Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule

Instructions for Form 4595

Michigan Business Tax (MBT) Renaissance Zone Credit Schedule

Taxpayer may elect to continue under the MBT on the basis of

Purpose

this certificated renaissance zone credit.

To allow eligible taxpayers to calculate and claim the

ExamplE 2: Taxpayer located and began conducting business

Renaissance Zone Credit. For standard taxpayers and financial

in a designated renaissance zone on January 1, 2011; however,

institutions, the credit is calculated on Form 4595 and then

the renaissance zone does not qualify as a certificated credit for

carried to the MBT Miscellaneous Nonrefundable Credits

purposes of the MBT election (see list above). The taxpayer also

(Form 4573). Insurance companies will carry this credit to the

holds a certificated anchor company credit. Taxpayer may make

Miscellaneous Credits for Insurance Companies (Form 4596).

the election to remain taxable under the MBT on the basis of its

certificated anchor company credit and continue to claim the

NOTE: If a person is located and has business activity in

more than one Renaissance Zone, use a separate Form 4595 to

renaissance zone credit once it has properly elected the MBT.

calculate the credit for each Zone. For each line that requires

To obtain the credit an otherwise qualified taxpayer must file

Zone-specific data, enter data based only on business activity

an MBT annual return. The credit is equal to the lesser of the

in the Zone identified on line 2 of this copy of the form.

following:

Fiscal Year Filers: See “Supplemental Instructions for

• The tax liability attributable to business activity conducted

Standard Fiscal MBT Filers” in the MBT Forms and

within the Renaissance Zone in the tax year.

Instructions for Standard Taxpayers (Form 4600).

• 10 percent of adjusted services performed in the designated

Renaissance Zone Credit

Renaissance Zone.

• For a taxpayer located and conducting business activity in

The Renaissance Zone Credit encourages businesses and

the Renaissance Zone before December 31, 2002, the product

individuals to move into a designated Zone to help revitalize

of the following:

the area by providing a credit for businesses located and

○ The Single Business Tax (SBT) Renaissance Zone

conducting business activity within the Zone. The method of

calculating the credit is different for businesses first locating

Credit claimed for the tax year ending in 2007.

and conducting business activity within the Renaissance Zone

○ The ratio of the taxpayer’s payroll in this State in the

before December 31, 2002, and those businesses first locating

tax year divided by the taxpayer’s payroll in this State in

and conducting business activity within the Renaissance Zone

its SBT tax year ending in 2007.

after December 30, 2002.

○ The ratio of the taxpayer’s Renaissance Zone Business

Use this form to calculate both a certificated and non-

Activity Factor for the tax year divided by the taxpayer’s

certificated renaissance zone credit. Check the certificated

Renaissance Zone Business Activity Factor for its SBT tax

credit box if the credit being calculated is a certificated

year ending in 2007.

renaissance zone credit. File a separate Form 4595 for each

The credit allowed continues through the tax year in which the

zone and type (certificated or non-certificated) of credit.

Renaissance Zone designation expires and is nonrefundable.

Beginning January 1, 2012, only those taxpayers with a

Business activities relating to a casino, including operating

certificated credit, which is awarded but not yet fully claimed

a parking lot, hotel, motel, or retail store, cannot be used to

or utilized, may elect to be MBT taxpayers. A taxpayer with

calculate this credit. Businesses delinquent in filing or paying

a certificated renaissance zone credit may make the election

Property Tax, SBT, MBT or City Income Tax as of December

to remain taxable under the MBT for its first tax year ending

31 of the prior tax year are not eligible for this credit. Taxpayers

after December 31, 2011. The certificated renaissance zone

will be notified if a claimed credit is disallowed.

credits are the agricultural processing, border crossing, forest

products processing, Michigan strategic fund designated and

For more information on Renaissance Zones, contact

renewable energy renaissance zones for which a taxpayer has

the

Michigan

Economic

Development

Corporation

a development agreement with the Michigan Strategic Fund

(MEDC) at (517) 373-9808 or visit their Web site at

(MSF) before January 1, 2012, and the tool and die renaissance

For information on the

zones for which the taxpayer has entered into a qualified

MBT credit, contact the Michigan Department of Treasury,

collaborative agreement with the MSF before January 1, 2012.

Customer Contact Division, MBT Unit, at (517) 636-6925.

A taxpayer located in a designated renaissance zone that does

Special Instructions for Unitary Business Groups

not have a certificated renaissance zone credit but which makes

the election to remain taxable under the MBT on the basis

If the entity located and conducting business activity in the

of another certificated credit may also claim this credit. For

Renaissance Zone is a member of a Unitary Business Group

more information on certificated credits see the Schedule of

(UBG), the Renaissance Zone Credit must be calculated at

Certificated Credits (Form 4947).

the member entity level. Calculation of the Renaissance Zone

ExamplE 1: Taxpayer enters into a qualified collaborative

Credit should be done before elimination of intercompany

transactions, such as rent payments by the member claiming

agreement with the MSF and locates and begins conducting

business in a tool and die renaissance zone on January 1, 2011.

this credit to another member of the UBG.

155

Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule - 2012 Page 3

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