Source: https://www.taxformfinder.org/michigan/form-4570
Timestamp: 2018-10-21 13:35:21
Document Index: 419131198

Matched Legal Cases: ['ART 1', 'art 2', 'ART 2', 'ART 3', 'ART 4', 'art\t 2', 'ART 1', '§\t 3401', '§\t3406', '§\t 1402', 'art\t 2', 'art\t 2', 'art\t4', '§\t168', '§\t41']

Michigan Form 4570 (Credits for Compensation, Investment, and Research and Development) - 2017 Michigan TaxFormFinder
Michigan Form 4570
Michigan Credits for Compensation, Investment, and Research and Development
Form 4570 PDF
2017 Form 4570 2016 Form 4570 2015 Form 4570 2014 Form 4570 2013 Form 4570 2012 Form 4570 2011 Form 4570
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Credits for Compensation, Investment, and Research and Development
4570, 2017 Michigan Business Tax Credits for Compensation, Investment, and Research and Development
Attachment 04
4570 (Rev. 04-17), Page 1 of 4
2017 MICHIGAN Business Tax Credits for Compensation,
Investment, and Research and Development
2.	 Michigan Compensation ...................................................................................................................................
3.	 Multiply line 2 by 0.37% (0.0037). ....................................................................................................................
4.	 Total eligible depreciable tangible assets located in Michigan that were acquired during the tax year
(from line 35). ........................................................................................................................................................
5.	 Total eligible depreciable tangible assets purchased or acquired for use outside of Michigan in a tax year
beginning after December 31, 2007, that were transferred into Michigan during the tax year (from line 36) ....
6.	 Total eligible depreciable mobile tangible assets that were acquired during the tax year (from line 37)............
7.	 Mobile Tangible Assets. If subject to apportionment, multiply line 6 by the percentage from Form 4567,
line 11c. If not subject to apportionment, enter amount from line 6 .....................................................................
8.	 Total Capital Investments. Add lines 4, 5 and 7.................................................................................................
9.	 Total cost paid or accrued of all depreciable real and personal property located everywhere that was acquired
during the tax year (authorized under MCL 208.1513(3)) ....................................................................................
1. Tax liability before the Compensation and Investment Tax Credits from Form 4568, line 3 .............................
PART 1: COMPENSATION CREDIT.
If not claiming this credit, go to Part 2.
PART 2: INVESTMENT TAX CREDIT
Read instructions to ensure eligibility before claiming this credit. If not claiming this credit, carry amount from line 3 to line 21.
LINE 9 IS FOR STATISTICAL PURPOSES ONLY AND SHOULD NOT BE USED IN ANY CALCULATION ON THIS FORM.
Recapture of Capital Investments Acquired or Transferred into Michigan During the Tax Year
10.	 Adjusted Proceeds from recapture of eligible depreciable tangible assets located in Michigan that were
acquired or transferred into Michigan during the tax year and were also sold or otherwise disposed of during
the tax year (from line 39)......................................................................................................................................
11.	 Apportioned gains/losses. Multiply line 38, column F, by the percentage from Form 4567, line 11c.....................
12.	 Apportioned Adjusted Proceeds. If line 11 is a gain, subtract it from line 38, column E. If line 11 is a loss, add
its positive value to line 38, column E....................................................................................................................
13.	 Adjusted Proceeds from recapture of eligible depreciable mobile tangible assets acquired during the tax year
that were sold or otherwise disposed of during the tax year (from line 41) ..............................................................
14.	 Apportioned Adjusted Proceeds. Multiply line 13 by percentage from Form 4567, line 11c.................................
15.	 Adjusted Federal Basis of eligible depreciable tangible assets (other than mobile tangible assets) acquired
during the tax year that are eligible for the Investment Tax Credit and are transferred outside Michigan during
the tax year (from line 42)......................................................................................................................................
16.	 Recapture of Capital Investments. Add lines 10, 13, and 15. Or, if taxable in another state,
add lines 12, 14, and 15 ........................................................................................................................................
If subject to apportionment, complete lines 11 and 12; otherwise, go to line 13.
If subject to apportionment, complete line 14; otherwise, go to line 15.
0000 2017 23 01 27 7
2017 Form 4570, Page 2 of 4
FEIN or TR Number
Net Capital Investments
Research and development expenses in Michigan ................................................................................................
Multiply line 29 by 1.9% (0.019) .............................................................................................................................
Multiply line 24 by 65% (0.65) ................................................................................................................................
Ceiling for Research and Development Credit. Subtract line 26 from line 31 .......................................................
Research and Development Credit. Enter the lesser of line 30 or line 32. Carry amount to Form 4568, line 5 ........
34.	 Tax After Research and Development Credit. Subtract line 33 from line 28.
(This line must be equal to Form 4568, line 6.) ......................................................................................................
Net MBT Capital Investment. Subtract line 16 from line 8 .................................................................................
Multiply line 17 by 2.9% (0.029) ............................................................................................................................
Net Recapture Amount. Enter sum of amounts from Worksheet 2, total of column U, and Form 4585, line 7......
Subtract line 19 from line 18. If negative, carry amount to Form 4568, line 4b ....................................................
PART 3: REDUCED COMPENSATION AND INVESTMENT TAX CREDITS
Add lines 3 and 20. If line 20 is negative, enter amount from line 3 ......................................................................
Enter amount from Form 4567, line 51, or Form 4590, line 22..............................................................................
Total SBT credit carryforwards used from Form 4569, line 13 ...............................................................................
Subtract line 23 from line 22. If less than zero, enter zero .....................................................................................
Multiply line 24 by 52% (0.52) ................................................................................................................................
Allowable Credit. Enter lesser of line 21 or line 25. Carry amount to Form 4568, line 4a ...................................
If line 20 is negative, enter amount from line 20 as a positive number. If line 20 is positive, leave this line blank...
