Michigan Department of Treasury — 4890 (Rev. 12-16)

E-filingyourreturniseasy,fast,andsecure!

Eightypercent(over4million)ofallMichigantaxpayerschoosee-file.

Freee-fileisavailable.Doyouqualify?

VisitTreasury’sWebsiteatwww.MIfastfile.orgforalistofe-fileresources,howtofindane-fileprovider,andmoreinformationonfreee-fileservices.

This booklet is intended as a guide to help complete your return. It does not take the place of the law.

Standard taxpayerSthis booklet contains information on

completing a Michigan Corporate Income tax return for calendar year 2016 or a

f iscal year ending in 2017.

FIlIng due date Calendar FIlerS — aprIl 30, 2017

FISCal FIlerS — the laSt day oF the Fourth Month aFter the end oF the tax year.

w w w. M I C h I g a n . g ov/B u S I n e S S ta x e S

w w w. M I Fa S t F I l e .o r g

2016 Michigan Corporate

Income tax returns

Table of Contents

General Information for Standard Taxpayers ...........Page 1

Sourcing of Sales to Michigan .................................Page 8

Corporate Income Tax Annual Return (Form 4891) ...........................................................Page 13

Corporate Income Tax Small Business Alternative Credit (Form 4893) ............................Page 25

Corporate Income Tax Schedule of Shareholders and Officers (Form 4894) ........Page 29

Corporate Income Tax Loss Adjustment for the Small Business Alternative Credit (Form 4895) ...........................................................Page 37

Corporate Income Tax Unitary Business Group Affiliates Excluded from the Return of Standard Taxpayers (Form 4896) ...................Page 45

Corporate Income Tax Data on Unitary Business Group Members (Form 4897) .............Page 49

Non-Unitary Relationships with Flow-Through Entities (Form 4898) ....................Page 57

Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax (Form 4899) ...........................................................Page 61

Unitary Relationships with Flow-Through Entities (Form 4900) .............................................Page 65

Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits (Form 4902) ...........................................................Page 71

Corporate Income Tax Withholding Opt-Out Schedule (Form 4903) ...........................Page 85

Corporate Income Tax Schedule of Flow-Through Withholding (Form 4911) ........Page 89

Extension of Time to File Michigan Tax Returns (Form 4) ..................................................Page 93

Supplemental Instructions for Standard Members in Unitary Business Groups ...................Page 95

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This booklet is intended as a guide to help complete theCorporateIncomeTax(CIT)return.Itdoesnottaketheplaceofthelaw.

Who Files a Standard Return?Under the CIT, taxpayer means a C Corporation, insurancecompany, financial institution, or a Unitary Business Group(UBG) liable for tax, interest, or penalty. All taxpayers(described here as standard taxpayers) other than financialinstitutions and insurance companies with apportioned orallocatedgross receiptsequal to$350,000ormoreandwhoseCIT liability is greater than $100 must file a CIT AnnualReturn(Form4891).(See“FilingifTaxYearIsLessThan12Months” in this“General Information”section.)The lawdoesnot require the filing of the CIT return by a taxpayer whosegross receipts apportioned or allocated to Michigan are lessthan $350,000 orwhoseCIT liability is less than or equal to$100.Thereisnotaseparateformforreportingthatataxpayerhasnofilingrequirement.However, taxpayerswithoutafilingrequirementmaychoosetofileareturntoclaimarefundoftheestimatedpaymentsmadeorflow-throughwithholdingpaidontheirbehalfor create andcarry forwardanavailablebusinessloss.

Public Law 86-272:Ifataxpayer’sactivityisprotectedunderPublic Law (PL) 86-272, but the taxpayer wishes to claim arefund, the taxpayermust file a Form 4891.When filing thisform,leavelines12through41andlines49through53blank,andincludeanattachmentexplainingthecircumstancesofthePL86-272protection.Line42andline43mustbecompletedtoreportanyrecaptureofcredits.

UBGs: If all members of the UBG are claiming PL 86-272protection, then the UBGwill leave lines 12 through 41 andlines 49 through 53 blank and include a statement explainingthe circumstances of the PL 86-272 protection for eachmember. Lines42and43ofform4891mustbecompletedtoreport any recapture of credits by the group. (Each memberwill leave lines 21 through 35 blank on the CIT Data on Unitary Business Group Members, Form 4897.) However, aslong as onemember of aUBGhas nexuswithMichigan andexceedstheprotectionsofPL86-272,allmembersoftheUBG— including members protected under PL 86-272 — mustbe included when calculating the UBG’s CIT tax base andapportionment formula. PL 86-272 will only remove incomefromtheapportionableCITtaxbasewhenallmembersoftheUBGareprotectedunderPL86-272.

EXCEPTION:Aperson thatwouldbeastandard taxpayer ifviewedseparatelyisdefinedandtaxedasafinancialinstitutionif it is owned, directly or indirectly, by a financial institutionand is in a UBG with its owner. A person in this situationwill report on the CIT UBG Combined Filing Schedule for Financial Institutions (Form 4910), which supports the CIT Annual Return for Financial Institutions (Form4908).

UBGs: For a UBG (discussed in greater detail below), the$350,000filingthresholdiscalculatedbyaddinggrossreceipts

of every member and after elimination of intercompanytransactions.The tax liability thresholdof$100 isdeterminedonagroupbasis.

Insurance companies and financial institutions will calculatetax liability using specialized tax bases and rules, which arecovered in separate booklets (see the Insurance Company Annual Return for Corporate Income and Retaliatory Taxes (Form4905)andForm4908,respectively).

Using This BookletThis CIT booklet includes forms and instructions for all“standardtaxpayers”(allfilersexceptinsurancecompaniesandfinancial institutions). These forms are designed for calendaryear2016andforafiscalfilerwithataxyearendingin2017.

Read the “General Information” section first. The MichiganDepartmentofTreasury(Treasury)recommendstaxpayersandtaxpreparersalsoreviewtheinstructionsforallforms.

Overview of CIT for Standard TaxpayersThe CIT imposes a tax on all standard taxpayers withapportioned or allocated gross receipts (annualized, ifapplicable)equalto$350,000ormoreandwhoseCITliabilityismorethan$100.TheCITtaxrateis6percent.

Thestatuteoffersonenon-refundablecreditthatisavailableforstandard taxpayers. The Small Business Alternative Credit isavailable for qualifying standard taxpayers by calculating thecreditontheCIT Small Business Alternative Credit(Form4893).

For standard taxpayers, the CIT tax base is the taxpayer’sfederal taxable income (as defined for CIT purposes), withcertainadditionsandsubtractions.

Filing CIT Quarterly Tax Estimates If estimated liability for the year is reasonably expected toexceed$800,ataxpayermustfileestimatedreturns.Ataxpayermay remit quarterly estimated payments by check with aCorporate Income Tax Quarterly Return (Form 4913) ormayremitmonthly or quarterly estimated payments electronicallybyElectronicFundsTransfer(EFT).WhenpaymentsaremadebyEFT,Form4913isnotrequired.

NOTE:Formerly, taxpayerscouldpaybycheckonamonthlyor quarterly basis by remitting a check with a CombinedReturnforMichiganTax(Form160).Form160wasreplaced.The new form no longer accommodates CIT payments. Asa result, Form 4913 is the only form that supports a CITestimatedpayment.

Estimated returns and payments for calendar year taxpayersare due to Treasury by April 15, July 15, October 15, andJanuary15of thefollowingyear.Fiscalyear taxpayersshouldmakereturnsandpaymentsbytheappropriateduedatewhichisfifteendaysaftertheendofeachfiscalquarter.Thesumofestimated payments for each quarter must always reasonablyapproximatetheliabilityforthequarter.

2016 General Information for Standard Taxpayers Insurance Companies and Financial Institutions: See the Corporate Income Tax (CIT) Instruction Booklet for Insurance

Companies (Form 4904) or the CIT Instruction Booklet for Financial Institutions (Form 4907) at www.michigan.gov/treasuryforms.

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Treasury will continue to accept certain Portable DocumentFormat(PDF)attachmentswithCITe-filedreturns.Acurrentlist of defined attachments is available in the CIT “MichiganTax Preparer Handbook for Electronic Filing Programs,”whichisavailableontheTreasuryWebsiteatwww.MIfastfile.org by clicking on “Tax Preparer,” then “Corporate IncomeTax Handbook” for the applicable tax year. Follow yoursoftware instructions for submitting attachments with ane-filedreturn.

If the CIT return includes supporting documentation orattachments thatarenoton thepredefined listofattachments,thereturncanstillbee-filed.Followyoursoftwareinstructionsfor including additional attachments. The tax preparer ortaxpayer should retain file copies of all documentation orattachments.

For more information and program updates, includingexclusions from e-file, visit the e-file Web site atwww.MIfastfile.org.

Thetaxpayermayberequiredtoe-fileitsfederalreturn.Visitthe Internal Revenue Service (IRS)Web site atwww.irs.gov formoreinformationonfederale-filerequirementsandtheIRSFederal/StateModernizede-File(MeF)program.

Complete Federal Tax Forms First

BeforepreparingCIT returns, complete all federal tax forms.Theseformsmayinclude:

• CCorporations—U.S.Form1120andSchedulesD,K,851,940,4562,4797,and8825.• Limited Liability Companies (LLCs) — Federal formslistedaboveifLLCfilesasaCCorporationforfederalreturnpurposes.

ReferencethesefederalformstocompleteForm4891.

Copiesofcertainpagesfromthesefederalformsmustalsobeattachedtotheannualreturnfiled.Seetheinstructionsfortheannualreturnforfurtherdetails.

Completing Michigan Forms

Treasury captures the information from paper CIT returnsusing an Intelligent Character Recognition process. Ifcompleting a paper return, avoid unnecessary delays causedbymanualprocessingbyfollowingtheguidelinesbelowsothereturnisprocessedquicklyandaccurately.

• Use black or blue ink.Donotusepencil,redink,orfelttippens.Donothighlightinformation.

• Print using capital letters (UPPERCASE).Capital lettersareeasiertorecognize.

• Print numbers like this: 0123456789. Do not put aslash throughthezero( )orseven(7 ).

• Fill check boxes with an [X].Donotuseacheckmark[a].• Leave lines/boxes blank if they do not apply or if the

amountiszero,unlessotherwiseinstructed.• Do not enter data in boxes filled with Xs.

NOTE: Your debit transaction will be ineligible for EFTif the bank account used for the electronic debit is funded orotherwise associatedwith a foreign account to the extent thatthepaymenttransactionwouldqualifyasanInternationalACHTransaction(IAT)underNACHARules.Contactyourfinancialinstitution for questions about the status of your account.Contact the Michigan Department of Treasury’s (Treasury)CorporateIncomeTaxDivisionat(517)636-6925foralternatepaymentmethods.

Theestimatedpaymentmadewitheachquarterly returnmustbecomputedontheactualCITforthequarter,or25percentoftheestimatedtotalliabilityifpayingaCITliability.

Toavoidinterestandpenaltycharges,estimatedpaymentsmustequal at least 85 percent of the total liability for the tax yearand the amount of each estimated payment must reasonablyapproximatethetaxliabilityforthatquarter.Iftheprioryear’stax under the Income Tax Act is $20,000 or less, estimatedtaxmaybebasedon theprioryear’s total tax liabilitypaid infour equal installments. (“Four equal installments” describesthe minimum pace of payments that will satisfy this safeharbor.) If the prior year’s tax liability was reported for aperiod less than 12 months, this amount must be annualizedfor purposes of both the $20,000 ceiling and calculating thequarterlypaymentsdueunderthismethod.Paymentsatamoreacceleratedpacealsowillqualify. If theyear’s tax liability is$800orless,estimatesarenotrequired.

NOTE: Reliance on the tax liability of the prior year as ameans toavoid interestandpenaltycharges isonlyallowedifyou had business activity inMichigan in that prior year andfiled a CIT return for that prior year. A returnmust be filedto establish the tax liability for that prior year, even if grossreceiptsintheprioryearwerelessthan$350,000.Inaddition,ifyourbusinesswasnotinexistenceintheprecedingyear,nosafeharborexists. Insuchacase,estimatesmustbebasedontheCITliabilityforthecurrentyear.Thereisnoprior-yearsafeharbor for a taxpayer’sfirstCIT taxperiod. For a taxpayer’sfirstCITtaxperiodtheestimatesmustequalatleast85percentofthetotalCITliability,asexplainedabove.

Amending EstimatesIf, after making payments, the estimated tax is substantiallydifferent than originally estimated, recompute the tax andadjustthepaymentinthenextquarter.

Electronic Filing of CIT ReturnsMichigan has an enforced CIT e-file mandate. SoftwaredevelopersproducingCITpreparationsoftwareandcomputer-generated formsmust support e-file for all eligibleMichiganforms thatare included in theirsoftwarepackage.AlleligibleCIT returns prepared using tax preparation software orcomputer-generatedformsmustbee-filed.

Treasury will be enforcing the CIT e-file mandate. Theenforcementincludesnotprocessingcomputer-generatedpaperreturnsthatareeligibletobee-filed.Anoticewillbemailedtothetaxpayer,indicatingthatthetaxpayer’sreturnwasnotfiledin the proper form and content andmust be e-filed. Paymentreceivedwithapaperreturnwillbeprocessedandcreditedtothetaxpayer’saccountevenwhenthereturnisnotprocessed.

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• Do not write extra numbers, symbols, or notes on the return, such as cents, dashes, decimal points (excludingpercentages), or dollar signs, unless otherwise instructed.Enclose any explanations on a separate sheet unlessinstructedtowriteexplanationsonthereturn.

• Date format, unless otherwise specified, should be in the following format: MM-DD-YYYY. Use dashes (-) ratherthanslashes(/).

• Enter phone numbers using dashes(e.g.,517-555-5555);donotuseparentheses.

• Stay within the lineswhenenteringinformationinboxes.• Report losses and negative amounts with a negative

sign in front of the number (do not use parentheses).Forexample,alossintheamountof$22,459shouldbereportedas-22,459.

• Percentages should be carried out four digits to the right of the decimal point. Do not round percentages.For example, 24.154266 percent becomes 24.1542 percent.When converting a percentage to a decimal number, carrynumbersoutsixdigitstotherightofthedecimalpoint.Forexample,24.154266percentbecomes0.241542.

• Report all amounts in whole dollars. Round downamountsof49centsorless.Roundupamountsof50centsor more. If cents are entered on the form, they will betreatedaswholedollaramounts.

Suggested Order of Analysis and Preparation of a CIT Annual ReturnFirst, determine whether the taxpayer has nexus withMichigan. Nexus is a legal term that expresses whether ataxpayer has sufficient connection to Michigan to justifysubjecting the taxpayer to Michigan tax. See RevenueAdministrative Bulletins (RAB) 2013-9 and 2014-5 onTreasury’sWebsiteatwww.michigan.gov/treasury.

Next,determinewhetherthetaxpayerhas$350,000ormoreofgross receipts that are apportioned or allocated to Michigan.(See “Filing if Tax Year Is Less Than 12 Months” in this“GeneralInformation”section,ifapplicable.)

Gross receipts means the entire amount received by thetaxpayer from any activity, whether in intrastate, interstate,or foreign commerce, carried out for direct or indirect gain,benefit,oradvantagetothetaxpayerortoothers,withcertainexceptions. Gross receipts also include the imputed grossreceipts fromany(unitaryornon-unitary)flow-throughentitythat is not electing to be taxed under MBT and from whichthe taxpayer receives a distributive share of income or loss.ThestatutorydefinitionofgrossreceiptsisfoundinMichiganCompiledLaws(MCL)206.607(4).Guidanceongrossreceiptscan be found in the instructions for the CIT Annual Return (Form4891).

Gross receipts is a worldwide figure. For a taxpayer that hasnexus only with Michigan, all gross receipts are allocatedto Michigan. A taxpayer that has nexus with Michigan andat least one other state or foreign country must calculate itsapportionmentpercentageandmultiply its totalgross receiptsby that apportionment percentage. See Form 4891, lines 9athrough9g,andaccompanyinginstructionsforthiscalculation.

Theresultingfigureisthetaxpayer’sgrossreceiptsapportionedtoMichigan.

Gross receipts include the imputed gross receipts from any(unitary or non-unitary) flow-through entity not electing tobe taxed underMBTand fromwhich the taxpayer receives adistributiveshareofincomeorloss.Theimputedgrossreceiptsattributedtothetaxpayeraretheapportionedorallocatedgrossreceipts based on the flow-through entity’s apportionmentpercentagemultipliedbythepercentageofthetaxpayer’sshareof distributive income as compared to the total distributiveincomeofthatflow-throughentity.

Ifallof theforegoingconsiderationsdeterminethatataxpayermustfileaCITreturn,standardtaxpayerswilluseForm4891tofileforCIT.Itisavailabletoallstandardtaxpayers,andallowsforthecalculationoftheSmallBusinessAlternativeCredit.

For a taxpayer using Form 4891, first complete lines 1 through39 to calculate Corporate Income Tax Before Credit. At thatpoint, if theSmallBusinessAlternativeCreditwill be claimed,complete the CIT Small Business Alternative Credit (Form4893). In addition, a taxpayer that is claiming the SmallBusinessAlternativeCreditwill need to complete theSchedule of Shareholders and Officers (Form 4894) to determine if theyqualifyforthecredit.

After the Small Business Alternative Credit has beendeterminedonForm4893,line14orline18,carrythefiguretoForm4891, line40.FollowtheForm4891instructionsfor theremaininglines.

If preparing a UBG return for a standard taxpayer, completethe CIT Data on Unitary Business Group Members (Form4897)foreachmemberfirst,asthisformprovidesthedatathatisrequiredonForm4891.

Further General GuidanceAUBGmustfile a combinedCIT return. (For adefinitionofUBG,anddetailsonfilingacombinedCITreturn,see“UBGsandCombinedFiling”inthis“GeneralInformation”section.)

Producers of oil and gasmustaddbackexpensesandsubtractincome that was included in federal taxable income andresultedfromtheproductionofoilandgasifthatproductionofoilandgasissubjecttotheSeveranceTaxonOilorGas,1929PA48.,andfromtheproductionofmineralsifthatproductionissubjecttoseverancetaxinPA410of2012.Expensesshouldbe added back on line 23, and income should be reported online30.

Businesses reporting less than 12 months must annualizegrossreceiptstodeterminewhethertheyarerequiredtofile.(See“Filing if TaxYear Is LessThan 12Months” in this “GeneralInformation”sectionformoreguidanceonannualization.)

If apportioned or allocated gross receipts are below thefilingrequirement,thereisnolegalobligationtofileareturnorpaythe tax.Ifyouarenot legallyrequiredtofileareturnbutyouwish topreserve the carryforwardof abusiness lossor claima refund of estimated payments or flow-through withholdingpaid on behalf of the entity, a returnmust be filed. There isnoformtonotifyTreasurythatthetaxpayerhasnoCITfilingrequirement.

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LLC. An LLC is classified for CIT purposes according toits federal tax classification. The following terms, wheneverused inCIT forms, instructions, and statute, includeLLCsasindicated:

• S Corporation includes an LLC federally taxed as an SCorporation,andamemberofthisLLCisashareholder.

• C Corporation includes an LLC federally taxed as a CCorporation,andamemberofthisLLCisashareholder.Amemberorotherpersonperformingduties similar to thoseofanofficerinanincorporatedentityisan“officer”inthisLLC.

NOTE:Inthisbooklet,theterm“corporation,”usedwithoutaCreferstoaCCorporation.

NOTE:Apersonthatisadisregardedentityforfederalincometax purposes, including a single member LLC or qualifiedsubchapter S subsidiary (Q-Sub), is disregarded for purposesof CIT. If the owner of the disregarded entity files CIT, theactivity of the disregarded entity must be included on thatreturn.

UBGs and Combined FilingNOTE: UBGs are addressed here, in general. In theinstructions for each form, “Special Instructions for UnitaryBusiness Groups” are located directly before “Line-by-LineInstructions.”Theareasinthe“Line-by-LineInstructions”thatapplyonlytoUBGsarelabeled“UBGs.”Additionaldirectionis found in the “Supplemental Instructions for StandardMembersinUBGs”sectionofthisinstructionbooklet.

General Overview of Unitary TaxationMore than 20 states have adopted unitary taxation. Unitarytaxationisamethodoftaxingrelatedpersonsthat,ifitapplies,generallytreatsthoserelatedpersonsasiftheywereone.Therearespecifictests,discussedbelow,todeterminewhethertwoormorebusinessentitiesaresufficientlyconnectedbyownershipandbusinessrelationshipstobetreatedasagroup.

IfthosetestsaresatisfiedandaUBGisfoundtoexist,inmostcasesthemembersofthatUBGwillfileasingleCITreturn.

Onememberwill be designated as the group’s representativefor filing the return and corresponding with Treasury. Thismember is referred to throughout these instructions as thedesignated member (DM). Included in that return will beseparate forms that report income, deductions, and activitiesseparately by member, and then the combined amounts areentered on the Form 4891. References in the instructions to“thetaxpayer”generallywillrefertothegroupratherthananyoneofitsmembers.

This is a simplification for introductory purposes, and therearemanydetailsandexceptionsdescribedthroughouttheCITforms and instructions. In particular, tax credits, transactionsbetweenmembers,andthepresenceoffinancialinstitutionsorinsurancecompaniesinthegrouprequirecarefulattention.

One key issue in dealing properlywith unitary taxation is torecognizethatitisnotlimitedtolarge,multi-statecompanies.BusinessesofanysizeandanygeographicextentmayfindthattheyaremembersofaUBG.

Determining the Existence and Membership of a UBGUnitary Business Group means a group of United Statespersons that are corporations, insurance companies, orfinancialinstitutions,otherthanaforeignoperatingentity,thatsatisfiesthecontroltestandrelationshiptest.

UnitedStatespersonisdefinedinInternalRevenueCode(IRC)§7701(a)(30).AforeignoperatingentityisdefinedbystatuteinMichiganCompiledLaws(MCL)206.607(3).

Control Test and Relationship Tests. For information onCIT topics, see theTreasuryWeb site atwww.michigan.gov/treasury. Revenue Administrative Bulletin (RAB) 2013-1addressestheUBGControlTestandRelationshipTests.

Role of the Designated Member: TheDM speaks, acts, andfiles theCIT return on behalf of theUBG forCIT purposes.Only theDMmayfileavalidextension request for theUBG.Treasury maintains the UBG’s CIT tax data (e.g., prior CITreturns,overpaymentcreditforward)undertheDM’snameandFederalEmployerIdentificationNumber(FEIN).

Exemption Guidelines for CITThefollowingmaybeexemptfromCIT:

• Most persons who are exempt from federal income taxundertheIRC.

• Nonprofitcooperativehousingcorporations.

• Foreign person that is domiciled in a member country ofthe North American free trade agreement if the foreignperson is domiciled in a subnational jurisdiction that doesnot impose an income tax on a similarly situated persondomiciled in Michigan. For purposes of this provision,foreignpersonisdefinedinMCL206.625(5)(c).

• Domestic International Sales Corporations (DISCs) asdefinedinIRC992.

If a taxpayer is exempt under the first bullet above, but hasunrelatedbusiness taxable incomeas defined in the IRC; thatbusiness activity is subject to the CIT and a return will berequired if the apportioned or allocated gross receipts are$350,000ormorefromtheunrelatedbusinessactivity.

Foreign persons that are not exempt from the CIT mustcalculatebusinessincome,grossreceipts,CITtaxbase,andthesalesfactordifferentlythandomestictaxpayers.RefertoMCL206.625(2)-(4)fordetails.

For a complete list of exemptions, consult theCIT (PA 38 of2011,asamended)atwww.legislature.mi.gov.

If a taxpayer is exemptandhasnounrelatedbusiness taxableincome,filingaCITreturnisnotrequired.

Flow-Through WithholdingOn January 1, 2012, several changes to the Income Tax Actof1967(ITA)went intoeffectestablishinganewwithholdingrequirement for flow-through entities that have members,partners, or shareholders that are corporations or other flow-throughentities.ThesewithholdingrequirementsareknownasFlow-ThroughWithholding(FTW).

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UnderFTW,everyflow-throughentitywithbusinessactivityinMichiganthatreasonablyexpectstoaccruemorethan$200,000in apportioned or allocated business income for the tax yearmustwithholdon thedistributiveshareofeachmember that isacorporationoranintermediateflow-throughentityat theCITrateof6percent.“Businessincome”forthispurposeisdefinedusing the same rules as those contained in the CIT. However,because FTW is concerned with the business income of flow-through entities and not corporations, business income forflow-throughentitiesisfurtherdefinedtoincludepaymentsanditems of income and expense that are attributable to businessactivityoftheflow-throughentityandseparatelyreportedtoitsmembers.The distributive share of business incomeof a flow-throughentity is subject toFTW,and theCIT,even if it isnotactuallydistributedorpaidtothemember.

When a corporation had taxes withheld under FTW, theamount is treated as a CIT payment that will be appliedagainst the corporation’s CIT liability. A corporation thathas had taxes withheld on its distributive share of flow-through entity business income is not required to makequarterly estimated payments on that income. To claim thesepayments, the corporationwill be required tofileForm4891.IfthecorporationisamemberofaUBG,thenthesepaymentsshall be claimed on the member’s Form 4897, and the sumof all members’ FTW payments shall be claimed on theUBG’sForm4891. If thecorporation isbelowoneof theCITfiling thresholds then it may file a Form 4891 to claim thesepayments.

The flow-through entity is required to notify the members ithaswithheldonoftheamountofwithholdingpaidonbehalfofthatmemberaswellasotherinformationthatthememberwillneedtocompleteitsCITreturn.Thereisnosetmethodforthisreporting to be done.Treasury has recommended that this bereported to themembers as a supplemental attachment to thefederal ScheduleK-1 that is required to be submitted to eachmember.Foracorporation,thisinformationwillincludethe:

• FEINoftheflow-throughentity• Taxyearoftheflow-throughentity• FTWpaidonbehalfofthatmember• Member’s tentative distributive share of the flow-through

entity’sbusinessincome• Flow-through entity’s sales that have been sourced to

Michigan• Flow-throughentity’stotalsales.

TherearealsoseveralexemptionsfromtheFTWrequirements,which are explained in the FTW Forms and Instructions Booklet (Form 5014) and on Treasury’s Web site at www.michigan.gov/ftw.

NOTE: Under Public Act 158 of 2016, Flow-ThroughWithholding is no longer required for flow-through entities’(FTEs’) tax years beginning after June 30, 2016. Treasurywillno longersupport theprocessingofformsorwithholdingpayments for FTEs with tax years beginning after that date.ForFTEswith taxyearsbeginningbefore July1,2016,a fullyear’swithholdingpaymentsandannualreturnshouldbepaidandfiled.

What Lead Form to FileFile Form 4891 if:

• Apportioned or allocated gross receipts (annualized, ifapplicable) are $350,000 ormore and the standard taxpayer’sCITtaxliabilityisgreaterthan$100.• Apportioned or allocated gross receipts (annualized, ifapplicable)arelessthan$350,000,and:

○ Arefundisclaimed,or ○ A losswasgeneratedduring thefilingperiodandwillcreateacarryforwardtothenextyear,or

○ ACITbusiness losscarryforward fromaprioryear isreported (filing in this case is necessary to move thecarryforwardtothefollowingyear).

Thislistdoesnotcoverallsituations.Seeinstructionsforeachformformoreinformation.

Different primary returns and instruction booklets areavailable for insurance companies (Form 4905) and financialinstitutions (Form 4908). The tax base for each of thesespecial taxpayercategories isfundamentallydifferent thanforstandardtaxpayers.

Filing if Tax Year Is Less Than 12 MonthsInmostcases,annualreturnsmustbefiledforthesameperiodasfederalincometaxreturns.Ifthefilingperiodislessthan12months,annualizetodetermineifthereisafilingrequirement,which forms to file, and eligibility for a Small BusinessAlternativeCredit.Donotuseannualizednumbersonareturnunlessspecified;usethemonlytodetermineannualreturnandestimated payment filing requirements, and qualifications fortheSmallBusinessAlternativeCredit.

Tax year means the calendar year, or the fiscal year endingduringthecalendaryear,uponthebasisofwhichthetaxbaseofa taxpayer iscomputed.Ifareturn ismadeforafractionalpartofayear,taxyearmeanstheperiodforwhichthereturnismade.

A taxpayer that has a 52- or 53-week tax year beginning notmorethansevendaysbeforeorafterDecember31ofanyyearis considered tohavea taxyearbeginningafterDecemberofthattaxyear.

Example 1:A taxpayerwith a federal tax year beginning onSaturday,December28,2013,willbetreatedasfollows:

• 2013taxyearendofDecember31,2013.

• DuedateofApril30,2014.

• 2014taxyearbeginningJanuary1,2014.

Example 2: A taxpayer with a federal tax year ending onFriday,January3,2014,willbetreatedasfollows:

• 2013taxyearendofDecember31,2013.

• DuedateofApril30,2014.

• 2014taxyearbeginningonJanuary1,2014.

Example 3: A 52- or 53-week year closing near the end of

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Januaryiscommonintheretailindustry.Suchataxpayerwillbetreatedasfollows:

• 2013-14fiscalyearendwillbeJanuary31,2014.

• DuedatewillbeMay31,2014.

• 2014-15fiscalyearwillbeginonFebruary1,2014.

AnnualizingMultiply each amount required, including gross receipts,businessincome,andprioryear’staxliability,by12anddividethe result by the number of months the business operated.Generally,abusinessisconsideredinbusinessforonemonthifthebusinessoperatedformorethanhalfthedaysofthemonth.Abusinesswhoseentiretaxyearis15daysorless,however,isconsideredinbusinessforonemonth.

• If annualized apportioned or allocated gross receipts are$350,000 ormore and theCIT tax liability is greater than$100,fileanannualreturn.

• Annualizeprioryear’sCITtaxliabilitytodeterminewhetherestimates may be based on that liability. If the prior year’sannualizedliabilityis$20,000orless,estimatesmaybebasedontheannualizedamountifpaidinfourequalinstallments.

○ Example:Afiscalyeartaxpayerwithataxyearendingin June files a six-month return ending June 2014reportingataxliabilityof$9,000.EstimatesforthetaxyearendingJune2015maybebasedontheannualizedliability of $18,000. Estimates must be paid in fourequalinstallmentsof$4,500.

Seeappropriate forms (CIT Small Business Alternative Credit (Form 4983), andCIT Schedule of Shareholders and Officers (Form 4894)) for annualization instructions pertaining to theSmallBusinessAlternativeCredit.

Due Dates of Annual ReturnsForthe2016calendaryear,allannualreturnsaredueApril30,2017. All fiscal filers with a federal tax year ending in 2017,willberequired tofile the2016-2017fiscalyear returnby thelastdayof the fourthmonthafter theendof the taxyear.An extension of time to file is not an extension of time to pay.

Additional Filing TimeIfadditionaltimeisneededtofileanannualtaxreturn,requestaMichiganextensionbyfilinganApplication for Extension of Time to File Michigan Tax Returns(Form4).Filing a federal extension request with the IRS does notautomaticallygrantaCITextension.The IRSdoesnotnotifystategovernmentsofextensions.Extension applications must be postmarked on or before theduedateofanannualreturn.AlthoughTreasurymaygrantextensionsforfilingCITreturns,it will not extend the time to pay. Extension applicationsreceivedwithoutproperpaymentwillnotbeprocessed.Penaltyandinterestwillaccrueontheunpaidtaxfromtheoriginalduedateofthereturn.Properly filed and paid estimates along with the amountincluded on the extension application will be accepted aspaymentonatentativereturn,andanextensionmaybegranted.

Itisimportantthattheapplicationiscompletedcorrectly.Once a properly prepared and timely filed application alongwithappropriateestimatedtaxpaymentsarereceived,Treasurywillgrantanextensionofeightmonthstofilethetaxreturn.A written response will be sent to the legal address on filewhenavalidextensionapplicationisreceived.If a CIT extension is filed on time but the total paymentsreceivedbytheoriginalduedatearelessthan90percentofthetaxliability,a10percentnegligencepenaltymayapply.An extension of time to file will also extend the statute oflimitations.

Amending a ReturnToamend a current or prior year annual return, complete theMichigan CIT Amended Return (Form4892) that isapplicablefor thatyearandattachaseparatesheetexplainingthereasonfor the changes. Include all schedules filed with the originalreturn, even if not amending that schedule. Do not include acopyoftheoriginalreturnwithyouramendedreturn.

Current and past year forms are available onTreasury’sWebsiteatwww.michigan.gov/treasuryforms.

Toamendareturn toclaimarefund,filewithinfouryearsoftheduedateoftheoriginalreturn(includingvalidextensions).Interestwillbepaidbeginning45daysaftertheclaimisfiledortheduedate,whicheverislater.

Ifamendingareturntoreportadeficiency,penaltyandinterestmayapplyfromtheduedateoftheoriginalreturn.

