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

2) Taxpayers used the excess compensation reduction

figure calculated under Method A for any year.

method to calculate the SBT liability for that taxable

year: calculate the credit rate as instructed on C 8000ITC,

NotE: For taxpayers whose amount of SBT ITC used is the

line 26 for that taxable year, and multiply that rate by the

same as the amount of SBT ITC created, the three methods

percentage on C-8000S, line 6. Enter the result on column

should yield the same result. The amount of SBT ITC used is

E for that tax year.

the same as the amount of SBT ITC created when a taxpayer is

○ Line 5, columns A and B: Leave lines blank.

able to fully utilize all SBT ITC carryforward by their 2009 tax

year return. It occurs when:

○ Line 4, column E: Divide the amount in column C by

• Taxpayer is a calendar year filer (tax year ends in

the amount in column B, for each taxable year in column

A, and enter as a percentage.

December): 2009 MBT Form 4569, lines 2 and 3, are equal for

the latest 2009 tax year return filed.

○ Lines 6, 7, and 8: leave all lines blank.

• Taxpayer is a fiscal year filer (tax year ends before

• Method B:

December): 2008 MBT Form 4569, line 4, equals zero for the

○ Line 4, columns A through D: Gather all C-8000ITC

latest 2009 tax year return filed.

forms filed for tax years beginning on or after January

1, 2000. (If an amended C-8000ITC was filed, use the

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

figures from the amended form, not the original.) Sort

explained below:

all the returns in chronological order of taxable year end

• Method A:

date, from earliest to latest date. Starting with the Form

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

C-8000ITC for the earliest applicable SBT filing period,

end date of each acquisition year of disposed assets that

enter the information requested on the table for each

triggered SBT ITC recapture.

(Those dates should be

taxable year (use one row for each return).

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

UBGs: Fill set of Part 2, and Table I (found on the

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

following page) for each member of the group who

information required in the appropriate column, using

disposed of assets that triggered SBT ITC recapture in the

return data specific from each applicable tax year. If the

current tax year.

amount of column C is zero for a particular year, and the

○ Line 5, columns A and B: Starting with Form 4569

amount on C-8000ITC, line 10 for that year is larger than

for the earliest 2008 and latest 2009 applicable MBT filing

zero, taxpayers may not enter zero on column E if the

taxpayers fall in either of the two categories explained

period, enter the information requested on table.

UBGs: During tax years ending in 2008 and 2009, UBG

below, and must do the appropriate calculations as follows:

1) Taxpayers used the straight method to calculate the

groups were allowed to offset the group liability by

claiming member’s SBT ITC credit carryforward. When

SBT liability for that taxable year: calculate the credit rate

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

completing line 5, column B, enter the portion amount of

and enter the result on column E; or

the total group SBT ITC credit carryforward used by the

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

Method B

was used.

the 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.

145

Form 4585 - Michigan Business Tax Investment Tax Credit Recapture From Sale Of Assets Acquired Under Single Business Tax - 2012 Page 5

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