Tax After Compensation and Investment Tax Credits. Subtract line 26 from line 1 and add line 27 ......................
PART 4: RESEARCH AND DEVELOPMENT CREDIT
0000 2017 23 02 27 5
2017 Form 4570, Page 3 of 4
Table 1 - Enter all eligible depreciable tangible assets located in Michigan that were acquired during the tax year.
Cost Paid or Accrued
During Tax Year
35. Total of column D. Carry amount to line 4, page 1................................................................................................
Table 2 - Enter all eligible depreciable tangible assets purchased or acquired for use outside of Michigan in a tax year beginning after
December 31, 2007, that were transferred into Michigan during the tax year.
Date Physically
Federal Adjusted Basis
as of Date Transferred
36. Total of column D. Carry amount to line 5, page 1................................................................................................
Table 3 - Enter all eligible depreciable mobile tangible assets that were acquired during the tax year.
37. Total of column D. Carry amount to line 6, page 1................................................................................................
0000 2017 23 03 27 3
2017 Form 4570, Page 4 of 4
Table 4 - Enter all eligible depreciable tangible assets located in Michigan that were acquired or transferred into Michigan during the tax
year and were also sold or otherwise disposed of during the tax year. (Enter dates as MM-DD-YYYY.)
38.	 Totals of columns E and F. A loss in column F will increase recapture............................
39.	 Adjusted Proceeds. If line 38, column F, is a gain, subtract it from line 38, column E. If line 38, column F, is a
loss, add its positive value to line 38, column E. Carry amount to line 10, page 1.................................................
Table 5 - Enter all eligible depreciable mobile tangible assets acquired during the tax year that were also sold or otherwise disposed of
during the tax year. (Enter dates as MM-DD-YYYY.)
40.	 Totals of columns E and F. A loss in column F will increase recapture............................
41.	 Adjusted Proceeds. If line 40, column F, is a gain, subtract it from line 40, column E. If line 40, column F, is a
loss, add its positive value to line 40, column E. Carry amount to line 13, page 1.................................................
Table 6 - Enter all eligible depreciable tangible assets (other than mobile tangible assets) acquired during the tax year that are eligible
for the Investment Tax Credit and were transferred outside Michigan during the tax year. (Enter dates as MM-DD-YYYY.)
42.	 Adjusted Federal Basis. Total of column E. Carry amount to line 15, page 1.........................................................
+	 0000
2017 23 04 27 1
Instructions for Form 4570, Michigan Business Tax (MBT)
To	 claim	 the	 Compensation	 Credit,	 Investment	 Tax	 Credit
(ITC),	 and	 the	 Research	 and	 Development	 Credit	 calculated
here	 and	 carried	 to	 the	 MBT Nonrefundable Credits Summary
(Form	4568).
NOTE:	 This	 form	 may	 be	 used	 by	 standard	 taxpayers	 to
claim	 eligible	 credits	 and	 by	 financial	 institutions	 to	 claim
the	 Compensation	 Credit	 only.	 Insurance	 companies	 use	 the
Miscellaneous Credits for Insurance Companies	 (Form	 4596)
to	claim	credits	for	which	they	may	be	eligible.
The	 Compensation	 Credit	 and	 ITC	 together	 are	 limited	 to
52	percent	of	the	total	tax	liability.	The	Research	and	Development
Credit,	 combined	 with	 the	 Compensation	 Credit	 and	 ITC,	 are
limited	to	65	percent	of	the	tax	liability.
This	form	will	also	determine	an	ITC	recapture	that	potentially
could	increase	the	tax	liability.
NOTE:	 Beginning	 January	 1,	 2012,	 only	 those	 taxpayers
with	 a	 certificated	 credit,	 which	 is	 awarded	 but	 not	 yet	 fully
claimed	 or	 utilized,	 may	 elect	 to	 be	 MBT	 taxpayers.	 	 If	 a
taxpayer	 files	 an	 MBT	 return	 and	 claims	 a	 certificated	 credit,
the	 taxpayer	 makes	 the	 election	 to	 file	 and	 pay	 under	 the	 MBT
until	 the	 certificated	 credit	 and	 any	 carryforward	 of	 that	 credit
are	 exhausted.	 A	 taxpayer	 making	 a	 valid	 certificated	 credit
election	may	also	claim	the	credits	on	this	form.
Credits	are	earned	and	calculated	on	either	an	entity-specific	or
group	 basis,	 as	 determined	 by	 the	 relevant	 statutory	 provisions
for	 the	 respective	 credits.	 The	 credits	 on	 this	 form	 are
calculated	 on	 a	 group	 basis.	 Intercompany	 transactions	 are	 not
eliminated	 for	 the	 calculation	 of	 any	 credits.	 Assets	 transferred
between	 members	 of	 the	 group	 are	 not	 considered	 capital
investments	 in	 qualifying	 assets	 for	 purposes	 of	 calculating
the	 ITC	 in	 Part	 2.	 Credits	 are	 generally	 applied	 against	 the
tax	 liability	 of	 the	 Unitary	 Business	 Group	 (UBG),	 unless
otherwise	specified	by	statute.
Complete	one	Form	4570	for	the	group.
Dates	must	be	entered	in	MM-DD-YYYY	format.
Name and Account Number:	Enter	name	and	account	number
as	 reported	 on	 page	 1	 of	 the	 applicable	 MBT	 annual	 return
(either	 the	 MBT Annual Return	 (Form	 4567)	 for	 standard
taxpayers	 or	 the	 MBT Annual Return for Financial Institutions
(Form	4590)).
PART 1: COMPENSATION CREDIT
UBGs: If	 the	 taxpayer	 is	 a	 UBG,	 the	 Compensation	 Credit	 is
calculated	 on	 the	 combined	 Michigan	 compensation	 of	 the
UBG	 members.	 Intercompany	 transactions	 are	 not	 eliminated
for	this	purpose.