If any changes are made to a federal income tax return thataffect theCIT taxbase,filing an amended return is required.Toavoidpenalty,filetheamendedreturnwithin120daysafterthefinaldeterminationbytheIRS.

Computing Penalty and InterestAnnual and estimated returns filed late or without sufficientpaymentofthetaxduearesubjecttoapenaltyof5percentofthe tax due, for thefirst twomonths.Penalty increases by anadditional 5 percent per month, or fraction thereof, after thesecondmonth,toamaximumof25percent.

ComputepenaltyandinterestforunderpaidestimatesusingtheCIT Penalty and Interest Computation for Underpaid Estimated Tax (Form 4899). If a taxpayer prefers not to file this form,Treasurywillcomputethepenaltyandinterestandsendabill.

Thefollowingchartshowstheinterestratethatappliestoeachfilingperiod.Anew interest rate is setat1percentabove theadjustedprimerateforeachsix-monthperiod.

Beginning Date Rate Daily RateJanuary 1, 2016 4.25% 0.0001161

July 1, 2016 4.4% 0.0001202January 1, 2017 4.5% 0.0001233

For a list of interest rates, click on “Reports andLegal Resources” on the Treasury Web site atwww.michigan.gov/treasury/. Interest rates are updated inRevenueAdministrativeBulletins(RABs).

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Signing the ReturnAll returns must be signed and dated by the taxpayer or thetaxpayer’sauthorizedagent.Thismaybetheowner,corporateofficer, or association member. The corporate officer may bethepresident,vicepresident,treasurer,assistanttreasurer,chiefaccountingofficer, or anyother corporate officer (such as taxofficer)authorizedtosignthecorporation’staxreturn.

Ifsomeoneotherthantheabovepreparedthereturn,thepreparermustgivehisorherbusinessaddressandtelephonenumber.

Print the name of the authorized signer and preparer in theappropriateareaonthereturn.

Assemble the returns and attachments (in sequence order)and staple in the upper-left corner. (Do not staple a check tothe return.) In an e-filed return, the preparation softwarewillassemble the forms and PDF attachments in the proper orderautomatically.

IMPORTANT REMINDER: Failure to include all therequiredformsandattachmentswilldelayprocessingandmayresultinreducedordeniedrefundorcreditforwardorabillfortaxdue.

SIGNING AN E-FILED RETURN: An electronic taxreturnmust be signed by an authorized tax return signer, theElectronicReturnOriginator(ERO),ifapplicable,andthepaidtax preparer, if applicable.NOTE: If the returnmeets oneoftheexceptionstothee-filemandateandisbeingfiledonpaper,itmust bemanually signed and dated by the taxpayer or thetaxpayer’sauthorizedagent.

TheCITFed/Statee-filesignatureprocessisasfollows:

Fed/State Returns:Michiganwillacceptthefederalsignaturemethod. Michigan does not require any additional signaturedocumentation.

State Stand Alone Returns: State StandAlone returnsmustbe signed using Form MI-8879 (also called the Michigan e-file Authorization for Business Taxes MI-8879, Form4763).Returnsaresignedbyentering the taxpayerPIN in thesoftware after reading the perjury statement displayed in thesoftware.ThetaxpayerPINwillbeselectedbythetaxpayer,orthetaxpayermayauthorizehisorhertaxpreparertoselectthetaxpayerPIN.

The MI-8879 (Form 4763) will be printed and contain thetaxpayer PIN. The tax preparer will retain FormMI-8879 inhisorherrecordsaspartofthetaxpayer’sprintedreturn.CITStateStandAlone e-filings submittedwithout a taxpayerPINwill be rejected by Treasury. Do not mail FormMI-8879 toTreasury and do not includeFormMI-8879 as an attachmentwiththee-filereturn.

Mailing Addresses

Mailtheannualreturnandallnecessaryschedulesto:

With payment:MichiganDepartmentofTreasuryPOBox30804LansingMI48909

Without payment:MichiganDepartmentofTreasuryPOBox30803LansingMI48909

Mail an extension application (Form 4) to:MichiganDepartmentofTreasuryPOBox30774LansingMI48909-8274

Mail CIT quarterly estimate payments (Form 4913) to:MichiganDepartmentofTreasuryPOBox30774LansingMI48909-8274

Courier delivery service mail should be sent to:MichiganDepartmentofTreasury7285ParsonsDr.DimondaleMI48821

Makeallcheckspayableto“StateofMichigan.”Printtaxpayer’sFEINorMichiganTreasury(TR)assignednumber,thetaxyear,and“CIT”onthefrontofthecheck.Donotstaplethechecktothereturn.

CorrespondenceAnaddresschangeorbusinessdiscontinuancecanbereportedonlineby usingMichigan Treasury Online (MTO), Business Tax Services.See www.michigan.gov/mtobusiness for information. In thealternative,Notice of Change or Discontinuance (Form 163), can befoundonlineatwww.michigan.gov/treasuryforms.

Mail correspondence to:MichiganDepartmentofTreasuryBusinessTaxesDivision,CITUnitPOBox30059LansingMI48909

To Request FormsInternetCurrentandpastyearformsareavailableonTreasury’sWebsiteatwww.michigan.gov/treasuryforms.Alternate FormatPrinted material in an alternate format may be obtained bycalling(517)636-6925.TTYAssistanceisavailableusingTTYthroughtheMichiganRelayCenterbycalling1-800-649-3777or711.

Revenue Administrative Bulletins (RABs)TreasuryprovidesupdatesviaRABsontheTreasuryWebsiteatwww.michigan.gov/treasury/. Currently relevant RABs fortheCITare:

• 2013-9,CITDefinitionof“ActivelySolicits”• 2013-1, CIT Unitary Business Group Control Test and

RelationshipTests• 2014-5,MichiganCITNexusStandards• 2015-20,WhereBenefitofServicesisReceived• 2016-21,InterestRate

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TANGIBLE AND REAL PROPERTY Sale of tangible personal propertyProperty is shipped or delivered, or, in the case of electricityand gas, the contract requires the property to be shipped ordelivered, to any purchaser within this State based on theultimate destination at the point that the property comes torestregardlessofthefreeonboardpointorotherconditionsofthe sales.Property stored in transit for 60daysormorepriorto receipt by the purchaser or the purchaser’s designee, or inthecaseofadocksalenotpickedupfor60daysormore,shallbe deemed to have come to rest at this ultimate destination.Propertystoredintransitforfewerthan60dayspriortoreceiptbythepurchaserorthepurchaser’sdesignee,orinthecaseofadocksalepickedupbefore60days,isnotdeemedtohavecometorestatthisultimatedestination.

NOTE: Tangible personal propertymeansthattermasdefinedinSection2 of theUseTaxAct, PublicAct (PA)94of 1937,MCL205.92.

Sale, lease, rental or licensing of real property

PropertyislocatedinthisState.

Lease or rental of tangible personal property

To the extent theproperty is used in thisState.Extentofuseis determined by multiplying the receipts by a fraction, thenumerator is the number of days of physical location of theproperty in this State during the lease or rental period in thetaxyearandthedenominatoristhenumberofdaysofphysicallocationof the property everywhere during all lease or rentalperiodsinthetaxyear.

If the physical location of the property during the lease orrentalperiodisunknownorcannotbedetermined,thetangiblepersonal property is used in the state in which the propertywas located at the time the lease or rental payer obtainedpossession.

Lease or rental of mobile transportation property owned by the taxpayerTo the extent property is used in this State. For example, theextent an aircraft will be deemed to be used is determinedbymultiplying all the receipts from the lease or rental of theaircraftduringthetaxyearbyafraction,thenumeratorofthefraction is thenumberof landingsof theaircraft in thisStateinthetaxyearandthedenominatorofthefractionisthetotalnumberoflandingsoftheaircraftinthetaxyear.

If theextentofuseof any transportationpropertywithin thisStatecannotbedetermined,thereceiptsareinthisStateifthepropertyhasitsprincipalbaseofoperationsinthisState.

INTANGIBLE PROPERTY (IN GENERAL)Royalties and other income received for use of or for the privilege of using intangible property including patents, knowhow, formulas, designs, processes, patterns, copyrights, trade names, service names, franchises, licenses, contracts, customer lists, custom computer software, or similar items

Property is usedby thepurchaser in thisState. If property isused inmore thanonestate, royaltiesorother incomewillbeapportioned to this State pro rata according to the portion ofuseinthisState.

If the portion of use in this State cannot be determined, theroyalties or other income will be excluded from both thenumeratorandthedenominator.

If thepurchaserof intangiblepropertyuses it or the rights tothe intangible property, in the regular course of its businessoperations in this State, regardless of the location of thepurchaser’scustomers.

SALES FROM PERFORMANCE OF SERVICES (IN GENERAL)Receipts from performance of services, in generalRecipientofservicesreceivesallof thebenefitof theservicesinthisState.

If the recipientof the services receives someof thebenefitoftheservicesinthisState,receiptsareincludedinthenumeratoroftheapportionmentfactorinproportiontotheextentthattherecipientreceivesbenefitoftheservicesinthisState.

For more information regarding how a taxpayer determineswhere the recipient of servicesperformed receives thebenefitof those services and on other CIT topics, see theMichiganDepartment of Treasury (Treasury) Web site at www.michigan.gov/treasury/. Review “Corporate Income Tax”under “Taxes.” Treasury also posts updates via RevenueAdministrativeBulletin(RAB).AlsoseeRAB2015-20,WhereBenefitofServicesisReceived,

FINANCIAL SERVICESSales derived from securities brokerage services including commissions on transactions, the spread earned on principal transactions in which broker buys or sells from its account, total margin interest paid on behalf of brokerage accounts owned by broker’s customers, and fees and receipts of all kinds from underwriting of securities

Multiply the total dollar amount of receipts from securitiesbrokerageservicesbyafraction,thenumeratorofwhichisthesalesofsecuritiesbrokerageservices tocustomerswithin thisState, and the denominator ofwhich is the sales of securitiesbrokerageservicestoallcustomers.

If receipts from brokerage services can be associated witha particular customer, but it is impractical to associate thereceiptswith theaddressof thecustomer, then theaddressofthecustomerwillbepresumedtobetheaddressofthebranchofficethatgeneratesthetransactionsforthecustomer.

Sales of services derived directly or indirectly from sale of management, distribution, administration, or securities brokerage services to, or on behalf of, a regulated investment company or its beneficial owners, including receipts derived directly or indirectly from trustees, sponsors, or participants

Sourcing of Sales to Michigan under the Corporate Income Tax (CIT)

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*AborrowerisconsideredlocatedinthisStateiftheborrower’sbillingaddressisinthisState.

of employee benefit plans that have accounts in a regulated investment company

To the extent the shareholders of the regulated investmentcompany are domiciled within this State. For this purpose,domicile means the shareholder’s mailing address on therecordsoftheregulatedinvestmentcompany.

If the regulated investment company or the person providingmanagementservicestotheregulatedinvestmentcompanyhasactual knowledge that the shareholder’s primary residence orprincipal place of business is different than the shareholder’smailing address, then the shareholder’s primary residence orprincipalplaceofbusinessistheshareholder’sdomicile.

Aseparatecomputationmustbemadewithrespecttoreceiptsderived from each regulated investment company. Totalamount of sales attributable to this State must be equal tototal receipts received by each regulated investment companymultipliedbyafractiondeterminedasfollows:

• Thenumeratorof the fraction is theaverageof the sumofthe beginning-of-year and end-of-year number of sharesowned by the regulated investment company shareholderswhohavetheirdomicileinthisState.

• The denominator of the fraction is the average of the sumof the beginning-of-year and end-of-year number of sharesownedbyallshareholders.

• Forpurposesofthefraction,theyearwillbethetaxyearoftheregulated investmentcompany thatendswithorwithinthetaxyearofthetaxpayer.

Receipts from the origination of a loan or gains from sale of a loan secured by residential real property

Onlyifoneormoreofthefollowingapply:

• RealpropertyislocatedinthisState.• Real property is located bothwithin this State and one or

more other states and more than 50 percent of the fairmarketvalueoftherealpropertyislocatedwithinthisState.

• More than50percentof the realproperty isnot located inanyonestateandtheborrowerislocatedinthisState.*

Interest from loans secured by real property

PropertyislocatedinthisState.

Ifpropertyis locatedbothinthisStateandoneormoreotherstates,andmorethan50percentofthefairmarketvalueoftherealpropertyislocatedwithinthisState.

If more than 50 percent of the fair market value of the realpropertyisnotlocatedwithinanyonestate,iftheborrowerislocatedinthisState.*

Thedeterminationofwhethertherealpropertysecuringaloanis located in this State will bemade at the time the originalagreementwasmadeandanyandallsubsequentsubstitutionsofcollateralwillbedisregarded.

Interest from a loan not secured by real property

BorrowerislocatedinthisState*

Gains from sale of a loan not secured by real property, including income recorded under coupon stripping rules of IRC 1286

BorrowerislocatedinthisState*

Credit card receivables, including interest, fees, and penalties from credit card receivables and receipts from fees charged to cardholders, such as annual fees

BillingaddressofthecardholderislocatedinthisState

Sale of credit card or other receivables

BillingaddressofthecustomerislocatedinthisState

Credit card issuer’s reimbursements fees

BillingaddressofthecardholderislocatedinthisState.

Merchant discounts, computed net of any cardholder chargebacks, but not reduced by any interchange transaction fees or by any issuer’s reimbursement fees paid to another for charges made by its cardholders

CommercialdomicileofthemerchantislocatedinthisState.

Loan servicing fees derived from loans of another secured by real property

RealpropertyislocatedinthisState.

RealpropertyislocatedbothinandoutofthisStateandoneormorestatesifmorethan50percentofthefairmarketvalueoftherealpropertyislocatedinthisState.

More than 50 percent of the fair market value of the realproperty is not located in any one state, and the borrower islocatedinthisState.*

Ifthelocationofthesecuritycannotbedetermined,thenloanservicingfeesforservicingeitherthesecuredortheunsecuredloansofanotherareinthisStateifthelendertowhomtheloanservicingserviceisprovidedislocatedinthisState.

Loan servicing fees derived from loans of another not secured by real property

BorrowerislocatedinthisState.*

If location of the security cannot be determined, then loanservicingfeesforservicingeitherthesecuredortheunsecuredloansofanotherareinthisStateifthelendertowhomtheloanservicingserviceisprovidedislocatedinthisState.

Sale of securities and other assets from investment and trading activities, including, but not limited to, interest, dividends, and gains

Attributable to the State if the person’s customer is in thisState, or if the location of the person’s customer cannot bedetermined,bothofthefollowing:

• Interest, dividends, and other income from investmentassets and activities and from trading assets and activities,including, but not limited to, investment securities; trading

10

account assets; federal funds; securities purchased and soldunder agreements to resell or repurchase; options; futurescontracts;forwardcontracts;notionalprincipalcontractssuchas swaps; equities; and foreign currency transactions are inthis State if the average value of the assets is assigned to aregularplaceofbusinessofthetaxpayerwithinthisState.

○ Interest from federal funds sold and purchased andfromsecuritiespurchasedunderresaleagreementsandsecuritiessoldunderrepurchaseagreementsare in thisState if the average value of the assets is assigned toa regular place of business of the taxpayerwithin thisState.

○ Amount of receipts and other income from investmentassetsandactivitiesisinthisStateifassetsareassignedtoaregularplaceofbusinessofthetaxpayerwithinthisState.

• Amount of receipts from trading assets and activities,including, but not limited to, assets and activities in thematchedbook, in the arbitrage book, and foreign currencytransactions, but excluding amounts otherwise sourced inthissection,are in thisState if theassetsareassigned toaregularplaceofbusinessofthetaxpayerwithinthisState.

TRANSPORTATION SERVICES

Receipts from transportation services

Generally,receiptswillbeproportionedbasedontheratiothatrevenuemiles of the person in this State bear to the revenuemiles of the person everywhere. Revenue mile means thetransportation for consideration of 1 net ton in weight or 1passengerthedistanceof1mile.

For transportationservices thatsourcesalesbasedonrevenuemiles, enter a sales amount on Form 4891, Line 9a, bymultiplyingtotalsalesofthetransportationservicebytheratioofMichiganrevenuemilesoverrevenuemileseverywhereforthat type of transportation service. Revenue mile means thetransportation for a consideration of one net ton inweight oronepassengerthedistanceofonemile.

Receipts from maritime transportation services will beattributabletothisStateasfollows:

• 50percentofthosereceiptsthateitheroriginateorterminateinthisState.

• 100 percent of those receipts that both originate andterminateinthisState.

Receipts attributable to this State of a personwhose businessactivityconsistsofthetransportationof:

• Property and individuals – Proportioned based on thetotal receipts for passenger miles and ton mile fractions,separately computed and individually weighted by theratio of receipts from passenger transportation to totalreceiptsfromalltransportation,andbytheratioofreceiptsfrom freight transportation to total receipts from alltransportation,respectively.

Michigan Ton Miles x Receipts from Transportation of PropertyTotal Ton Miles

+Michigan Passenger Miles x Receipts from

Transportation of PassengersTotal Passenger Miles

= Michigan Sales from Transportation Services

• Oil by pipeline – Proportioned based on the ratio that thereceiptsforthebarrelmilestransportedinthisStatebeartothe receipts for the barrelmiles transported by the personeverywhere.

• Gas by pipeline –Proportioned based on the ratio that thereceipts for the 1,000 cubic feet miles transported in thisState bear to the receipts for the 1,000 cubic feet milestransportedbythepersoneverywhere.

NOTE: If a taxpayercanshow that revenuemile informationis not available or cannot be obtained without unreasonableexpense to the taxpayer, receiptsattributable to thisStatewillbe that portion of the revenue derived from transportationservicesperformedeverywherethatthemilesoftransportationservices performed in this State bears to the miles oftransportation services performed everywhere. If Treasurydetermines that the information required for the calculationsabove are not available or cannot be obtained withoutunreasonableexpensetothetaxpayer,TreasurymayuseotheravailableinformationthatintheopinionofTreasurywillresultinanequitableallocationofthetaxpayer’sreceiptstothisState.

NOTE:Onlytransportationservicesaresourcedusingrevenuemiles. To the extent the taxpayer has business activities orrevenue streams not from transportation services, thosereceiptsshouldbesourcedaccordingly.

TELECOMMUNICATIONS SERVICESNOTE:Termsusedtodescribethesaleoftelecommunicationsservice or mobile telecommunications service have the samemeaning as those terms defined in theStreamlinedSales andUse Tax Agreement administered under the StreamlinedSalesandUseTaxAdministrationAct,PA174of2004,MCL205.801to205.833.

Sale of telecommunications service or mobile telecommunications service, in general

Customer’splaceofprimaryuseoftheserviceisinthisState.As used here, place of primary use means the customer’sresidential street address or primary business street addresswhere the customer’s use of the telecommunications serviceprimarilyoccurs.

For mobile telecommunications service, the customer’sresidentialstreetaddressorprimarybusinessstreetaddress istheplaceofprimaryuseonlyifitiswithinthelicensedserviceareaofthecustomer’shomeserviceprovider.

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Sale of telecommunications service sold on an individual call-by-call basis

CallbothoriginatesandterminatesinthisState.

CalleitheroriginatesorterminatesinthisStateandtheserviceaddressislocatedinthisState.

Sale of postpaid telecommunications service

Origination point of the telecommunication signal (as firstidentifiedbytheserviceprovider’stelecommunicationsystemorasidentifiedbyinformationreceivedbythesellerfromitsserviceprovider if the system used to transport telecommunicationsignalsisnottheseller’s)islocatedinthisState.

Sale of prepaid telecommunications service or prepaid mobile telecommunications service

Purchaser obtains the prepaid card or similar means ofconveyanceatalocationinthisState.

Recharging a prepaid telecommunications service or mobile telecommunications service

Purchaser’sbillinginformationindicatesalocationinthisState.

Sale of private communication services

100 percent of the receipts from the sale of each channelterminationpointwithinthisState.

100 percent of the receipts from the sale of the total channelmileagebetweeneachterminationpointwithinthisState.

50percentofthereceiptsfromthesaleofservicesegmentsfora channel between two customer channel termination points,one ofwhich is located in this State and the other is locatedoutsideofthisState,whichsegmentsareseparatelycharged.

Receipts fromthesaleofservice forsegmentswithachannelterminationpointlocatedinthisStateandintwoormoreotherstates or equivalent jurisdictions, and which segments arenot separately billed, are in this State based on a percentagedetermined by dividing the number of customer channelterminationpointsinthisStatebythetotalnumberofcustomerchannelterminationpoints.

Sale of billing services and ancillary services for telecommunications service

Basedonthelocationofthepurchaser’scustomers.

If the location of the purchaser’s customers is not known orcannotbedetermined,thesaleofbillingservicesandancillaryservicesfortelecommunicationsserviceareinthisStatebasedonthelocationofthepurchaser.

To access a carrier’s network or from the sale of telecommunications services for resale

100 percent of the receipts from access fees attributable tointrastate telecommunicationsservice thatbothoriginatesandterminatesinthisState.

50 percent of the receipts from access fees attributable tointerstate telecommunications service if the interstate calleitheroriginatesorterminatesinthisState.

100 percent of receipts from interstate end user access linecharges, if customer’s service address is in this State. Asused here, “interstate end user access line charges” includes,but is not limited to, the surcharge approved by the federalcommunicationscommissionandleviedpursuantto47CFR69.

Gross receipts from sales of telecommunications services toother telecommunication service providers for resale will besourced to this State using the apportionment concepts usedfor non-resale receipts of telecommunications services if theinformation is readilyavailable tomake thatdetermination. Iftheinformationisnotreadilyavailable,thenthetaxpayermayuseanyotherreasonableandconsistentmethod.

Taxpayer whose business activities include live radio or television programming as described in Subsector Code 7922 of Industry Group 792 or are included in Industry Groups 483, 484, 781, or 782, under the SIC Code as compiled by the U.S. Department of Labor, or any combination of the business activities included in those groups

Media receipts are attributable to this State only if thecommercial domicile of the customer is in this State and thecustomer has a direct connection or relationship with thetaxpayerpursuanttoacontractunderwhichthemediareceiptsarederived.

Media receipts from the saleofadvertisingareattributable tothis State if the customer of that advertising is commerciallydomiciled in this State and receives some of the benefit ofthesaleof thatadvertising in thisState.Salesare included inproportion to theextent that thecustomer receives thebenefitoftheadvertisinginthisState.

If the taxpayer is a broadcaster and if the customer receivessomeof thebenefitof theadvertising in thisState, themediareceiptsforthatsaleofadvertisingfromthatcustomerwillbeproportionedbasedon theratio that thebroadcaster’sviewingorlisteningaudienceinthisStatebearstoits totalviewingorlisteningaudienceeverywhere.

Media property means motion pictures, television programs,InternetprogramsandWebsites,otheraudiovisualworks,andanyother similarpropertyembodyingwords, ideas, concepts,images, or soundwithout regard to themeans ormethods ofdistributionorthemediuminwhichthepropertyisembodied.

Media receiptsmeansreceiptsfromthesale,license,broadcast,transmission, distribution, exhibition, or other use of mediaproperty and receipts from the sale ofmedia services.Mediareceiptsdonotincludereceiptsfromthesaleofmediapropertythatisaconsumerproductthatisultimatelysoldatretail.

Media servicesmeans services inwhich theuseof themediapropertyisintegraltotheperformanceofthoseservices.

OThERDefault for all other receipts not otherwise sourced here

Sourcedbasedonwherethebenefittothecustomerisreceived,or if where the benefit to the customer is received cannot bedetermined,sourcedtothecustomer’slocation.

12

Michigan Department of Treasury4891 (Rev. 03-16), Page 1

This form cannot be used as an amended return; use the CIT Amended Return (Form 4892).2016 MIChIGAN Corporate Income Tax Annual Return

Issued under authority of Public Act 38 of 2011.MM-DD-YYYY MM-DD-YYYY

1. Return is for calendar year 2016 or for tax year beginning: and ending:2. Taxpayer Name (print or type) 3. Federal Employer Identification Number (FEIN)

4. Street Address

City State ZIP/Postal Code Country Code

5. NAICS (North American Industry Classification System) Code 6. If Discontinued, Effective Date

8. Check if a special sourcing formula for transportation services is used in the sourcing of Sales to Michigan.7a.

Check if Filing Michigan Unitary Business Group Return. (Include Form 4896, if applicable, and Form 4897.)

7b. Affiliated Group Election year (MM-DD-YYYY)

Important: If the tax liability on line 41 is less than or equal to $100, or the gross receipts on line 11 are less than $350,000, you are not required to file this return or pay the tax. Short period filers, see instructions.

9. Apportionment Calculationa. Michigan sales of the corporation/Unitary Business Group (UBG) (if no Michigan sales, enter zero) ...... 9a. 00b. Proportionate Michigan sales from unitary Flow-Through Entities (FTEs) (include Form 4900) ............... 9b. 00c. Michigan sales. Add lines 9a and 9b ......................................................................................................... 9c. 00d. Total sales of the corporation/UBG ............................................................................................................ 9d. 00e. Proportionate total sales from unitary FTEs (include Form 4900) ............................................................... 9e. 00f. Total sales. Add lines 9d and 9e ................................................................................................................ 9f. 00g. Apportionment percentage. Divide 9c by 9f............................................................................................... 9g. %

10. a. Gross receipts from corporate activities (see instructions) .......... 10a. 0010. b. Apportioned gross receipts from FTEs ........................................ 10b. 0011. REQUIRED: Total gross receipts for filing threshold purposes. Multiply line 10a by line 9g, and add

line 10b ............................................................................................................................................................ 11. 00

PART 1: CORPORATE INCOME TAXAll filers, see instructions. Unitary Business Group filers will complete lines 12 through 17, 19 through 24, and 27 through 31 with amounts reflecting the total of all UBG members.

12. Federal taxable income from federal Form 1120. (Amount includes agricultural activities. See instructions.) . 12. 0013. Domestic production activities deduction based on IRC § 199 reported on federal Form 8903, to the extent

deducted from federal taxable income ............................................................................................................ 13. 0014. Miscellaneous (see instructions) ..................................................................................................................... 14. 0015. Adjustments due to decoupling of Michigan depreciation from IRC § 168(k). If adjustment is negative,

enter as negative:a. Net bonus depreciation adjustment ............................................. 15a. 00b. Gain/loss adjustment on sale of eligible depreciable asset(s) ..... 15b. 00c. Add lines 15a and 15b. If negative, enter as negative.............................................................................. 15c. 00

16. Add lines 12, 13, 14 and 15c. If negative, enter as negative ........................................................................... 16. 0017. For a UBG, total group eliminations from business income (see instructions). All other filers, enter zero ...... 17. 0018. Business Income. All filers, subtract line 17 from line 16. If negative, enter as negative .............................. 18. 00

Additions to Business Income19. Interest income and dividends derived from obligations or securities of states other than Michigan ................ 19. 0020. Taxes on or measured by net income including tax imposed under CIT .......................................................... 20. 0021. Any carryback or carryover of a federal net operating loss (enter as a positive number) ................................. 21. 0022. Royalty, interest, and other expenses paid to a related person that is not a UBG member of this taxpayer .... 22. 0023. Expenses from the production of oil and gas, and/or minerals (see instructions) ............................................ 23. 0024. Miscellaneous (see instructions) ..................................................................................................................... 24. 0025. Total Additions to Income. Add lines 19 through 24......................................................................................... 25. 0026. Corporate Income Tax Base After Additions. Add lines 18 and 25. If negative, enter as negative ............ 26. 00

+ 0000 2016 12 01 27 2 Continue and sign on Page 2

4891, Page 2 Taxpayer FEIN

PART 1: CORPORATE INCOME TAX (Continued)Subtractions from Business Income

27. Income from non-unitary FTEs (Enter loss as negative; include Form 4898; see instructions) ......................... 27. 0028. Dividends and royalties received from persons other than U.S. persons and foreign operating entities ........ 28. 0029. Interest income derived from United States obligations .................................................................................. 29. 0030. Income from the production of oil and gas, and/or minerals (see instructions) ................................................ 30. 0031. Miscellaneous (see instructions) ..................................................................................................................... 31. 0032. Total Subtractions from Income. Add lines 27 through 31 .............................................................................. 32. 00

33. Corporate Income Tax Base. Subtract line 32 from line 26. If negative, enter as negative ......................... 33. 0034. Apportioned Corporate Income Tax Base. Multiply line 33 by percentage on line 9g ..................................... 34. 0035. Apportioned Income from non-unitary FTEs from Form 4898 (see instructions)............................................. 35. 0036. Total apportioned Corporate Income Tax Base. Add line 34 and line 35 ......................................................... 36. 00

37a. Available CIT business loss carryforward (see instructions). Enter as positive. .............................................. 37a. 0037b. Check if any loss on line 37a was acquired in this filing period in an IRC 381(a)(1) or (2) transaction (see instructions)

38. Subtract line 37a from line 36. If negative, enter here as negative. A negative number here is the available business loss carryforward to the next filing period (see instructions) ............................................................ 38. 00

39. Corporate Income Tax Before Credit. Multiply line 38 by 6% (0.06). If less than zero, enter zero .............. 39. 00PART 2: TOTAL CORPORATE INCOME TAX

40. Small Business Alternative Credit (SBAC) from Form 4893, line 14 or line 18, whichever applies ................. 40. 0041. Tax Liability after SBAC. Subtract line 40 from line 39. If less than or equal to $100, enter zero.

If apportioned or allocated gross receipts are less than $350,000, enter zero (see instructions) ................... 41. 0042. Recapture of Certain Business Tax Credits from Form 4902, line 18 .............................................................. 42. 0043. Total Tax Liability. Add lines 41 and 42 ............................................................................................................ 43. 00

PART 3: PAYMENTS AND TAX DUEUBGs include on lines 44 through 47 payments from all members as reported on Form 4897.

44. Overpayment credited from prior period return (MBT or CIT) ......................................................................... 44. 0045. Estimated tax payments .................................................................................................................................. 45. 0046. Flow-Through Withholding payments .............................................................................................................. 46. 0047. Tax paid with request for extension ................................................................................................................. 47. 0048. Payment total. Add lines 44 through 47. ......................................................................................................... 48. 0049. TAX DUE. Subtract line 48 from line 43. If less than zero, leave blank ........................................................... 49. 0050. Underpaid estimate penalty and interest from Form 4899, line 38 .................................................................. 50. 0051. Annual Return Penalty (see instructions) ........................................................................................................ 51. 0052. Annual Return Interest (see instructions) ........................................................................................................ 52. 0053. PAYMENT DUE. If line 49 is blank, go to line 54. Otherwise, add lines 49 through 52 .................................. 53. 00

PART 4: REFUND OR CREDIT FORWARD54. Overpayment. Subtract lines 43, 50, 51 and 52 from line 48. If less than zero, leave blank (see instructions) .. 54. 0055. CREDIT FORWARD. Amount on line 54 to be credited forward and used as an estimate for next CIT tax year ... 55. 0056. REFUND. Subtract line 55 from line 54 ........................................................................................................... 56. 00

Taxpayer Certification. I declare under penalty of perjury that the information in this return and attachments is true and complete to the best of my knowledge.

Preparer Certification. I declare under penalty of perjury that thisreturn is based on all information of which I have any knowledge.

By checking this box, I authorize Treasury to discuss my return with my preparer.

Preparer’s PTIN, FEIN or SSN

Authorized Signature for Tax Matters Preparer’s Business Name (print or type)

Authorized Signer’s Name (print or type) Date Preparer’s Business Address and Telephone Number (print or type)

Title Telephone Number

Return is due April 30 or on or before the last day of the 4th month after the close of the tax year.WIThOUT PAYMENT. Mail return to: Michigan Department of Treasury, PO Box 30803, Lansing MI 48909

WITh PAYMENT. Pay amount on line 53. Mail check and return to: Michigan Department of Treasury, PO Box 30804, Lansing MI 48909. Make check payable to “State of Michigan.” Print taxpayer’s FEIN, the tax year, and “CIT” on the front of the check. Do not staple the check to the return.

+ 0000 2016 12 02 27 0

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PurposeTo calculate the Corporate Income Tax (CIT) for standardtaxpayers. Insurance companies should file the Insurance Company Annual Return for Michigan Corporate Income and Retaliatory Taxes (Form 4905) and Financial Institutionsshould file the CIT Annual Return for Financial Institutions (Form4908).

A standard taxpayer is an entity that is a C Corporation, anentitythathaselectedtobetaxedfederallyasaCCorporationfor the tax year, and a Unitary Business Group (UBG) thatincludesmembersthatareCCorporationsorentitiesthathaveelected to be taxed federally as a C Corporation for the taxyear.

Instructions for UBGsUnder the CIT, corporation means an entity that is a CCorporationorhaselectedtofilefederallyasaCCorporationfor the tax year. A taxpayer is a corporation, an insurancecompany,afinancialinstitution,oraUBGthatisliablefortax,interest,orpenalty.

