tangible Assets

combined on a single line.

Enter all dispositions of depreciable tangible assets located

UBGs: If an asset subject to recapture is from a member that

in Michigan that were acquired or moved into Michigan after

was not part of the group in the tax year the asset was acquired,

acquisition in a tax year beginning after 2007 and were sold

or otherwise disposed of during the current filing period.

make a separate line entry for the tax year the member

filed outside of the group. Take care to report in this line

Give all information required for each disposition in columns

information requested in each column only from the member’s

A through F. In column A, enter the taxable year in which the

single filings, not the group’s.

disposed assets were acquired. Enter combined gross sales

Worksheet 1a — Depreciable Tangible Assets

MBT Apportionment

Apportioned

MBT ITC Recapture

Taxable Year (End Date)

Combined Sales Price

(Base 1)

In Which Disposed

Percentage from

Gain/Loss

of Disposed Assets by

Net Gain/Loss From

Form 4567, line 11c,

Assets Were Acquired

Multiply Column C

Subtract Column E

or Form 4590, line 10c

Year of Acquisition

Sale of Assets

(MM-DD-YYYY)

by Column D

From Column B

Worksheet 1b — Depreciable Mobile Tangible Assets

MBT Apportionment

MBT ITC Recapture

Taxable Year (End Date)

Combined Sales Price of

(Base 2)

Adjusted Proceeds

In Which Disposed

Percentage from

Disposed Assets by

Net Gain/Loss From

Form 4567, line 11c,

Assets Were Acquired

Multiply Column D

Subtract Column C

or Form 4590, line 10c

Year of Acquisition

Sale of Assets

by Column E

(MM-DD-YYYY)

From Column B

Worksheet 1c — Assets Transferred Outside Michigan

MBT ITC Recapture

Taxable Year (End Date)

Combined Adjusted Federal Basis of

In Which Disposed

Disposed Assets by Year of Acquisition

Assets Were Acquired

(Base 3)

(MM-DD-YYYY)

Form 4570 - Business Tax Credits For Compensation, Investment, And Research And Development - 2014 Page 8

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