Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule

Compiled Law (MCL) 211.7ff. Claim property exempt in

Include this form as part of the UBG’s combined annual return.

the tax year; also claim new property that will be exempt

If more than one member is eligible for this credit, complete

one Form 4595 for each eligible member (or multiple forms for

in the immediately following tax year (i.e., property that

a member that is located and has business activity in multiple

has not been subject to, or exempt from, the collection of

taxes under the General Property Tax Act and has not been

Zones) and include all of them as part of the UBG’s annual

return. If filing multiples of Form 4595, enter the total of line

subject to, or exempt from, ad valorem property taxes levied

25b for all members on Form 4573, line 14.

in another state, except that receiving an exemption as

inventory property does not disqualify property).

When this form refers to “taxpayer,” it is referring to the UBG

Line 19: Only a person reporting under an MBT organization

member completing this form.

type of Individual, Partnership, or S Corporation should

Line-by-Line Instructions

complete line 19. This includes a Limited Liability Company

(LLC) that files its federal return as a Partnership or S

Lines not listed are explained on the form.

Corporation.

Name and Account Number: Enter name and account number

NOTE: A person that is a disregarded entity for federal tax

as reported on page 1 of the annual return.

purposes, including a single member LLC or Q-Sub, must file

as if it were a sole proprietorship if owned by an individual, or a

UBGs: Complete one form for each member for whom this

branch or division if owned by another business entity. However,

schedule applies (or multiple forms for a member that is located

a person that is disregarded for federal income tax purposes and

and has business activity in more than one Zone). Enter the

that has already filed separately for its 2010 MBT tax year in either

Designated Member (DM) name in the Taxpayer Name field,

an original MBT return prior to January 1, 2012, or in an amended

followed by the DM’s Federal Employer Identification Number

MBT return prior to December 1, 2011, may also file separately for

(FEIN), and the specific member of the UBG for which this

its 2011 MBT tax year. A federally disregarded entity that files as

form is filed, and its FEIN, on the line below. On the copy filed

a distinct entity is classified for MBT purposes according to the

to report the DM’s data (if applicable), enter the DM’s name

federal tax classification of its owner. For additional information,

and account number on each line.

see “Changes for Disregarded Entities” in the “Important

Line 1: Enter the tax liability before the Renaissance Zone

Information” section of the MBT Forms and Instructions for

Credit.

Standard Taxpayers (Form 4600).

Line 19a: UBGs: Enter the business income from the MBT

UBGs: This must be a pro forma tax liability of the member

whose activity is represented on the form. See guidance on

UBG Combined Filing Schedule for Standard Members,

Form 4580, Part 2A, line 30, for the member whose activity is

pro forma calculations in the “Supplemental Instructions for

Standard Members in UBGs” section in the MBT Forms and

reported on this copy of Form 4595.

Instructions for Standard Taxpayers (Form 4600).

Insurance companies and financial institutions: These types

Line 2: Enter the street address and parcel number of the

of taxpayers do not calculate business income as their tax base.

property. Enter the name of the Zone or Subzone in which the

For Renaissance Zone credit purposes, however, they must

property is included.

calculate and enter here pro forma business income. Use the

Check the certificated credit box if the Renaissance Zone

Business Income Worksheet (Worksheet 4746), in Form 4600,

to calculate business income. Attach that worksheet to the

designation is based on a Development Agreement or a

return. See MCL 208.1201 for further guidance.

Qualified Collaboration Agreement.

Line 19b: UBGs: Enter the pro forma apportionment

BUSINESS ACTIvITY CONDUCTED WIThIN

percentage from Form 4580, Part 2A, line 16a, for the member

THe ReNAISSANCe ZONe

whose activity is reported on this copy of Form 4595.

Line 3: Determine the average value of property by averaging

Insurance companies and financial institutions: Unlike

the values at the start and end of the tax period. The State

standard taxpayers, these types of taxpayers do not apportion

Treasurer may require the periodic averaging of values during

the tax year if reasonably required to reflect properly the

their tax base by a sales factor. For Renaissance Zone credit

purposes, however, they must calculate pro forma sales in

average value of a taxpayer’s property. Property owned by the

Michigan and sales everywhere, and enter here a pro forma

taxpayer is valued at its original cost.

apportionment percentage based on those figures. See

Line 4: Property rented by the taxpayer is valued at eight (8)

instructions for Form 4567 for guidance on the definition of

times the net annual rental rate. Net annual rental rate is the

sales and applicable sourcing provisions.

annual rental rate paid by the taxpayer less any annual rental

Line 20: Enter amount from line 18, or, if the taxpayer is an

rate received by the taxpayer from subrentals.

Individual, Partnership, S Corporation, or an LLC federally taxed

AdjUSTed SeRvICeS PeRFORMed IN THe

as a Partnership or S Corporation, enter amount from line 19e.

ReNAISSANCe ZONe

TAxpAYERS fIRST LOCATED WIThIN ThE

Line 17: Enter the amount deducted in arriving at federal

RENAISSANCE ZONE BEfORE 12-31-2002 ONLY

taxable income (as defined for MBT purposes) for the tax

For a person located in the Zone before December 31, 2002,

year for depreciation, amortization, or accelerated write-

that had no credit or no Michigan payroll in 2007, line 23 will

off for tangible property in a Zone exempt under Michigan

156

Form 4595 - Michigan Business Tax Renaissance Zone Credit Schedule - 2012 Page 4

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