A UBG is a group of United States persons that arecorporations, insurance companies, or financial institutions,otherthanaforeignoperatingentity,thatsatisfiesthefollowingcriteria:

• Control Test:Oneofthepersonsownsorcontrols,directlyorindirectly,morethan50percentoftheownershipinterestwithvotingrights(orrightscomparabletovotingrights)oftheothermembers;AND

• Relationship Test: The UBG has operations which resultinaflowofvaluebetween themembers in theUBGorhasoperations that are integrated with, are dependent upon, orcontribute to each other. Flow of value is determined byreviewingthetotalityoffactsandcircumstancesofbusinessactivitiesandoperations.

United States person is defined in the InternalRevenueCode(IRC)§7701(a)(30).

A foreign operating entitymeans aUnitedStates corporationthat would otherwise be a part of a UBG that is taxable inMichigan;hassubstantialoperationsoutsidetheUnitedStates,the District of Columbia, any territory or possession of theUnitedStatesexceptforthecommonwealthofPuertoRico,orapoliticalsubdivisionoftheforegoing;andatleast80percentof its income is active foreign business income as defined inIRC§871(l)(1)(B)(ii).

A UBG may alternatively be determined by making anAffiliated Group Election.

In Michigan, a UBG with members that are corporationsmust file Form 4891. A Designated Member (DM) must filethereturnonbehalfof thestandardmembersof thegroup.Ina brother-sister controlled group, anymember that has nexuswithMichiganmaybedesignatedtoserveasDM.Inaparent-

subsidiary controlled group or a combined controlled group(an interlocking combination of a parent-subsidiary groupand a brother-sister group), the controlling member mustserveasDMifithasnexuswithMichigan.Ifitdoesnothavenexus with Michigan, the controlling member may appointanymemberwithnexus toserveasDM.Whenfillingout theforms supporting this return, fields that require “taxpayer”information should be filled with the name and FederalEmployerIdentificationNumber(FEIN)oftheDM.

NOTE: A taxpayer that is a UBG must file a combinedreturnusing the taxyear of theDM.The combined returnofthe UBGmust include each tax year of eachmember whosetax year ends with or within the tax year of the DM. Forexample,TaxpayerABCisaUBGcomprisedofthreestandardmembers:Member A, the DMwith a calendar tax year, andMembers B and C with fiscal years ending March 31 andSeptember30,respectively.TaxpayerABC’staxyearisthatofitsDM.Forthisgroupin2013,thatannualreturnwillincludeMemberA’scalendaryearendingDecember31,2013, the taxyearofMemberBendingMarch31,2013,andthetaxyearofMemberCendingSeptember30,2013.

ThegrossreceiptsofaUBGisthesumofthegrossreceiptsofeachmemberincludedintheUBG,otherthanapersonsubjecttothetaxasaninsurancecompanyorfinancialinstitution,lessanygrossreceiptsarisingfromtransactionsbetweenmembersincluded in the UBG. Gross receipts of eachmember shouldreflecttheaccountingmethodthatmemberusedtocomputeitsfederaltaxableincome.

The business income of a UBG is the sum of the businessincome of each member included in the UBG, other than aperson subject to the taxas an insurancecompanyorfinancialinstitution, less any items of income and related deductionsarising from transactions (including dividends) betweenmembers included in the UBG. Business income of eachmembershouldreflecttheaccountingmethodthatmemberusestocomputeitsfederaltaxableincome.

Ingeneral,componentsusedtodeterminetaxliabilityrelatetothegroupas a single taxpayer,not to the individualmembersthat comprise the group. Exceptions to this general rule arenoted in instructions to the applicable forms. The group ofmemberson thecombined return is treatedas the taxpayer (adistinctentity)forpurposesoftheIncomeTaxAct.

Additional information can be found under the “CorporateIncome Tax” page at www.michigan.gov/taxes. RevenueAdministrative Bulletin (RAB) 2013-1, Unitary Business Group Control Test And Relationship Tests, isavailableunderthe“Reference”page.

Taxpayer CertificationA return filed by a UBG must be signed by an individualauthorized to sign on behalf of the DM. Provide a telephonenumber for that individual at the DM’s office. Treasury willonlydiscussthereturnwiththeauthorizedsigner.

Instructions for Form 4891 Corporate Income Tax Annual Return

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The Affiliated Group ElectionThe affiliated group election allows a group of persons thatsatisfy thedefinitionof“affiliatedgroup,” (seebelow) toelectto be treated as a UBG under the CIT even if those personsdo not satisfy the relationship test of MCL 206.611(6). Therelationship test is discussed in the Instructions forUBGs onthisformandonlineatwww.michigan.gov/taxes.

The term “affiliated group” means that term as defined insection 1504 of the IRC except that 1) the term includesall United Statespersons that are corporations, insurancecompanies, or financial institutions, other than a foreignoperatingentity,and2)theentitieslistedin(1)arecommonlyowned,directlyorindirectly,byanymemberofsuchaffiliatedgroup and other members of which more than 50 percent ofthe ownership interests with voting rights or ownershipintereststhatconfercomparablerightstovotingrightsofthememberisdirectlyorindirectlyownedbyacommonownerorowners.

Ataxpayermakestheelectionbyaffirmativelyindicatingsoonthe annual return (see line 7b).The affiliated groupmembersare treated asmembers of aUBG for all purposes.However,the affiliated group electiondoes not affect the determinationoftheflow-throughentitieswithwhichthetaxpayerisunitaryfor apportionment purposes.Once an election is made, it is irrevocable and binding for the tax year plus the next 9 tax years.SeeMCL206.691(2)formoreinformation.

General InstructionsDatesmustbeenteredinMM-DD-YYYYformat.

Forperiodslessthan12months,seethe“GeneralInformationforStandardTaxpayers”sectioninthe2016MichiganCITforStandardTaxpayersbooklet(Form4890).

Every standard taxpayer with nexus in Michigan and withapportionedorallocatedgrossreceiptsof$350,000ormoreandwhoseCITtaxliabilityisgreaterthan$100mustfileanannualCITreturn.(Thegrossreceiptsfilingthresholddoesnotapplyto insurance companies or financial institutions.) Businessesthat operate less than 12 months must annualize their grossreceiptstodetermineifafilingrequirementexists.ForaUBG,the$350,000filingthresholdiscalculatedaftereliminationofintercompany transactions.See the instructions for line11oncalculatinggrossreceiptsforfilingthesholdpurposes.

If the taxpayer is operating business for a period less than 12months, the apportioned or allocated gross receipts for filingpurposesmustbeannualizedandthencomparedtothe$350,000threshold.

UBGs: Complete Form 4897 and, if necessary, Form 4896beforebeginningForm4891.Answerlines1through7ofForm4891astheyapplytotheDM.

Amended Returns: To amend a current or prior yearannual return: complete the CIT Amended Annual Return (Form 4892) that is applicable for the year that is beingamended. Include a copy of an amended federal return ora signed and dated Internal Revenue Service (IRS) auditdocument, if applicable. Complete and file all schedules,

all forms and all attachments filed with the original return,even if not amending information on those schedules. Do not include a copy of the original return with the amended return.

Refund Only: If apportioned or allocated gross receipts arelessthan$350,000andthereisnorecaptureofanycredits,andthetaxpayerisfilingForm4891toclaimarefundofestimatespaid,skiplines12through43andlines49through53.

UBGs: Ifcombinedapportionedorallocatedgrossreceiptsofallmembersislessthan$350,000after eliminationsandthereis no recapture of any credits and the taxpayer isfilingForm4891solelytoclaimarefundofestimatespaid,theUBGmayfollow the “RefundOnly” instructions for claiming a refund.However,theDMmustincludeaForm4896,ifnecessary,andaForm4897foreachmemberincludedintheUBG.

Public Law 86-272: If a taxpayer’s business activity isprotected under Public Law (PL) 86-272, and the taxpayerwishes toclaima refund, the taxpayermustfileaForm4891.Whenfiling this form, leave lines12 through41and lines49through 53 blank and include an attachment explaining thecircumstances of the PL 86-272 protection. Lines 42 and 43mustbecompletedtoreportanyrecaptureofcredits.

UBGs: If all members of the UBG are claiming PL 86-272protection, then the UBG will leave lines 12 through 41 andlines 49 through 53 blank and include a statement explainingthe circumstances of the PL 86-272 protection for eachmember. Lines 42 and 43 must be completed to report anyrecaptureofcredits.However,aslongasonememberofaUBGhasnexuswithMichiganandexceedstheprotectionsofPL86-272, allmembers of theUBG— includingmembers protectedunder PL 86-272 — must be included when calculating theUBG’sCorporateIncomeTaxbaseandapportionmentformula.Asaresult,allUBGmembersmustcompleteForm4897forthepurposeof thisreturn.MemberswithPL86-272protectionarenottaxable;however,PL86-272willonlyremoveincomefromthe apportionableCIT taxbasewhen allmembers of theUBGareprotectedunderPL86-272.

Line-by-Line InstructionsLines not listed are explained on the form.

Line 1: If not a calendar-year taxpayer, enter the beginningand ending dates (MM-DD-YYYY) that correspond to thetaxableperiodincludedinthisreturn.

Tax year means the calendar year, or the fiscal year endingduring thecalendaryear,onwhich the taxbaseofa taxpayeriscomputed. Ifa return ismade forapartofayear, taxyearmeans the period for which the return is made. Generally, ataxpayer’s taxyear is for thesameperiodas iscoveredby itsfederalincometaxreturn.

Line 2:Enterthetaxpayer’sname.IfaUBG,enterthenameoftheDM.

Line 3: Use the taxpayer’s FEIN. Be sure to use the sameaccountnumberonall forms.Also, the taxpayer’sFEINfromline3mustberepeatedintheproperlocationonpage2.

NOTE: Unless already registered, taxpayers must register

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with the Michigan Department of Treasury before filing atax return. Taxpayers are encouraged to register online atwww.michigan.gov/businesstaxes. Taxpayers that registerwith Treasury online receive their registration confirmationwithinsevendays.

If the taxpayer does not have an FEIN, the taxpayer mustobtain an FEIN before filing the CIT. The Web sitewww.michigan.gov/businesstaxes provides information onobtaininganFEIN(under“NewBusiness”).

Returns received without a registered account number will not be processed until such time as a number is provided.

UBGs:EntertheFEINoftheDMforthisUBG.

Line 4: Enter the complete address, including the two-lettercountrycode.SeethelistofcountrycodesinForm4890.

NOTE: Any correspondence regarding the return filed and/or refund will be sent to the address provided on this form.Thetaxpayer’sprimaryaddressinTreasuryfiles, identifiedasthe legal address and used for all purposes other than refundandcorrespondenceona specificCIT return,will not changeunlessthetaxpayerfilesaNotice of Change or Discontinuance (Form163)withTreasury.

UBGs:EntertheaddressoftheDMforthisUBG.

FOREIGN FILERS:Completetheaddressfieldsasfollows:

Address:Enterthepostaladdressforthistaxpayer.

City: Enter the city name for this taxpayer. DO NOTincludethecountrynameinthisfield.

State:Enterthetwo-letterstateorprovinceabbreviation.Ifthereisnoapplicabletwo-letterabbreviation,leavethisfieldblank.

ZIP/Postal Code:EntertheZIPCodeorPostalCode.

Country Code: Enter the two-letter country codeprovidedinForm4890.

Line 5: Enter the entity’s six-digit North American IndustryClassification System (NAICS) code. For a complete list ofsix-digit NAICS codes, see the U.S. Census Bureau Website at www.census.gov/eos/www/naics/, or enter the sameNAICScodeusedwhenfiling the entity’s federalForm1120,ScheduleK.

UBGs:EnterheretheNAICScodefortheprincipalactivityofthegroup.Ifnoprincipalactivityisavailable,entertheNAICScode usedwhenfiling theDM’s federal Form1120, ScheduleK.

Line 6: Enter the date, if applicable, on which the taxpayerwentoutofexistence.

NOTE: If the taxpayer is still subject to another taxadministered by Treasury, or continues to exist but hasstopped doing business in Michigan, do not use this line.To complete the discontinuance for Michigan taxes, fileForm 163, which is available on the Treasury Web site atwww.michigan.gov/treasuryforms.

UBGs: Leave this line blank. This information will be

included,ifneeded,onForm4897.

Line 7a: Check this box if filing a UBG return and includea Form 4897 for every member (including the DM) whoseactivityisincludedinthisUBGreturn.AlsofileaForm4896,ifnecessary.

NOTE: Every UBG must check this box, regardless ofwhetherithaselectedunderPA266of2013,asdescribedintheline7binstructions.

Line 7b: Enter here the end date — in an MM-DD-YYYYformat—of the tax year in which the affiliated group election is first made.Theelectionlasts10yearsandisirrevocable.

Calendaryearfilersthatmadethiselectionbeginning2013,andfiscal filers that made this election beginning with the 2013-14fiscalyear,completed theMichigan Corporate Income Tax Affiliated Group Election to File as a Unitary Business Group (Form5114)tomaketheelection.Enterheretheenddate—inanMM-DD-YYYYformat—of the taxyear forwhichForm5114wasfiled.

Taxpayers that first make this election beginning calendaryear 2014 or later do not use Form 5114, which is nowdiscontinued. Instead, make the election on this line of thereturnfiledforthefirstyearoftheelection,byenteringtheenddateofthatfilingperiodinanMM-DD-YYYYformat.

Line 8: Check this box if the taxpayer has sales fromtransportation services. Taxpayers that check this box alsomustcompletelines9athrough9g.TocalculateMichiganSalesfrom Transportation Services, see the instructions for line 9andthetableinthe“SourcingofSalestoMichigan”sectionofthegeneralinstructionsinForm4890.

UBGs: If at least one member of the UBG has sales fromtransportationservices,checkthisbox.

Line 9: For aMichigan-based taxpayer, all sales areMichigansales unless the taxpayer is subject to tax in another state orforeigncountry.Ataxpayerissubjecttoataxinanotherstateorforeigncountryifthetaxpayerissubjecttoabusinessprivilegetax,anet incometax,afranchise taxmeasuredbynet income,a franchise tax for the privilege of doingbusiness, a corporatestock tax, or if the state or foreign country has jurisdiction tosubject the taxpayer to one or more of the above listed taxes,regardless of whether the tax is actually imposed against thetaxpayer.

The CIT is based only on business activity apportioned orallocated toMichigan.A taxpayer that isnotsubject to tax inoneotherstateorforeigncountryissubjecttoCITonitsentirebusinessactivity.

If the taxpayer is able to apportion its business activity, thenits business activity will be apportioned to Michigan basedon sales. Sale or Sales means the amounts received by thetaxpayerasconsiderationfromthefollowing:

• The transfer of title to, or possession of, property that isstock in trade or other property of a kind which wouldproperlybe included in the inventoryof the taxpayer if onhandat thecloseof the taxperiod,orpropertyheldby thetaxpayer primarily for sale to customers in the ordinary

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courseof its tradeorbusiness.For intangibleproperty, theamountsreceivedwillbelimitedtoanygainreceivedfromthedispositionofthatproperty.

• Performanceofserviceswhichconstitutebusinessactivities.• The rental, leasing, licensing, or use of tangible or

intangible property, including interest that constitutesbusinessactivity.

• Anycombinationofbusinessactivitiesdescribedabove.• For taxpayers not engaged in anyother business activities,

sales include interest, dividends, and other income frominvestmentassetsandactivitiesandfromtradingassetsandactivities.

Complete the Apportionment Calculation using amounts forthe taxpayer’s business activity only.Do not include amountsreceived from an interest in a Partnership, S Corporation, orLLC.

Use the information in the “Sourcing of Sales to Michigan”sectionofthegeneralinstructionsinForm4890.

Line 9a:EntertheMichigansalesthataredirectlyattributabletothetaxpayer.

Transportation services that source sales based on revenuemiles: Enter on this line the taxpayer’s total sales multipliedby the ratio of Michigan revenue miles over revenue mileseverywhereasprovidedinthe“SourcingofSalestoMichigan”chart for that type of transportation service. Revenue milemeans the transportation for consideration of one net ton inweightoronepassengerthedistanceofonemile.

NOTE:Onlytransportationservicesaresourcedusingrevenuemiles. To the extent the taxpayer has business activities orrevenue streams not from transportation services, those salesshouldbesourcedaccording to theapplicableguidance in the“SourcingofSalestoMichigan”sectionofForm4890.

UBGs:Enteronthis line theentireamountofMichigansalesof all members in the group after eliminations. For moreinformationseetheinstructionsforForm4897.

For each member reported on Form 4897, calculate themember’sMichigan sales as follows: from thefigure reportedonForm4897, line13, subtract theamount reportedonForm4897,line15.AddthecalculatedMichigansalesamountofallmembersofthegroup,andenterthetotalsumhere.

Taxpayers that have a unitary relationship with a Flow-Through Entity (FTE), but are not part of a CIT unitary group of corporations (i.e., line 7a is not checked): Do notinclude on this line Michigan sales made by the taxpayer toan FTE that is unitary with the taxpayer and is included on FTEs that are Unitary with the Taxpayer(Form4900).Inotherwords,enterthislinenetofeliminationswiththeFTE.Formoreinformationoneliminations,seetheinstructionstoline17.

AnFTEisanentitythat,fortheapplicabletaxyear,istreatedasasubchapterSCorporationundersection1362(a)oftheIRC,ageneral partnership, a trust, a limitedpartnership, a limitedliabilitypartnership,ora limited liabilitycompany that isnottaxedasaCCorporationforfederalincometaxpurposes.

A taxpayer is unitary with an FTE if the taxpayer:• Ownsorcontrols,directlyorindirectly,morethan50%oftheownership interests with voting rights (or ownership intereststhatconfercomparablerightstovotingrights)oftheFTE;AND• The taxpayer and FTE have activities or operationswhichresultinaflowofvaluebetweenthetaxpayerandtheFTE,orbetween theFTEand anotherFTEunitarywith the taxpayer,orhasbusinessactivitiesoroperationsthatareintegratedwith,aredependantupon,orcontributetoeachother.

The determination of whether a taxpayer is unitary with anFTE ismade at the taxpayer level. If the taxpayer at issue isaUBG, the ownership requirementwill bemade at theUBGlevel.So, if the combinedownershipof theFTEby theUBGis greater than 50%, then the ownership requirement will besatisfied.

NOTE: PA 266 of 2013 authorizes an affiliated groupelection that applies an alternate test for finding a unitaryrelationship between corporations. This act DID NOT createa corresponding “affiliated group” test for finding a unitaryrelationshipbetweenacorporationandanFTE.Theexistenceof a unitary relationship between a corporation and an FTEis still basedexclusivelyon the two-part test described in theprecedingbulletpoints.

Line 9b:IfthetaxpayerisunitarywithanFTEorFTEs,enteron this line the total proportionate amount ofMichigan salesattributed to theseflow-through entities in column J onForm4900.FormoreinformationseetheinstructionsforForm4900.If anamount is enteredon this line, thenForm4900mustbecompletedandincludedwiththefilingofthisform.

UBGs:Enteron this line theentireamountof totalMichigansalesattributedtoallflow-throughentitiesthatareunitarywithamemberofthegroup.Foreachmemberofthegroup,addthefigure reported on Form 4897, line 14, of allmembers of thegroup,andenterthesumhere.

Line 9d: Enter the total sales that are directly attributable tothetaxpayer.

Transportation services that source sales based on revenuemiles: Enter on this line the total sales that are directlyattributabletothetaxpayer.

NOTE:Onlytransportationservicesaresourcedusingrevenuemiles. To the extent the taxpayer has business activities orrevenue streams not from transportation services, those salesshouldbesourcedaccording to theapplicableguidance in the“SourcingofSalestoMichigan”sectionofForm4890.

UBGs:Enteronthislinetheentireamountoftotalsalesofallmembersinthegroupaftereliminations.FormoreinformationseetheinstructionsforForm4897.Foreachmemberreportedon Form 4897, calculate the member’s total sales as follows:from the figure reported on Form 4897, line 16, subtract theamountonForm4897, line18. Add thecalculated totalsalesamount of allmembers of the group, and enter the total sumhere.

Taxpayers that have a unitary relationship with an FTE, but are not part of a CIT unitary group of corporations (i.e., line 7a is not checked): Do not include on this line

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sales made by the taxpayer to an FTE that is unitary withthe taxpayer and is included on Form 4900. In other words,enter this line net of eliminations with the FTE. For moreinformationoneliminations,seetheinstructionstoline17.

Line 9e: If the taxpayer is unitary with an FTE or FTEs,enteron this line the totalproportionateamountof total salesattributedtotheseFTEsincolumnOonForm4900.Formoreinformation see the instructions forForm4900. If an amountisenteredonthisline,thenForm4900mustbecompletedandincludedwiththefilingofthisform.

UBGs: Enter on this line the entire amount of total salesattributed to all flow-through entities that are unitary with amemberof thegroup. AddthefigurereportedonForm4897,line17ofallmembersofthegroup,andenterthesumhere.

Line 10a: Enter the amount of total, unapportioned grossreceipts received by the taxpayer. Do not include flow-throughgrossreceiptsonthisline.

Gross receipts means the entire amount received by thetaxpayer from any activity, whether in intrastate, interstate,or foreign commerce, carried out for direct or indirect gain,benefit,oradvantagetothetaxpayerortoothers,withcertainexceptions.Use the checklist in the line10b instructions as aguidetobesurereceiptshavebeentotaledcorrectly.Taxpayersand tax professionals are expected to be familiar withuncommon situations within their experience, which producegrossreceiptsnotidentifiedbythechecklist.

Non-UBG taxpayers reporting a period of less than 12 months: Reportactualgrossreceiptsonthisline.

UBGs: Enteronthislinetheentireamountofgrossreceiptsofallmembersinthegroupaftereliminations.ForeachmemberreportedonForm4897, calculate themember’sgross receiptsnet of eliminations as follows: from the figure reported onForm 4897, line 19a, subtract the amount reported on Form4897, line 19b. Combine the resulting gross receipts net ofeliminations amounts of allmembers of the group, and enterthetotalhere.

UBG members reporting a period of less than 12 months must report actual gross receipts on Form 4897 line 19a, andthen annualize their gross receipts net of eliminations on amemberbymemberbasis.Foreachmemberreportingaperiodoflessthan12months,fromtheamountreportedonForm4897,line 19a, subtract line 19b, and annualize the result using thatmember’s number of months reported in the group’s tax year.Once all applicablemembers’ gross receipts net of eliminationareannualized,carrythesumofallmembers’grossreceiptsnetofeliminations,annualizedasapplicable,toForm4891,line10a.

Line 10b: Enter the allocated or apportioned imputed grossreceipts fromallunitaryornon-unitaryFTEs fromwhich thetaxpayerreceivesadistributiveshareofincome.

EXCEPTION: Do not include imputed gross receipts fromanyFTEinwhichthetaxpayerisanon-unitaryowner,andtheFTEhasmadeavalidelectiontofiletheMichiganBusinessTax(MBT)forataxyearthatendswithorwithinthetaxpayer’staxyear.Seeinstructionsforline12forexplanationof2013PA233.

Single filers, use the “Worksheet on Flow-Through Gross

Receipts” (at the end of the following “Gross ReceiptsChecklist) to calculate the imputed apportioned or allocatedgrossreceiptsfromeachFTE.

UBGs:AddtheamountonForm4897,line20,reportedforallmembersofthegroup,andenterthesumhere.UBGmembersreporting a period of less than 12 months with this groupreturn must annualize their apportioned FTE gross receiptsonamemberbymemberbasis.Useeachmember’snumberofmonths reported in the group’s tax year. Once all applicablemembers’ FTE gross receipts are annualized, carry allmembers’grossreceiptsfromline20ofForm4897toline10b.

Gross Receipts ChecklistNOTE: Thischecklistisnotintendedtobeallencompassing.

Receiptsinclude,butarenotlimitedto:

• Receipts (sales price) from the sale of assets used in abusinessactivity

• Saleofproducts• Servicesperformed• Gratuitiesstipulatedonabill• Salestaxcollectedonthesaleoftangiblepersonalproperty• Dividendandinterestincome• Grosscommissionsearned• Rents• Royalties• Professionalservicesprovided• Salesofscrapandothersimilaritems• Receiptsfromtheproductionofoilandgas• Client reimbursed expenses not obtained in an agency

capacity.

Receiptsexclude:

• Proceeds from sales by a principal that are collected inan agency capacity solely on behalf of the principal anddeliveredtotheprincipal

• Amounts received as an agent solely on behalf of theprincipal that are expended by the taxpayer under certaincircumstances

• Amounts excluded from gross income of a foreigncorporation engaged in the international operation ofaircraftundersection883(a)oftheIRC

• Amountsreceivedbyanadvertisingagencyusedtoacquireadvertising media time, space, production, or talent onbehalfofanotherperson

• Amounts received by a person thatmanages real propertyownedbyaclientthataredepositedintoaseparateaccountkept in the name of the client and that are not reimbursedand are not indirect payments for management servicesprovidedtothatclient

• Proceeds from the original issue of stock, equityinstruments,ordebtinstruments

• Refundsfromreturnedmerchandise• Cashandin-kinddiscounts• Tradediscounts

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• Federal,Stateorlocaltaxrefunds• Securitydeposits• Paymentoftheprincipalportionofloans• Valueofpropertyreceivedinalike-kindexchange• Proceeds from a sale, transaction, exchange, involuntary

conversion, or other disposition of tangible, intangible,or realproperty that isacapitalassetasdefined in section1221(a) of the IRC or land that qualifies as property usedinthetradeorbusinessasdefinedinsection1231(b)oftheIRC, less any gain from the disposition to the extent thatgainisincludedinfederaltaxableincome

• Proceeds from an insurance policy, settlement of a claim,or judgment in a civil action, less any proceeds that areincludedinfederaltaxableincome

• Proceeds from the taxpayer’s transfer of an accountreceivable, if thesale thatgenerated theaccount receivablewas included in gross receipts for federal income taxpurposes. This provisionwill not apply to a taxpayerwhobothbuysandsellsanyreceivablesduringthetaxyear.

WORkShEET ON FLOW-ThROUGh GROSS RECEIPTSA taxpayer must complete the following calculation for each Flow-Through Entity (FTE), whether unitary or not, that does not elect to file an MBT return for this tax year and from which the taxpayer receives distributive share of income. The amount in line 5 of this worksheet for each FTE must be added, and the sum carried to Form 4891, line 10b.

Do not include imputed gross receipts from any FTE in which the taxpayer is a non-unitary owner and the FTE has made a valid election to file the MBT for a tax year that ends with or within this member’s tax year.

1. FTE’s gross receipts that fall with or within the taxpayer’s tax year included in this return ........ 1. 00

2. Percentage of the FTE’s income or loss received by the taxpayer ..................................... 2. %

3. Gross receipts amount before apportionment. Multiply line 1 by line 2 ...................................... 3. 00

4. FTE’s apportionment percentage (Michigan sales divided by total sales)*............... 4. %

5. Flow-through gross receipts to be imputed to the taxpayer. Multiply line 3 by line 4 .............. 5. 00

*Line 4: If the FTE is unitary with the taxpayer, use the apportionment percentage from line 9g. Otherwise, use the FTE’s apportionment percentage.

Line 11: Calculate the taxpayer’s total apportioned grossreceipts for filing threshold by multiplying Line 10a by thepercentage on Line 9g, and adding that amount to Line 10b.Do notleavethisfieldblank.

Gross Receipts Filing Threshold:Taxpayerswithallocatedorapportionedgrossreceiptsoflessthan$350,000donothavetofile a CIT return and do not have to pay the tax imposed bytheCIT.Forperiodslessthan12months,thisamountmustbeannualized.Toannualizethisamount,multiplythetaxpayer’stotal apportionedor allocatedgross receipts by12 anddivide

theresultbythenumberofmonths in thetaxpayers’ taxyear.Do notenterannualizedfiguresonthisline.

UBGs: Calculate the apportioned gross receipts for filingthresholdpurposesbymultiplyingtheamountonline10abytheapportionmentpercentageonline9g,andaddingtothatproducttheamounton line10b.Becauseamounts enteredon lines10aand10brepresentthesumofannualizedmemberfigures(whenapplicable),nofurtherannualizationisrequiredonline11.

PART 1: CORPORATE INCOME TAXLine 12: Federal taxable income, as reported on this line, isdefined for CIT purposes to include carryback and carryoverof federal net operating losses. Note that these amounts willbeaddedback,forCITpurposes,intheAdditionstoBusinessIncomesection,below.

For a tax-exempt taxpayer, business income means only thatpart of federal taxable income (as defined for CIT purposes)derivedfromunrelatedbusinessactivity.

Agricultural activities: Include income from agriculturalactivitiesonline12.FarmactivitybyentitiessubjecttotheCITisnotexempt.

Exempt income (loss) from certain flow-through entities (FTEs): 2013 PublicAct 233 provides that, in the case of anFTEthatmadetheelectiontoremaintaxableundertheMBT,eachmember of the FTE that does not file as amember of aunitarybusinessgroupwith theFTEshalldisregardall itemsattributabletothatmember’sownershipinterestintheelectingFTEforallpurposesoftheCIT.Ifthetaxpayerfilingthisformowns an interest in an FTE that files anMBT return for theFTE’staxyearthatendswithorwithinthistaxpayer’staxyear,the taxpayer’s distributive share of income (loss) from suchFTEwillbeexemptfromthetaxpayer’scorporateincometax.However,do not exclude the exempt income (loss) on line 12.ThecorporateincometaxbaseattributabletosuchFTEwillberemovedviaForm4891,line27,andForm4898.

UBGs: AddForm4897,line21,ofallmembersandentersumhere.

Line 13: UBGs: AddForm4897, line22,ofallmembersandentersumhere.

Line 14: There are currently no miscellaneous items to beenteredonthisline.Leavethislineblank.

Line 15: Adjustments are required for all assets placed intoservice afterDecember 31, 2007, forwhich bonus depreciationwastaken.

Line 15a: For the computation of business income for CIT,persons who claimed a federal bonus depreciation deductionunderIRC§168(k)onpropertyfirstplacedinservicein2008or later must calculate the net bonus depreciation adjustmenton those assets as follows: net bonus depreciation adjustmentintaxyearequalsthetotalfederaldepreciationclaimedintaxyearlessthetotalamountofdepreciationthatwouldbeclaimedin the federal return in the tax year if the personhad electednot to utilize the bonus depreciation allowance under IRC §168(k).ApersonmaynotelectIRC§179expensingofanassetforMBTorCITpurposesifitdidnotelecttouseIRC§179forthatassetfederally.

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Line 15b: For the computation of business income for CITpurposes, persons who claimed a federal bonus depreciationdeduction under IRC § 168(k) on property first placed inservice in 2008 or later and subsequently disposed of thatproperty in the current tax year must calculate the gain/loss adjustment on the sale of those assets as follows: gain/loss adjustment in taxyear equals the total amountof federaldepreciation thatwouldbe claimedon the federal returnovertheyears(startingtheyeartheassetwasplacedinserviceandendinginthecurrenttaxyear)ifthepersonhadelectednottoutilizethebonusdepreciationallowanceunderIRC§168(k)onthepropertybeingdisposedLESSthetotalfederaldepreciationclaimed over the years (starting the year asset was placed inserviceandendingin thecurrent taxyear).ApersonmaynotelectIRC§179expensingofanassetforMBTorCITpurposesifitdidnotelecttouseIRC§179forthatassetfederally.

UBGs:AddForm4897,line24,ofallmembersandentersumhere.

Line 17: UBGs: AddForm4897, line25,ofallmembersandentersumhere.

NOTE: Elimination, where required, applies to transactionsbetween anymembers of theUBG.For example, if theUBGincludesstandard taxpayers (notownedbyandunitarywithafinancial institution in theUBG), an insurance company, andtwo financial institutions, transactions between a standardtaxpayer member and an insurance or financial member areeliminated whenever elimination is required, despite the factthat the insurance andfinancialmembers are not reported onthecombinedreturnfiledbystandardtaxpayermembers.

However, there is no elimination with an otherwise relatedentity if the related entity is excluded from the UBG. Forexample,consideragroupwithaU.S.parent,aU.S.subsidiary,andaforeignoperatingentitysubsidiarythatwouldotherwisebeaUBG,buttheforeignoperatingentityisexcludedfromtheUBGbydefinition.TheU.S. parentfiling aUBG returnmaynoteliminateintercompanytransactionsbetweenitselfandtheforeignoperatingentity.

If a transaction between twomembers of a UBG is reportedon thegroup’s current returnbyonememberbut reportedontheprecedingorsucceedinggroupreturnbytheothermember(due to differing year ends or accounting methods of themembers), the side of that transaction that is included in thegroup’scurrentfilingperiodmustbeeliminated.Theothersideofthesametransactionwillbeeliminatedonthegroupreturnfor the filing period in which the other member reports thetransaction.

