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2009 and were single filers then. Not filing a Form 4567 does

federal basis for all such transferred assets acquired in the same

not allow a taxpayer to preserve SBT credit carryforward from

taxable year. Enter in this form only the total sum of adjusted

federal basis grouped by taxable year the assets were acquired.

one year to the next.

Use one row per group of such transferred assets acquired in the

The simplest method that can be used is Method A. Taxpayers

same taxable year. Start from the earliest taxable year.

that meet any of the situations above should use Method A. It

PART 2: CALCULATION OF SBT ITC RECAPTURE RATES

provides correct results using the least amount of data input

Recapture rates can be calculated using any of 3 methods

from the taxpayer.

described in the “Method Summary Table” below. The Table

Complete line 4 and line 5 according to the method chosen, as

highlights the methods’ pros and cons. Choose your method,

explained below:

and follow the appropriate instructions to calculate the rates on

• Method A:

line 4, column E.

○ Line 4, columns A through D: Enter the tax year end

NOTE: Whichever method used, the calculated effective

date of each acquisition year of disposed assets that

recapture rate of SBT ITC by year cannot be higher than the

figure calculated under Method A for any year.

triggered SBT ITC recapture. (Those dates should be

the same as appear in column A of lines 1-3.) For each

NOTE ON USING SIMPLEST METHOD: When amount

year displayed in column A, enter Form C-8000ITC

of SBT ITC used equals the amount of SBT ITC created, the

information required in the appropriate column, using

three methods yield the same result. This occurs in any of the

return data specific from each applicable tax year.

following situations:

If the amount of column C is zero for a particular

• Calendar year filer(*): 2009 MBT Form 4569, lines 2 and

year, and the amount on C-8000ITC, line 10 for that

3, are equal for the latest 2009 tax year return filed;

year is larger than zero, taxpayers may not enter zero

• Fiscal year filer(*): 2008 MBT Form 4569, line 4, equals

on column E if the taxpayers fall in either of the two

zero for the latest 2009 tax year return filed;

categories explained below, and must do the appropriate

calculations as follows:

• Filers(**) who created SBT ITC credits and have filed an

1) Taxpayers used the straight method to calculate the SBT

MBT Form 4583 for either 2008 or 2009 tax year; or

liability for that taxable year: calculate the credit rate as

• Filers(**) who created SBT ITC credits, have NOT filed

instructed on C-8000ITC, line 26 for that taxable year,

2008 or 2009 MBT return, and have filed MBT return(s) for

and enter the result on column E; or

tax year(s) after 2009.

2) Taxpayer used the excess compensation reduction

(*) For UBGs, the condition applies only for groups where all

method to calculate the SBT liability for that taxable

members were included in every 2008 and 2009 MBT return

year: calculate the credit rate on C-8000ITC, line 26,

filed by the group.

for that taxable year; subtract the percentage found on

(**) Filers refers to single filers (non-UBGs) or UBG members

C-8000S, line 6, from 100%, and multiply the result

in the current tax year who were not part of a group in 2008 or

of that subtraction by the calculated credit rate on

C-8000ITC, line 26. Enter the result on column E.

METHOD SUMMARY TABLE

TYPE OF METHOD

PROS

CONS

• Easy to calculate.

• Method does not take into account the extent to

Method A

• Taxpayer or UBG member disposing of ITC

which the ITC was used.

asset only need to enter information on line 4

for years in which assets that trigger recapture

were acquired.

• Takes into account the extent to which the ITC

• Taxpayers must fill lines 4, 5, 6, Table I at the

Method B

was used.

end of the instructions, and enter necessary

information in Treasury webtool.

• Information on line 4 must be entered for all

years in which assets were bought and ITC

was claimed, whether or not those assets were

disposed in the current tax year.

• Taxpayers complete line 4, column E.

• Taxpayer needs to develop own calculation

Method C

procedure that reflects the MBT statute. Retain

records to substantiate calculation.

147

Form 4585 - Michigan Business Tax Investment Tax Credit Recapture From Sale Of Assets Acquired Under Single Business Tax - 2014 Page 5

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