Form 4594 - Michigan Farmland Preservation Tax Credit

4594, Page 5

number retains its original series throughout the term of

line 12: Enter the agricultural gross receipts for the tax years

the agreement. However, a letter may be added to indicate

immediately preceding the tax year of this claim. Agricultural

that the agreement was split into multiple agreements. The

gross receipts are receipts from the business of farming as

final six numbers change when the agreement is shortened

defined in the IRS Regulation 1.175-3.

or extended. Always use the contract number on the most

If the taxpayer’s farm operation was incorporated during this

recently recorded agreement, and attach a copy of each 2011

five-year period and the ownership before and after date of

tax statement that corresponds to the agreement number

incorporation is identical, report gross receipts for all five tax

listed. The expiration date may never be earlier than the year

years. If the ownership changed, enter gross receipts only for

of the return being prepared.

those tax years since incorporation.

• Column B: For each agreement, check the box if paid

tax receipts for 2011 or 2012 are attached. The Farmland

PART 2: TAXES THAT CAN BE CLAIMED FOR CREDIT

Preservation Tax Credit will be issued jointly to the taxpayer

AND ALLOCATION TO EACH AGREEMENT

and the treasurer for the county where the property is located if

For taxpayers with four or fewer agreements: Using the

the receipts are not attached.

instructions below for line 19, columns A through D, complete

NOTE: In addition to paid tax receipts as described above,

lines 19A through 19D for each agreement, then enter in line

attach copies of 2012 property tax statements. Be sure the

20D the total of column 19D. Using the total in line 20D,

corresponding agreement number is on each tax statement.

complete line 19E for each agreement. In line 20E, enter the

• Column C: Enter the date each agreement was entered into

total of all percentages from column 19E, which must equal

(MM-DD-YYYY).

100 percent.

• Column D: Enter the total amount of tax on land and

Then complete lines 21 through 29. Using the total credit

structures under agreement from tax statements. Do not

reported on line 29, return to the table in line 19 and complete

include penalties, interest, or special assessments. Collection

line 19F for each agreement. Finally, in line 20F, enter the

fees may be included. If the taxpayer is a joint owner, enter

total of all allocated credits from column 19F, which must

only the taxpayer’s share of taxes.

equal line 29.

NOTEs: If the property tax statement includes taxes for land

Enter amounts in whole dollars only (no cents).

not covered by an FDRA, the taxes reported in column D

For taxpayers with five or more agreements: Using the

must be reduced accordingly. The amount of taxes that cannot

be claimed must be determined by the local assessor’s office

instructions below for line 19, columns A through D, complete

and submitted on his or her official letterhead. The 1 percent

lines 19A through 19D on the primary copy of the form with

collection fee may be included. Do not include penalties,

data from four agreements. Use additional copies of page 1

interest, or special assessments.

of this form to report the remaining agreements. On each

additional copy of page 1 that is used:

If the property tax statement includes taxes for land on more

• Enter the taxpayer’s name on line 2 and FEIn/TR number

than one agreement, the taxes reported in column D must be

separated according to land in each agreement. The local

on line 5.

assessor will be able to determine what the breakdown is

• Leave all other fields (including line 20) blank, except line 19.

based on the legal descriptions of the land enrolled under each

• Complete lines 19A through 19D for each agreement.

agreement.

Then enter in line 20D of the primary copy of this form (the

line 20: If multiple copies of page 1 of Form 4594 are included,

copy with all applicable fields filled) the total of columns 19D

leave line 20 blank on all copies except the primary copy (see

from all copies. Using this total in line 20D of the primary copy,

above, instructions for Part 2). Lines 20D, 20E, and 20F on the

complete line 19E for each agreement on all copies. In line 20E

primary copy must reflect totals for all copies of the form.

of the primary copy, enter the total of all percentages from

line 21: Taxes on land enrolled after December 31, 1977. If

columns 19E from all copies, which must equal 100 percent.

qualified under one of the gross receipts formulas (line 13 or

Then complete lines 21 through 31. Using the total credit

line 18), enter the taxes from column D on land and structures

reported on line 29, return to the table in line 19 and complete

enrolled after December 31, 1977. Otherwise, enter zero.

line 19F for each agreement on all copies. Finally, in line 20F

of the primary copy, enter the total of all allocated credits from

PART 3: TAXES THAT CANNOT BE CLAIMED

column 19F from all copies, which must equal line 29.

FOR CREDIT

Enter on lines 24 through 28 the amounts for the tax year of

Enter amounts in whole dollars only (no cents).

this claim (the year entered on line 1).

line 19:

line 24: Enter the amount from Form 4567, line 49. This

• Column a: Enter the farmland preservation agreement

amount can be less than zero.

number assigned by the MDA. Agreement (or contract)

Unitary Business Groups (UBGs): If the eligible taxpayer is a

number is found in the lower-right corner of each agreement.

The first two numbers are the county where the property is

member of a UBG, a pro forma calculation must be performed

to determine the Business Income Tax base of the eligible

located. The middle set of numbers is the actual contract

number. The final six numbers are the year of expiration,

taxpayer. This supporting pro forma calculation should be

attached to the return as supporting documentation.

for example, 123111 (December 31, 2011). The contract

Form 4594 - Michigan Farmland Preservation Tax Credit - 2012 Page 5

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