Additions to Business IncomeLine 19: Enter any interest income and dividends frombondsandsimilarobligationsorsecuritiesofstatesotherthanMichigan and their political subdivisions in the same amountthatwasexcludedfromfederal taxable income(asdefinedforCITpurposes).ReducethisadditionbyanyexpensesrelatedtotheforegoingincomethatweredisallowedonthefederalreturnbyIRC§265and§291.UBGs:AddForm4897,line27ofallmembersandentersumhere.

Line 20: Enter all taxes on, or measured by, net incomeincludingcityandstatetaxes,ForeignIncomeTax,andFederalEnvironmental Tax claimed as a deduction on the taxpayer’sfederal return.Thiswould include the tax imposed under theCIT to the extent claimed as a deduction on the taxpayer’sfederalreturnthat includes the taxperiodonthisreturn.Thisincludes, to the extent deducted in arriving at federal taxableincome(asdefinedforCITpurposes),theBusinessIncomeTaxportionoftheMBT.

UBGs:AddForm4897,line28,ofallmembersandentersumhere.

Line 21:Enteranynetoperatinglosscarrybackorcarryoverthatwasdeductedinarrivingatfederaltaxableincome(asdefinedforCITpurposes).Enterthisamountasapositivenumber.

UBGs:AddForm4897, line29, of allmembers and enter sumhere.

Line 22: Enter, to the extent deducted in arriving at federaltaxable income (as defined for CIT purposes), any royalty,interest, or other expense paid to a person related to thetaxpayer by ownership or control for the use of an intangibleasset if the person is not included in the taxpayer’s UBG.Royalty, interest, or other expense described here is notrequiredtobeincludedifthetaxpayercandemonstratethatthetransactionhasanontaxbusinesspurposeotherthanavoidanceofthistax,isconductedwitharm’s-lengthpricingandratesandtermsasappliedinaccordancewithIRC§482and§1274(d),andsatisfiesoneofthefollowing:

• Is a pass through of another transaction between a thirdpartyandtherelatedpersonwithcomparableratesandterms.• Resultsindoubletaxation.Forthispurpose,doubletaxationexistsifthetransactionissubjecttotaxinanotherjurisdiction.• Isunreasonableasdeterminedbythestatetreasurer.• Therelatedperson(recipientofthetransaction)isorganizedunder the laws of a foreign nation which has in force acomprehensiveincometaxtreatywiththeUnitedStates.

UBGs:AddForm4897,line30,ofallmembersandentersumhere.

Line 23: Enter on this line the expenses included on line12 that resulted from the production of oil and gas if thatproductionofoilandgasissubjecttoMichiganseverancetaxonoilorgasin1929PA48.Alsoenterexpensesrelatedtotheincome derived from a mineral to the extent that income isincludedonline30andthatexpensewasdeductedinarrivingatfederaltaxableincome.

UBGs:AddtheamountonForm4897,line31ofallmembersandenterthesumhere.

Line 24: There are currently no miscellaneous items to beenteredonthisline.Leavethislineblank.

Subtractions from Business IncomeSubtractions are generally available to the extent included inarrivingatfederaltaxableincome(asdefinedforCITpurposes).

Line 27: Complete all other subtractions from businessincome,lines28through31,beforecompletingline27. Enter

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onthislinethesumofallentriesinColumnCofNon-Unitary Relationships with Flow-Through Entities (Form 4898). If anamount isenteredon this line,Form4898mustbecompletedandincludedwiththefilingofthisform.

To calculate apportionment properly, line 27 removes fromthe corporate income tax base the taxpayer’s distributiveshare of income (loss) attributable to a non-unitary flow-throughentity(FTE).Incomeorlossreceivedasadistributiveshare from a non-unitary FTE is subtracted here (prior toapportionmentoftheCITtaxbaseonline34),andapportionedon Form 4898 according to the FTE’s apportionment factor.The resulting amount fromForm4898 is then addedbackonline35.

Flow-through entity means an entity that for the applicabletaxyearistreatedasasubchapterScorporationundersection1362(a) of the IRC, a general partnership, a trust, a limitedpartnership,alimitedliabilitypartnership,oralimitedliabilitycompany, that for the taxyear isnot taxedasaCcorporationforfederalincometaxpurposes.

See the General Information section of the instructions forForm4898foranexplanationofFTEswithwhichataxpayerisnotunitary.

UBGs:Theamountenteredon line27mustequal thesumofall entries inColumnC of all Forms 4898 thatwere filed bythe UBG. The amount also will equal the sum of all groupmembers’Forms4897,line32.

Line 28:Enter,totheextentincludedinfederaltaxableincome(as defined for CIT purposes), any dividends and royaltiesreceived from persons other than United States persons andforeignoperatingentities,including,butnotlimitedto,amountsdeterminedunderIRC§78orIRC§§951to964.

UBGs:AddForm4897, line33,ofallmembersandentersumhere.

Line 29:To theextent included in federal taxable income(asdefinedforCITpurposes),deductinterestincomederivedfromUnitedStatesobligations.

UBGs:AddForm4897,line34,ofallmembersandentersumhere.

Line 30: Enter on this line income from the production of oilandgas if thatproductionofoilandgas issubject toMichiganseverance tax on oil and gas in 1929PA48, to the extent thatincome was included in federal taxable income. Also enterincomederivedfromamineraltotheextentincludedinfederaltaxableincome.

UBGs: Enter here the sum of Form 4897, line 35 of allmembers.

Line 31:There are nomiscellaneous subtractions that canbeenteredonthisline;leavethislineblank.

Line 35:EnteronthislinethesumofentriesfromColumnEofForm4898.Ifanamountisenteredonthisline,Form4898mustbecompletedandincludedwiththefilingofthisform.

UBGs:TheamountenteredonLine35mustequalthesumofallentriesinColumnEofallForms4898thatwerefiledbytheUBG.

Line 37a: Enter any unused CIT business loss carryforwardthat was reported on the CIT return for the immediatelyprecedingtaxperiodontheappropriategroupmembercopyofthisformasexplainedonthebulletedsectionbelow.OnlyCITbusinesslossincurredafterDecember31,2011,maybeenteredonthisline.Business lossmeansanegativebusinessincometaxbaseafterallocationorapportionment.Thebusiness losswillbecarriedforward to the year immediately succeeding the loss year asanoffset totheallocatedorapportionedBusinessIncomeTaxbase,thensuccessivelytothenextninetaxableyearsfollowingthe loss year or until the business loss is used up,whicheveroccurs first, but for notmore than ten taxable years after thelossyear.

Under PA 13 of 2014, a taxpayer that acquires the assets ofanother corporation in a transaction described under section381(a)(1) or (2) of the Internal Revenue Code (IRC) maydeduct any CIT business loss carryforward (hereinafter, losscarryforward) attributable to that other corporation. LossesacquiredviaIRCsec.381(a)(1)or(2)arereportedonthisline.

NOTE: CIT business loss carryforward is not the same as afederal net operating loss carryover or a Michigan BusinessTax(MBT)businesslosscarryforward,neitherofwhichcanbeclaimedasadeductiononaCITreturn.

UBGs: If the group created a business loss carryforward in apreceding CIT tax period, Treasury will have maintained thatcarryforwardontheDM’saccount.Enterunusedcarryforwardsofthistypefromline11oftheDM’scopyofForm4897.

If a member created a CIT business loss carryforward froma CIT tax period prior to joining the UBG, Treasury willmaintain that carryforwardon thatmember’s account, subjecttousebythegroup,untilit isfullyconsumedorthatmemberleaves the group. Enter unused carryforwards of this type onthe copy of Form4897filed for themember that brought thecarryforwardtothegroup.Loss carryforward consumedon a return is always theoldestavailable on that return, regardless of whether the oldestloss was generated by the group, brought by an incomingmember,oracquiredbyamemberofthegroupviaIRC§381.For a loss acquired via IRC § 381 transaction, the years ofcarryforward consumed before acquisition should be countedwhen determining the carryforward period remaining. Losscarryforward of a UBG, including loss carryforward broughtby an incoming member and loss carryforward acquired bythegrouporitsmembersviaIRC§381,agesaccordingtothetaxyearsof thegroup, rather than taxyearsofanyparticularmember.

If twomemberseachcreatedcarryforwards thatare thesameage, and together they exceed the amount allowable in thisfiling period, those members’ respective carryforwards areusedinproportiontotheamounttheycontributedtothegroup.If a member that generated a carryforward in a prior periodleaves the group, that member will take with it an amountequal to thegroup’s remainingcarryforward from thatperiodmultiplied by the amount that member contributed relativeto the total amount contributed by all groupmembers for thecarryforward in that same period. It is important to review

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a carryforward for the possibility that some or all of it hasexpired,orthatsomeorallofitwaswithdrawnfromthegroupbyadepartingmember.Line37aistheamountofthebusinesslosscarryforwardthatmaybeclaimedinthisfilingperiod.Seethe“SupplementalInstructionsfor Standard Members in UBGs” in Form 4890 for moreinformationontheeffectsofmembersleavingorjoiningaUBG.Line 37b:Check thisbox ifanyof thebusiness loss reportedon line 37awas distributed or transferred to this taxpayer inan IRC 381(a) transaction during this filing period.Attach tothereturnastatementofthename,FEIN,businesslossamountofeachsuchdistributorortransferorcorporation,andyearthebusinesslosswascreated.Line 38:Subtractline37fromline36.Anynegativeamountonline38isaCITbusinesslosswhichmaybecarriedforwardtothenextfilingperiod,excepttotheextentthatallorsomeportionofthisbusinesslosshasexceededitsusablelifeoftentaxyears.PART 2: TOTAL CORPORATE INCOME TAXLine 41: IMPORTANT: If apportioned or allocated grossreceipts are less than $350,000, enter zero on this line. If abusinessoperatedlessthan12months,annualizegrossreceiptstodetermineifafilingrequirementexists.Forinstructionsonhow tocalculate the taxpayer’sallocatedorapportionedgrossreceipts,seetheinstructionstoLine11.NOTE: If calculated annual liability is less than or equal to$100,enterzero.UBGs: If apportioned or allocated gross receipts after intercompany eliminations are less than $350,000, enter zeroon this line. For guidance on how to calculate the taxpayer’sallocatedorapportionedgrossreceipts,see the instructions toLine11.

Line 42:Enter theamountof recapture from line20ofForm4902. A taxpayer subject to recapture is required to reportand pay the amount of recapture due regardless of whetherthetaxpayerhas$350,000ormoreofapportionedorallocatedgrossreceipts.

PART 3: PAYMENTS AND TAX DUELine 45:Enter the total estimatedCIT taxpaidwith theCIT Quarterly Tax Return(Form4913)ortheamountofestimatedCIT tax paid through Electronic Funds Transfer. Include allpaymentsmadeon returns thatapply to the taxyear includedinthisreturn.Forexample,calendaryearfilersincludemoneypaid with the above listed returns for return periods JanuarythroughDecember.

UBGs: Include all applicable estimated paymentsmadeby themembersoftheUBGforthetaxyearincludedinthisreturn.Theamount entered on this linewill equal the sum of Form 4897,line37,forallmembers.

Line 46: Enter the total withholding payments made onthe taxpayer’s behalf by flow-through entities. Include allwithholding payments made on returns that apply to the taxyear included in this return. Included on this line would beFlow-ThroughWithholdingpaymentsmadebyFTEswhosetaxyearsendedwithorwithinthetaxyear includedinthisreturn.Forexample,acalendaryearfilerwould includeFlow-Through

Withholdingpaymentsmadeby anFTEwhose taxyear endedonorafterJanuary1,2014,andonorbeforeDecember31,2014.AnyFTEthathaswithheldonbehalfofthetaxpayershouldhaveprovidedthetaxpayerwiththeamountforitsrecords.

Ifanamountisenteredonthisline,completetheCIT Schedule of Flow-Through Withholding (Form 4911) to account for theFlow-Through Withholding payments received. The amountentered on this line must equal the sum of the combinedamount from Form 4911, column E. For UBGs, this amountalso equals the sum of each member’s Form 4897, line 38.NOTE: Flow-through withholding is repealed effective withFTEs’ taxyearsbeginningafter June 30, 2016, underPublicAct158.ACITtaxpayershouldnothavehadanytaxwithheldon itsbehalfbyFTEswith taxyearsbeginningafterJune30,2016.

Line 50: If penalty and/or interest are owed for not filingestimatedreturnsorforunderestimatingtax,completetheCIT Penalty and Interest Computation for Underpaid Estimated Tax (Form 4899), to compute penalty and interest due. If ataxpayerchoosesnottofileForm4899,Treasurywillcomputepenaltyandinterestandbillforpayment.

Line 51: Enter the overdue tax penalty. Use the following“Overdue Tax Penalty” worksheet. Refer to the “ComputingPenalty and Interest” section in Form 4890 to determine theappropriatepenaltypercentage.

WORkShEET – OVERDUE TAX PENALTYA. TaxduefromForm4891,line49......... 00B. Late/extensionorinsufficient

paymentpenaltypercentage................ %C. MultiplylineAbylineB..................... 00

CarryamountfromlineCtoForm4891,line51.

Line 52: Enter the overdue tax interest. Use the following“Overdue Tax Interest” worksheet. Refer to the “ComputingPenalty and Interest” section in Form 4890 to determine theappropriatepenaltypercentage.

WORkShEET – OVERDUE TAX INTERESTA. TaxduefromForm4891,line49......... 00B. Applicabledailyinterestpercentage.. %C. Numberofdaysreturnwaspastdue...D. MultiplylineBbylineC.................... %E. MultiplylineAbylineD.................... 00

CarryamountfromlineEtoForm4891,line52.

Line 52 NOTE:Ifthelateperiodspansmorethanoneinterestrate period, divide the late period into the number of days ineach of the interest rate periods identified in the “ComputingPenalty and Interest” section in Form 4890, and applythe calculations in the “Overdue Tax Interest” worksheetseparately to each portion of the late period. Combine theseinterestsubtotalsandcarrythetotaltoline52.

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PART 4: REFUND OR CREDIT FORWARDLine 54: If the amount of the tax overpayment, less anypenaltyandinterestdueonlines50,51and52islessthanzero,enter the difference (as a positive number) on line 53. If theamountisgreaterthanzero,enteronthisline.

NOTE: If an overpayment exists, a taxpayer may elect arefundofalloraportionoftheamountand/ordesignatealloraportionoftheoverpaymenttobeusedasanestimateforthenextCITtaxyear.Completelines55and56asapplicable.

Line 55: If the taxpayer anticipates a CIT liability in thefiling period subsequent to this return, some or all of anyoverpaymentfromline54maybecreditedforwardtothenexttaxyearasanestimatedpayment.EnteronthislinethedesiredamounttouseasanestimateforthenextCITtaxyear.

Line 56:Entertheamountofrefundrequested.

Reminder: Taxpayers must sign and date returns. Preparersmust provide a Preparer Taxpayer Identification Number(PTIN), FEIN or Social Security number (SSN), a well as abusinessname,businessaddressandphonenumber.

Other Supporting Forms and SchedulesFederal Forms:Includecopiesoftheseformswiththereturn.• C Corporations: Federal Form 1120 (pages 1 through 5),Schedule D, Form 851, Form 4562, and Form 4797. If filingaspartofaconsolidated federal return,attachapro formaorconsolidatedschedule.• Limited Liability Companies:Attachappropriatescheduleslisted above if the business has elected to be taxed as a CCorporation.• Federally Exempt Entities: In certain circumstances, afederally tax exempt entity must file a CIT return. In thosecases,attachfederalForm990-T(pages1through4).

UBGs: See the instructions for Form 4897 for informationregardingfederalattachmentsformembersofUBGs.* Do not send copies of Federal K-1s. Treasury will requestthemifnecessary.

Michigan Department of Treasury4893 (Rev. 03-16), Page 1

Attachment 2

2016 MIChIGAN Corporate Income Tax Small Business Alternative CreditIssued under authority of Public Act 38 of 2011.

Taxpayer Name Federal Employer Identification Number (FEIN)

The Small Business Alternative Credit is NOT available if any of the following conditions exist:

The Small Business Alternative Credit must be reduced if any of the following conditions exist (see Reduced Credit Table at bottom of the page):• Gross receipts exceed $20,000,000;

• Adjusted business income after loss adjustment exceeds $1,361,100;

• Any shareholder or officer has allocated income after loss adjustment of over $180,000, as determined on the CIT Schedule of Shareholders and Officers (Form 4894).

• Compensation and director fees of a shareholder or officer exceed $180,000.

• Any shareholder or officer has allocated income after loss adjustment of over $160,000 but not over $180,000, as determined on Form 4894.

• Gross receipts exceed $19,000,000 but are not more than $20,000,000.

NOTE: All taxpayers claiming the Small Business Alternative Credit must include Form 4894.

1. Gross Receipts (see instructions).......................................................................................................................... 1. 002. Tax liability prior to this credit from Form 4891, line 39 ......................................................................................... 2. 00

Adjusted Business Income3. Business Income (see instructions) ....................................................................................................................... 3. 004. Carryback or carryover of a capital loss. Enter as a positive number (see instructions) ....................................... 4. 005. Carryback or carryover of a federal net operating loss from Form 4891, line 21. Enter as a positive number ..... 5. 006. Subtotal. Add lines 3, 4 and 5 ............................................................................................................................... 6. 007. Compensation and director fees of active shareholders from Form 4894, line 1 ................................................. 7. 008. Compensation and director fees of officers from Form 4894, line 2 ..................................................................... 8. 009. Adjusted Business Income. Add lines 6, 7, and 8.................................................................................................. 9. 00

Small Business Alternative Credit Calculation10. Small Business Alternative Tax. Multiply line 9 by 1.8% (0.018). If less than zero, enter zero ............................ 10. 0011. Small Business Alternative Credit. Subtract line 10 from line 2. If less than zero, enter zero ....................... 11. 0012. Allocated income used for reduction (see instructions) ...................................... 12. 0013. Reduction percentage from Reduced Credit Table at bottom of this page (based on amount from line 12) ....... 13. %14. Reduced Credit. Multiply the percentage on line 13 by the credit on line 11. If gross receipts from line 1 are

less than or equal to $19,000,000, carry amount to Form 4891, line 40 (see instructions) ................................... 14. 00Reduction Based on Gross ReceiptsComplete this section if gross receipts are more than $19,000,000 but not more than $20,000,000.

15. Excess gross receipts. Subtract $19,000,000 from line 1 .................................................................................... 15. 0016. Excess percentage. Divide line 15 by $1,000,000 (enter as a percentage) .......................................................... 16. %17. Allowable percentage. Subtract line 16 from 100% ............................................................................................... 17. %18. Small Business Alternative Credit. Multiply the percentage on line 17 by the credit on line 14.

Carry amount to Form 4891, line 40 ...................................................................................................................... 18. 00

REDUCED CREDIT TABLEIf allocated* income is: The reduced credit is:$0 - $160,000 ......................... 100% of the Small Business Alternative Credit$160,001 - $164,999 ............ 80% of the Small Business Alternative Credit$165,000 - $169,999 ............ 60% of the Small Business Alternative Credit$170,000 - $174,999 ............ 40% of the Small Business Alternative Credit$175,000 - $180,000 ............ 20% of the Small Business Alternative Credit

* See instructions for tax years less than 12 months.

+ 0000 2016 16 01 27 4

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Purpose ToallowtaxpayerstocalculatetheSmallBusinessAlternativeCredit(SBAC).ThecreditiscalculatedhereandthencarriedtotheCIT Annual Return (Form4891).

The CIT Schedule of Shareholders and Officers (Form 4894) also must be filed with a return to qualify for the SBAC. An SBAC claimed on Form 4893 will be denied if Form 4894 is not also included with the return.

AtaxpayerisdisqualifiedfromtakingtheSBACundercertaincircumstances,whicharedetailedbelow.Financialinstitutionsandinsurancecompaniesarenoteligibleforthiscredit.

NOTE: A person that is a disregarded entity for federalincometaxpurposesundertheInternalRevenueCodeshallbeclassifiedasadisregardedentityfor thepurposesoffiling theCITannualreturn.

Eligibility for the SBACTaxpayersarenoteligiblefortheSBACifanyofthefollowingconditionsexist:

• Grossreceiptsexceed$20,000,000.• Adjusted business income after loss adjustment exceeds

$1,361,100 for Corporations (and LLCs federally taxed assuch).

• Any shareholder or officer has allocated income after lossadjustmentofover$180,000,asdeterminedonForm4894.

In addition, the SBAC is reduced if any of the followingconditionsexist:

• Gross receipts exceed $19,000,000 but are not more than$20,000,000.• A shareholderor anofficerhas allocated incomeafter lossadjustmentofmorethan$160,000butnotover$180,000.Thisreduction is based on the officer/shareholder with the largestallocatedincome.

Allocatedincomeisthegreaterofeither:

(a) Ashareholderorofficer’scompensationanddirectorfeesfromForm4894,columnL,or

(b) A shareholder’s compensation, director fees, and shareofbusiness income (or loss) after loss adjustment, fromForm4894,columnN.

Ifeither(a)or(b)isgreaterthan$180,000foranyshareholderorofficer,thetaxpayerisnoteligiblefortheSBAC.Inaddition,ifeither(a)or(b)isover$160,000butnotmorethan$180,000for any shareholder or officer, the taxpayer must reduce theSBAC based on the officer or shareholder with the largestallocatedincome.

NOTE: Taxpayers leasing employees from professionalemployer organizations must include the compensation ofofficers (of the operating company) and shareholders whoreceive compensation in determining the eligibility for

the SBAC even though their compensation is paid by theprofessionalemployerorganization.

Tax Years Less Than 12 MonthsIf thereportedtaxyear is less than12months,grossreceipts,adjusted business income, and shareholders’ and officers’allocated incomemust be annualized to determine eligibilityand reduction percentage. Where those same amounts arereported on SBAC forms, they are reported on forms as actual, not annualized, amounts.Ifannualizedgrossreceiptsexceed$19,000,000butdonot exceed$20,000,000, annualizefigures to compute the Reduction Based on Gross Receipts,lines15through18.

NOTE:Ifashareholderownedstockforlessthantheentiretaxyearof thecorporation,or anofficer servedas anofficer lessthantheentiretaxyear:

• For purposes of determining credit disqualifiers and creditreduction,compensationanddirectorfeesmustbeannualized.Thedeterminationofcreditdisqualifiersandcreditreductionisperformedoff-form.• For purposes of determining active shareholders,compensation,directorfees,anddividendsmustbeannualized.Thedeterminationofactiveshareholdersisperformedoff-form.

AnnualizingWhere annualization applies (see above notE), multiplyeachapplicableamount, totalgrossreceipts,adjustedbusinessincome, and allocated income, by 12 and divide the result bythe number of months in the tax year. Generally, a businesscounts a month if the business operated for more than halfthedaysof themonth. If the taxyear is less thanonemonth,consider the taxyear tobeonemonth for thepurposesof thecalculation.

Loss AdjustmentIf the adjusted business incomewas less than zero in any ofthefivetaxyearsimmediatelyprecedingthetaxyearforwhicha taxpayer is claiming an SBAC and an SBACwas receivedforthatsametaxyear, thetaxpayermaybeabletoreducethecurrent year’s adjusted business income or allocated incomeamounts by the loss. SeeCIT Loss Adjustment for the Small Business Alternative Credit(Form4895)formoredetails.

If the SBAC is reduced or eliminated because gross receiptsexceed$19,000,000,alossadjustmentcannotbeusedtopreventthatreductionorelimination.Similarly, if theSBACisreducedor eliminated due to compensation reported on Form 4894,columnL,alossadjustmentcannotbeusedtopreventthatresult.

Special Instructions for Unitary Business Groups (UBGs)RECENT STATUTORy ChANGE: UBGs calculate thegrossreceiptsandadjustedbusinessincomedisqualifiersattheUBGlevelAFtER intercompanyeliminations.ForaUBGtoclaimanSBAC,eachmemberoftheUBGthatisacorporation,asthattermisdefinedundertheCIT,mustfileForm4894.

Instructions for Form 4893 Michigan Corporate Income Tax (CIT) Small Business Alternative Credit

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The allocated income disqualifier is based on all items paidor allocable to a shareholder or officer by allmembers of theUBG.Allitemspaidorallocabletoasingleindividualmustbecombinedwhencalculatingthisdisqualifier.

Inaddition,adisqualifierappliestoaUBGifsuchdisqualifierapplies to any member of that UBG. For example, a UBGis disqualified from taking the SBAC if that UBG includesa member for which the allocated income of a shareholderafter loss adjustment is in excess of $180,000. The reductionpercentagesforthecreditalsoapplytotheentiregroupiftheyapplytoonemember.

For more information on UBGs, see the “SupplementalInstructions for UBGs” in theCorporate Income Tax Forms and Instructions for Standard Taxpayers(Form4890).

Line-by-Line InstructionsLines not listed are explained on the form.

Taxpayer Name and Account Number: Enter taxpayernameandaccountnumberasreportedonpage1ofForm4891.

UBGs: Completeoneformforthegroup.EntertheDesignatedMember (DM)name in theTaxpayerNamefield and theDMaccountnumberintheFederalEmployerIdentificationNumber(FEIN)field.

Line 1: EnteramountfromForm4891,line10a.

Non-UBG taxpayers reporting a tax year of less than 12 months must annualize the amount on Form 4891, line 10a,andreporttheresulthere.Forguidance,seethe“Annualizing”sectionatthebeginningoftheseinstructions.

UBG taxpayers reporting a tax year of less than 12 months will reporton this line theamount fromForm4891, line10a.ForUBGswithamember(s)reportingaperiodoflessthan12months, Form 4891, line 10a, reflects the already annualizedgrossreceiptsaftereliminationsforpurposesoftheSBAC.

Adjusted Business IncomeLine 3:Ingeneral,enterbusinessincomefromForm4891,line18.Excludedistributive share of business income fromaflow-throughentity(FTE)thatfilesaMichiganBusinessTax(MBT)returnforitstaxyearthatendswithorwithinthistaxpayer’staxyear.Thedistributivesharebusiness incomefromFTEs that isbeingexcludedmustbeappropriatelyreportedontheCorporate Income Tax: Non-Unitary Relationships with Flow-Through Entities(Form4898),columnsAthroughConly.

NOTE: The adjusted business income (ABI) disqualifier isbasedonannualizedABI,butthecreditcalculationsperformedherearebasedonactualABI.

UBGs:CombineallbusinessincomeforallmembersfromCIT Data on Unitary Business Group Members(Form4897),line26.

Line 4: Enter, to the extent deducted in determining federaltaxable income (as defined for CIT purposes), a carryback orcarryover of a capital loss from Schedule D of federal Form1120.Enterasapositivenumber.

UBGs: Combine for all members all carryback or carryoverofacapitalloss,totheextentdeductedindeterminingfederaltaxableincome(asdefinedforCITpurposes),fromForm4897,line12,andenteronline4.Enterasapositivenumber.

SBAC CalculationLine 12: TheSBACisreducedifashareholderoranofficerhasallocatedincomeafterlossadjustmentofmorethan$160,000butnotmore than$180,000.This reduction isbasedon theofficer/shareholderwiththelargestallocatedincome.Entertheallocatedincome of the shareholder or officerwith the highest allocatedincomeafterlossadjustment,evenifthatamountis$160,000orless.

If loss adjustment is successfully applied to fully or partiallycureashareholder’sallocated incomedisqualifier,enteron line12thenumberfromForm4895,line12.

Line 13: For a taxpayer whose shareholders and officers allhave allocated income after loss adjustment of $160,000 orless, enter 100 percent. All other taxpayers, see the table atthebottomofpage1ofthisformtodeterminewhatpercenttoenteronthisline.

Line 14:All taxpayersmustcomplete this line.MultiplyLine11bythepercentageonLine13andenterthatamountonthisline.

If gross receipts from line 1 are $19,000,000 or less, carry theamountonline14toForm4891,line38.

Reduction Based on Gross Receipts

CompletethissectionifgrossreceiptsonLine1aremorethan$19,000,000butnotmorethan$20,000,000.

Line 17:Foraresultlessthanzero,enterzero.

Include completed Form 4893 as part of the tax return filing. Form 4894 must be included with the filing of Form 4893.

Michigan Department of Treasury4894 (Rev. 03-16), Page 1

Attachment 3

2016 MICHIGAN Corporate Income Tax Schedule of Shareholders and OfficersFor all Corporations claiming the Small Business Alternative CreditIssued under authority of Public Act 38 of 2011.

Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN)

Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN)

PART 1: QUALIFYING DATA FOR ThE SMALL BUSINESS ALTERNATIVE CREDIT. Complete Part 2 and Part 3 before completing Part 1. See instructions for definition of active shareholder.

1. Compensation and director fees of active shareholders. Add amounts in Part 2, column L, for each active shareholder. Enter here and on Form 4893, line 7 ................................................................................................. 1. 00

2. Compensation and director fees of officers. Add amounts in Part 2, column L, for each officer who is not an active shareholder. Enter here and on Form 4893, line 8....................................................................................... 2. 00

PART 2: ShAREhOLDERS AND OFFICERS. See instructions.

3. A B C D E F G

MemberNumber

Name of shareholder (including corporation, trust, or partnership),officer, or family member receiving compensation from the

business (Last, First, Middle)FEIN or

Social Security Number

Check (X) if an

officer% Stock

directly owned% Stock with

attribution

% Stock from Col. F less any attribution between two active

shareholders

% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %% % %

Percent of stock (not listed above) owned by shareholders who own less than 10% and receive no compensation: %Total: 100 %

+ 0000 2016 18 01 27 0 Continue on Page 2

4894, Page 2 FEINUBG Member FEIN

PART 2: ShAREhOLDERS AND OFFICERS — Continued3. h I J k L M N

Member Number

Dividends (used to determine

active shareholders)Salaries, wages and director fees

Employee insurance plans, pensions, etc.

Total compensation and director fees for officers and/or share-

holders. Add columns J and K. Share of business income/lossTotal shareholder/officer

income. Add columns L and M.

If more space is needed to complete Part 2, include additional copies of Form 4894. Repeat the taxpayer name and FEIN at the top of every copy of page 1, and carry over the FEIN to the top of page 2. (See instructions.)

IMPORTANT NOTE ON COMPLETING ThIS FORM: If filing this form for a short-period return, or if reporting a part-year shareholder or officer:

• Compensation, director fees, and dividends of each individual must be entered on this form as the actual amount received during the period.• For purposes of determining the credit disqualifiers, compensation and director fees must be annualized.• For purposes of determining active shareholders, compensation, director fees, and dividends must be annualized.

+ 0000 2016 18 02 27 8 Continue on Page 3

4894, Page 3 FEINUBG Member FEIN

PART 3: LIST OF FAMILY MEMBERS AND ThEIR CORRESPONDING RELATIONShIPSPart 3 is used to report attributable family relationships between individual shareholders. An attributable family relationship is defined as either a spouse, parent, child, or grandchild. In Part 3, column O, list each individual shareholder from Part 2, using the same Member Number references from Part 2, column A. For each shareholder listed in column O:• If an attributable family relationship exists with another shareholder, report that other shareholder’s Member Number in the appropriate column, P through S.• If no attributable family relationship exists between the shareholder in column O and any other shareholder, enter “X” in column T.

4. O P Q R S T

Member Number Spouse Parent Child Grandchild

Check (X) if No AttributableRelationship

If more space is needed to complete Part 3, include additional copies of Form 4894. Repeat the taxpayer name and FEIN at the top of every copy of page 1, and carry over the FEIN to the top of page 3. (See instructions.)

+ 0000 2016 18 03 27 6

33

Purpose To determine eligibility of corporations to qualify for theSmallBusinessAlternativeCredit(SBAC).This form must be included when filing CIT Small Business Alternative Credit (Form 4893).

CorporationmeansataxpayerthatisrequiredorhaselectedtofileasaCCorporationundertheInternalRevenueCode(IRC).Corporation includes a Limited Liability Company that haselectedtobetaxedfederallyasaCCorporation.

Special Instructions for Unitary Business Groups (UBGs)The allocated income disqualifier is based on all items paidor allocable to a shareholder or officer by allmembers of theUBG.Allitemspaidorallocabletoasingleindividualmustbecombinedwhencalculatingthisdisqualifier.

General InstructionsIf filing as a corporation (including Limited LiabilityCompanies federally taxed as such) and claiming the SBAC,complete this formand include it aspartof theannual returntoreport:

• Shareholder and corporate officer qualifications for theSBAC;

• Compensation and director fees of active shareholders andallofficersforthecomputationoftheSBAC.

Officermeans an officer of a corporation including all of thefollowing:

(i)Thechairpersonoftheboard.(ii)Thepresident,vicepresident,secretary,ortreasurerofthecorporationorboard.(iii)Personsperformingsimilardutiesandresponsibilitiesto persons described in subparagraphs (i) and (ii), thatinclude,ataminimum,majordecisionmaking.