Line 2:	 Enter	 compensation,	 as	 defined	 in	 Michigan	 Compiled
Laws	 208.1107(3),	 paid	 in	 the	 tax	 year	 on	 behalf	 of	 or	 for	 the
benefit	 of	 employees,	 officers,	 or	 directors.	 Generally,	 under
this	 definition,	 compensation	 includes,	 but	 is	 not	 limited	 to,
payments	 that	 are	 subject	 to	 or	 specifically	 exempt	 or	 excepted
from	 withholding	 under	 Internal	 Revenue	 Code	 (IRC)	 §	 3401
through	§	3406.
Compensation	 also	 includes	 fringe	 benefits	 and	 any	 earnings
that	 are	 net	 earnings	 from	 self-employment,	 as	 defined	 under
IRC	 §	 1402,	 of	 the	 taxpayer,	 partner,	 or	 Limited	 Liability
Company	 member	 of	 the	 taxpayer.	 Wages,	 salaries,	 fees,
bonuses,	 commissions,	 and	 other	 payments	 made	 in	 the	 tax
year	 on	 behalf	 of	 or	 for	 the	 benefit	 of	 employees,	 officers,	 or
directors,	 as	 well	 as	 net	 earnings	 from	 self-employment,	 must
be	reported	on	a	cash	basis.
Payments	 made	 to	 a	 pension	 plan,	 retirement	 or	 profit	 sharing
plan,	 employee	 insurance	 plans,	 and	 payments	 under	 health	 and
welfare	 benefit	 plans,	 as	 well	 as	 the	 administration	 fees	 paid	 for
the	 administration	 of	 the	 health	 and	 welfare	 benefit	 plan,	 are
compensation.	 Compensation	 also	 includes	 certain	 payments
made	 by	 licensed	 taxpayers	 that	 are	 statutorily	 identified.	 These
compensation	payments	are	calculated	on	a	cash	or	accrual	basis
consistent	 with	 the	 taxpayer’s	 method	 of	 accounting	 for	 federal
income	 taxes.	 The	 statute	 provides	 for	 certain	 exclusions	 from
compensation,	 including	 employee	 discounts	 on	 merchandise
and	 services,	 payments	 for	 State	 and	 federal	 unemployment
compensation	and	federal	insurance	contributions,	and	payments
made	to	most	independent	contractors.
Expenses	incurred	for	the	benefit	of	the	taxpayer	rather	than	for
the	 benefit	 of	 employees	 of	 the	 taxpayer	 are	 not	 compensation.
Noncompensation	 expenses	 might	 include	 payments	 reported
on	 a	 Form	 1099	 to	 an	 employee	 for	 the	 rental	 of	 a	 building	 or
for	interest	income.
This	 credit	 is	 calculated	 on	 the	 taxpayer’s	 Michigan
Compensation	 is	 “in	 this	 state”	 if	 (a)	 the	 individual’s	 service
is	 performed	 entirely	 within	 Michigan,	 or	 (b)	 the	 individual’s
service	 is	 performed	 both	 within	 Michigan	 and	 outside
Michigan,	 but	 the	 services	 performed	 outside	 Michigan	 are
incidental	to	the	individual’s	service	within	Michigan.
Example 1:	 Sales	 Co.	 employs	 Salesperson	 whose	 territory
includes	both	Detroit,	Michigan,	and	Toledo,	Ohio.	Salesperson
calls	 on	 customers	 located	 in	 both	 Michigan	 and	 Ohio.	 The
compensation	 paid	 to	 Salesperson	 is	 not	 “compensation	 in	 this
state”	 because	 Salesperson’s	 activity	 is	 not	 limited	 solely	 to
Michigan,	and	calling	on	customers	in	Ohio	is	not	incidental	to
Salesperson’s	activity	in	Michigan.
Example 2:	 Manufacturer	 employs	 Engineer	 at	 its	 Michigan
facility.	Several	times	a	year,	Engineer	travels	out	of	state	to	meet
with	 suppliers.	 Although	 Engineer	 performs	 services	 both	 within
Michigan	 and	 outside	 Michigan,	 Engineer’s	 out-of-state	 services
are	 incidental	 to	 Engineer’s	 services	 within	 Michigan.	 The
compensation	paid	to	Engineer	is	“compensation	in	this	state.”
Use	 Part	 2	 to	 determine	 the	 total	 eligible	 acquisitions	 and
dispositions	 for	 the	 filing	 period.	 Complete	 Tables	 1	 through	 6
(lines	 35	 through	 42)	 before	 completing	 lines	 4	 through	 16.	 If
more	 space	 is	 needed	 for	 any	 assets	 acquired,	 sold,	 or	 disposed
of	 in	 this	 tax	 year,	 include	 additional	 copies	 of	 page	 3	 or	 page
4	 (as	 applicable)	 of	 the	 form	 identifying	 the	 name	 and	 account
number	 at	 the	 top	 with	 only	 the	 additional	 applicable	 fields
completed.	 Financial	 institutions	 and	 insurance	 companies	 do
not	qualify	for	this	credit.
For	 tax	 years	 beginning	 after	 2007,	 taxpayers	 may	 claim	 an
ITC	 for	 a	 percentage	 of	 the	 net	 costs	 paid	 or	 accrued	 in	 the
filing	period	for	qualifying	tangible	assets	physically	located	in
Michigan.	 The	 assets	 must	 be	 of	 a	 type	 that	 are	 or	 will	 become
eligible	 for	 depreciation,	 amortization,	 or	 accelerated	 capital
cost	 recovery	 for	 federal	 income	 tax.	 Mobile	 tangible	 assets
(defined	 in	 the	 instructions	 for	 line	 8),	 wherever	 located,	 are
subject	 to	 apportionment	 in	 the	 same	 manner	 as	 the	 tax	 base.
