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are incidental to Engineer’s services within Michigan. The

Cost includes costs of fabrication and installation.

compensation paid to Engineer is “compensation in this state.”

table 1: Enter a short description (for example, equipment,

PART 2: INVESTMENT TAX CREDIT

building, etc.), city or township in which the asset is located,

date acquired, and cost paid or accrued of all eligible

Use Part 2 to determine the total eligible acquisitions and

dispositions for the filing period. Complete Tables 1 through 6

depreciable tangible assets located in Michigan that were

acquired during the filing period.

(lines 35 through 42) before completing lines 4 through 16. If

more space is needed for any assets acquired, sold, or disposed

If multiple pages of Form 4570, Table 1, are included, carry the

of in this tax year, include additional copies of page 3 or page

grand total of all Table 1, column D, entries to line 4.

4 (as applicable) of the form identifying the name and account

number at the top with only the additional applicable fields

table 2: Enter a short description (for example, equipment,

automobile, etc.), city or township in which the asset is located,

completed. Financial institutions and insurance companies do

date physically located in Michigan, and adjusted basis (as

not qualify for this credit.

calculated for federal purposes) as of the date moved of all

For tax years beginning after 2007, taxpayers may claim an

eligible depreciable tangible assets purchased or acquired

ITC for a percentage of the net costs paid or accrued in the

for use outside of Michigan after 2007 that were moved into

filing period for qualifying tangible assets physically located in

Michigan during the filing period for a business use. Do not

Michigan. The assets must be of a type that are or will become

include mobile tangible assets (see below).

eligible for depreciation, amortization, or accelerated capital

If multiple pages of Form 4570, Table 2, are included, carry the

cost recovery for federal income tax. Mobile tangible assets

(defined in the instructions for line 8), wherever located, are

grand total of all Table 2, column D, entries to line 5.

subject to apportionment in the same manner as the tax base.

table 3: Enter a short description (for example, construction

Assets purchased or acquired after 2007 for use outside of

equipment, aircraft, etc.), the state in which the asset primarily

Michigan and moved into Michigan during the filing period,

was based during the tax year, date acquired, and cost paid

also qualify for ITC. Disposition of an asset, or moving an

or accrued during the filing period for all depreciable mobile

asset out of Michigan, creates recapture that reduces the credit.

tangible assets that were acquired during the filing period,

If recapture exceeds the positive credit earned by acquisitions,

whether located in Michigan or outside Michigan.

the tax liability is increased.

Mobile tangible assets are all of the following:

Note: Recapture from dispositions during the filing period

• Motor vehicles that have a gross vehicle weight rating of

of assets acquired (or moved into Michigan) after 1999 and

10,000 pounds or more and are used to transport property or

before 2008 is calculated on the MBT Investment Tax Credit

persons for compensation.

Recapture from Sale of Assets Acquired Under Single Business

• Rolling

Tax (Form 4585).

stock

(railroad

freight

passenger

cars,

locomotives, or other railcars), aircraft, and watercraft used by

If, during the filing period, a taxpayer acquired depreciable real

the owner to transport property or persons for compensation or

or personal property or disposed of depreciable real or personal

used by the owner to transport the owner’s property for sale,

property that was acquired in a tax year beginning after 1999,

rental, or further processing.

complete this form and include it as part of the annual return. If

• Equipment used directly in completion of, or in construction

property disposed of during the filing period was acquired in a

contracts

for,

the

construction,

alteration,

repair,

tax year beginning after 1999 and before 2008, also complete

improvement of property.

and include Form 4585.

If multiple pages of Form 4570, Table 3, are included, carry the

UBGs: If the taxpayer is a UBG, the ITC is calculated on

grand total of all Table 3, column D, entries to line 6.

combined assets of standard members of the UBG. Assets

transferred between members of the group are not a capital

Recapture of Capital Investments (Dispositions)

investment in qualifying assets for purposes of calculating this

Use this section to compute credit recapture from disposition

credit.

(or moving out of Michigan) of tangible, depreciable real or

The following instructions for the Part 2 “Capital Investments

personal property that was acquired in a tax year beginning

(Acquisitions)” and “Recapture of Capital Investments

after 2007. Recapture from the disposition of qualifying

(Dispositions)” sections provide information on completing the

property that was acquired in a tax year beginning after 1999

tables on pages 3 and 4 of this form. The instructions for Part 4

but before 2008 is calculated on Form 4585 and reported here.

follow these sections.

Note: A sale of qualifying property reported on the

Capital Investments (Acquisitions)

installment method for federal income tax purposes causes

a recapture based upon the entire sale price in the year of

Note: For tables 1 through 3, all events that have varying

the sale. The recapture is reduced by any gain reported in

dates must be listed separately. “Various” is not a valid entry in

federal taxable income (as defined for MBT purposes) in

a date field. Multiple acquisitions (or transfers) may be combined

the year of the sale. The gain attributable to the installment

as one entry, subject to the following: All combined events must

sale that is reported in subsequent years increases the credit

satisfy the terms of the table in which they are entered. “Date

base (or reduces other sources of recapture) for those years.

Acquired” (or “Date Physically Located in Michigan”) must be

For property placed in service prior to January 1, 2008, gain

the same for all events combined on a single line.

Form 4570 - Business Tax Credits For Compensation, Investment, And Research And Development - 2012 Page 6

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