Shareholder means a person who owns outstanding stock inacorporationor isamemberofabusinessentity thatfilesasa corporation for federal income tax purposes.An individualis considered theownerof the stock, or the equity interest inabusinessentity thatfilesasacorporationforfederal incometax purposes, owned directly or indirectly, by or for familymembersasdefinedbyIRC§318(a)(1).

A family member, as defined by IRC § 318(a)(1), includesspouses,parents,childrenandgrandchildren.

NOTE: Rules of attribution in IRC § 318(a)(1) do notdifferentiatebetweenanadultandaminorchild.

Outstanding stock means all stock of record, regardless ofclass, value, or voting rights, but outstanding stock does notincludetreasurystock.

All attributable family members of those directly owningstock,whoreceivedcompensationduringthetaxyear,mustbelistedinParts2and3.

Tax Years Less Than 12 MonthsIf the reported tax year is less than 12months, shareholders’andofficers’allocatedincomemustbeannualizedtodetermineeligibility and reduction percentage. Where those sameamounts are reported on SBAC forms, they are reported onformsasactual,notannualized,amounts.

NOTE:Ifashareholderownedstockforlessthantheentiretaxyearof thecorporation,or anofficer servedas anofficer lessthantheentiretaxyear:

• For purposes of determining credit disqualifiers and creditreduction,compensationanddirectorfeesmustbeannualized.Thedeterminationofcreditdisqualifiersandcreditreductionisperformedoff-form.• For purposes of determining active shareholders,compensation,directorfees,anddividendsmustbeannualized.The determination of active shareholders is performed off-form.

AnnualizingWhereannualizationapplies(seeaboveNOTE),multiplyeachapplicableamountby12anddividetheresultbythenumberofmonthsinthetaxyear.Generally,abusinesscountsamonthifthebusinessoperatedformorethanhalfthedaysofthemonth.Ifthetaxyearislessthanonemonth,considerthetaxyeartobeonemonthforthepurposesofthecalculation.

Line-by-Line InstructionsLinesnotlistedareexplainedontheform.

Taxpayer Name and Account Number: Enter name andaccount number as reported on page 1 of the CIT Annual Return (Form 4891). Also, the taxpayer Federal EmployerIdentificationNumber (FEIN)fromthe topofpage1mustberepeatedintheproperlocationonpages2and3.

UBGs: Complete one form for each UBG member that is acorporation.Enter theDesignatedMember (DM)name in theTaxpayer Name field and the member to whom the scheduleappliesonthelinebelow.OnthecopyfiledtoreporttheDM’sdata(ifapplicable),enter theDM’snameandaccountnumberon each line. Also, the DM’s FEIN and the member’s FEINfromthetopofpage1mustberepeatedintheproperlocationonpages2and3.

PART 1: QUALIFYING DATA FOR ThE SMALL BUSINESS ALTERNATIVE CREDITNOTE: Parts2and3mustbecompletedbeforePart1.

NOTE: Ifmore thanone4894 is includedforafiler,sumthetotalsforlines1and2onthetopform.

Line 1:Addcompensation anddirector fees in columnL for

Instructions for Form 4894 Corporate Income Tax (CIT) Schedule of Shareholders and Officers

For all Corporations claiming the Small Business Alternative Credit

34

each active shareholder and enter the result on line 1 and onForm4893, line7.Reporton line1andonForm4893, line7actual,notannualized,amounts.

Anactive shareholder:

• Is a shareholder of the corporation, including throughattribution,AND

• Owns at least 5 percent of outstanding stock, includingthroughattribution(columnF=5percentormore),AND

• Receives at least $10,000 in compensation, director fees,and dividends from the business (sum of columns I andL= $10,000 ormore). Important: For short-period returns ora part-year shareholder, compensation, director fees, anddividendsofeachindividualmustbeannualizedtomeetthisrequirement.Performannualizedcalculationsoff-form.

Line 2: Add compensation and director fees in column Lfor each corporate officer who is not an active shareholderand enter the result on line 2 and on Form 4893, line 8. Todetermine which officers are not active shareholders, use thedefinitionofactiveshareholdersunderline1.

PART 2: ShAREhOLDERS AND OFFICERSLine 3 (Columns A through N): In column A, assignnumbers (beginning with 1) to all shareholders and officersin order of percentage of stock ownership (percentage incolumnG), startingwith thehighest percentagefirst. (Repeatthis numbering in Part 2, column H, and Part 3, column O.It is essential that this numbering system is followed.) All

shareholders’ family members, as defined by IRC § 318(a)(1), are considered shareholders andmust be listed in Parts 2and3 if theyreceivecompensationfromthebusiness.Listallshareholdersandofficerswho:

• Areemployeesofthecorporation;• Aredirectorsofthecorporation;or• Own 10 percent or more of the stock of the corporation,includingthosebyattribution.

See definitions of officer, shareholder, family member, andoutstandingstockinthegeneralinstructionsforthisform.

Ifmorelinesareneededforlistingtheshareholdersandofficers,include additional copies of this form. Complete the taxpayernameand account numberon each copy (andUBGmember ifapplicable),andlines3and4asnecessary. Ifusingmorethanonecopyoftheform,continuethesequentialnumberingsystemfortheMemberNumberincolumnsA,H,andO.

Columns B and C: Identify each shareholder (includingCorporations,Trusts,orPartnerships)andcorporateofficerbyname and Social Security number. Corporations, Trusts, andPartnershipsshouldbeidentifiedusingtheFEIN.

NOTE: Column C:An individualor foreign entity that doesnot have a Social Security number or FEIN may enter inColumnC“APPLDFOR”(anabbreviationfor“appliedfor”)or“FOREIGNUS”(anabbreviationfor“foreignfiler”).

Column E: Enter the percentage of outstanding stock each

ATTRIBUTION EXAMPLE:Larry David Stone Husband of Betty Stone, Father of Mary Stone, Stepfather of Tammie Rock, Step Grandfather of Kathy RockBetty Ann Stone Daughter of Bob Pebble, Wife of Larry Stone, Mother of Tammie Rock, Stepmother of Mary Stone, Grandmother of Kathy RockMary Elizabeth Stone Daughter of Larry Stone, Stepdaughter of Betty Stone

Tammie Marie Rock Daughter of Betty Stone, Stepdaughter of Larry Stone, Spouse of Steve Rock, Mother of Kathy Rock, Granddaughter of Bob Pebble

Steve Carl Rock Spouse of Tammie Rock, Father of Kathy Rock, Brother of Mike Rockkathy Evelyn Rock Daughter of Tammie and Steve Rock, Granddaughter of Betty Stone, Step Granddaughter of Larry StoneMike Joseph Rock Brother of Steve RockBob kenneth Pebble Father of Betty Stone, Grandfather of Tammie RockTerry Robert Marble Friend

Part 2: Shareholders and officers - See instructions Part 3: List of family members and their corresponding relationship type3. A B 4. O P Q R S T

Member Number

Name of shareholder (including corporation, trust, or partnership), officer, or family member receiving

compensation from the business (Last, First, Middle)Member Number Spouse Parent Child Grandchild

Check (X) ifNo Attributable

Relationship

1 Stone, Larry David 1 2 32 Stone, Betty Ann 2 1 8 4 63 Stone, Mary Elizabeth 3 14 Rock, Tammie Marie 4 5 2 65 Rock, Steve Carl 5 4 66 Rock, Kathy Evelyn 6 4-57 Rock, Mike Joseph 7 X8 Pebble, Bob Kenneth 8 2 49 Marble, Terry Robert 9 X

35

shareholderorcorporateofficerownsdirectly.Ifashareholderowned stock for a period less than the corporation’s taxyear,multiply that shareholder’s percentage of ownership by thenumberofmonthsownedanddividetheresultbythenumberofmonthsinthecorporation’staxyear.

Taxpayersmustaccountfor100percentofthestock.Ifitisnotaccountedfor,processingofthereturnmaybedelayed.

Column F: Enter the percentage of outstanding stock eachshareholder owns, including attribution of ownership fromfamilymembersunderIRC§318(a)(1).

Column G: When reporting ownership of a person who isan active shareholder, do not include inColumnG any stockownership attributed to this person from another activeshareholder.Seedefinitionofactiveshareholders inthePart1instructions. For the purposes of determining disqualificationfrom the SBAC, an active shareholder’s share of businessincomeisnotattributedtoanotheractiveshareholder.

EXAMPLE: In this case, thehusbandanddaughterareactiveshareholdersbecausetheirtotalcompensation,directorfees,anddividendsfromthebusinessaregreater than$10,000.Thewifeandsonarenotactivebecausetheirtotalcompensation,directorfees,anddividendsfromthebusinessarelessthan$10,000.

Stock PercentageColumn E Column F Column G

Husband (active) 40% 100%

(all shareholders)70%

(husband/wife/son)Wife

(inactive) 10% 100% (all shareholders)

100% (all shareholders)

Son (inactive) 20% 70% (husband/

wife/son)70%

(husband/wife/son)Daughter (active) 30% 80% (husband/

wife/daughter)40%

(wife/daughter)

Column I:Entertotaldividendsreceivedbyeachshareholderduringthetaxyearfromthisbusiness(usedtodetermineactiveshareholders).

Column J: Enter salaries, wages, and director fees thatare attributable to each shareholder or corporate officer.Compensation paid by a professional employer organizationto theofficersofaclient (if theclient isacorporation)and toemployees of the professional employer organizationwho areassigned or leased to and perform services for a client mustbe included indetermining theeligibilityof theclient for thiscredit.

NOTE: If a shareholder owned stock for less than the entiretax year of the corporation, or an officer served as an officerless than the entire tax year, report only the salaries, wagesand director fees attributable while serving as an officeror shareholder. These amounts must be annualized whendetermining disqualifiers, but should be reported as actualamountsonthisform.

NOTE:Allcompensationmustbeincluded,whetherornottheshareholderorcorporateofficerworkedinMichigan.

Column K: Enteremployeeinsurancepaymentsandpensions

that are attributable to each shareholder or C Corporationofficer.

NOTE: Ifashareholderownedstockforlessthantheentiretaxyearof thecorporation,or anofficer servedas anofficer lessthan the entire tax year, report only the employee insurancepayments,pensions,etc., thatareattributablewhileservingasan officer or shareholder. These amountsmust be annualizedwhen determining disqualifiers, but should be reported asactualamountsonthisform.

NOTE:Allcompensationmustbeincluded,whetherornottheshareholderorcorporateofficerworkedinMichigan.

Column M:MultiplythepercentageincolumnGbyline6onForm4893.

UBGs: Multiply the percentage in column G by the sum oflines12,26and29fromtheCIT Data on UBG Members(Form4897).

For Tax years Less Than 12 Months:Shareholdercompensationmustbeannualizedwhendeterminingdisqualifiers,butshouldbereportedasactualamountsonthisform.

PART 3: LIST OF FAMILY MEMBERS AND ThEIR CORRESPONDING RELATIONShIPSColumns P through S represent relationships affected byattribution.

For each shareholder listed in Part 2, column A, enter thecorresponding number of the shareholder’s spouse, parent,child,orgrandchild,ifany,listedinPart2,columnA.

If more than one number is entered in boxes P through S,separatenumberswithadash.Forexample,ifafamilymemberhasthreechildren,eachchild’smembernumbershouldappearinthe“Child”columnwithdashesseparatingthem(“2-3-4”).

Do not use a dash to imply included numbers (such as “5-8”meaning “5 through 8”), but instead include each membernumber(“5-6-7-8”).Donotusecommas.

EXAMPLE (SEE ThE ATTRIBUTION EXAMPLE ON ThE PREVIOUS PAGE):KathyRock’s(6)parents(4and5)workforthecompany.Kathywilllist“4-5”incolumnQ.

NOTE: If the space provided in the line 4 columns is notadequatetolistallofthecorrespondingrelationships,includeaseparatesheetofpaperwiththemembernumberfromcolumnO, the corresponding relationship, and the number of themember(s)withthatrelationship.

Column T: Check columnT for each shareholder listed onlyifcolumnsP throughSareblank (noattributable relationshipexists).

Include completed Form 4894 as part of the tax return filing.

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Michigan Department of Treasury4895 (Rev. 03-16), Page 1

Attachment 4

2016 MIChIGAN Corporate Income Tax Loss Adjustment for the Small Business Alternative CreditIssued under authority of Public Act 38 of 2011.

Taxpayer Name Federal Employer Identification Number (FEIN)

Use this form to qualify for an otherwise disallowed or reduced Small Business Alternative Credit by adjusting current year adjusted business income (ABI) and/or allocated income. This is available only if a taxpayer had a negative adjusted business income in any of the five tax years (“loss year”) immediately preceding this tax year and received a Michigan Business Tax Small Business Alternative Credit or Corporate Income Tax Small Business Alternative Credit in the loss year. Unitary Business Groups (UBGs), see instructions.

PART 1: CURRENT YEAR AMOUNTS FOR ABI DISQUALIFIERUse this section to determine amount of loss adjustment to business income needed to qualify for the Small Business Alternative Credit.

Adjusted Business Income Disqualifier

1. Adjusted Business Income from Form 4893, line 9 ..................................................................................... 1. 00

2. Business Income Disqualifier ...................................................................................................................... 2. 1,361,100 00

3. Loss adjustment needed. Subtract line 2 from line 1. If less than zero, enter zero ..................................... 3. 00

PART 2: AVAILABLE LOSS FOR ABI DISQUALIFIERRead instructions before completing Part 2. Use Part 2 to determine the loss available from the five preceding periods. Do not enter a negative sign in front of the loss amounts in lines 5 through 10.Complete line 4 with the end dates of the five preceding tax periods (oldest to the left). Then complete lines 5 through 10, one column at a time beginning with the oldest, but completing only those columns representing periods that reported a loss (either generated or used) AND received a Small Business Alternative Credit. UBGs, see instructions.

4. Tax year end date (MM-DD-YYYY) ...........................

5. Adjusted business income ...........

6. Loss used on prior returns ...........

7. Loss available for current return ..........................

8. Loss adjustment needed for current return ..........................

9. Additional loss adjustment needed.........................................

10. Loss adjustment carryforward .....

+ 0000 2016 20 01 27 5 Continue on Page 2

4895, Page 2Taxpayer FEIN

PART 3: CURRENT YEAR AMOUNTS FOR ShAREhOLDER ALLOCATED INCOME DISQUALIFIERUBGs, see special instructions on using member data to complete Part 3 and the “Loss Adjustment for a Shareholder with Multiple Allocations” worksheet.

Shareholder Allocated Income Disqualifier: $180,000

11. Enter the amount from Form 4893, line 6 (see instructions) ....................................................................... 11. 00

12. Shareholder Allocated Income Disqualifier (See chart in instructions) ........................................................ 12. 0013. Enter compensation and director fees from Form 4894, line 3, column L, of the shareholder creating the

disqualifier or reduction* .............................................................................................................................. 13. 00

14. Subtract line 13 from line 12. If less than zero, see instructions ................................................................. 14. 0015. Divide line 14 by the percent of ownership from Form 4894, line 3, column G, for the shareholder

on line 13 ..................................................................................................................................................... 15. 00

16. Loss adjustment needed. Subtract line 15 from line 11 ............................................................................... 16. 00

* Note: If compensation exceeds $180,000 for any shareholder or officer, a Small Business Alternative Credit cannot be claimed nor can a loss adjustment be used to reduce compensation from Form 4894, line 3, column L. A shareholder of a UBG member must combine all items paid or allocable by all members of the UBG.

PART 4: AVAILABLE LOSS FOR ShAREhOLDER ALLOCATED INCOME DISQUALIFIERRead instructions before completing Part 4. Use Part 4 to determine the loss available from the five preceding periods. Do not enter a negative sign in front of the loss amounts in lines 18 through 23. UBGs, see special instructions on using member data to complete Part 4 and the “Loss Adjustment for a Shareholder with Multiple Allocations” worksheet.Complete line 17 with the end dates of the five preceding tax periods (oldest to the left). Then complete lines 18 through 23, one column at a time beginning with the oldest, but completing only those columns representing periods that reported a loss (either generated or used) AND received a Small Business Alternative Credit.

17. Tax year end date (MM-DD-YYYY) ...........................

18. Adjusted business income ...........

19. Loss used on prior returns ...........

20. Loss available for current return ..........................

21. Loss adjustment needed for current return ..........................

22. Additional loss adjustment needed.........................................

23. Loss adjustment carryforward .....

+ 0000 2016 20 02 27 3

39

Instructions for Form 4895, Corporate Income Tax (CIT) Loss Adjustment for the Small Business Alternative Credit

Purpose To reduce the adjusted business income (ABI) or shareholderallocatedincometoqualifyfortheSmallBusinessAlternativeCredit(SBAC)orminimizethereductionpercentagerequired.

If the ABI was less than zero in any of the five yearsimmediately preceding the tax year for which the credit isbeing claimed, and the taxpayer received an SBAC underthe Michigan Business Tax (MBT), or an SBAC under theCorporate IncomeTax (CIT) for that same year, the taxpayermay adjust for the loss before figuring eligibility for thecurrent year SBAC. Business income for credit purposes isadjusted by using available loss from prior years on a first-in, first-out basis until those losses are consumed (by use)or extinguished (by age). A loss adjustment will not affecta reduction to or elimination of the SBAC based on grossreceipts that exceed $19,000,000.Also, itwill not change theamountof compensation incolumnLon theCIT Schedule of Shareholders and Officers(Form4894).

Instructions for Unitary Business Groups (UBGs) TheABIthresholdmustbecalculatedbytheUBGbycombiningtheABIsofitsmembers.Likewise,toreduceanABIdisqualifieroftheUBG,lossadjustmentmustbecalculatedonagrouplevelandusedagainstthegroup’sABI.Lossusedatthegrouplevelisindependentofthelossavailableatthememberlevel.

NOTE:Theusageof lossadjustment foronedisqualifierdoesnotaffecttheavailablelossadjustmentfortheotherdisqualifier.This form will accommodate the separate maintenance ofloss adjustment available for the UBG for both the ABI andallocatedincomedisqualifiers.

For years in which a member was not part of the UBG,the UBG will use that member’s available loss from thoseseparateyearsonafirst-in,first-outbasisuntilthoselossesareconsumedorextinguished.

Adjusted Business Income Disqualifier This disqualifier is calculated at the group level. If theUBGhas agroupwideABI that exceeds$1,361,100 then the entireUBGisdisqualified.

In the Taxpayer Name field at the top of the page, enter theDesignated Member’s (DM’s) name followed by the DM’sFederalEmployerIdentificationNumber(FEIN).

To reduce theUBG’sABI disqualifier, the groupwill use itsavailable loss from a prior tax year when the UBG receivedthe SBAC, as well as a member’s available loss from a taxyearwhenitreceivedtheSBACandwasnotpartof theUBG(member’s separate year). However, the group may not useamember’s separately calculated available loss for a tax yearwhenthememberwaspartof theUBGunderMBTtoreducethegroup’sABIdisqualifier.

To reduce the UBG’s ABI disqualifier, available loss is usedon a first-in, first-out basis until those losses are consumed

or extinguished. For the purposes of completing Part 2, if amember’s separate year does not share a common year endwiththeUBG,useaseparatecolumnforthatmember.Ifsomemembers’ separate years share a common year end, total theamount of those members’ available loss in a single column.Arrangeallof thecolumnsinchronologicalorder.Ifadditionalcolumns are needed to accommodate the five preceding years,create and attach a table comparable to that found in lines 4through10.Applytothatcustomtablethecalculationsdescribedintheformtextandinstructionsforlines4through10.

LossadjustmentusedfortheABIdisqualifierfromamember’sseparately filed years should be tracked in the taxpayer’srecords.AnyABIlossadjustmentremainingfromamember’sseparately filed yearswill be available to thatmember in theevent themember leaves theUBGprior to completeusageoftheavailablelossadjustmentbytheUBG,orexpirationduetoage.Seethe“SupplementalInstructionsforStandardMembersinUBGs”sectioninForm4890fordetails.

Line-by-Line InstructionsLines not listed are explained on the form.DatesmustbeenteredinMM-DD-YYYYformat.Taxpayer Name and Account Number: Enter name andaccount number as reported on page 1 of the CIT Annual Return (Form4891).Also, the taxpayerFEINfrom the topofpage1mustberepeatedintheproperlocationonpage2.UBGs:Enter theDM’sname in theTaxpayerNamefieldandFEINintheFEINfield.Part 1: Current Year Amounts for ABI DisqualifierUse Part 1 and Part 3 to determine the amount of lossadjustmentnecessarytoqualifyfortheSBAC.If the taxpayer is not eligible for the credit because its ABIexceeds$1,361,100,completelines1through10.Tax year Less Than 12 Months: Business income andshareholder disqualifiersmust be calculated on an annualizedbasis.Enterannualizednumbersonlines1,11,and13.AnnualizingTo annualize, multiply each applicable amount, ABI, orshareholder compensation, by 12 and divide the result by thenumberofmonthsinthetaxyear.

UBGs: ForUBGmembers reporting a period of less than 12months with the group return, annualization is done usingthemember’snumberofmonths in thegroup’s taxyear.Sumthe annualizedmember amounts (when applicable) to get thegroup’stotalannualizedamount.

Part 2: Available Loss for ABI DisqualifierUse Part 2 to determine the loss available from the fiveprecedingyears.Reportthelossamountasapositivenumber.

Line 4: Enter each tax year end date for the five precedingtax years. Begin with the earliest year in the left column.Each short period return is treated as a separate year whendeterminingtheavailableloss.

40

Complete lines5 through10,onecolumnata time.Completeonly columns for years that reported a loss (either generatedorused)andreceivedanSBAC.Ifthetaxpayerdidnotreporta loss or did not receive an SBAC for a tax year, leave thatcolumn,lines5through10,blank.

Line 5:Enter(asapositivenumber)thenegativeABIfromtheCIT Small Business Alternative Credit (Form4893),line9,fortaxyearswhereanSBACwasreceived.

ForMBTyears,entertheABIfromtheMichigan Business Tax Common Credits for Small Businesses(Form4571),line8.

UBGs:WhencompletingthislineforaUBG,enterthesumofthefollowing:1)UBG’snegativeABIfortaxyearsitreceivedthe SBAC, plus, 2) a member’s negative ABI for a tax yearwhenitreceivedtheSBACandwasnotpartoftheUBG.Thesemember amounts are calculated initially at the member levelbutusedandmaintained foruse in futureyearson theGroupCopyforABI.

Line 6: Enter the amount of loss entered on line 5 that wasusedasanadjustmentinaprioryear(includinglossadjustmentusedinSBTyearsandMBTyears).

UBGs: If a member’s negative ABI was included on Line 5(themember receivedanSBACandwasnotpartof theUBGin the tax year the credit was received), include any lossadjustment used by that member in a prior year to offset anABIdisqualifier (including loss adjustment used inMBTandCIT years). Also enter any groupwide loss used against theUBG’sABIdisqualifierinaprioryear.

Line 7: Subtract line 6 from line 5 to arrive at loss availableon the current return. If less than zero, enter zero; no loss isavailable.

UBGs:Ifthegroup’smembershiphasnotchanged,thatis,nomemberhasjoinedorleftthegroupsincethefilingoftheprioryear’sreturn,theamountscalculatedonline7shouldequaltheamountsonline10oftheprioryear’scorrespondingcolumns.Ifmembershipforthisyearisdifferent,theseamountsmaynotbe the same.See the “Supplemental Instructions forStandardMembersinUBGs”sectioninForm4890fordetails.

Line 8:Entertheamountfromline3,inthefirstcolumnwherea loss is available on line 7. In subsequent columns, enteramountfromline9ofthepreviousapplicablecolumn.

Line 9:Ifline8islargerthanline7,subtractline7fromline8.Enterhereandonline8ofthenextcolumnwherealossisavailableonline7.

Line 10:Ifline7islargerthanline8,subtractline8fromline7.Thisamountisavailabletouseinsubsequentyears.

NOTE: To benefit from a loss adjustment, the total lossavailableforthecurrentyear, line7,mustequalorexceedthelossadjustmentrequiredonline8.

ThefunctionofthisformistodemonstratethatataxpayerthatotherwisewouldhavebeendisqualifiedfromtheSBACduetoABI,orfullyorpartiallydisqualifiedduetoowner’sallocatedincome,afterapplicationoflossadjustment,isallowedtoclaimafullorpartialSBAC.

If loss adjustment is successfully applied to cure an ABI

disqualifier, there is no calculated figure from this formthat feeds to another form. Simply ignore the apparentdisqualification on Form 4893, line 9 and proceed withcalculatingtheSBAContheremainderofForm4893.

If loss adjustment is successfully applied to fully or partiallycure an owner’s allocated income disqualifier, this will bedemonstratedbythefinalcolumnof line9beingzero.In thatevent, carry the number from line 12 of this form to Form4893,line9,andproceedwiththecalculationthere.

Part 3: Current Year Amounts for Shareholder Allocated Income Disqualifier

UBGs, see “Special Instructions for UBGs” on the following page for guidance on completing Part 3.

Ifthetaxpayerisnoteligiblebecauseashareholder’sallocatedincomeexceeds$180,000,completelines11through23fortheshareholder(s) creating the disqualifier. The loss adjustmentrequiredisthelargestamountneededtoeliminateallallocatedincomedisqualifiers.

Reduced SBAC: A reduction of the SBAC is required ifa shareholder or an officer has allocated income after lossadjustmentofmore than$160,000.This reduction isbasedonthe officer or shareholder with the largest allocated income.Thisisdeterminedatagrouplevel.

Any UBG that has a shareholder whose income createsa partial or complete disqualification, and that has lossavailable to resolve that disqualification inwhole or in part,must fileForm4895.A shareholder or officermust combineall itemspaidorallocabletotheshareholderorofficerbyallmembersofthegroupwhencalculatingtheallocatedincomedisqualifier.

Complete lines 11 through 16 for the shareholder whoseallocatedincomeneedstobereduced.

NOTE:AshareholderthatispaidorallocateditemsofincomefrommorethanonememberoftheUBGmustcalculatePart3usingfiguresfromthe“LossAdjustmentforaShareholderwithMultipleAllocations”worksheetlaterintheseinstructions.

Line 11: When calculating this line, the shareholder mustcalculate a pro formaCIT Small Business Alternative Credit (Form 4893), lines 3 through 9, using only the informationfromthemembercreatingthedisqualifier.Enterthecalculatedpro-formafigurefromthe4893line6hereonline11.

Line 12: Form 4895 should be calculated initially using$160,000 as the disqualifier. This calculation will establishtaxpayer eligibility without the need to reduce the SBAC.However,ifthetotallossavailableforthecurrentyearonline20 does not equal or exceed the loss adjustment required online16,thetaxpayermaystillcalculatealesserlossadjustmenttoclaimareducedcredit.

Try the calculation more than once. Substitute the numbersshownonthechartbelowonline12tomaximizetheclaimedSBAC within the limits of available loss adjustment. If anegative number is reached on line 14, a greater disqualifieramount is needed from the disqualifier chart here on line 12.Begin this calculation with the shareholder with the highestdisqualifier.

41

DISQUALIFIER ChART

Line 12 Eligible % of Credit$ 160,000 100% - no reduction$164,999 80%$169,999 60%$174,999 40%$180,000 20%

Line 14: If the result is a negative number, some reductionof credit is necessary. Return to line 12 and enter the higherdisqualifier amount from the chart. Continue this processuntil line14 is greater thanor equal to zero.This calculationestablishesthemaximumallowableSBAC.

Part 4: Available Loss for shareholder allocated income disqualifier

UBGs, see “Special Instructions for UBGs” that follow for guidance on completing Part 4.

Use Part 4 to determine the loss available from the fiveprecedingyears.

Line 17: Enter each tax year end date for years where lossoccurred. Begin with the earliest year in the left column.Each short period return is treated as a separate year whendeterminingtheavailableloss.

Completelines18through23,onecolumnatatime.Completeonly columns for years that reported a loss (either generatedorused)andreceivedanSBAC.Ifthetaxpayerdidnotreporta loss or did not receive an SBAC for a tax year, leave thatcolumn,lines5through10,blank.

Line 18: Enter (as a positive number) the negativeABI fromForm4893,line9,fortaxyearswhereanSBACwasreceived.

ForMBTyears,entertheABIfromForm4571,line8.

Line 19:Enter theamountof lossenteredonline18thatwasusedasanadjustmentinaprioryear(includinglossadjustmentusedinMBTyears).

Line 20:Subtractline19fromline18toarriveatlossavailableon the current return. If less than zero, enter zero; no loss isavailable.

If loss adjustment is successfully applied to fully or partiallycure a shareholder’s allocated income disqualifier, enter onForm4893,line12,thenumberfromForm4895,line12.

Line 21: Enter the amount from line 16, in the first columnwherealossisavailableonline20ofthepreviouscolumn.

Line 22:Ifline21islargerthan20,subtractline20fromline21.Enterhereandonline21ofthenextcolumnwherealossisavailableonline20.

Line 23:Ifline20islargerthanline21,subtractline21fromline20.Thisamountisavailabletouseinsubsequentyears.

Special Instructions for UBGsPart 3: Special Instructions for UBGsAshareholderthatispaidorallocateditemsofincomefrommore

than one member of the UBGmust calculate Part 3 using theLossAdjustmentforUBGsWorksheetandInstructions.Ifusingtheworksheet,entertheresultingnumbersinPart3ofForm4895onlyasinstructedbytheseinstructionsandworksheet.

If more than one shareholder of the UBG has an allocatedincomedisqualifier,beginthiscalculationwiththeshareholderwiththehighestdisqualifier.

The worksheet should always be calculated initially using$160,000 from the disqualifier chart. This calculation willestablish taxpayer eligibility without the need to reduce theSBAC. Try the calculation more than once. Substitute thenumbersshownonthedisqualifierchartwhencalculatingline8ofthisworksheettomaximizetheclaimedSBACwithinthelimitsofavailablelossadjustment.

Shareholder Loss Adjustment Worksheet for Shareholder with Multiple Allocations, Special Instructions: See theworksheetattheendoftheseinstructions.

Part 4: Special Instructions for UBGsThis partmust be completed on amember bymember basis.Each member must determine its own, separately calculatedloss adjustment for use against the allocated incomedisqualifier.ThiswillrequireeachmembercontributingtothedisqualifiertocalculateaproformaForm4893forthepurposeofcompletingcertainlineitems,asnoted.

Line 17: followgeneral instructionsonamemberbymemberbasisforeachmemberlistedonline2oftheworksheetusedforPart3.

Line 18: Onamemberbymember,proformabasis:enter (asa positive number) the negativeABI fromForm4893, line 9,fortaxyearswhereanSBACwasreceivedbythegrouporthemember.ForMBTyears,entertheABIfromForm4571,line8.

Line 19: On a member by member, pro forma basis: enterthe amount of loss entered on line 18 that was used as anadjustment in a prior year (including loss adjustment used inMBTyears).

Line 20: Subtractline19fromline18toarriveatlossavailableon thecurrent return for thismember. If less thanzero, enterzero; no loss is available. If loss adjustment is successfullyapplied to fully or partially cure a shareholder’s allocatedincome disqualifier, enter on Form4893, line 12, the numberfromForm4895,line12.

Line 21:Entertheamountfromline12fromtheworksheetforthemember,inthefirstcolumnwherealossisavailableonline20ofthepreviouscolumn.

Line 22:Ifline21islargerthan20,subtractline20fromline21.Enterhereandonline21ofthenextcolumnwherealossisavailableonline20.Lossescanonlybeusedonamemberbymemberbasisforthisdisqualifier.

Line 23:Ifline20islargerthanline21,subtractline21fromline20.Thisamountisavailabletouseinsubsequentyearsbythemember.

Complete and file as many Part 4 schedules as required formemberslistedonline2oftheworksheetusedforPart3.

Include completed Form 4895 as part of the tax return filing.

42

Worksheet — Loss Adjustment for a Shareholder with Multiple AllocationsBegin this worksheet with information on the shareholder that has the highest disqualifier.

Shareholder Name Shareholder FEIN or Social Security Number

“Member 1,” “Member 2,” and “Member 3” will reflect the data of the UBG members allocating items or income to the shareholder listed above. Use additional worksheets if necessary, and combine the member data from all shareholder worksheets to create the shareholder total. Include all members allocating items or income to shareholder.

PART A: ALLOCATED BUSINESS INCOME AND COMPENSATION

MEMBER 1 MEMBER 2 MEMBER 3ShAREhOLDER

TOTAL1. Business Income, from a pro forma

Form 4893, line 6, for each member. Combine the amounts for all members for the Shareholder Total Business Income, and carry to Form 4895, line 11 ................... 1.

2. Compensation, from Form 4894, line 3, column L ...................................................... 2.

3. Percentage of Ownership in Entity, from Form 4894 line 3, column G ........................ 3.

PART B: CALCULATE ShAREhOLDER DISQUALIFIER

4. Share of Business Income, per member ..... 4.

5. Shareholder disqualifier, line 2 plus line 4 ... 5.

6. Disqualifying amount of business income, all members. Enter the total of line 4 for all members...................................................... 6.