Assets	 purchased	 or	 acquired	 after	 2007	 for	 use	 outside	 of
Michigan	 and	 moved	 into	 Michigan	 during	 the	 filing	 period,
also	 qualify	 for	 ITC.	 Disposition	 of	 an	 asset,	 or	 moving	 an
asset	 out	 of	 Michigan,	 creates	 recapture	 that	 reduces	 the	 credit.
If	 recapture	 exceeds	 the	 positive	 credit	 earned	 by	 acquisitions,
the	tax	liability	is	increased.
NOTE:	 Recapture	 from	 dispositions	 during	 the	 filing	 period
of	 assets	 acquired	 (or	 moved	 into	 Michigan)	 after	 1999	 and
before	 2008	 is	 calculated	 on	 the	 MBT Investment Tax Credit
Recapture from Sale of Assets Acquired Under Single Business
Tax	(Form	4585).
If,	during	the	filing	period,	a	taxpayer	acquired	depreciable	real
or	personal	property	or	disposed	of	depreciable	real	or	personal
property	 that	 was	 acquired	 in	 a	 tax	 year	 beginning	 after	 1999,
complete	this	form	and	include	it	as	part	of	the	annual	return.	If
property	 disposed	 of	 during	 the	 filing	 period	 was	 acquired	 in	 a
tax	 year	 beginning	 after	 1999	 and	 before	 2008,	 also	 complete
and	include	Form	4585.
UBGs:	 If	 the	 taxpayer	 is	 a	 UBG,	 the	 ITC	 is	 calculated	 on
combined	 assets	 of	 standard	 members	 of	 the	 UBG.	 Assets
transferred	 between	 members	 of	 the	 group	 are	 not	 a	 capital
investment	 in	 qualifying	 assets	 for	 purposes	 of	 calculating	 this
The	 following	 instructions	 for	 the	 Part	 2	 “Capital	 Investments
(Acquisitions)”	 and	 “Recapture	 of	 Capital	 Investments
(Dispositions)”	 sections	 provide	 information	 on	 completing	 the
tables	on	pages	3	and	4	of	this	form.	The	instructions	for	Part	4
follow	these	sections.
Capital Investments (Acquisitions)
NOTE: When completing tables 1 through 6,	 leave	 lines/
boxes	blank	if	they	do	not	apply	or	if	the	amount	is	zero,	unless
otherwise	instructed.
NOTE: For Tables 1 through 3,	 all	 events	 that	 have	 varying
dates	 must	 be	 listed	 separately.	 “Various”	 is	 not	 a	 valid	 entry	 in
a	date	field.	Multiple	acquisitions	(or	transfers)	may	be	combined
as	 one	 entry,	 subject	 to	 the	 following:	 all	 combined	 events	 must
satisfy	 the	 terms	 of	 the	 table	 in	 which	 they	 are	 entered.	 “Date
Acquired”	 (or	 “Date	 Physically	 Located	 in	 Michigan”)	 must	 be
the	same	for	all	events	combined	on	a	single	line.
Cost	includes	costs	of	fabrication	and	installation.
Table 1:	 Enter	 a	 short	 description	 (for	 example,	 equipment,
building,	 etc.),	 city	 or	 township	 in	 which	 the	 asset	 is	 located,
date	 acquired,	 and	 cost	 paid	 or	 accrued	 of	 all	 eligible
depreciable	 tangible	 assets	 located	 in	 Michigan	 that	 were
acquired	during	the	filing	period.
If	 multiple	 pages	 of	 Form	 4570,	 Table	 1,	 are	 included,	 carry	 the
grand	total	of	all	Table	1,	column	D,	entries	to	line	4.
Table 2:	 Enter	 a	 short	 description	 (for	 example,	 equipment,
automobile,	etc.),	city	or	township	in	which	the	asset	is	located,
date	 physically	 located	 in	 Michigan,	 and	 adjusted	 basis	 (as
calculated	 for	 federal	 purposes)	 as	 of	 the	 date	 moved	 of	 all
eligible	 depreciable	 tangible	 assets	 purchased	 or	 acquired
for	 use	 outside	 of	 Michigan	 after	 2007	 that	 were	 moved	 into
Michigan	 during	 the	 filing	 period	 for	 a	 business	 use.	 Do	 not
include	mobile	tangible	assets	(see	below).
If	multiple	pages	of	Form	4570,	Table	2,	are	included,	carry	the
grand	total	of	all	Table	2,	column	D,	entries	to	line	5.
Table 3:	 Enter	 a	 short	 description	 (for	 example,	 construction
equipment,	 aircraft,	 etc.),	 the	 state	 in	 which	 the	 asset	 primarily
was	 based	 during	 the	 tax	 year,	 date	 acquired,	 and	 cost	 paid
or	 accrued	 during	 the	 filing	 period	 for	 all	 depreciable	 mobile
tangible	 assets	 that	 were	 acquired	 during	 the	 filing	 period,
whether	located	in	Michigan	or	outside	Michigan.
Mobile tangible assets	are	all	of	the	following:
•	 Motor	 vehicles	 that	 have	 a	 gross	 vehicle	 weight	 rating	 of
10,000	pounds	or	more	and	are	used	to	transport	property	or
persons	for	compensation.
•	 Rolling	 stock	 (railroad	 freight	 or	 passenger	 cars,
locomotives,	 or	 other	 railcars),	 aircraft,	 and	 watercraft
used	 by	 the	 owner	 to	 transport	 property	 or	 persons	 for
compensation	 or	 used	 by	 the	 owner	 to	 transport	 the	 owner’s
property	for	sale,	rental,	or	further	processing.
•	 Equipment	 used	 directly	 in	 completion	 of,	 or	 in	 construction
contracts	 for,	 the	 construction,	 alteration,	 repair,	 or
improvement	of	property.
