Form 4574 - Michigan Business Tax Refundable Credits

This credit must be claimed beginning with the taxpayer’s

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

first tax year ending after December 31, 2011, in order for

a certificated credit to the extent that the taxpayer has entered

the taxpayer to remain taxable under the MBT and claim the

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

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

credit.

1, 2012.

This credit must be claimed beginning with the

A taxpayer claiming this credit may also claim the

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

Research and Development Credit on the MBT Credits for

order for the taxpayer to remain taxable under the MBT and

Compensation, Investment, and Research and Development

claim the credit.

(Form 4570). However, a taxpayer may not claim both credits

for the same expenditures.

Complete Form 4584 to claim this credit and elect a refund or

carryforward of the resulting overpayment.

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

visit the MEDC Web site at

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

visit the MEDC Web site at

org/.

Line 14: Eligible taxpayers receive a certificate from MEGA

each year showing the total amount of tax credit allowed.

MEGA Photovoltaic Technology Credit

Attach the Annual Tax Credit Certificate to the return. (If the

The MEGA Photovoltaic Technology Credit is available to a

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

qualified taxpayer that enters into an agreement with MEGA to

credit amount cannot exceed $2,000,000.

construct and operate a new facility in Michigan which serves

to develop and manufacture photovoltaic energy, photovoltaic

UBGs: Enter the total amount for this credit claimed by

systems, or other photovoltaic technology. Photovoltaic energy,

eligible members or $2,000,000, whichever is less, and provide

systems, or technology rely on solar power. The credit is

the requested MEGA certification for each eligible member.

available for 25 percent of the taxpayer’s capital investment in

Farmland Preservation Credit

the new facility during the tax year.

Farmland Preservation Credit gives back to farmland owners

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

a portion of the property taxes paid on farmland. Farmland

a certificated credit to the extent that the taxpayer has entered

owners qualify for the credit by agreeing to preserve the land

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

as farmland and not develop for another use.

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

To qualify for the credit, the taxpayer must meet the following

1, 2012.

This credit must be claimed beginning with the

requirements:

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

order for the taxpayer to remain taxable under the MBT and

• Taxpayer must own farmland,

claim the credit.

• Taxpayer must have entered into a Farmland Development

The credit generally must be taken in equal installments

Rights Agreement (FDRA) with the Michigan Department of

over a two-year period beginning in the tax year in which

Agriculture (MDA), and

the certificate is issued. A taxpayer may make an irrevocable

• Taxpayer

must

complete

the

Michigan

Farmland

assignment of all or a portion of the credit or may convey the

Preservation Tax Credit (Form 4594).

right to the assignment on a form provided by MEGA, which

If agreements with MDA were entered into on or after

will then issue assignment certificates to the assignee(s).

January 1, 1978, the gross receipts qualifications in Part 1 of

A taxpayer or assignee that claims a credit and subsequently

Form 4594 must be satisfied.

fails to meet the requirements of the act or any other

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

conditions established by MEGA in the agreement may, as

a certificated credit to the extent that the taxpayer has entered

determined by MEGA, have its credit reduced or terminated

into a farmland preservation agreement by December 31, 2011.

or have a percentage of the credit previously claimed added

This credit must be claimed beginning with the taxpayer’s

back to the tax liability of the taxpayer in the tax year that the

first tax year ending after December 31, 2011, in order for the

taxpayer or assignee fails to comply. Recapture is reported on

taxpayer to remain taxable under the MBT and claim the credit.

Form 4587.

UBGs: UBG members claiming this credit should total all

A taxpayer certified to take the polycrystalline silicon credit

amounts from Form 4594, line 29, and enter on line 16 each

under MCL 208.1432 is disqualified from taking this credit.

eligible member should submit Form 4594, which would be

Line 17: Approved businesses receive a certificate from MEGA

calculated based upon that member’s respective property tax

each year showing the total amount of tax credit allowed. Attach

obligation and its respective MBT Business Income Tax base.

the Annual Tax Credit Certificate to the return. A taxpayer

MEGA Federal Contract Credit

claiming an assigned MEGA Photovoltaic Technology Credit

must attach the assignment certificate to the return. (If the

This credit is available for a qualified taxpayer or collective

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

group of taxpayers that have been awarded a federal

procurement contract from the United States Department of

Film Production Credit

Defense, Department of Energy or Department of Homeland

The Michigan Film Office, with the concurrence of the State

Security resulting in a minimum of 25 new full-time jobs.

Treasurer, may enter into an agreement with an eligible

Form 4574 - Michigan Business Tax Refundable Credits - 2012 Page 5

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