Form 4574 - Michigan Business Tax Refundable Credits

and are subject to regulation under the Natural Gas Act. The

MEGA Employment Tax Credit

taxes must have been levied after December 31, 2007, and the

The MEGA Employment Tax Credit promotes economic

taxes must have been paid during the tax year included in this

growth and jobs in Michigan. For a period of time not to

return.

exceed 20 years, a taxpayer that is an authorized business or

an eligible taxpayer may claim a credit equal to the amount

Line 7: The taxpayer claiming a Personal Property Tax Credit

certified each year by MEGA.

must attach to the MBT return copies of property tax bills

that properly identify “eligible” property and provide proof of

Note: Beginning January 1, 2012, this credit is available as

payment of the tax in the tax year.

a certificated credit to the extent that the taxpayer has entered

into an agreement with MEGA by December 31, 2011, but

UBGs: Add up the property tax bills for all members and enter

the credit has not been fully claimed or paid prior to January

the total amount on the corresponding line. The requested

1, 2012.

This credit must be claimed beginning with the

tax bills and proof of payment for each member claiming the

taxpayer’s first tax year ending after December 31, 2011, in

Personal Property Tax Credit should be attached to the group’s

order for the taxpayer to remain taxable under the MBT and

annual return.

claim the credit.

Workers’ Disability Supplemental Benefit (WDSB) Credit

MEGA may certify a credit based on an agreement entered into

The WDSB Credit is available to self-insured taxpayers for

prior to January 1, 2008, under the Single Business Tax (SBT).

the amount authorized by the Department of Licensing and

The number of years for which the credit may be claimed under

Regulatory Affairs (LARA) during the tax year. The amount of

MBT will be equal to the maximum number of years designated

the credit is provided to taxpayers by LARA.

in the resolution reduced by the number of years for which a

For more information on WDSB credit eligibility, contact

credit has been claimed or could have been claimed under SBT.

LARA, Workers’ Compensation Agency at (517) 322-1879

A taxpayer that claimed a credit under either SBT or MBT that

or 1-888-396-5041, or visit the LARA Web site at

had an agreement with MEGA based on qualified new jobs as

defined in the MEGA Act, and that removes 51 percent or more

Line 8: Attach to the return a copy of the document provided

of those qualified new jobs from Michigan within three years

by LARA to substantiate a claim for this credit.

after the first year in which the taxpayer claimed a credit, must

pay back an amount equal to the total of all credits claimed no

UBGs: Enter total amount authorized for all members on line 8

later than 12 months after those qualified new jobs are removed

and attach LARA documentation for each member.

from Michigan. Recapture is reported on Form 4587.

Next Energy Payroll Credit

For more information, contact MEDC at 1-888-522-0103 or

Next Energy Payroll Credit provides a payroll-based credit to

visit the MEDC Web site at

a taxpayer located within an alternative energy Renaissance

org/.

Zone. The credit is equal to the payroll amount for the tax

Line 12: Approved businesses receive a certificate from

year attributable to employees who are working on alternative

MEGA each year showing the total amount of tax credit

energy-related research, development, or manufacturing

allowed. Attach the Annual Tax Credit Certificate to the return.

and whose regular place of employment is within the Zone,

(If the certificate is not attached, the credit will be disallowed.)

multiplied by the Michigan Individual Income Tax (IIT) rate

for that year. (The Michigan Individual Income Tax rate can

UBGs: Enter the total amount of MEGA Employment Tax

be found at ) On October 1, 2012,

Credits claimed by eligible members and provide the requested

the Michigan IIT rate changed from 4.35 percent to 4.25

MEGA certification for each eligible member.

percent. Because this change was effective October 1, 2012, the

effective Michigan IIT rate for the 2012 tax year is 4.33%. For

NASCAR Safety Credit

the 2013 tax year, the Michigan IIT rate will be 4.25%.

This credit is not available for tax years after 2011. Leave line

13 blank, and continue to line 14.

Line 11: A calendar filer and fiscal filer with a short year

that ends before January 1, 2013, will multiply line 10 by the

Hybrid Technology Research and Development Credit

Individual Income Tax rate of 4.33% (0.0433).

The Hybrid Technology Research and Development Credit

Fiscal filers with a short year that begins after December

is available for taxpayers who are engaged in research and

31, 2012, will have to separately account for the payroll paid

development of a qualified technology. The credit is equal to

before January 1, 2013, and the payroll paid after December

3.9 percent of the compensation as defined in the MBT Act for

31, 2012. For payroll paid before January 1, 2013, multiply the

services performed in a qualified facility and paid to employees at

amount by 4.33% (0.0433). For payroll paid after December 31,

the qualified facility in the tax year. To be eligible for this credit,

2012, multiply the amount by 4.25% (0.0425). Combine the two

the taxpayer must have entered into an agreement with MEGA

amounts and enter that combined total on this line.

before April 1, 2007, agreeing to meet certain statutory conditions.

UBGs: If any member of a UBG is claiming the Next Energy

Note: Beginning January 1, 2012, this credit is available as a

Payroll Credit, attach a statement identifying the member(s)

certificated credit to the extent that the taxpayer has entered into

and providing information requested on the form. Enter the

an agreement with MEGA by December 31, 2011, but the credit

total payroll amount for all eligible members on line 10.

has not been fully claimed or paid prior to January 1, 2012.

Form 4574 - Michigan Business Tax Refundable Credits - 2012 Page 4

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