If	multiple	pages	of	Form	4570,	Table	3,	are	included,	carry	the
grand	total	of	all	Table	3,	column	D,	entries	to	line	6.
Recapture of Capital Investments (Dispositions)
Use	 this	 section	 to	 compute	 credit	 recapture	 from	 disposition
(or	 moving	 out	 of	 Michigan)	 of	 tangible,	 depreciable	 real	 or
personal	 property	 that	 was	 acquired	 in	 a	 tax	 year	 beginning
after	 2007.	 Recapture	 from	 the	 disposition	 of	 qualifying
property	 that	 was	 acquired	 in	 a	 tax	 year	 beginning	 after	 1999
but	before	2008	is	calculated	on	Form	4585	and	reported	here.
NOTE:	 A	 sale	 of	 qualifying	 property	 reported	 on	 the
installment	 method	 for	 federal	 income	 tax	 purposes	 causes
a	 recapture	 based	 upon	 the	 entire	 sale	 price	 in	 the	 year	 of
the	 sale.	 The	 recapture	 is	 reduced	 by	 any	 gain	 reported	 in
federal	 taxable	 income	 (as	 defined	 for	 MBT	 purposes)	 in
the	 year	 of	 the	 sale.	 The	 gain	 attributable	 to	 the	 installment
sale	 that	 is	 reported	 in	 subsequent	 years	 increases	 the	 credit
base	 (or	 reduces	 other	 sources	 of	 recapture)	 for	 those	 years.
For	 property	 placed	 in	 service	 prior	 to	 January	 1,	 2008,	 gain
reflected	 in	 federal	 taxable	 income	 (as	 defined	 for	 MBT
purposes)	is	equal	to	the	gain	reported	for	federal	purposes.
(for	 example,	 construction	 equipment,	 aircraft,	 etc.).	 Enter
gross	 sales	 price	 (net	 of	 costs	 of	 sale)	 in	 column	 E,	 and	 in
column	F,	enter	total	gain	or	loss	included	in	calculating	federal
taxable	income	(as	defined	for	MBT	purposes).
UBGs: If	 the	 taxpayer	 is	 a	 UBG,	 the	 recapture	 of	 capital
investments	 is	 calculated	 on	 combined	 assets	 of	 standard
members	 of	 the	 UBG.	 Assets	 transferred	 between	 members	 of
the	 group	 are	 not	 a	 capital	 investment	 in	 qualifying	 assets	 for
purposes	 of	 calculating	 this	 credit	 or	 its	 recapture.	 However,
moving	 an	 asset	 outside	 of	 Michigan	 creates	 recapture,	 even	 if
the	transfer	is	to	a	member	of	the	UBG.
For	 property	 placed	 in	 service	 in	 the	 current	 filing	 period,
gain	 reflected	 in	 federal	 taxable	 income	 (as	 defined	 for	 MBT
purposes)	 is	 the	 gain	 reported	 federally	 except	 that	 it	 shall	 be
calculated	as	if	IRC	§	168(k)	were	not	in	effect.
Using the Correct Tables to Calculate Recapture
Enter	 information	 on	 Tables	 4,	 5,	 6	 as	 explained	 below	 ONLY
for	assets	that	are	being	disposed	of	in	the	current	filing	period,
and	 that	 were	 purchased,	 	 acquired,	 or	 moved	 into	 Michigan
ALSO	in	the	current	filing	period.
Information	 for	 assets	 disposed	 of	 in	 the	 current	 filing	 period
and	 purchased,	 acquired,	 or	 moved	 into	 Michigan	 in	 tax	 years
included	 in	 PREVIOUS	 filing	 periods	 must	 be	 entered	 on
worksheets	1a,	1b,	and	1c	provided	at	the	end	of	the	instructions
for	 this	 form.	 Recapture	 for	 assets	 that	 were	 acquired	 in	 a	 tax
year	 beginning	 before	 2008	 and	 disposed	 of	 during	 the	 current
filing	period	is	reported	on	Form	4585.
The	 total	 credit	 recapture	 for	 assets	 reported	 on	 worksheets
1a,	 1b,	 and	 1c	 is	 calculated	 on	 Worksheet	 2	 at	 the	 end	 of	 this
instructions,	 and	 will	 be	 reported	 on	 line	 19	 on	 this	 form.	 If	 the
filer	 is	 also	 reporting	 SBT	 ITC	 recapture	 on	 Form	 4585,	 add
both	the	total	sum	from	Worksheet	2,	column	U,	and	the	amount
from	 Form	 4585,	 line	 7	 and	 enter	 the	 sum	 on	 line	 19	 on	 Form
4579	(this	form).
NOTE: For Tables 4 through 6,	 all	 events	 that	 have	 varying
dates	 must	 be	 listed	 separately.	 	 “Various”	 is	 not	 a	 valid
entry	 in	 a	 date	 field.	 Multiple	 dispositions	 (or	 transfers)
may	 be	 combined	 as	 one	 entry,	 subject	 to	 the	 following:	 	 All
combined	 events	 must	 satisfy	 the	 terms	 of	 the	 table	 in	 which
they	 are	 entered.	 	 “Date	 Acquired”	 must	 be	 the	 same	 for	 all
events	 combined	 on	 a	 single	 line,	 and	 “Date	 Sold”	 (or	 “Date
Transferred”)	also	must	be	the	same.
Table 4:	 Enter	 all	 dispositions	 of	 depreciable	 tangible	 assets
located	 in	 Michigan	 that	 were	 acquired	 or	 moved	 into
Michigan	 in	 the	 current	 filing	 period,	 and	 were	 ALSO	 sold
or	 otherwise	 disposed	 of	 during	 the	 current	 filing	 period.
