Form 4584 - Michigan Business Tax Election Of Refund Or Carryforward Of Credits, And Calculation Of Historic Preservation And Brownfield Redevelopment Carryforward - 2014 Page 7
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9Beginning January 1, 2012, the brownfield redevelopment
Assigned Basic/Enhanced credit carryforward to be used on
credit may be claimed as a certificated credit if a taxpayer
the next MBT return.
has a preapproval letter by December 31, 2011, but has not
Line 26: Add lines 9, 15, and 23. This amount is the Special
fully claimed the credit by January 1, 2012.
The credit may
Consideration Credit carryforward to be used on the taxpayer’s
be claimed as either a refundable accelerated credit (on Form
next MBT return.
4889) or a non-refundable credit.
Non-refundable credits
Line 27: Add lines 25 and 20. This amount is the total Basic/
and non-refundable carryforwards of the credit are claimed
here. The credit must first be claimed in the year in which the
Enhanced credit carryforward to be used on the next MBT
certificate of completion is issued.
return.
A qualified taxpayer that has made the election to remain
MEGA Federal Contract Credit
taxable under the MBT with a certificated credit and has
The MEGA Federal Contract Credit is available for a qualified
received a pre-approval letter prior to January 1, 2008, under
the SBT Act to receive a Certificate of Completion may claim
taxpayer or collective group of taxpayers that have been
the credit (which is not a certificated credit) on this form,
awarded a federal procurement contract from the United States
Department of Defense, Department of Energy, or Department
provided that all other requirements are met.
of Homeland Security, resulting in a minimum of 25 new full-
time jobs. The credit amount is 100 percent of the qualified
For projects approved or amended by MEGA, prior to April
8, 2008, the credit is limited to 10 percent of the cost of the
taxpayer’s payroll attributable to employees who perform
eligible investment. For projects approved or amended on or
qualified new jobs as a result of the contract multiplied by the
after April 8, 2008, the credit is authorized for a percentage of
Michigan Individual Income Tax rate. Beginning January 1,
the cost of eligible investment to be determined by MEGA, up
2012, this credit is available as a certificated credit to the extent
to 20 percent of the cost.
that the taxpayer has entered into an agreement with MEGA by
A taxpayer claiming a nonrefundable certificated brownfield
December 31, 2011, but the credit has not been fully claimed
or paid prior to January 1, 2012. This credit must be claimed
credit may make the election in the year in which a credit is
beginning with the taxpayer’s first tax year ending after
available and will remain taxable under the MBT until the
December 31, 2011, in order for the taxpayer to remain taxable
qualifying credit and any carryforward of the credit are
extinguished. A taxpayer with a multiphase brownfield credit
under the MBT and claim the credit.
under MCL 208.1437(10), that makes the election, is required
This credit may be taken for a period of up to seven years, as
to continue to file and pay the MBT until the certificated
determined by MEGA. Any amount that exceeds the taxpayer’s
credit is complete and the credit is used up.
Except for a
tax liability may be refunded or carried forward for ten years
multiphase project, the Brownfield Redevelopment Credit
or until it is used up, whichever occurs first. To be eligible for
must first be claimed in the tax year in which the Certificate
the credit, a taxpayer must enter into an agreement with MEGA
and be certified by MEGA. If a misrepresentation is made on
of Completion is issued. For credits for a project approved by
MEGA with total credits greater than $10,000,000, the credits
the application for this credit, the designation of a qualified
must be claimed at the rate of 10 percent per year for ten
taxpayer may be revoked and the taxpayer may be required
years, beginning with the first year specified by MEGA on the
to refund or recapture credits received. Credit recapture is
Certificate of Completion.
calculated on Form 4587.
If a Brownfield Redevelopment Credit exceeds a taxpayer’s
For more information, contact MEDC at (517) 373-9808 or visit
tax liability for the year, the excess may be carried forward to
the MEDC Web site at
offset tax liability in subsequent tax years for a maximum of
Line 30: UBGs: Enter the unused credit amount from Form
ten years.
4580, Part 2B, line 51, column C.
NOTE: An unused SBT credit carryforward may be claimed
Line 33: Approved businesses receive a certificate from
against the tax imposed under the MBT for the same years
MEGA each year showing the total amount of tax credit
the carryforward would have been available under SBT, if the
allowed. Attach the Defense Contracting Tax Credit Certificate
taxpayer has made the election to remain taxable under the
to the return. (If the certificate is not attached, the credit will
MBT with a certificated credit, but it expires after ten years
be disallowed.)
(combined SBT and MBT years). This carryforward is claimed
on Form 4569.
Line 36: Add lines 32 and 35b. This is the MEGA Federal
Contract Credit carryforward to be used on the taxpayer’s next
All or a portion of the credit may be assigned. The assignment
MBT return.
of the credit is irrevocable, and except for an assignment based
on a multiphase project, must be made in the tax year in which
Brownfield Redevelopment Credit
the Certificate of Completion was issued. If proper assignment
The Brownfield Redevelopment Credit encourages businesses
is completed, the assignee may make the election to remain
taxable under the MBT on the basis of the assigned brownfield
to make an investment in eligible Michigan property that was
certificated credit in the year of assignment, provided that
used or is currently used for commercial, industrial, public, or
credit amount is available in that year.
residential purposes and is either a facility (environmentally
contaminated property), functionally obsolete, or blighted.
The administration of the Brownfield Redevelopment Credit
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