7. Total disqualifier, all members. Enter the total of line 5 for all members ...................... 7.

PART C: CALCULATE LOSS ADJUSTMENT NEEDED

8. Amount over disqualifier .............................. 8.

9. Percentage of disqualifier by member ......... 9.

10. Proportionate share of disqualifier by member ....................................................... 10.

11. Amount from Form 4895, Line 15, for each member. Combine the amounts for all members, and carry the Shareholder Total to Form 4895, line 15................................... 11.

12. Loss Adjustment needed by member .......... 12.

13. Total Loss Adjustment needed for Shareholder. This amount should equal Form 4895, line 16 ...................................... 13.

See instructions on following page

43

Line 1:Enter thebusiness incomeallocatedtoshareholderbyeachmemberlisted.CalculateaproformaCIT Small Business Alternative Credit (Form 4893), lines 3-9, for each memberlisted. Enterhere thepro formaForm4893, line6figure foreachmember. Enter the total for all members and carry to Form 4895, line 11.

Line 2: Enter the compensation allocated to shareholder byeachmemberlisted;fromForm4894,line3,columnL.

For Tax years Less Than 12 Months:Business IncomeandShareholdercompensationmustbecalculatedonanannualizedbasis. Enter annualized numbers on lines 1 and 2 of theworksheet. To annualize, multiply each applicable amount,ABI,orshareholdercompensation,by12anddividetheresultbythenumberofmonthsinthetaxyear.

Ifashareholderownedstockforlessthantheentiretaxyearofthecorporation,oranofficerservedasanofficerlessthantheentire taxyear, shareholder compensationmustbe annualizedwhendeterminingdisqualifiers.

Line 3: Enter shareholder’s percentage of ownership in eachmemberlisted;fromForm4894line3,columnG.

Part B: Calculate Shareholder DisqualifierLine 4:Multiply business incomeon line 1 for eachmemberlisted by shareholder’s percentage of ownership of thatmember,fromline3.EnterresultingshareofbusinessincomeperUBGmember.

Line 5:Add shareholder’s compensation from line 2 to shareofbusinessincomefromline4.EnterresultingdisqualifierforshareholderperUBGmember.

Part C: Calculate Loss Adjustment NeededLine 8:Subtract thedisqualifier amount from thedisqualifierchart (from earlier in these form instructions) from the totalamount on line 7 of the worksheet. This is the amount overdisqualifier.Startthecalculationwith$160,000fromthechart.

If theresultof thiscalculation isanegativenumber,agreaterdisqualifieramountisneededfromthedisqualifierchart.Thiscalculationestablishes the loss adjustmentorSBACreductionneeded when the amount on line 7 minus the disqualifieramountfromthechartisequaltoorgreaterthanzero.

Carry thedisqualifer amount from thechartused tocalculatethislinetoForm4895,line12.

Line 9:Divide line4by line6 “total.”Enter resultperUBGmember. This is the percentage of the disqualifier amountcontributedperUBGmember.

Line 10:Multiplypercentageofdisqualifierbymember fromline 9 by line 8 total, amount over disqualifier. Enter resultper UBG member. This is the proportionate share of thedisqualifiercontributedperUBGmember.

Line 11: Divide line 10 by line 3, percentage of ownership.Enter result perUBGmember.Enter total for allmembers inthe“total”column.Enter this amount on Form 4895, line 15.

Line 12: Subtract line 11 from line 1. This is the lossadjustmentneededbymember.

Line 13:Add line12 forallmembers.Enter totaldisqualifierneeded for shareholder. This amount should equal Form 4895, line 16.

If more than one shareholder of the UBG has a potentialallocated income disqualifier, move on to the shareholderwiththenexthighestdisqualifier.Begintheworksheetforthenext shareholderby reducing line1perUBGmemberon thesecondworksheetby line12perUBGmember from thefirstworksheet. This initial reduction will indicate whether moreloss adjustment is needed for the second shareholder withthe next highest disqualifier. Complete worksheet for secondshareholder.Iftheworksheetline12isnegative,noadditionallossadjustmentisneeded.

Complete and file asmany Form 4895, Part 3, schedules andasmanyworksheetsasnecessarytoproperlycalculatethelossadjustment.

InstructionsWorksheet — Loss Adjustment for a Shareholder with Multiple Allocations

44

Michigan Department of Treasury4896 (Rev. 03-16)

Attachment 11

2016 Michigan Corporate Income Tax Unitary Business Group Affiliates Excluded from the Return of a Standard TaxpayerIssued under authority of Public Act 38 of 2011.

Designated Member Name Federal Employer Identification Number (FEIN)

List every C Corporation (or entity taxed federally as such), insurance company, or financial institution, with or without nexus, for which the “greater than 50%” ownership test of a Michigan Unitary Business Group (UBG) is satisfied, and which is not included on the combined standard return of the taxpayer. Using the reason codes for exclusion, listed in the instructions, identify in column D why each entity is not included in the combined return. If any entity listed here is part of a federal consolidated group, attach a copy of federal Form 851.

1. A B C D E F

Number from Federal Form 851

(if applicable) Name FEIN

Reason Code for Exclusion

Check (X) if Nexus with Michigan NAICS Code

If more space is needed, include additional copies of Form 4896. Repeat the Designated Member Name and FEIN at the top of every copy.

+ 0000 2016 22 01 27 1

47

PurposeThe purpose of this form is to identify every C Corporation(or entity taxed federally as such), insurance company, andfinancial institution that meets the Unitary Business Group(UBG) control test of MCL 206.611(6) or is a member ofa group for which the Affiliated Group Election of MCL206.691(2) isapplicablefor thetaxyearbut isnot includedonthestandardgroupreturnsupportedbythisform.

Line-by-Line InstructionsLines not listed are explained on the form.

For guidance on UBGs for the purpose of this form, seethe “Supplemental Instructions for Standard Members inUBGs” section in the Corporate Income Tax (CIT) Forms and Instructions for Standard Taxpayers (Form 4890)and the Michigan Department of Treasury Web site atwww.michigan.gov/taxes.

UBG means a group of United States persons that arecorporations, insurance companies, or financial institutions,other than a foreign operating entity, that satisfies the controltestandrelationshiptest.

The control test issatisfiedwhenoneof thepersonsownsorcontrols, directly or indirectly, more than 50 percent of theownership interestwithvoting rights (or rights comparable tovotingrights)oftheothermembers.

The relationship test is satisfied in one of two ways: TheUBG has operationswhich result in a flow of value betweenthemembersintheUBG,orhasoperationsthatareintegratedwith, are dependent upon, or contribute to each other. Flowof value is determined by reviewing the totality of facts andcircumstancesofbusinessactivitiesandoperations.

Ifeligible,aUBGmayalternativelybedeterminedbywayofanAffiliated Group Election (see instructions for Form4891fortheCITdefinitionofanaffiliatedgroup,andforeligibilityand other details about the election). The “greater than50% test” for the affiliated group may be different than thetraditionalcontroltestdiscussedabove,andtheaffiliatedgroupisdeterminedwithoutregardto therelationship testdiscussedabove.

The purpose of this form is to identify entities forwhich theownership test is satisfied, butwhich are not included on thecombined return supported by this form, either because therelationship test is not satisfied (which is not applicable toa UBG by affiliated group election) or because the entityis excluded by statute from the UBG or from the standardcombined return. A member whose business activity is notincluded in the current combined return because its tax yearends after the filing period of theUBG should also be listedhere.

NOTE:Ataxpayerthat isaUBGmustfileacombinedreturnusing the tax year of the Designated Member (DM). ThecombinedreturnoftheUBGmustincludeeachtaxyearofeachmemberwhosetaxyearendswithorwithinthetaxyearoftheDM.Forexample,TaxpayerABCisaUBGcomprisedofthreestandardmembers:MemberA,theDMwithacalendartaxyear,andMembersBandCwithfiscal years endingMarch31 andSeptember30,respectively.TaxpayerABC’staxyearisthatofitsDM.

Line 1A: If an entity being listed here is listed onfederalForm851, enter the identifyingnumber for that entitythatiscalled“Corp.No.”attheleftedgeofpages1,2,and3offederalForm851.

Line 1D:Reasoncodesforaffiliatesbeingexcludedfromthecurrentcombinedreturn:

1 Lacksbusinessactivities resulting inaflowofvalueorintegration,dependenceorcontributiontogroup.*

2 Foreignoperatingentity.3 Foreignentity.4 MemberhasnoCITtaxyear(asamemberofthisUBG)

endingwithorwithinthisfilingperiod.5 Insurance company. (Insurance companies with nexus

alwaysfileseparately.)6 Financialinstitution.(Financialinstitutionsandstandard

taxpayers generally are not included on the samecombinedreturn.)

9 Other.*NOTE:Reasoncodenumber1doesnotapplytoamemberof an affiliated group that has made the Affiliated GroupElection.

A taxpayer is required to retain records to substantiate thereason(s)foramember’sexclusionfromtheUBGreturn.

If you have questions, call Treasury, Technical ServicesSection,at517-636-4230,todiscussanappropriateentry.

Line 1E: IfthisentityhasnexuswithMichigan,enteran“X”inthisbox.

Line 1F: Enter the entity’s six-digit North American IndustryClassificationSystem(NAICS)code.Foracompletelistofsix-digit NAICS codes, see the U.S. Census Bureau Web site atwww.census.gov/eos/www/naics/, or enter the same NAICScode used when filing the federal Form 1120, Schedule K; orfederalForm1120S.

Include completed Form 4896 as part of the tax return filing.

Instructions for Form 4896 Corporate Income Tax Unitary Business Group Affiliates Excluded

from the Return of Standard Taxpayers

48

Michigan Department of Treasury4897 (Rev. 03-16)

Attachment 10

2016 MIChIGAN Corporate Income Tax Data on Unitary Business Group MembersIssued under authority of Public Act 38 of 2011.

Complete a separate copy of this schedule for each standard taxpayer member of the UBG, with or without nexus.1. Designated Member Name 2. Designated Member FEIN

3. Member Name 4. Member FEIN

5. Member Street AddressCheck if a special sourcing formula for transportation services is used in the sourcing of Sales to Mi.

Check if a new member.

6a. 6b.City State ZIP/Postal Code Country Code

7. Federal tax period included in return (MM-DD-YYYY) ........................................

Beginning EndingCheck if nexus with Michigan.

Check if member only by AffiliatedGroup Election.

9a. 9b.

8. If part-year member, enter membership dates (MM-DD-YYYY) .........

10. NAICS (North American Industry Classification System) Code

Business and Capital Loss Carryforward — Lines 11 and 12, enter as a positive number.11. Available CIT business loss carryforward from previous period’s CIT return ...................................................... 11. 0012. Carryback or carryover of a capital loss .............................................................................................................. 12. 00

Sales and Gross Receipts13. Michigan sales. (If no Michigan sales, enter zero.) ............................................................................................. 13. 0014. Proportionate Michigan sales from unitary Flow-Through Entities (FTEs) .......................................................... 14. 0015. Michigan sales eliminations (see instructions) .................................................................................................... 15. 0016. Total sales............................................................................................................................................................ 16. 0017. Proportionate total sales from unitary FTEs ........................................................................................................ 17. 0018. Total sales eliminations (see instructions) ........................................................................................................... 18. 00

19a. Gross receipts from corporate activities (see instructions) .................................................................................. 19a. 0019b. Group eliminations from gross receipts for this member (see instructions)......................................................... 19b. 00

20. Apportioned gross receipts from FTEs ................................................................................................................ 20. 00Member Business Income

21. Federal taxable income (Amount includes agricultural activities. See instructions.) ........................................... 21. 0022. Domestic production activities deduction based on IRC § 199 (see instructions) ............................................... 22. 0023. Miscellaneous (see instructions) ......................................................................................................................... 23. 0024. Adjustments due to decoupling of Michigan depreciation from IRC § 168(k). If negative, enter as negative:

a. Net bonus depreciation adjustment .................................................... 24a. 00b. Gain/loss adjustment on sale of eligible depreciable asset(s) ............ 24b. 00c. Add lines 24a and 24b. If negative, enter as negative................................................................................. 24c. 00

25. Group eliminations from business income for this member (see instructions) .................................................... 25. 0026. Business Income. Add lines 21, 22, 23 and 24c, and subtract line 25. If negative, enter as negative .............. 26. 00

Additions to Business Income27. Interest income and dividends derived from obligations or securities of states other than Michigan ................... 27. 0028. Taxes on or measured by net income including tax imposed under CIT .............................................................. 28. 0029. Any carryback or carryover of a federal net operating loss (enter as a positive number) ..................................... 29. 0030. Royalty, interest, and other expenses paid to a related person that is not a member of this UBG ....................... 30. 0031. Miscellaneous (see instructions) ......................................................................................................................... 31. 00

Subtractions from Business Income32. Income from non-unitary FTEs (Enter loss as negative; include Form 4898; see instructions) .................................. 32. 0033. Dividends and royalties received from persons other than U.S. persons and foreign operating entities ............ 33. 0034. Interest income derived from United States obligations ...................................................................................... 34. 0035. Miscellaneous (see instructions) ......................................................................................................................... 35. 00

Payments36. Overpayment credited from prior period return (MBT or CIT) ............................................................................. 36. 0037. Estimated tax payments ...................................................................................................................................... 37. 0038. Flow-Through Withholding payments (Include Form 4911) ................................................................................. 38. 0039. Tax paid with request for extension ..................................................................................................................... 39. 00

+ 0000 2016 24 01 27 7

51

PurposeThe purpose of this form is to gather tax return data on aseparate basis for each standard member included in thecombinedreturn.

Refund Only: If combined apportioned or allocated grossreceipts of all members (after eliminations) is less than$350,000,oriftotalannualliabilityofallmembersislessthanor equal to $100, and the taxpayer is filing the CIT Annual Return(Form4891)solelytoclaimarefundofpaymentsmade,theCIT Unitary Business Group Affiliates Excluded from the Return of Standard Taxpayers (Form 4896), if applicable,and Form 4897 must be included. The Designated Member(DM)must complete a separate copy of Form 4897 for eachmemberof theUnitaryBusinessGroup (UBG),andonecopyofForm4896ifapplicable.SeeForm4891forinstructionsoncompletingthatform.

Member information from Form 4897 will be totaledand carried to Form 4891 of the UBG’s return. (For therelationships between lines on this form and lines on Form4891,see the“TotalingMemberInformation”chartat theendoftheseforminstructions.)

Role of the Designated Member:TheDMspeaks,acts,andfilestheCITreturnonbehalfoftheUBGforCITpurposes.OnlytheDMmay file a valid extension request for the UBG. Treasurymaintains the UBG’s CIT tax data (e.g., prior CIT returns,overpaymentcreditforward)undertheDM’snameandFEIN.

General Information About UBGs in CIT

For information on determining the existence of a UBG, seethe General Instructions in the CIT Forms and Instructions for a Standard Taxpayer (Form 4890), in the section titled“DeterminingtheExistenceandMembershipofaUBG.”

Line-by-Line Instructions

NOTE: The DM also must complete a copy of Form 4897usingitsowndata.

NOTE:Anymemberthatdoesnotfileaseparatefederalreturn(e.g.,amember thatalso isamemberofa federalconsolidatedgroup) must prepare a pro forma federal return or equivalentscheduleanduse it as thebasis forpreparing itsportionof theCITreturn.

NOTE: If anymember of the group is reporting a period ofless than 12 months with this group return, annualize grossreceipts for thatmember and combine those annualizedgrossreceiptswith the gross receipts of theUBG to determine if afilingrequirementexistsforthegroup.Do notenterannualizedamountsonthisform.AnnualizedamountswillbeenteredonForm4891forthegroup.

Part 1: Member IdentificationInclude a separate copy of Form 4897 for each member,including the DM, whose business activity is required to be

reported on the combined return supported by this form. Ifa member (other than the DM) has two or more tax periodsending with or within the filing period of the return, use aseparatecopyofForm4897foreachofthatmember’speriods.

FOREIGN MEMBERS: Complete the address fields asfollows:

Address:Enterthestreetaddressforthistaxpayer.

City: Enter the city name for this taxpayer. DO NOTincludethecountrynameinthisfield.

State:Enterthetwo-letterstateorprovinceabbreviation.Ifthereisnoapplicabletwo-letterabbreviation,leavethisfieldblank.

ZIP/Postal Code:EntertheZIPCodeorPostalCode.

Country Code: Enter the two-letter country codeprovidedinthistaxbooklet.

Line 6a: Check this box if the taxpayer has receipts fromtransportation services. To calculate Michigan Sales fromTransportation Services, see the instructions in Form 4891,line9,and the“SourcingofSales toMichigan”sectionof thegeneralinstructionsinForm4890.

Line 7: List the member’s tax year for federal income taxpurposesfromwhichbusinessactivityisbeingreportedonthiscopyofForm4897.

Line 8: If the control test and relationship testwerenotbothsatisfied for this member’s entire federal tax year, enter thebeginningandendingdatesoftheperiodwithinthismember’sfederal taxyearduringwhichboth testsweresatisfied. If thismemberwasnotamemberoftheUBGforthismember’sentirefederal tax year, enter the beginning and ending dates of theperiodwithin thismember’s federal tax year duringwhich itwasamemberof theUBG.Thesedatesconstituteashort taxperiod for CIT purposes, even if there is no correspondingshort federal tax period. This member must prepare a proforma federal return for theportionof its federal yearduringwhichitwasaUBGmember,andusethatproformareturnasthebasisforreportingthetaxdata.

Line 9a: If thismemberhasnexuswithMichigan,checkthisbox(withanX).

Line 9b:Forinformationalandstatisticalpurposes,check(withanX)thisboxifthefollowingtwoconditionsexist:

1)ThegrouptowhichthismemberbelongsisaUBGbywayoftheAffiliatedGroupElection(line7bonForm4891isfilled),AND

2)ThememberforwhichthisformisbeingfileddoesNOTmeet both the UBG relationship and traditional controltests.

See the instructions for Form 4891 for further informationabout the election. If this box is checked, Form 4891, line 7MUStcontainadate.Onceanelectionismade,everypersonthat meets the definition of “affiliated group,” which includes

Instructions for Form 4897 Corporate Income Tax (CIT) Data on Unitary Business Group Members

52

meetingtheaffiliatedgroupownershiptest,isamemberoftheUBG by way of the Affiliated Group Election (i.e., criterion#1 ismet). The ownership test for an affiliated groupmay bedifferent than the control test for non-affiliated group UBGs.Further,thedeterminationofmembersofaCITaffiliatedgroupismadewithout regard towhether the relationship test ismet.For informational and statistical purposes, please indicatewhether the member for which this form is filed would meetthetraditionalUBGtestshadthegroupnotmadetheAffiliatedGroupElection.

Line 10:Enterthemember’ssix-digitNorthAmericanIndustryClassification System (NAICS) code. For a complete list of six-digitNAICScodes,seetheU.S.CensusBureauWebsiteatwww.census.gov/eos/www/naics/.Enter the sameNAICScodeusedwhenfilingScheduleKoffederalForm1120.

Line 11:EnteranyunusedCITbusinesslosscarryforwardthatwasreportedontheCITreturnfortheimmediatelyprecedingtaxperiodontheappropriategroupmembercopyofthisformasexplainedonthebulletedsectionbelow.OnlyCITbusinesslosses that were incurred after December 31, 2011 may beenteredonthisline.

Business lossmeansanegativebusinessincometaxbaseafterallocationorapportionment.Thebusiness losswillbecarriedforward to the year immediately succeeding the loss year asanoffsettotheallocatedorapportionedBusinessIncomeTaxbase,thensuccessivelytothenextninetaxableyearsfollowingthelossyearoruntilthelossisusedup,whicheveroccursfirst,butfornotmorethantentaxableyearsafterthelossyear.

Under PA 13 of 2014, a taxpayer that acquires the assets ofanother corporation in a transaction described under section381(a)(1) or (2) of the Internal Revenue Code (IRC) maydeduct any CIT business loss carryforward (hereinafter, losscarryforward) attributable to that other corporation. LossesacquiredviaIRC§381(a)(1)or(2)arereportedonthislinebythememberidentifiedinthebulletedsectionbelow.

• On the DM’s copy of this form: Enter loss carryforwardfrom the group’s immediately preceding Form 4891, less anypart of that carryforward subsequently taken by departingmembers (see below), plus any loss acquired by the groupvia IRC § 381 (as defined above). Attach a list of all losscorporations whose losses were acquired in this manner bythisUBGduringthefilingperiod.ProvidenameandFEINofacquiring member, name and FEIN of loss corporation, andlossamountforeachlosscorporation.• On a non-DM member’s copy of this form: Only amember that joined the group in the current tax year mayreportalosscarryforwardonitscopyofthisform.Reportthelosscarryforwardthatthememberbringsintothegroup.Iftheincoming member was part of another UBG in the tax yearimmediately prior to the current year, the loss carryforwardthatitbringsintothecurrentyeargroupreferstotheincomingmember’s share of its former group’s total loss carryforwardreported on the former group’s immediately preceding Form4891. If the incoming member was not part of a UBG inthe tax year immediately prior to the current year, the losscarryforwardthatitbringsintothecurrentyear’sgrouprefersto the amount reported on the immediately preceding Form

4891filedbythatmemberonastandalonebasis.

When a new, incoming member created a CIT business losscarryforwardfromaCITtaxperiodpriortojoiningthecurrenttaxyearUBG,thecarryforwardonthatmember’saccountwillbe used by the current year group until it is fully consumed(or that member leaves the group). This will be based uponaccuratereportingoftheincomingmember’slosscarryforwardon its copyof thecurrentyeargroup’sForm4897, line11, asexplained in the bulleted section of the line 11 instructions.When amember that generated a business loss carryforwardin a prior period leaves the group, that member will takewith it an amount equal to the group’s remaining businessloss carryforward from that periodmultiplied by the amountthat member contributed and divided by the total amountcontributedbyallgroupmembersforthecarryforwardinthatsameperiod.

If these instructions are not followed carefully, business losscarryforwardavailableforusebythegroupinthecurrentfilingperiodwillbemiscalculated.Itisimportanttoreviewabusinessloss carryforward for the possibility that some or all of it hasexpired,orthatsomeorallofitwaswithdrawnfromthegroupbyapartingmember.

Loss carryforward consumedon a return is always theoldestavailable on that return, regardless of whether the oldestloss was generated by the group, brought by an incomingmember,oracquiredbyamemberofthegroupviaIRC§381.For a loss acquired via IRC § 381 transaction, the years ofcarryforward consumed before acquisition should be countedwhen determining the carryforward period remaining. Losscarryforward of a UBG, including loss carryforward broughtby an incoming member and loss carryforward acquired bythegrouporitsmembersviaIRC§381,agesaccordingtothetaxyearsof thegroup, rather than taxyearsofanyparticularmember.

NOTE: CIT business loss carryforward is not the same as afederal net operating loss carryover or a Michigan BusinessTax(MBT)businesslosscarryforward,neitherofwhichcanbeclaimedasadeductiononaCITreturn.

Additional instruction is found in the “SupplementalInstructionsforStandardMembersinUBGs”sectioninForm4890.

Line 12:Enter, to the extent deducted indetermining federaltaxable income (as defined forCIT purposes), a carryback orcarryover of a capital loss from Schedule D of federal Form1120.Enterasapositivenumber.

Line 13: SaleorSalesmeansamountsreceivedbyamemberasconsiderationfromthefollowing:

• Transfer of title to, or possession of, property that is stockin trade or other property of a kindwhichwould properlybe included in the inventory of themember if on hand atthecloseofthetaxperiod,orpropertyheldbythememberprimarily for sale to customers in the ordinary course ofits trade or business. For intangible property, the amountsreceived will be limited to any gain received from thedispositionofthatproperty.

• Performanceofservicesthatconstitutebusinessactivities.

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• Rental, leasing, licensing, or use of tangible or intangibleproperty,includinginterest,thatconstitutesbusinessactivity.

• Anycombinationofbusinessactivitiesdescribedabove.• For amember not engaged in any other business activities,

sales include interest, dividends, and other income frominvestment assets andactivities and from tradingassets andactivities.

If a member has nexus in Michigan and the member doesnot establish nexus in another state, all sales are allocatedtoMichigan. State is defined to include a foreign country. Amember is subject to a tax in another state or foreign countryif, in that state or foreign country, the member is subject toa business privilege tax, a net income tax, a franchise taxmeasured by net income, a franchise tax for the privilege ofdoing business, a Corporation stock tax, or a tax of the typeimposedundertheIncomeTaxAct,orthatstatehasjurisdictiontosubjectthemembertooneormoreofsuchtaxesregardlessofwhetherthetaxisimposed.Amemberwillbetreatedassubjectto a tax in another state for thesepurposes if thememberhasdueprocessandcommerceclausenexuswiththatstate.

If thismember is subject to tax in another state, asdescribedabove, use the “Sourcing of Sales to Michigan” informationin theForm4891 instructions todetermineMichigansales. Ifsalesreportedareadjustedbyadeductionforqualifiedsalestoaqualifiedcustomer,asdeterminedbytheMichiganEconomicGrowth Authority (MEGA), attach the Anchor District TaxCreditCertificate orAnchor JobsTaxCreditCertificate fromtheMichiganEconomicDevelopmentCorporation(MEDC)assupport.

IfthismemberhasnoMichigansales,enterzero.

Complete this line using amounts for the member’s businessactivityonly.Donot includeamounts froman interestownedbyamemberinaPartnershiporSCorporation(orLLCtaxedfederallyassuch).

For transportation services that source sales based on revenuemiles,enteraMichigansalesamountonthislinebymultiplyingtotalsalesofthetransportationservicebytheratioofMichiganrevenue miles over revenue miles everywhere. Revenue milemeans the transportation for a consideration of one net ton inweightoronepassengerthedistanceofonemile.

Certain types of transportation services have special sourcingprovisions. Seethe“SourcingofSalestoMichigan”sectionofForm4890.

NOTE:Onlytransportationservicesaresourcedusingrevenuemiles. To the extent the taxpayer has business activities orrevenue streams not from transportation services, those salesshouldbesourcedaccording to theapplicableguidance in the“SourcingofSalestoMichigan”sectionofForm4890.

Line 14: If the taxpayer is unitary with a flow-throughentity (FTE) or FTEs, enter on this line this member’s totalproportionate amount of Michigan sales attributable to theseFTEs in column J on Form 4900. For more information seethe instructions forForm4900. Ifanamount isenteredon thisline,thenForm4900mustbecompletedandincludedwiththisreturn.

NOTE: PA 266 of 2013 authorizes an affiliated groupelection that applies an alternate test for finding a unitaryrelationship between corporations. This act DID not createa corresponding “affiliated group” test for finding a unitaryrelationshipbetweenacorporationandanFTE.TheexistenceofaunitaryrelationshipbetweenacorporationandanFTEisstillbasedexclusivelyonthetraditionaltwo-parttestdescribedintheinstructionsforline9ofForm4891.

Line 15: Enter on this line allMichigan salesmade betweenthememberandanothermemberof theUBG,andsales fromthe member to an FTE that is unitary with the UBG and isincludedonForm4900.

NOTE: Elimination, where required, applies to transactionsbetween any members of the UBG. For example, if the UBGincludes standard taxpayers (not owned by and unitary with afinancial institution in the UBG), an insurance company, andtwo financial institutions, transactions between a standardtaxpayer member and an insurance or financial member areeliminated whenever elimination is required, despite the factthattheinsuranceandfinancialmembersarenotreportedonthecombinedreturnfiledbystandardtaxpayermembers.

However, there is no elimination with an otherwise relatedentity if the related entity is excluded from the UBG. Forexample,consideragroupwithaU.S.parent,aU.S.subsidiary,andaforeignoperatingentitysubsidiarythatwouldotherwisebeaUBG,buttheforeignoperatingentityisexcludedfromtheUBGbydefinition.TheU.S. parentfiling aUBG returnmaynoteliminateintercompanytransactionsbetweenitselfandtheforeignoperatingentity.

Line 16: Enter the total sales that are directly attributable tothismember.

Transportation services that source sales based on revenue miles: Include on this line the total sales that are directlyattributabletothetaxpayer.

Line 17:IfthetaxpayerisunitarywithanFTEorFTEs,enteron this line thismember’s total proportionate amount of totalsales attributable to these FTEs in columnO on Form 4900.For more information see the instructions for Form 4900.If anamount is enteredon this line, thenForm4900mustbecompletedandincludedwiththefilingofthisreturn.

Line 18: Enter on this line total sales made between thememberandanothermemberof theUBG,andsales from themembertoanFTEthatisunitarywiththeUBGandisincludedinForm4900.

Line 19a: Gross receiptsmeanstheentireamountreceivedbythememberfromanyactivity,whetherinintrastate,interstate,or foreign commerce, carried on for direct or indirect gain,benefit,oradvantage to thememberor toothers,withcertainexceptions.SeetheGrossReceiptsChecklistintheinstructionsforForm4891,line10,forfurtherguidance.

A member should compute its gross receipts using the sameaccountingmethod used in computing its taxable income forfederal income tax purposes. Gross receipts of a member ofa UBG is reported here before eliminations. Do not includein this amount gross receipts imputed to this member fromactivityofanFTE.

54

Line 19b:EnteronthislineallgrossreceiptsreceivedbythismemberfromanothermemberoftheUBG.

NOTE: Do not create a separate Form 4897 to reportaggregated or groupwide eliminations. Instead, gross receiptseliminationsspecifictoamembermustbereportedonthislineofthatmember’sForm4897.

UBG members reporting a period of less than 12 months mustreportactualgrossreceiptsonForm4897,line19a.

Line 20: Enter the allocated or apportioned imputed grossreceipts fromallunitaryornon-unitaryFTEs fromwhich thememberreceivesadistributiveshareofincome.

EXCEPTION:DonotincludeimputedgrossreceiptsfromanyFTEinwhichthetaxpayerisanon-unitaryownerandtheFTEhas made a valid election to file theMichigan Business Tax(MBT) for a tax year that endswith orwithin thismember’staxyear.

Use the worksheet below to calculate FTE apportioned grossreceipts.Excludegross receipts fromFTEs thatfiledanMBTreturnforataxyearthatendswithorwithinthetaxyearofthemember. See explanation of 2013 PA 233 in the instructionsforline21.

WORkShEET ON FLOW-ThROUGh GROSS RECEIPTSA taxpayer must complete the following calculation for each FTE, whether unitary or not, that does not elect to file an MBT return for this tax year and from which the taxpayer receives distributive share of income. The amount in line 5 of this worksheet for each flow-through entity must be added, and the sum carried to Form 4897, line 20.

1. FTE’s gross receipts that fall with or within the member’s tax year included in this return ........ 1. 00

2. Percentage of the FTE’s income or loss received by the member ..................................... 2. %

3. Gross receipt amount before apportionment. Multiply line 1 by line 2 ...................................... 3. 00

4. FTE’s apportionment percentage (Michigan sales divided by total sales)*............... 4. %

5. Flow-through gross receipts to be imputed to the member. Multiply line 3 by line 4 .............. 5. 00

*Line 4: If the FTE is unitary with the UBG, use the group’s apportionment percentage from Form 4891, line 9g. Otherwise, use the FTE’s apportionment percentage. See the line 14 instructions regarding the definition of a unitary relationship between a corporation and an FTE.

Lines 21 through 26: IMPORTANT: AslongasonememberofaUBGhasnexuswithMichiganandexceedstheprotectionsof PL 86-272, all members of the UBG, including membersprotectedunderPL86-272,mustbeincludedwhencalculatingthe UBG’s Corporate Income Tax base and apportionmentformula.(Inotherwords,PL86-272willonlyremovebusinessincome from the apportionable Corporate Income Tax basewhenallmembersoftheUBGareprotectedunderPL86-272.)The inclusion of the business income of members that fall

underPL86-272inthetaxbaseoftheUBGandthesubsequentapportionment of such income does not constitute taxationuponthosePL86-272protectedmembers.Rather,thismethodis required for properly determining theMichigan income oftheUBG.

Line 21: Business income means federal taxable income.Federal taxable income, as reportedon line21, is defined forCITpurposestoincludecarrybackandcarryoveroffederalnetoperating losses.Note that theseamountswillbeaddedback,forCITpurposes,intheAdditionstoBusinessIncomesection(lines27through31)ofthisform.

For a tax-exempt taxpayer, business income means only thatpart of federal taxable income (as defined for CIT purposes)derivedfromunrelatedbusinessactivity.