Give	 all	 information	 required	 for	 each	 disposition	 in	 columns
A	 through	 F.	 In	 column	 A,	 enter	 a	 short	 description	 (for
example,	 equipment,	 building,	 etc.).	 Enter	 gross	 sales	 price
(net	 of	 costs	 of	 sale)	 in	 column	 E,	 and	 in	 column	 F,	 enter	 total
gain	 or	 loss	 included	 in	 calculating	 federal	 taxable	 income	 (as
defined	for	MBT	purposes).
NOTE:	Sales	price	includes	any	benefit	derived	from	the	sale.
If	multiple	pages	of	Form	4570,	Table	5,	are	included,	carry	the
grand	total	of	all	line	41	entries	to	line	13.
Table 6:	 Enter	 all	 depreciable	 tangible	 assets	 (other	 than	 mobile
tangible	 assets)	 acquired	 in	 the	 current	 filing	 period	 that	 were
eligible	 for	 ITC	 and	 were	 ALSO	 transferred	 outside	 Michigan
during	 the	 current	 filing	 period.	 Give	 all	 information	 required
for	each	disposition	in	columns	A	through	E.	In	column	A,	enter
a	 short	 description	 (e.g.,	 equipment,	 automobile,	 etc.)	 and	 in
column	B,	enter	the	Michigan	city	or	township	in	which	the	asset
was	 located	 before	 its	 transfer.	 In	 column	 E,	 enter	 adjusted	 basis
as	 used	 for	 federal	 purposes.	 Do	 not	 use	 a	 recomputed	 MBT
basis	for	this	purpose.
If	multiple	pages	of	Form	4570,	Table	6,	are	included,	carry	the
grand	total	of	all	Table	6,	column	E,	entries	to	line	15.
Line 29:	 As	 used	 in	 this	 part,	 research and development
expenses	means	that	term	as	defined	in	IRC	§	41(b).
UBGs:	If	the	taxpayer	is	a	UBG,	the	Research	and	Development
Credit	 is	 calculated	 on	 the	 combined	 research	 and	 development
expenses	 of	 standard	 members	 of	 the	 UBG.	 Intercompany
transactions	 are	 not	 eliminated	 for	 this	 purpose.	 Qualified
expenses	 incurred	 by	 members	 of	 a	 UBG	 that	 are	 paid	 to	 fellow
members	are	included	in	calculating	the	group’s	credit.
Include completed Form 4570 as part of the tax return filing.
IMPORTANT:	 Complete	 the	 worksheets	 on	 the	 following
pages	 for	 assets	 disposed	 (or	 moved	 out	 of	 Michigan)	 in
the	 current	 filing	 period	 that	 were	 purchased,	 acquired,	 or
moved	 into	 Michigan	 in	 a	 previous	 tax	 year	 beginning	 after
December	31,	2007.
If	multiple	pages	of	Form	4570,	Table	4,	are	included,	carry	the
grand	total	of	all	line	39	entries	to	line	10.
Table 5:	 Enter	 all	 dispositions	 of	 depreciable	 mobile	 tangible
assets	 that	 were	 acquired	 in	 the	 current	 filing	 period	 and	 were
ALSO	 sold	 or	 otherwise	 disposed	 of	 during	 the	 current	 filing
period.	 Give	 all	 information	 required	 for	 each	 disposition	 in
columns	 A	 through	 F.	 In	 column	 A,	 enter	 a	 short	 description
Calculation of MBT ITC Credit Recapture Amount
Calculation of MBT ITC Credit Recapture Bases
For	 each	 category	 of	 asset	 disposed	 (or	 moved	 out	 of
Michigan)	 that	 triggers	 an	 MBT	 ITC	 credit	 recapture,	 enter	 the
information	requested	below.
•	 Use	 the	 worksheets	 below	 to	 report	 information	 ONLY	 on
assets	disposed	(or	moved	out	of	Michigan)	in	the	current	filing
period	 that	 were	 purchased,	 acquired,	 or	 moved	 into	 Michigan
in	a	PREVIOUS	tax	year	beginning	after	December	31,	2007.
•	 Use	 tables	 4,	 5,	 and	 6	 on	 the	 form	 to	 report	 assets	 that	 were
disposed	 of	 or	 moved	 out	 of	 Michigan	 in	 the	 current	 filing
period	 AND	 were	 also	 purchased,	 acquired,	 or	 moved	 into
Michigan	in	the	same	current	filing	period.
In	 each	 category	 of	 disposed/moved	 asset,	 group	 assets	 by
taxable	 year	 in	 which	 they	 were	 acquired.	 All	 events	 that	 have
varying	 dates	 must	 be	 listed	 separately.	 Multiple	 dispositions
(or	 transfers)	 may	 be	 combined	 as	 one	 entry,	 subject	 to	 the
following:	 all	 combined	 events	 must	 satisfy	 the	 terms	 of
the	 table	 in	 which	 they	 are	 entered.	 “Taxable	 Year	 in	 which
disposed	 assets	 were	 acquired”	 must	 be	 the	 same	 for	 all	 events
combined	on	a	single	line.
UBGs:	 If	 an	 asset	 subject	 to	 recapture	 is	 from	 a	 member	 that
was	not	part	of	the	group	in	the	tax	year	the	asset	was	acquired,
make	 a	 separate	 line	 entry	 for	 the	 tax	 year	 the	 member
filed	 outside	 of	 the	 group.	 Take	 care	 to	 report	 in	 this	 line
information	 requested	 in	 each	 column	 only	 from	 the	 member’s
single	filings,	not	the	group’s.
a	 recapture	 based	 upon	 the	 entire	 sale	 price	 in	 the	 year	 of	 the
sale.	 The	 recapture	 is	 reduced	 by	 any	 gain	 reported	 in	 federal
taxable	 income	 (as	 defined	 for	 MBT	 purposes)	 in	 the	 year	 of
the	 sale.	 The	 gain	 attributable	 to	 the	 installment	 sale	 that	 is
reported	 in	 subsequent	 years	 increases	 the	 credit	 base	 (or
reduces	 other	 sources	 of	 recapture)	 for	 those	 years,	 and	 must
be	 reported	 on	 column	 C	 of	 the	 appropriate	 Worksheet	 based
on	 the	 type	 of	 asset.	 For	 property	 placed	 in	 service	 prior	 to
January	 1,	 2008,	 the	 gain	 reflected	 in	 federal	 taxable	 income
(as	 defined	 for	 MBT	 purposes)	 is	 equal	 to	 the	 gain	 reported	 for
federal	purposes.
UBGs:	 The	 recapture	 of	 capital	 investments	 for	 UBGs	 is
calculated	 on	 combined	 assets	 of	 standard	 members	 of	 the
UBG.	 Assets	 transferred	 between	 members	 of	 the	 group	 are
not	 a	 capital	 investment	 in	 qualifying	 assets	 for	 purposes
of	 calculating	 this	 credit	 or	 its	 recapture.	 Disposing	 of	 or
transferring	 an	 asset	 outside	 of	 the	 UBG	 triggers	 recapture.
Also,	 moving	 an	 asset	 outside	 of	 Michigan	 creates	 recapture,
even	if	the	transfer	is	to	a	member	of	the	UBG.
Worksheet 1a — Depreciable Tangible Assets
Enter	 all	 dispositions	 of	 depreciable	 tangible	 assets	 located
in	 Michigan	 that	 were	 acquired	 or	 moved	 into	 Michigan	 after
acquisition	 in	 a	 tax	 year	 beginning	 after	 2007	 and	 were	 sold
A	 through	 F.	 In	 column	 A,	 enter	 the	 taxable	 year	 in	 which	 the
disposed	 assets	 were	 acquired.	 Enter	 combined	 gross	 sales
price	 (net	 of	 costs	 of	 sale)	 in	 column	 B,	 and	 in	 column	 C,	 enter
Taxable Year (End Date)
In Which Disposed
Assets Were Acquired
Combined Sales Price
of Disposed Assets by
Net Gain/Loss From
MBT Apportionment
Form 4567, line 11c,
or Form 4590, line 10c
Multiply Column C
by Column D
MBT ITC Recapture
Subtract Column E
Worksheet 1b — Depreciable Mobile Tangible Assets
Combined Sales Price of
Disposed Assets by
Worksheet 1c — Assets Transferred Outside Michigan
Combined Adjusted Federal Basis of
Disposed Assets by Year of Acquisition
(Base 3)
Adjusted Proceeds
Subtract Column C
Multiply Column D
by Column E
total	gain	or	loss	included	in	calculating	federal	taxable	income
(as	defined	for	MBT	purposes).
Enter	 all	 dispositions	 of	 depreciable	 mobile	 tangible	 assets	 that
were	 acquired	 after	 2007	 and	 were	 sold	 or	 otherwise	 disposed
of	during	the	current	filing	period.	Give	all	information	required
for	 each	 disposition	 in	 columns	 A	 through	 F.	 In	 column	 A,	 enter
the	 taxable	 year	 in	 which	 the	 disposed	 assets	 were	 acquired.
Enter	 gross	 sales	 price	 (net	 of	 costs	 of	 sale)	 in	 column	 B,	 and	 in
column	 C,	 enter	 total	 gain	 or	 loss	 included	 in	 calculating	 federal
For	 property	 placed	 in	 service	 after	 December	 31,	 2007,	 gain
Enter	all	depreciable	tangible	assets	(other	than	mobile	tangible
assets)	 acquired	 after	 2007	 that	 were	 eligible	 for	 ITC	 and	 were
transferred	 outside	 Michigan	 during	 the	 filing	 period.	 Give
all	 information	 required	 for	 each	 disposition	 in	 column	 A	 and
B.	 In	 column	 A,	 enter	 the	 taxable	 year	 in	 which	 the	 disposed
assets	 were	 acquired,	 and	 in	 column	 B,	 enter	 adjusted	 basis	 as
used	 for	 federal	 purposes.	 Do	 not	 use	 a	 recomputed	 MBT	 basis
Calculation of MBT ITC Recapture Rates
Complete	 Worksheet	 2	 (on	 the	 following	 page),	 entering	 each
taxable	 year	 (End	 Date)	 in	 which	 the	 disposed	 assets	 that
triggered	MBT	ITC	credit	recapture	were	acquired.
•	 Column	 H:	 Calculate	 gross	 ITC	 credit	 amount:	 multiply
column	F	by	column	G	for	each	taxable	year.
NOTE:	 Lines	 references	 on	 columns	 below	 are	 based	 on
2010	 MBT	 form	 4570.	 Lines	 for	 MBT	 forms	 prior	 to	 2010
are	 different,	 so	 if	 copying	 information	 from	 MBT	 forms
other	than	2010,	choose	the	appropriate	lines.
•	Column	L:	Gross	MBT	ITC	credit	recapture	amount.		Multiply
column	 J	 by	 column	 K.		 This	 represents	 the	 total	 amount	 of	 ITC
credit	recapture	available	to	be	reported	in	the	tax	year.
•	 Column	 A:	 Enter	 in	 chronological	 order,	 beginning	 with
the	 earliest,	 the	 tax	 year	 end	 date	 of	 each	 acquisition	 year
of	 disposed	 assets	 that	 triggered	 MBT	 ITC	 recapture	 from
Worksheet	1a	through	1c.
UBGs: If	 an	 asset	 subject	 to	 recapture	 is	 from	 a	 member	 that
•	 Column	 B:	 Enter	 allowable	 MI	 compensation	 and	 ITC	 credits
amount	 from	 Form	 4570,	 line	 26	 with	 the	 corresponding
acquisition	year	in	column	A.