NOTE:2013PublicAct233providesthat,inthecaseofaflow-through entity (FTE) thatmade the election to remain taxableundertheMBT,eachmemberoftheFTEthatdoesnotfileasamemberofaunitarybusinessgroupwiththeFTEshalldisregardallitemsattributabletothatmember’sownershipinterestintheelectingFTEforallpurposesof theCIT.Inotherwords, if thetaxpayer filing this form owns an interest in an FTE that filesanMBT return for the same taxyear that endswith orwithinthis taxpayer’s tax year, the taxpayer should remove here itsdistributiveshareofincomeorlossattributabletothatFTE,andshalldisregardall itemsattributable to theelectingFTEon theremainderofthereturn.AttachalistofFTEsfromwhichitemsareexempt. IncludeFTEnames,FEINs, thedistributive shareof income (loss), and the distributive share of gross receipts.ProvideaseparatelistforeachapplicablememberoftheUBG.

Line 23: There are currently no miscellaneous items to beenteredonthisline.Leavethislineblank.

Line 24: Adjustments are required for all assets placed intoserviceafterDecember31,2007,forwhichbonusdepreciationwas taken.See instructions forForm4891, lines 15a and15bforguidanceonbonusdepreciationadjustments.

Line 25:Enteronthislinethismember’stotaleliminationstobusiness incomefromintercompanytransactionswithanothermemberoftheUBG.

NOTE: Elimination, where required, applies to transactionsbetween anymembers of theUBG.For example, if theUBGincludesstandard taxpayers (notownedbyandunitarywithafinancial institution in theUBG), an insurance company, andtwo financial institutions, transactions between a standardtaxpayer member and an insurance or financial member areeliminated whenever elimination is required, despite the factthat the insurance andfinancialmembers are not reported onthecombinedreturnfiledbystandardtaxpayermembers.

However, there is no elimination with an otherwise relatedentity if the related entity is excluded from the UBG. Forexample,consideragroupwithaU.S.parent,aU.S.subsidiary,andaforeignoperatingentitysubsidiarythatwouldotherwisebeaUBG,buttheforeignoperatingentityisexcludedfromtheUBGbydefinition.TheU.S. parentfiling aUBG returnmaynoteliminateintercompanytransactionsbetweenitselfandtheforeignoperatingentity.

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NOTE: Do not create a separate Form 4897 to reportaggregated or groupwide eliminations. Instead, businessincomeeliminationsspecifictoamembermustbereportedonthislineofthatmember’sForm4897.

Line 27: Enter any interest income and dividends frombondsandsimilarobligationsorsecuritiesofstatesotherthanMichigan and their political subdivisions in the same amountthatwasexcludedfromfederal taxable income(asdefinedforCITpurposes).ReducethisadditionbyanyexpensesrelatedtotheforegoingincomethatweredisallowedonthefederalreturnbyIRC§265or§291.

Line 28: To the extent deducted in arriving at federaltaxable income (as defined for CIT purposes) enter all taxeson ormeasured by net income including city and state taxes,Foreign IncomeTax, andFederalEnvironmentalTax claimedas adeductionon thismember’s federal return.This includesthe tax imposed under the CIT to the extent claimed as adeduction on the taxpayer’s federal return.This also includesthetaximposedundertheBusinessIncomeTaxportionoftheMichiganBusinessTax.

Line 29: Enter any net operating loss (NOL) carryover orcarryback that was deducted in arriving at this member’sfederal taxable income (as defined for CIT purposes). If themember reporting on this form is a member of a federalconsolidated group, or for any other reason did not file aseparatefederalreturnfortheperiodreportedhere,thefederalNOLcarryoverorcarrybackenteredheremustbebasedonaproformafederalreturnforthememberreportingonthisform.Enterthisamountasapositivenumber.

Line 30:Totheextentdeductedinarrivingatfederal taxableincome (as defined for CIT purposes), enter any royalty,interest, or other expense paid to a person related to themember by ownership or control for the use of an intangibleasset if the person is not included in this UBG. Royalty,interest,orotherexpensedescribedhere isnot required tobeincluded if the member can demonstrate that the transactionhas a nontax business purpose other than avoidance of CIT,is conducted with arm’s-length pricing and rates and termsas applied in accordancewith IRC § 482 and § 1274(d), andsatisfiesoneofthefollowing:

• Is a pass-through of another transaction between a thirdparty and the related person with comparable rates andterms.

• Results in double taxation. For purposes of thissubparagraph, double taxation exists if the transaction issubjecttotaxinanotherjurisdiction.

• Isunreasonableasdeterminedbythestatetreasurer.• Therelatedperson(recipientofthetransaction)isorganized

under the laws of a foreign nation which has in force acomprehensiveincometaxtreatywiththeUnitedStates.

Line 31: Enter on this line the expenses included on line21 that resulted from the production of oil and gas if thatproduction of oil and gas is subject to the Severance Tax onOil orGas, 1929PA48. If the taxpayer does not have an oilandgasexpensethatqualifies,leavethislineblank.Alsoenterexpenses related to the incomederived fromamineral to the

extentthatincomeisincludedonline35andthatexpensewasdeductedinarrivingatfederaltaxableincome.

Line 32: Complete all other subtractions from business income, lines 33 through 35, before completing line 32.EnteronthislinethesumofallentriesinColumnCofthismember’sNon-Unitary Relationships with Flow-Through Entities (Form4898). Ifanamount isenteredonthis line,Form4898mustbecompletedandincludedwiththefilingofthisform.Form4898,Column C, reports the taxpayer’s distributive share of income(loss)attributabletonon-unitaryflow-throughentities(FTEs).

Flow-through entity means an entity that for the applicabletaxyearistreatedasasubchapterScorporationundersection1362(a) of the IRC, a general partnership, a trust, a limitedpartnership,alimitedliabilitypartnership,oralimitedliabilitycompany, that for the taxyear isnot taxedasaCcorporationforfederalincometaxpurposes.

See the General Information section of the instructions forForm4898foranexplanationofFTEswithwhichataxpayerisnotunitary.

Line 33:To theextent included in federal taxable income(asdefined for CIT purposes), enter any dividends and royaltiesreceived from persons other than United States personsand foreign operating entities, including, but not limited to,amountsdeterminedunderIRC§78orIRC§951to§964.

Line 34:To the extent included in federal taxable income (asdefinedforCITpurposes),deductinterestincomederivedfromUnitedStatesobligations.

Line 35: Enter on this line income from the production ofoil and gas if that production of oil and gas is subject to theseverance tax on oil and gas, 1929 PA 48, to the extent thatincome was included in federal taxable income. Also enterincomederivedfromamineraltotheextentincludedinfederaltaxableincome.

Line 36: Enter overpayment credited from the prior periodreturn (MBT or CIT, as applicable). When membership of aUBGchangesfromonefilingperiodtothenext,carryforwardof an overpayment from the prior return remains with theDM’saccount. Ingeneral this lineshouldbeusedonlyontheDM’scopyofForm4897(creditforwardfromthegroup’spriorreturn)or thatofanewmember(creditforwardfromthenewmember’sfinalreturnasaseparatefiler).

Line 37: AllCIT estimated payments for aUBG should bemade by the DM. Enter estimates paid by the DM on thisline of the DM’s copy of Form 4897. If any other memberpaid estimates attributable to the group return supportedby this form, enter those estimates on that member’s copyof Form 4897. Include all payments made by that memberfor any portion of its federal filing period that is includedon the group return. For example, if a non-DM memberhas a12-monthfiscal yearbeginningApril 1, 2013, and is amember of a calendar yearUBG throughout that period, itsbusinessactivityfromApril1,2013,throughMarch31,2014,willbereportedonthegroup’sDecember31,2014,return.Ifthatmember paysCITquarterly estimates, itwillmake twoestimatesduring2013,before theDM’sfilingperiodbegins.Because those estimates are attributable to activity thatwill

56

be reported on the group’s December 31, 2014, return, theyshould be included on the paying member’s copy of Form4897fortheDecember31,2014,groupreturn.

Line 38: Enter the total withholding payments made onthis member’s behalf by flow-through entities. Include allwithholding payments made on returns that apply to thismember’s tax year included in this UBG return. Included onthis line would be FTW payments made by FTEs whose taxyearsendedwithinthemember’staxyearthatisincludedinthisUBG return. For example, consider a partnership with a June30yearend,aUBGwithaSeptember30yearend,andaUBGmember that has aMarch 31 year end and is a partner in thepartnership.ThepartnershipwillmakequarterlyFTWpaymentsin April 2014 (for its quarter endingMarch 31) and July 2014(for its quarter ending June 30), and will file an annual FTWreconciliation return (Form 4918) for its year ending June 30,2014. Because thepartnership’syear endswithin thepartner’s2014-15 fiscal year, all the FTWpayments for that partner areattributable to the partner’s 2014-15 fiscal year, regardless ofthedatesof thequarterlypayments. Becausethepartner’s(theUBGmember’s)2014-15fiscalyearendswithin theDM’s (andUBG’s) October 2014-September 2015 fiscal year, these FTWpaymentswillbereportedonthisUBGmember’sForm4897fortheUBG’sOctober2014-September2015CITreturn.

NOTE: The amount reported on this line for each memberequals the total amount submitted by the same member onMichigan Corporate Income Tax Schedule of Flow-Through Withholding (Form 4911), column E. Also, the sum of allmember’s Form4897, line 38, equals the amount reported onthegroup’sForm4891,line46.

NOTE: Flow-through withholding is repealed effectivewithFTEs’ taxyearsbeginning after June 30, 2016, underPublicAct158.ACITtaxpayershouldnothavehadany taxwithheldonitsbehalfbyFTEswithtaxyearsbeginningafterJune30,2016.

Line 39:Reporthereanypaymentsubmittedwithanextensionrequestbythismember.

NOTE: Only the DM may make a valid request for a filingextensionforaUBG.Ifanyothermembersubmitsanextensionrequest, it will not create an extension for the UBG, but anypaymentmadewiththatrequestcanbecreditedtotheUBGbyenteringthatpaymentonthislineofthatmember’sForm4897.

Other Supporting Forms and SchedulesFederalForms: Foreachmemberof theUBG, includecopiesoftheseformswiththereturn.• C Corporations: Federal Form 1120 (pages 1 through 5),Schedule D, Form 851, Form 4562, and Form 4797. If filingaspartofaconsolidated federal return,attachapro formaorconsolidatedschedule.• Limited Liability Companies: Attach appropriateschedules listed above if you have elected to be taxed as aCCorporation.• Federally Exempt Entities: In certain circumstances,a federally tax exempt entitymustfile aCIT return. In thosecases,attachfederalForm990-T(pages1through4).Include completed Form 4897 as part of the tax return filing.

Lines from Form 4897 Carried to Form 4891

Subtract line 15 from line 13 for each member, and combine the result for all

members

9a

14 9b

Subtract line 18 from line 16 for each

member, and combine the result for all members

9d

17 9e

Subtract line 19b from line 19a for each member, and combine the result for all

members*

10a

20* 10b21 1222 1323 1424 1525 1727 1928 2029 2130 2231 2332 2733 2834 2935 3036 4437 4538 4639 47

Some member information from Form 4897 will be totaled and carried to Form 4891 of the UBG’s return. The table below matches the lines of Form 4897 on the left with the corresponding lines reflecting the group totals on Form 4891 on the right.

TOTALING MEMBER INFORMATION

* For Lines 19a, 19b and 20: UBG members reporting a period of less than 12 months with this group return must annualize their gross receipts figure on a member by member basis. Use each member’s number of months reported in the group’s tax year. Once all applicable members’ gross receipts and FTE gross receipts figures are annualized: for line 19 add all members’ figures and carry to line 10a of the Form 4891; for line 20 add all members’ figures and carry to line 10b of Form 4891.

Michigan Department of Treasury4898 (Rev. 03-16), Page 1

Attachment 6

2016 Michigan Corporate Income Tax: Non-Unitary Relationships with Flow-Through Entities(To report flow-through entities that are unitary with the taxpayer, see Form 4900)Issued under authority of Public Act 38 of 2011.

A Corporate Income Tax (CIT) taxpayer is unitary with a flow-through entity if the CIT taxpayer owns or controls, directly or indirectly, more than 50% of the voting interests of the flow-through entity, and the parties have business activities that satisfy either a flow of value test or a business integration test.

Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN)

Unitary Business Groups Only: Name of the Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN)

IMPORTANT: If a flow-through entity (FTE) made a Michigan Business Tax (MBT) election and files an MBT return for its tax year that ends with or within the tax year of the CIT taxpayer (or for UBGs, the member) named above, leave Column D and E blank for that FTE.

A. B. C. D. E.

Flow-Through Entity Name FEIN

Distributive Share of Flow-Through Entity

Income

Flow-Through Entity Apportionment

Percentage

Apportioned Distributive Share of Flow-Through Entity Income (Loss)

If more space is needed, include additional copies of Form 4898. Repeat the taxpayer name and FEIN at the top of every copy.

+ 0000 2016 26 01 27 3

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Instructions for Form 4898Corporate Income Tax: Non-Unitary Relationships with Flow-Through Entities

PurposeThe purpose of this form is to gather information on thedistributiveshareofflow-through incomereceived throughoutthe tax year by taxpayers or members of a Unitary BusinessGroup (UBG) fromdirectlyor indirectlyownedflow-throughentities(FTEs)thatarenotunitarywiththetaxpayer,wheretheflow-through income received is included in the taxpayers’ orUBGmembers’federaltaxableincomefigure.

General InformationThis form is intended toonlybeusedbyaCorporate IncomeTax (CIT) taxpayer (or member of a UBG) to report thedistributive income it received from its interests inFTEs thatare not unitary with that taxpayer or UBG. This form mustbefiledbyany taxpayer thathas receivedadistributive shareof income fromanFTE that the taxpayer isnotunitarywith.If the taxpayer isaUBG, theneachmemberof theUBGthathas received a distributive share of income fromanFTE thattheUBGisnotunitarywithmustfilethisform.Ifmorespaceis needed, use additional copies of Form 4898. Repeat thetaxpayer’s and UBG member’s name and Federal EmployerIdentificationNumber(FEIN)(ifapplicable)atthetopofeverycopyofForm4898.

Flow-through entity means an entity that for the applicabletax year is treated as a subchapter S Corporation undersection1362(a)of theInternalRevenueCode(IRC),ageneralpartnership, a trust, a limited partnership, a limited liabilitypartnership, or a limited liability company, that for the taxyear is not taxed as a C Corporation for federal income taxpurposes.

A taxpayer is unitary with an FTE if the taxpayer:

• Owns or controls, directly or indirectly, more than 50%of the ownership interests with voting rights (or ownershipinterests thatconfercomparable rights tovoting rights)of theFTE;AND• The taxpayer and FTE have activities or operationswhichresultinaflowofvaluebetweenthetaxpayerandtheFTE,orbetween theFTEand anotherFTEunitarywith the taxpayer,orhasbusinessactivitiesoroperationsthatareintegratedwith,aredependantupon,orcontributetoeachother.

The determination of whether a taxpayer is unitary with anFTE ismade at the taxpayer level. If the taxpayer at issue isaUBG, the ownership requirementwill bemade at theUBGlevel.So, if the combinedownershipof theFTEby theUBGis greater than 50%, then the ownership requirement will besatisfied.

An FTE is not unitary with a taxpayerwheneitherofthetestsaboveisnotmet.

Public Act (PA) 266 of 2013PA 266 of 2013 authorizes an affiliated group election thatapplies an alternate test for finding a unitary relationshipbetween corporations. This act DID not create a

corresponding “affiliated group” test for finding a unitaryrelationshipbetweenacorporationandanFTE.TheexistenceofaunitaryrelationshipbetweenacorporationandanFTEisstillbasedexclusivelyonthetraditionaltwo-parttestdescribedabove.

Unitary Business Group means a group of United Statespersons that are C Corporations, insurance companies, orfinancial institutions, other than a foreignoperating entity, thatsatisfies thecontrol testandoneof two relationship tests. IfanAffiliated Group Election is made (see instructions for Form4891),theUBGalsoincludesallmembersoftheaffiliatedgroup,asdefined in IRC1504except that thegroup includesonlyUSpersons (no foreign persons or foreign operating entities) thatare corporations, financial institutions or insurance companiesthatsatisfythecontroltestandhavemadetheelectiontofileasaUBG.Oncetheelectionismade,theAffiliatedGroupistreatedasaUBGforallpurposes.See theGeneral Instructions in theCIT Forms and Instructions for Standard Taxpayers (Form4890)formoreinformationonUBGs.

NOTE:AnFTEowneddirectlyorindirectlybyataxpayeroramemberofaUBGmayormaynotbeunitarywithataxpayerorUBGmember.This formasks for information only on theflow-throughentitiesthatareNOTunitarywiththetaxpayerorUBGmember.Forthoseflow-throughentitiesthatareunitarywiththetaxpayer,usetheCIT Unitary Relationships with FTEs (Form4900).

Line-by-Line InstructionsLinesnotlistedareexplainedontheform.

Taxpayer Name and Account Number:Enter taxpayernameandaccountnumberas reportedonpage1of theCIT Annual Return(Form4891).

Unitary Business Groups (UBGs): Complete one form foreachmemberthatisaCCorporation(includinganentitytaxedfederally as such). Enter the Designated Member’s (DM’s)nameandFEINintheTaxpayerNameandFEINfieldsandthenameandFEINof themember towhom the scheduleappliesonthelinebelow.

Column A and B:Identifyeachnon-unitaryFTEbynameandFEIN.

Column C: Column C: Enter the distributive income (loss)attributable to the non-unitary FTE listed in Column A andB that is included in the taxpayer’sorUBGmember’s federaltaxableincometotheextent includedinthecorporate incometaxbasebeforeapportionment.Enterlossasnegative.AUBGmember will enter the amount of distributive income (loss)that the member was distributed from each non-unitary FTElistedinColumnAandB.ForeachUBGmember,thesumofall distributive shareofflow-through income (loss) entered inColumnCshallequalthesumofalldistributiveshareofflow-through income (loss) entered on line 32 of theCIT Data on Unitary Business Group Members(Form4897).

Tocompute theamountrequired tobereported inColumnC,

60

foreachFTElistedincolumnAandB:

• Beginwiththeamountofdistributiveincome(loss)includedinfederaltaxableincome.• AdjustthatamountbyamountsattributabletotheFTEthatare includedon the following linesofForm4891:13,14,15c,19,20,21,22,23,24,28,29,30,and31.• ReporttheresultinColumnC.

Public Act 233 of 2013Public Act 233 of 2013 provides that, in the case of an FTE that made the election to remain taxable under the MBT, each member of the FTE that does not file as a member of a UBG with the FTE shall disregard all items attributable to that member’s ownership interest in the electing FTE for all purposes of the CIT. If the taxpayer owns an interest in an FTE that files an MBT return for a tax year that ends with or within this taxpayer’s tax year, the taxpayer’s distributive share of income (loss) from such FTE will be exempt from the taxpayer’s corporate income tax base. Report distributive income (loss) exempt under 2013 PA 233 in column C, then leave Columns D and E blank.

Tiered Entities: In the event of a tiered entity, enter in thiscolumnthedistributivesharereceivedfromanon-unitaryFTEinwhichthetaxpayerhasanindirectownershipinterest.Whencomputing the distributive share of income received from thenon-unitaryFTEinwhichthetaxpayerhasadirectownershipinterest,onlyenterthedirectincomeofthatFTE.ThisisdonebysubtractinganydistributivesharesofincomethatthisFTEreceivedfromanotherFTE.

Example: C Corporation 1 owns 50% of FTE B and FTEB owns 40% of FTE A. FTE B received from FTE A adistributive share of income of $20,000. C Corporation1 received from FTE B a distributive share of income of$100,000.OnthelinecorrespondingtoFTEA,CCorporation1 would enter $10,000. This is the indirect distributive sharethatCCorporation1receivedfromFTEAandiscalculatedbymultiplyingCCorporation1’sownershipinterestinFTEBbythedistributiveshareFTEBreceivedfromFTEA:

50%x$20,000=$10,000

On the line corresponding to FTEB,CCorporation 1wouldenter $90,000. This is the distributive share C Corporation 1receivedfromFTEBlessthedistributiveshareCCorporation1receivedfromFTEA:

$100,000-$10,000=$90,000

NOTE: The sum of the amount in every line on column C(plus,inthecaseofaUBG,thesumofcolumnCforallotherUBGmembers that filed this form) should equal the amountreportedonForm4891,line27.

Column D: Enter in this column the non-unitary FTE’sapportionment percentage. The non-unitary FTE’sapportionment percentage is the FTE’s sales factor. Thesales factor is a fraction, the numerator of which is the totalsales of the FTE in this state during the tax year and thedenominatorofwhichisthetotalsalesoftheFTEeverywhereduring the tax year. Formore information on what is a sale,see the instructions for Form 4891. Use the information in

the “Sourcing ofSales toMichigan” section ofForm4890 todetermineMichigan sales.Enter this amount as apercentage,carrying it out 4 digits to the right of the decimal point (i.e.12.3456).Do not enter the percent symbol (%).

For FTEs whose distributive income (loss) is exempt under2013 PA 233,leavecolumnDblank.

Column E: Enter the non-unitary flow-through distributiveincome after apportionment by multiplying the amount incolumn C by the apportionment percentage in column D foreachFTEincludedonthisform.

For FTEs whose distributive income (loss) is exempt under2013 PA 233,leavecolumnEblank.

NOTE:ThesumofcolumnE(inthecaseofaUBG,thesumof columnE for allUBGmembers) should equal the amountreportedonForm4891,line35.

Include completed Form 4898 as part of the tax return filing.

Michigan Department of Treasury4899 (Rev.11-16), Page 1

Attachment 12

2016 MIChIGAN Corporate Income Tax Penalty and Interest Computationfor Underpaid Estimated TaxIssued under authority of Public Act 38 of 2011.

Taxpayer Name Federal Employer Identification Number (FEIN)

PART 1: ESTIMATED TAX REQUIRED1. Total Tax Liability from Form 4891, line 43; Form 4905, line 41; or Form 4908, line 22. (If amending, see instr.) .. 1. 002. Required estimate amount. Enter 85% (0.85) of line 1.......................................................................................... 2. 00

A B C D3. ENTER ThE PAYMENT DUE DATES (MM-DD-YYYY) .... 3.

4. Divide amount on line 2 by 4, or by the number of quarterly returns required. If annualizing, enter the amount from Annualization Worksheet, line 57, page 2 .... 4.

CAUTION: Complete lines 5 - 13 one column at a timeX X X X X X X X X X X X X X X5. Prior year overpayment ..................................................... 5.

6. Estimated and FTW payments (see instructions) .............. 6.7. Enter amount, if any, from line 13 of the previous column . 7. X X X X X8. Add lines 5, 6 and 7 ........................................................... 8.

9. Add amounts on lines 11 and 12 of the previous column and enter the result here ................................................... 9. X X X X X

10. Subtract line 9 from line 8. If less than zero, enter zero.For column A only, enter the amount from line 8 ............... 10.

11. Remaining underpayment from previous period. If amount on line 10 is zero, subtract line 8 from line 9 and enter result here. Otherwise, enter zero ............................ 11. X X X X X

12. If line 4 is greater than or equal to line 10, subtract line 10 from line 4 and enter it here. Then go to line 6 of the next column. Otherwise, go to line 13 ....................................... 12.

13. If line 10 is greater than line 4, subtract line 4 from line 10 and enter it here. Then go to line 6 of next column ........... 13.

PART 2: FIGURING INTEREST A B C D14. TOTAL UNDERPAYMENT. Add lines 11 and 12 ................. 14.

15. Enter due date for the next quarter or date tax was paid, whichever is earlier. In column D, enter the due date for the annual return or date tax was paid, whichever is earlier ...... 15.

16. Number of days from the date on line 3 to the date on line 15 ........................................................................... 16.

17. No. of days on line 16 after 04-15-16 and before 07-01-16 .. 17.18. No. of days on line 16 after 06-30-16 and before 01-01-17 .. 18.19. No. of days on line 16 after 12-31-16 and before 07-01-17 .. 19.20. No. of days on line 16 after 06-30-17 and before 01-01-18 .. 20.21. Number of days on line 17 x 4.25% (0.0425) x line 14 ....... 21.

36522. Number of days on line 18 x 4.4% (0.0440) x line 14 ......... 22.

36523. Number of days on line 19 x 4.5% (0.0450) x line 14 ......... 23.

36524. Number of days on line 20 x *% x line 14 .......................... 24.

36525. Interest on underpayment. Add lines 21 through 24 ........... 25.26. Interest Due. Add line 25 columns A through D ............................................................................................... 26. 00

* Interest rate will be set at 1% above the adjusted prime rate for this period.

+ 0000 2016 28 01 27 9 Continue on Page 2.

4899, Page 2 Taxpayer FEIN

PART 3: FIGURING PENALTYA B C D

27. Enter the amount from line 12 ............................................ 27.28. Payment due dates from line 3 (MM-DD-YYYY) ................ 28.

29. Annual return due date or the date payment was made, whichever is earlier ............................................................. 29.

30. Number of days from date on line 28 to date on line 29 ...... 30.

31. If line 30 is greater than 0 but less than 61, multiply line 27 by 5% (0.05) .............................................. 31.

32. If line 30 is greater than 60, but less than 91, multiply line 27 by 10% (0.10) ............................................ 32.

33. If line 30 is greater than 90, but less than 121, multiply line 27 by 15% (0.15) ............................................ 33.

34. If line 30 is greater than 120, but less than 151, multiply line 27 by 20% (0.20) ............................................ 34.

35. If line 30 is greater than 150, multiply line 27 by 25% (0.25) .......................................................................... 35.

36. Add lines 31 through 35...................................................... 36.37. Total Penalty. Add line 36, columns A through D .................................................................................................... 37. 0038. Total Penalty and Interest. Add lines 26 and 37. Enter here and on Form 4891, line 50;

or Form 4905, line 49; or Form 4908, line 29. (If amending, see instructions.) ........................................................ 38. 00

PART 4: ANNUALIZATION WORkShEET FOR CORPORATE INCOME TAX(If filing Form 4905, 4906, 4908 or 4909, see instructions.)Complete worksheet if liability is not evenly distributed throughout the tax year.

AFirst 3 Months

BFirst 6 Months

CFirst 9 Months

DFull 12 Months

39. Business Income ................................................................ 39.40. Additions ............................................................................. 40.41. Add lines 39 and 40 ............................................................ 41.42. Subtractions........................................................................ 42.43. Tax Base. Subtract line 42 from line 41 .............................. 43.

44. Apportioned Tax Base. Multiply line 43 by the apportionment percentage from Form 4891, line 9g ............. 44.

45. CIT business loss carryforward .......................................... 45.

46. Subtract line 45 from line 44. If less than zero, enter zero. ................................................ 46.

47. Tax Before Credit. Multiply line 46 by 6% (0.06) ................... 47.48. Nonrefundable Credit ......................................................... 48.

49. Subtract line 48 from line 47. If less than zero, enter zero. ............................................... 49.

50. Recapture of Certain Business Tax Credits ........................ 50.51. Net Tax Liability. Add line 49 and line 50.............................. 51.52. Annualization ratios ............................................................ 52. 4 2 1.3333 153. Annualized tax. Multiply line 51 by line 52 .......................... 53.54. Applicable percentage ........................................................ 54. 21.25% 42.5% 63.75% 85%55. Multiply line 53 by line 54 ................................................... 55.56. Combined amounts of line 57 from all preceding columns .... 56. X X X X X57. ESTIMATE REQUIREMENTS BY QUARTER. Subtract

line 56 from line 55. If less than zero, enter zero. Enter here and on page 1, line 4 .................................................. 57.

NOTE: Totals on line 57 must equal the amount on line 2, page 1.

+ 0000 2016 28 02 27 7

63

Purpose Tocomputepenaltyandinterestforunderpaying,late,orfailureto make payment of quarterly estimates. If a taxpayer prefersnot to file this form, the Department of Treasury (Treasury)will compute any applicable penalty and interest and bill thetaxpayer.Part4ofthisformisusedtodetermineandreporttheamountofestimatesduewhenincomeisnotevenlydistributedthroughoutthetaxyear.

NOTE: Penalty and interest for late filing or late payment onthe annual return is computed separately. See the “ComputingPenalty and Interest” section of the “General Information forStandard Taxpayers” in the CIT Forms and Instructions for Standard Taxpayers(Form4890).

Estimated returns and payments are required from anytaxpayer that reasonably expects an annual CIT liability ofmorethan$800.Exceptionsarelistedbelow.Ifataxpayerowesestimatedtaxandtheestimatedreturnwithfullpaymentisnotfiled or is filed late, penalty is added at 5 percent of tax due,for thefirst twomonths. Penalty increases by an additional 5percentpermonth,orfractionthereof,afterthesecondmonth,toamaximumof25percent.Ifthetaxpayermadenoestimatedtaxpaymentsandnoneoftheexceptionsbelowapply,computetheinterestdue(Part2)andthepenaltyfornon-filing(Part3).

ExceptionsEstimatedreturnsandpaymentsarenotrequired,andthereforepenaltyandinterestonthisformisnotrequired,if:

• Thereturnisforataxableperiodoflessthanfourcalendarmonths.• Theannualtaxonthecurrentannualreturnis$800orless.

Ifanyoftheconditionslistedbelowapply,donotpaypenaltyandinterest.

• The estimated quarterly payments reasonably approximatethe tax liability incurred for each quarter and the total of allpayments equals at least 85 percent of the annual liability.CompletetheAnnualizationWorksheet(Part4) if theliabilityisnotevenlydistributedthroughoutthetaxyear.• The sum of estimated payments equals the annual tax onthe preceding year’s CIT return, provided these paymentsweremade in four timelyequalpayments (“four timelyequalpayments”describes theminimumpaceofpayments thatwillsatisfy this safe harbor) and the preceding year’s tax underthe IncomeTaxAct is $20,000or less. If the prior year’s taxliability was reported for a period less than 12 months, theprior year’s liabilitymust be annualized for purposes of boththe$20,000ceilingandcalculatingthequarterlypaymentsdueunder this method. See “Filing if Tax Year Is Less Than 12Months”inthe“GeneralInformation”sectionofForm4890formore information.Relianceon theprioryear’s tax liability asameans toavoid interest andpenaltycharges isonlyallowedif a taxpayer had business activity inMichigan in that prioryear.Areturnmusthavebeenfiledtoestablishthetaxliability

forthatprioryear,evenifgrossreceiptsintheprioryearwereless than$350,000. Inaddition, if the taxpayer’sbusinesswasnotinexistenceintheprecedingyear,nosafeharborexists.Insuchacase,estimatesmustbebasedontheCITliabilityforthecurrentyear.

NOTE: For a taxpayer that calculates and pays estimatedpayments for federal income taxpurposespursuant to section6655(e) of the Internal Revenue Code, that taxpayermay usethe same methodology as used to calculate the annualizedincome installment or the adjusted seasonal installment,whichever is used as the basis for the federal estimatedpayment, to calculate the estimated payments required eachquarter under this section. Retain the calculation for yourrecords.

Line-by-Line InstructionsLines not listed are explained on the form.

DonotenterdatainboxesfilledwithXs.

DatesmustbeenteredinMM-DD-YYYYformat.

Taxpayer Name and Account Number: Enter name andaccount number as reported on page 1 of the applicable CITannualreturn(CIT Annual Return (Form4891), theInsurance Company Annual Return for Corporate Income and Retaliatory Taxes (Form 4905), or the Corporate Income Tax Annual Return for Financial Institutions (Form 4908)). Also, thetaxpayer FEIN from page 1 must be repeated in the properlocationonpage2.

PART 1: ESTIMATED TAX REQUIREDLine 2:Enter85percentoftheannualtaxamountfromline1.

Line 3: Enter the due date for each quarterly return. Forcalendar year filers these dates areApril 15, July 15,October15,andJanuary15.Forfiscalyearfilers,thesedatesare4th,7th,10thand13thmonthsafterthestartofthefiscalyear.Paymentisdueonthe15thdayofthemonth.Foranytaxyearthatincludesanestimatedtaxpaymentperiodoflessthanthreemonths,thequarterly return for that period is due on the 15th day of themonth immediately following thefinalmonthof theestimatedtaxpaymentperiod.

Line 4: Divide the amount of the estimated tax required forthe year on line 4 by four and enter this as estimated tax foreach quarter. If the business operated less than 12 months,divide by the number of quarterly returns required and enterthisastheestimatedtaxforeachquarter.

Actual Quarterly Tax. If a taxpayer computes quarterly taxdue based on the actual tax base for each quarter, completePart4first,thenbringthetaxfromline57oftheAnnualizationWorksheettoline4.SeePart4instructionsfortaxpayersfilingareturnother thanForm4891.Thetotalof thefourcomputedamountscannotbelessthanline2.

Line 5: Complete columnA only. Enter the amount of prioryearoverpaymentcreditedtothecurrenttaxyearestimates.