•	 Column	 C:	 Enter	 the	 MI	 compensation	 credit	 amount	 from
Form	 4570,	 line	 3	 with	 the	 corresponding	 acquisition	 year	 in
column	A.
•	 Column	 D:	 Calculate	 net	 ITC	 credit	 amount:	 subtract	 column
C	 from	 column	 B	 for	 each	 taxable	 year.	 	 If	 difference	 is	 less
than	 zero	 (is	 negative),	 enter	 zero.		 This	 is	 the	 amount	 of	 ITC
credit	that	offsets	MBT	liability.
•	 Column	 F:	 MBT	 capital	 investment	 amount.	 	 Enter	 total
amount	of	capital	investment	reported	on	Form	4570,	line	8,	for
each	taxable	year	listed	on	column	E.
•	 Column	 G:	 ITC	 rate.	 	 Enter	 2.32%	 for	 taxable	 years	 on
column	E	that	end	with	2008,	otherwise	enter	2.9%.
•	 Column	 J:	 MBT	 recapture	 of	 capital	 investment.		 Enter	 total
amount	 of	 recapture	 of	 capital	 investment	 reported	 on	 Form
4570,	line	16,	for	each	taxable	year	listed	on	column	I.
•	 Column	 M:	 MBT	 ITC	 credit	 recapture	 amount	 offset	 by
credit.	 Enter	 the	 lesser	 of	 columns	 H	 and	 L.	 This	 is	 the	 amount
of	 available	 ITC	 credit	 recapture	 that	 was	 offset	 by	 the	 total
amount	of	available	ITC	credit	in	the	year.
•	 Column	 O:	 SBT	 credit	 recapture	 amount.		 Enter	 total	 amount
from	 Form	 4570,	 line	 19	 for	 each	 taxable	 year	 listed	 on	 column
•	Column	P:		SBT	ITC	credit	recapture	amount	offset	by	credit.
Enter	 lesser	 of	 the	 amount	 on	 column	 O,	 and	 the	 amount	 of
column	 H	 minus	 column	 M.	 This	 is	 the	 amount	 of	 SBT	 ITC
credit	 recapture	 that	 was	 offset	 by	 the	 total	 amount	 of	 available
ITC	credit	in	the	taxable	year.
•	 Column	 Q:		 Total	 MBT	 ITC	 used.		 Add	 columns	 D,	 M,	 and
P.		 The	 total	 amount	 of	 MBT	 ITC	 used	 equals	 to	 the	 amount	 of
credit	 that	 offsets	 MBT	 ITC	 credit	 recapture,	 SBT	 ITC	 credit
recapture,	and	the	MBT	liability.
•	 Column	 R:		 Extent	 used	 rate.		 Divide	 amounts	 on	 column	 Q
by	amounts	on	column	H.
•	 Column	 T:	 	 MBT	 recapture	 base.	 	 Enter	 total	 amount	 of
recapture	 capital	 investment	 from	 Worksheet	 1a,	 column	 F;
Worksheet	1b,	column	F	and	Worksheet	1c,	column	B.
•	 Column	 U:	 	 MBT	 recapture	 amount.	 	 Multiply	 amount	 in
column	T	by	rates	in	column	G,	and	in	column	R.
Add	up	figures	in	each	row	of	column	U,	and	carry	that	amount
to	line	19.	If	filer	is	also	reporting	SBT	ITC	recapture,	add	both
the	total	sum	from	column	U	in	this	form,	and	the	amount	from
Form	4585,	line	7	and	enter	the	sum	on	line	19	on	this	form.
Worksheet 2 — Calculation of MBT ITC Recapture Rates and Amounts
Taxable Year (End Date) in
which MBT ITC Disposed
Allowable Michigan
compensation and ITC credit
amount from Form 4570,
Michigan Compensation
Credit Amount from
Form 4570, line 3
ITC that offsets MBT liability
(Enter 0 if less than 0)
(repeat from column A)
MBT Capital Investment
ITC rate
(2.32% for tax years ending
in 2008, or 2.9% otherwise)
Gross ITC Credit Amount
Multiply column F
by column G
MBT Recapture of Capital
Investment Amount from
Form 4570, line 16
Gross MBT ITC Recapture
Multiply column J
by column K
MBT ITC Recapture Amount
Offset by Credit Lesser
of column L and H
SBT ITC Credit Recapture
SBT ITC Recapture Amount
of column O,
and column (H – M)
Recapture base.
Enter total amount of
recapture from Worksheet
1a, column F; Worksheet 1b,
Recapture Amount.
column F; and Worksheet 1c,
Multiply column T by
column G and by column R
Total MBT ITC Credit Used
Extent Credit Used Rate
Add columns D, M, and P Divide column Q by column H
Extracted from PDF file 2017-michigan-form-4570.pdf, last modified January 2018
More about the Michigan Form 4570 Corporate Income Tax Tax Credit TY 2017
We last updated the Credits for Compensation, Investment, and Research and Development in February 2018, so this is the latest version of Form 4570, fully updated for tax year 2017. You can download or print current or past-year PDFs of Form 4570 directly from TaxFormFinder. You can print other Michigan tax forms here.
Form 4642 Voluntary Contributions Schedule
Michigan usually releases forms for the current tax year between January and April. We last updated Michigan Form 4570 from the Department of Treasury in February 2018.
Form 4570 is a Michigan Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
Historical Past-Year Versions of Michigan Form 4570
We have a total of seven past-year versions of Form 4570 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2017 Form 4570
2016 Form 4570
4570, 2016 Michigan Business Tax Credits for Compensation, Investment, and Research and Development
2015 Form 4570
2014 Form 4570
2013 Form 4570
2012 Form 4570
2011 Form 4570
Form 4570, 2011 Michigan Business Tax Credits for Compensation, Investment, and Reserach and Development
Source: http://www.taxformfinder.org/michigan/form-4570