Instructions for Form 4899, Corporate Income Tax (CIT) Penalty and Interest Computation for Underpaid Estimated Tax

64

Line 6:Amount Paid. On this line enter estimated paymentsmadebythetaxpayerandFlow-throughWithholdingpaymentsmadeonbehalfofthetaxpayerasdirectedbelow:

• Column A:Enterestimatedpaymentsmadebytheduedatefor thefirstquarterlyreturn.Alsoenter incolumnAthe totalFlow-Through Withholding payments from line 46 of Form4891; line 25 of Form 4908; or line 44 of Form 4905. Also,insurance companies only can add the Workers’ DisabilitySupplementalBenefit(WDSB)Creditfromline46.• Column B: Enter payments made after the due date incolumnAandbytheduedateincolumnB.• Column C: Enter payments made after the due date incolumnBandbytheduedateincolumnC.• Column D: Enter payments made after the due date incolumnCandbytheduedateincolumnD.

Ifquarterlypaymentsaremadeaftertheduedate,penaltyandinterestwillapplyuntilthepaymentismailed.Iflessthanfullpayment ismadewith a late filing, the taxpayerwill need tocompute multiple penalty and interest calculations for eachcolumn.Attachaseparatescheduleifnecessary.

PART 2: FIGURING INTERESTComputetheinterestdueforbothnon-filingandunderpaymentof the required estimated tax in this section. Follow theinstructions for each line, as interest is calculated separatelyforeachquarterandtheinterestratemightnotbethesameforeachquarter.

Line 15: Entertheduedateofthenextquarterorthedatethetaxwaspaid,whicheverisearlier.IncolumnD,entertheearlieroftheduedatefortheannualreturnorthedatethetaxwaspaid.An approved extension does not change the due date of theannualreturn(columnD)forthiscomputation.

NOTE — Line 24:Interestratesareadjustedeverysixmonthsand posted as a Revenue Administrative Bulletin (RAB) byTreasury. For updated interest rates, visit michigan.gov/taxesand click on the link titled “Reference,” then select “RevenueAdministrative Bulletins.” The applicable RAB is titled“InterestRate.”

PART 3: FIGURING PENALTYComputethepenaltydueforbothnon-filingandunderpaymentof the required estimated tax in this section. Follow theinstructions for each line, as the penalty and interest iscalculated separately for each quarter and the penaltypercentage and interest rate might not be the same for eachquarter.

Avoiding Penalty and Interest Under CITIf estimated liability for the year is reasonably expected toexceed$800,ataxpayermustfileestimatedreturns.Ataxpayermay remit quarterly estimated payments by check with aCorporate Income Tax Quarterly Return (Form 4913) ormayremitmonthly or quarterly estimated payments electronicallybyElectronicFundsTransfer(EFT).WhenpaymentsaremadebyEFT,Form4913isnotrequired.

Formerly,taxpayerscouldpaybycheckonamonthlybasisbyremitting a checkwith aCombined Return for Michigan Tax

(Form160).Form160wasreplacedeffectiveJanaury2015.ThenewformnolongeraccommodatesCITpayments.Asaresult,Form 4913 is the only form that supports a CIT estimatedpayment.

Estimated returns and payments for calendar year taxpayersare due by April 15, July 15, October 15, and January 15 ofthe followingyear.Fiscalyear taxpayers shouldmake returnsand payments by the appropriate due date which is fifteendaysaftertheendofeachfiscalquarter.Thesumofestimatedpaymentsforeachquartermustalwaysreasonablyapproximatetheliabilityforthequarter.

NOTE: Your debit transaction will be ineligible for EFTif the bank account used for the electronic debit is funded orotherwise associatedwith a foreign account to the extent thatthepaymenttransactionwouldqualifyasanInternationalACHTransaction(IAT)underNACHARules.Contactyourfinancialinstitution for questions about the status of your account.Contact the Michigan Department of Treasury’s (Treasury)Corporate IncomeTaxDivision at 517-636-6925 for alternatepaymentmethods.

PART 4: ANNUALIZATION WORkShEET FOR CORPORATE INCOME TAXStandard taxpayers may use the AnnualizationWorksheet tocalculateandreporttheamountofestimatesduewhenincomeisnotevenlydistributedthroughoutthetaxyear.

IffilingForm4905orForm4908,submitascheduleshowingthe entity’s computations for each quarter. Enter the totalamounts on line 51 and follow the instructions for lines 52through57.

Eachcolumnrepresentsaquarterlythree-monthfilingperiod.

The AnnualizationWorksheet essentially leads filers throughthe steps required to calculate the actualCIT due for the taxyear to date. The net tax liability is then annualized andmultiplied by the percentage of estimates required for thatquarter.

Line 57: The totals for line 57, columnsA,B,C, andD,mustequal85percentofthecurrentyeartaxliabilityinPart1.

Include completed Form 4899 as part of the tax return filing.

Michigan Department of Treasury4900 (Rev. 03-16), Page 1

Attachment 7

2016 Michigan Corporate Income Tax: Unitary Relationships with Flow-Through Entities(To report flow-through entities that are not unitary with the taxpayer, see Form 4898)Issued under authority of Public Act 38 of 2011.A Corporate Income Tax (CIT) taxpayer is unitary with a flow-through entity if the CIT taxpayer owns or controls, directly or indirectly, more than 50% of the voting interests of the flow-through entity, and the parties have business activities that satisfy either a flow of value test or a business integration test. Unitary Business Groups, see instructions.

Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN)

A B C D E

Identifying Number Flow-Through Entity Name FEIN

Check (X) if Using a Special

Sourcing Formula for Transportation

Services

% of this Entity Owned by

the Taxpayer

Continue below using the same Identifying Number references from Column A in Column F.

F G h I J

Identifying Number Michigan Sales

Intercompany Eliminations from Michigan Sales

Michigan Sales After Eliminations (Subtract Column H from Column G)

Proportionate Michigan Sales (Multiply Column I by Percentage from Column E; see Instructions)

Continue below using the same Identifying Number references from Column A and Column F in Column k.

k L M N O

Identifying Number Total Sales

Intercompany Eliminations from Total Sales

Total Sales After Eliminations(Subtract Column M from Column L)

Proportionate Total Sales (Multiply Column N by Percentage from Column E; see instructions)

If more space is needed, include additional copies of Form 4900. Repeat the taxpayer name and FEIN at the top of every copy.

+ 0000 2016 30 01 27 4

67

Instructions for Form 4900Michigan Corporate Income Tax:

Unitary Relationships with Flow-Through Entities

PurposeToassist incalculatingtheapportionmentfactorofataxpayerthatisunitarywithoneormoreflow-throughentities(FTEs).

General InstructionsThis form is intended toonlybeusedbyaCorporate IncomeTax (CIT) taxpayer that is unitary with one or more FTEs.Included in this formwill be FTEs that are unitary with thetaxpayerandwhose taxyearendswithorwithin the taxyearincludedonthetaxpayer’sCIT Annual Return(Form4891).

AnFTEisanentitythat,fortheapplicabletaxyear,istreatedas a subchapter S Corporation under section 1362(a) of theInternalRevenueCode,ageneralpartnership,atrust,alimitedpartnership,alimitedliabilitypartnership,oralimitedliabilitycompany that is not taxed as a C Corporation for federalincometaxpurposes.

AtaxpayerisunitarywithanFTEifthetaxpayer:

• Ownsor controls, directlyor indirectly,more than50%ofthe ownership interests with voting rights (or ownershipinterests that confer comparable rights to voting rights) oftheFTE;AND

• The taxpayer and FTE have activities or operationswhichresultinaflowofvaluebetweenthetaxpayerandtheFTE,or between the FTE and another FTE unitary with thetaxpayer, or has business activities or operations that areintegratedwith, are dependant upon, or contribute to eachother.

The determination of whether a taxpayer is unitary with aFTE ismade at the taxpayer level. If the taxpayer at issue isaUnitaryBusinessGroup (UBG), theownership requirementwill be made at the UBG level. Thus, if the combinedownership of theFTEby theUBG is greater than 50%, thentheownershiprequirementwillbesatisfied.

NOTE: PA 266 of 2013 authorizes an affiliated groupelection that applies an alternate test for finding a unitaryrelationship between corporations. This actDID not createa corresponding “affiliated group” test for finding a unitaryrelationshipbetweenacorporationandanFTE.TheexistenceofaunitaryrelationshipbetweenacorporationandanFTEisstillbasedexclusivelyonthetraditionaltwo-parttestdescribedabove.

A UBG isagroupofUnitedStatesCCorporations, insurancecompanies, and financial institutions, other than a foreignoperating entity, that satisfies the control test and relationshiptest. IfanAffiliatedGroupElectionismade(seeinstructionsfor Form 4891), the UBG also includes all members of theaffiliatedgroup,asdefined in IRC1504except that thegroupincludes only U.S. persons (no foreign persons or foreignoperating entities) that are corporations, financial institutionsor insurance companies that satisfy the control test and havemadetheelectiontofileasaUBG.Oncetheelectionismade,

theAffiliatedGroupistreatedasaUBGforallpurposes.

For more information regarding the control and relationshiptests, see the TreasuryWeb site atwww.michigan.gov/taxes andgotothe“Withholding”section.

If the taxpayer isaUBG,fillout this format thegroup level.Specifically, as noted in theColumnbyColumn Instructions,columnsEmust be filled out using data from the group as awhole.

To determine whether the taxpayer and the FTE satisfy thesecondrequirementtobeunitarywithoneanother–thattheysatisfy either the Flow of Value or Integration Test – applythe sameconceptsasusedwhendeterminingwhetheraUBGsatisfies the Relationship Test as explained on the TreasuryWebsiteatwww.michigan.gov/taxes.

NOTE: An FTE owned directly or indirectly by a taxpayermayormaynotbeunitarywiththat taxpayer.Thisformasksfor information only on the FTEs that are unitary with thetaxpayer.ForthoseFTEsthatarenotunitarywiththetaxpayer,usetheNon-Unitary Relationships with Flow-Through Entities (Form4898).

Column-by-Column InstructionsColumnsnotlistedareexplainedontheform.

Name and Account Number: Enter the name and FederalEmployer Identification Number (FEIN) of the taxpayer asreportedonpage1ofForm4891.

UBGs:CompleteoneForm4900fortheentiregroup,andusemultiple copies of the form if reporting information onmoreFTEsthanspaceallows.EntertheDesignatedMembernameintheTaxpayerNamefieldandtheDesignatedMember’sFederalEmployerIdentificationNumberintheFEINfield.

Column A: In Column A, assign a number (beginning with1 and numbering sequentially) to all FTEs that are unitarywith the taxpayer. This same number must also be used inColumns F andKwhen referencing the same FTE. (If usingmultiple copies of the form the subsequent forms numberingshouldstartwiththenextsequentialnumberfromthepreviouscompletedform).

Columns B and C:IdentifyeachFTEbynameandFEIN.

Column D: Check this box if the FTE has receipts fromtransportationservices.TocalculateSalesfromTransportationServices, see the instructions for Columns G and L and thetable in the “Sourcing of Sales toMichigan” section of Form4891.

Column E:Enteron this line thepercentageof thisFTE thatis owned by the taxpayer. Percentages should be carried outfour digits to the right of the decimal point. For example, ifthe taxpayer owns 65% of this FTE, enter “65.0000” on theappropriate line in this column. If percentage of ownershipchanged during the taxpayer’s tax year, enter an average

68

ownership percentage, weighted by the amount of time eachparticularpercentagewasheldduringthetaxyear.

For example: Unitary group ABC consists of three CCorporations:Corporation1,Corporation2,andCorporation3.Assume that the group is unitarywith 3 otherFTEs:FTE-A,FTE-B, and FTE-C. Corporation 1 owns 40% of FTE-A;Corporation 2 owns 15% of FTE-A, and 35% of FTE-B; andCorporation3owns45%ofFTE-B.FTE-CisownedbyFTE-A(50%) and by FTE-B (30%). Thus, on column E, the groupwill enter “55.0000” for FTE-A (40% from Corporation A +15% from Corporation B); “80.0000” for FTE-B (35% fromCorporation2+45% fromCorporation3); and “53.0000” forFTE-C (50%*55% fromCorporation1 andCorporation2+30%*80%fromCorporation2andCorporation3).

UBGs: Enter on this line the percentage of this FTE that isownedbytheentireUBG.Forexample,iftheUBGconsistsofthreeCCorporationmembers,eachofwhichowns20%ofthisFTE, theUBGowns60%of thisFTE. If theUBG isunitarywith this FTE, enter “60.0000” on the corresponding line inthiscolumn.

Column F: Enter the same IdentifyingNumber inColumnFthatwasusedforthecorrespondingFTEinColumnA.

Column G: Enter the Michigan sales that are directlyattributabletotheFTE.

ForaMichiganbasedFTE,allsalesareMichigansalesunlesstheFTEissubjecttotaxinanotherstateorforeigncountry.AnFTEissubjecttoataxinanotherstateorforeigncountryiftheFTEissubject toabusinessprivilegetax,anet incometax,afranchise taxmeasuredbynet income,a franchise tax for theprivilegeofdoingbusiness,acorporatestocktax,orifthestateorforeigncountryhasjurisdictiontosubjecttheFTEtooneormoreoftheabovelistedtaxes.

Sale or Sales means the amounts received by the FTE asconsiderationfromthefollowing:

• The transfer of title to, or possession of, property that isstockintradeorotherpropertyofakindwhichwouldproperlybeincludedintheinventoryoftheFTEifonhandatthecloseof the tax period, or property held by the FTE primarily forsaletocustomersintheordinarycourseofitstradeorbusiness.Forintangibleproperty,theamountsreceivedwillbelimitedtoanygainreceivedfromthedispositionofthatproperty.• Performanceofserviceswhichconstitutebusinessactivities.• Therental,leasing,licensing,oruseoftangibleorintangible

property, including interest, that constitutes businessactivity.

• Anycombinationofbusinessactivitiesdescribedabove.• For FTEs not engaged in any other business activities,

sales include interest, dividends, and other income frominvestment assets and activities as well as from tradingassetsandactivities.

CompletetheApportionmentCalculationusingamountsfortheFTE’sbusinessactivityonly.DonotincludeamountsreceivedfromaprofitsinterestinaPartnership,SCorporation,orLLC.

Use the information in the “Sourcing of Sales to Michigan”sectioninForm4890todetermineMichigansales.

For transportation services, which should generally sourcesales receipts based on revenue miles, enter on this line theFTE’s total salesmultiplied by the ratio ofMichigan revenuemiles over revenue miles everywhere as provided in the“Sourcing of Sales toMichigan” chart located in Form4890.Revenue milemeansthetransportationforconsiderationofonenettoninweightoronepassengerthedistanceofonemile.

NOTE:Onlytransportationservicesaresourcedusingrevenuemiles. To the extent the taxpayer has business activities orrevenue streams not from transportation services, thosereceiptsshouldbeapportionedutilizingthesalesfactor.

Column h: Enter on this line theMichigan salesmade fromtheFTEtothetaxpayerandMichigansalesmadebythisFTEtoanotherFTEthatisunitarywiththetaxpayerandisincludedonthisform.

UBGs:Elimination,where required,applies to sales from theFTEtoanymemberoftheUBGaswellassalesfromtheFTEto anotherFTE that is unitarywith theUBG.However, thereisnoeliminationforsalesmadetoanotherwiserelatedentityif the related entity is excluded from theUBG. For example,consider a groupwith aU.S. parent, aU.S. subsidiary, and aforeign operating entity subsidiary that would otherwise beaUBG, but the foreign operating entity is excluded from theUBGbydefinition.ThesalesfromanFTEthatisunitarywiththeUBGtothatforeignoperatingentitymaynotbeeliminated.

Column J: For each FTE included on this form, multiplythe amount entered inColumn I by thepercentage entered inColumn E. Add up all of the entries in Column J and enterthis amount on Line 9b of Form 4891. This is the amount ofproportionate Michigan sales from FTEs that are unitarywith the taxpayer that will be included in the taxpayer’sapportionmentcalculation.

Column K: Enter the same Identifying Number in ColumnKthatwasusedfor thecorrespondingFTEinColumnAandColumnF.

Column L:EnterthetotalsalesthataredirectlyattributabletotheFTE.

Transportation services that source sales based on revenuemiles: Enter on this line the total sales that are directlyattributabletotheFTE.

Column M: Enter on this line the total sales made fromthe FTE to the taxpayer and total salesmade by this FTE toanotherFTE that isunitarywith the taxpayer and is includedonthisform.

UBGs:Elimination,where required,applies to sales from theFTEtoanymemberoftheUBGaswellassalesfromtheFTEto anotherFTE that is unitarywith theUBG.However, thereisnoeliminationforsalesmadetoanotherwiserelatedentityif the related entity is excluded from theUBG. For example,consider a groupwith aU.S. parent, aU.S. subsidiary, and aforeign operating entity subsidiary that would otherwise beaUBG, but the foreign operating entity is excluded from the

69

UBGbydefinition.ThesalesfromanFTEthatisunitarywiththeUBGtothatforeignoperatingentitymaynotbeeliminated.

Column O:ForeachFTEincludedonthisform,multiplytheamount entered in Column N by the percentage entered inColumn E.Add up all of the entries in ColumnO and enterthis amount on Line 9e of Form 4891. This is the amount ofproportionate total sales from FTEs that are unitarywith thetaxpayerthatwillbeincludedinthetaxpayer’sapportionmentcalculation.

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Michigan Department of Treasury4902 (Rev. 03-16)

Attachment 9

2016 MIChIGAN Corporate Income Tax Schedule of Recaptureof Certain Business Tax CreditsIssued under authority of Public Act 38 of 2011.

Taxpayer Name Federal Employer Identification Number (FEIN)

Complete this schedule for any recapture in this tax year of previous tax credits listed on this schedule. Credits are Michigan Business Tax (MBT) credits except as noted.

1. Recapture of MBT Investment Tax Credit ............................................................................................................... 1. 00

2. Recapture of Single Business Tax (SBT) Investment Tax Credit ............................................................................ 2. 00

3. Recapture of MBT MEGA Employment Tax Credit ................................................................................................. 3. 00

4. Recapture of MEGA Federal Contract Credit ......................................................................................................... 4. 00

5. Recapture of MEGA Photovoltaic Technology Credit ............................................................................................. 5. 00

6. Recapture of Biofuel Infrastructure Credit .............................................................................................................. 6. 00

7. Recapture of SBT “New” Brownfield Credit ............................................................................................................ 7. 00

8. Recapture of MBT Brownfield Redevelopment Credit ........................................................................................... 8. 00

9. Recapture of Film Infrastructure Credit .................................................................................................................. 9. 00

10. Recapture of Anchor Company Payroll Credit ........................................................................................................ 10. 00

11. Recapture of Anchor Company Taxable Value Credit ............................................................................................ 11. 00

12. Recapture of Start-Up Business Credit .................................................................................................................. 12. 00

13. Recapture of SBT Historic Preservation Credit ...................................................................................................... 13. 00

14. Recapture of MBT Historic Preservation Credit ...................................................................................................... 14. 00

15. Recapture of MEGA Battery Manufacturing Facility Credit..................................................................................... 15. 00

16. Recapture of MEGA Large Scale Battery Credit .................................................................................................... 16. 00

17. Recapture of MEGA Advanced Lithium Ion Battery Pack Credit ............................................................................ 17. 0018. Total Recapture of Certain Business Tax Credits. Add lines 1 through 17. Carry amount to Form 4891,

line 42; Form 4905, line 24; or Form 4908, line 21 ................................................................................................. 18. 00

+ 0000 2016 34 01 27 6

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Instructions for Form 4902Corporate Income Tax Schedule of Recapture

of Certain Business Tax CreditsPurposeComplete this form for any recapture in this tax year ofpreviously claimed Single Business Tax (SBT) or MichiganBusinessTax(MBT)creditslistedonthisschedule.

Special Instructions for Unitary Business GroupsA Unitary Business Group (UBG) filling this form shouldprovide a table identifying each member whose credits arebeing recaptured. The table should contain the member’sFederalEmployerIdentificationNumber(FEIN)orTRnumber,name/type of each credit being recaptured by the member,andthetotalrecaptureamountofeachcreditbymember.TheUBG sums the total recapture amount for all members bycredit type, and transfers the sum of total recapture amountto the appropriate credit recapture line on this form. Submita completed Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits (Form 4902) and copy ofthe table identifying the members whose credits are beingrecapturedwhenfilingtheapplicableCITAnnualreturn.

Part 1: Line-by-Line InstructionsLinesnotlistedareexplainedontheform.

Taxpayer Name and Account Number: Enter name andaccount number as reported on page 1 of the applicable CITAnnual return: the Corporate Income Tax Annual Return (Form4891)forstandardtaxpayers,theCorporate Income Tax Annual Return for Financial Institutions (Form 4908), or the Insurance Company Annual Return for Corporate Income and Retaliatory Taxes(Form4905).

UBGs: A UBG reporting recapture should attach only onecopyofthisformtoitsannualreturn,evenifmultiplemembersare subject to recapture. Enter theDesignatedMember (DM)nameintheTaxpayerNamefieldandtheDMaccountnumberintheFEINfield.

Investment Tax CreditsUnder both SBT andMBT, taxpayers were allowed to claiman Investment Tax Credit (ITC) for costs paid or accrued inthe filing period for qualifying tangible asset(s) physicallylocatedinMichigan.Theassetsmusthavebeenofatypethatwereorwouldbecomeeligible fordepreciation, amortization,or accelerated capital cost recovery for federal income tax.Mobile tangible assets, wherever located, were subject toapportionmentinthesamemannerasthetaxbase.Dispositionof an asset, or moving an asset out of Michigan, creates arecaptureofthecredit.

For a guide on how to calculate the ITC recapture amount,see the “Calculation of MBT ITC Recapture Amount” and“CalculationofSBTITCRecaptureAmount”sectionslaterintheseinstructions.

Line 1: Enter calculated amount of totalMBT ITC recapturefromthe“CalculationofMBTITCRecaptureAmount”sectionlaterintheseinstructions.

Line 2: Enter calculated amount of total SBT ITC recapturefromthe“CalculationofSBTITCRecaptureAmount”sectionlaterintheseinstructions.

MEGA Employment Tax CreditsIfataxpayerreceivesanMBTMEGAEmploymentTaxCreditfor a previous tax period under an agreement with MEGAbased on qualified new jobs and then removes 51 percent ormoreof thosequalifiednew jobs fromMichiganwithin threeyearsafter thefirstyear inwhichthetaxpayerclaimedsuchacredit,thetaxpayermustrecaptureanamountequaltothetotalofallsuchcreditsclaimedonpriorreturns.

Line 3:EnterthetotalamountofallMBTMEGAEmploymentTax Credits claimed on previously filed forms (Form 4574)subjecttorecapture.

MEGA Federal Contract CreditThe MEGA Federal Contract Credit is claimed through anagreementwithMEGA. If a taxpayer claimed this credit andsubsequently fails to meet requirements of the MBT Act orconditions of the agreement, the taxpayermust recapture theentireamountofsuchcreditpreviouslyclaimed.

Line 4:Enter thetotalamountofallMEGAFederalContractCreditsclaimedonpreviouslyfiledMBT Election of Refund or Carryforward of Credits(Form4584)subjecttorecapture.

MEGA Photovoltaic Technology CreditTheMEGAPhotovoltaicTechnologyCreditisclaimedthroughanagreementwithMEGA.Ataxpayerorassigneethatclaimeda credit and subsequently fails to meet the requirements ofthe MBT Act or any other conditions established byMEGAin the agreement may, as determined by MEGA, have itscredit reduced or terminated or have a percentage of thecreditpreviouslyclaimedaddedbacktothetaxliabilityofthetaxpayer in the tax year that the taxpayer or assignee fails tocomply.

Line 5: Enter the calculated recapture amount of all MEGAPhotovoltaic Technology Credits claimed on previously filed4574forms,asapplicable.

Biofuel Infrastructure CreditA taxpayer who received a Biofuel Infrastructure Credit andstops using the new or converted fuel system within threeyears of receiving anMBT creditmay, as determined by theMichigan Strategic Fund, have a percentage of a previouslyclaimedcreditaddedbacktoitstaxliabilityintheyearthatthetaxpayerstopsusingthefueldeliverysystem.

Line 6: Enter the total amount of all Biofuel InfrastructureCreditsclaimedonpreviouslyfiledforms(Form4573)subjecttorecapture.

SBT “New” Brownfield Credit and MBT Brownfield Redevelopment CreditBoth the SBT “New” Brownfield Credit and the MBT

74

Brownfield Redevelopment Credit provide that the disposalor transfer to another location of personal property usedto calculate each credit will result in an addition to the taxliability of the qualified taxpayer thatwas originally awardedthecredit in theyear inwhichthedisposalor transferoccurs.This is true even if the creditwas assigned to someone else.Thisadditional liability,or recaptureamount, iscalculatedbymultiplying the same percentage aswas used to calculate thecredit (e.g. 10percent) times the federal basis of thepropertyused to calculate gain or loss (as calculated for federalpurposes)asofthedateofthedispositionortransfer.

Line 7: Enter the calculated recapture amount of all SBT“New” Brownfield Credits claimed on previously filed forms(C-8000MC).

Line 8: Enter the calculated recapture amount of all MBTBrownfield Redevelopment Credits claimed on previouslyfiled 4584 forms, or Request for Accelerated Payment for the Brownfield Redevelopment Credit and the Historic Preservation Credit(Form4889),asapplicable.

Film Infrastructure CreditTheFilmInfrastructureCreditisavailablethroughanagreementbetween the taxpayer and theMichigan Film Office, with theconcurrenceof theStateTreasurer.The credit amount is equalto25percentofthebaseinvestmentexpendituresinaqualifiedfilmanddigitalmediainfrastructureproject.Ifthetaxpayersellsor otherwise disposes of a tangible asset that was paid for oraccruedafterDecember31,2007,andwhosecostwasincludedinthebaseinvestment,thetaxpayermustreportrecaptureequalto 25percent of the gross proceeds or benefit from the sale ordisposition,adjustedbytheapportionedgainorloss.

FollowtheworksheetbelowtocalculatetheFilmInfrastructureCreditrecaptureamount.

Recapture of Film Infrastructure Credit WorksheetThe following calculation applies to all eligible depreciable tangible assets located in Michigan that were acquired in a tax year beginning after Dec. 31, 2007, and were sold or otherwise disposed of during the tax year.

1. Total gross sales price for all eligible depreciable tangible assets .......................................... 00

2. Total gain/loss for all eligible depreciable tangible assets ......... 00

3. Adjusted Proceeds. If line 2 is a gain, subtract line 2 from line 1. If line 2 is a loss, add line 1 and line 2 ............................................ 00

If taxable in another state, complete line 4 and line 5; otherwise, skip to line 6.

4. Apportioned gains (losses). Multiply line 2 by the percentage from Form 4891, line 9g .............. 00

5. Apportioned Adjusted Proceeds. If line 4 is a gain, subtract line 4 from line 1. If line 4 is a loss, add line 1 and line 4 ........................... 00

6. Recapture of Film Infrastructure Credit. Multiply line 3 or line 5 by 25% (0.25) .............................. 00

NOTE: A sale of qualifying property reported on theinstallment method for federal income tax purposes causesa recapture based upon the entire gross proceeds in the yearof the sale, less any gain reflected in federal taxable income(as defined for MBT purposes) in the year of the sale. Thegain attributable to the installment sale that is reported insubsequentyearsdecreasestherecapturebase(orreducesothersourcesofrecapture)forthoseyears.

Line 9: Enter the calculated recapture amount of all FilmInfrastructureCreditsclaimedonpreviouslyfiled4573forms.

Anchor Company CreditsTheAnchorCompanyPayrollCreditandtheAnchorCompanyTaxable Value Credit are claimed through an agreementwith MEGA. If a taxpayer claimed one of these credits andsubsequently failed tomeet the requirementsof theMBTActorconditionsoftheagreement,thetaxpayermustrecapturetheentireamountofsuchcreditpreviouslyclaimed.

Line 10:EnterthetotalamountofallAnchorCompanyPayrollCredits claimed on previously filed 4584 forms subject torecapture.

Line 11:Enter the total amount ofAnchorCompanyTaxableValueCreditsclaimedonpreviouslyfiled4584formssubjecttorecapture.

Start-Up Business CreditsA company that claimed the Start-Up Business Credit undereitherMBT or SBTmust pay back a portion of the credit iftheyhavenobusinessactivity inMichiganandhavebusinessactivity outside ofMichigan within three years after the lasttax year in which the credit was taken. The credit recaptureamountsarecalculatedasfollows:

• 100percentofthetotalofallcreditsclaimedifthemoveiswithin thefirst tax year after the last tax year forwhich acreditisclaimed;

• 67percentof the totalofall creditsclaimed if themove iswithinthesecondtaxyearafterthelasttaxyearforwhichacreditisclaimed;and

• 33percentof the totalofall creditsclaimed if themove iswithin the third taxyearafter the last taxyear forwhichacreditisclaimed.

Line 12:Enter thecalculatedrecaptureamountof theStart-UpBusinessCreditclaimedpreviouslyon4573forms.

SBT and MBT historic Preservation CreditsBothSBTandMBTHistoricPreservationcreditsprovidethatifarecaptureeventoccurs,intheyearoftheeventapercentageof the credit amount previously claimedmust be added backto the tax liability of the qualified taxpayer that received thecertificateofcompletedrehabilitationorpreapprovedletter.

A recapture event occurs if, in less than five years after thehistoric resource is placed in service, either of the followinghappens:

75

• Acertificateofcompletedrehabilitationisrevoked;or• Apreapprovalletterforanenhancedcreditisrevoked;or• Ahistoricresourceissoldordisposed.

The percentage of credit recapture that must be used variesaccording to the number of years the recapture event occursafterthecreditwasclaimed,asfollows:

• 100percentofthetotalofallcreditsclaimediftherecaptureeventoccursless than1yearafter thetaxyearforwhichacreditisclaimed;

• 80percentofthetotalofallcreditsclaimediftherecaptureeventoccurs at least1year, but less than2years after thetaxyearforwhichacreditisclaimed;

• 60percentofthetotalofallcreditsclaimediftherecaptureeventoccurs at least2year, but less than3years after thetaxyearforwhichacreditisclaimed;

• 40percentofthetotalofallcreditsclaimediftherecaptureeventoccurs at least3year, but less than4years after thetaxyearforwhichacreditisclaimed;

• 20percentofthetotalofallcreditsclaimediftherecaptureeventoccurs at least4year, but less than5years after thetaxyearforwhichacreditisclaimed.

NOTE: If the credit has been assigned, the recapture is theresponsibility of the qualified taxpayer that received thecertificateofcompletedrehabilitation,nottheassignee.

NOTE: A recapture is not required if the qualified taxpayerentersintoawrittenagreementwithSHPOthatallowsforthetransferorsaleofthehistoricresource.

Line 13: Enter the calculated recapture amount of all SBTHistoric Preservation Credit claimed on previously filedC-8000MCforms,orForm4889,asapplicable.

Line 14: Enter the calculated recapture amount of all MBTHistoric PreservationCredit claimed on previously filed 4584formsor4889forms,asapplicable.

MEGA Battery Manufacturing Facility CreditThe MEGA Battery Manufacturing Facility Credit is claimedthrough an agreement withMEGA. A taxpayer that claimed acredit that subsequently fails to meet the requirements of theagreement,asdeterminedbyMEGA,mayhaveitscreditreducedor terminated or have a percentage of the credit previouslyclaimedaddedbacktothetaxliabilityofthetaxpayerinthetaxyearthatthetaxpayerfailstocomplywiththeagreement.

Line 15:Enter the calculated recapture amountof allMEGABatteryManufacturingFacilityCredits claimedonpreviouslyfiled4584formsor4889forms,asapplicable.

MEGA Large Scale Battery CreditThe MEGA Large Scale Battery Credit is available to aqualified taxpayer that enters into an agreementwithMEGAto construct an eligible facility and create aminimumof 750new jobs. A taxpayer that claimed a credit that subsequentlyfailstomeettherequirementsoftheagreement,asdeterminedbyMEGA,mayhaveitscreditreducedorterminatedorhaveapercentageof thecreditpreviouslyclaimedaddedback to thetax liability of the taxpayer in the tax year that the taxpayerfailstocomplywiththeagreement.Inaddition,ifthetaxpayer

fails to create750new jobs, the taxpayer shallhave its creditreduced by $65,000 for each job less than 750 that was notcreatedand,ifthetaxpayerfailstocreateatleast500newjobs,additional recaptureofanycreditorbenefit receivedpursuanttotheagreementmayberecaptured.

Line 16:Enter the calculated recapture amount of allMEGALarge ScaleBatteryCredits claimed on previously filed 4584forms.

MEGA Advanced Lithium Ion Battery Pack CreditThe MEGA Advanced Lithium Ion Battery Pack Credit isclaimedthroughanagreementwithMEGA.Ifa taxpayer thatclaimed a credit relocates its advanced lithium ion batterypackassemblyfacilitythatproducesthebatterypackunitsforwhich the creditwas claimed outside ofMichigan during thetermoftheagreementorsubsequentlyfailstomeetthecapitalinvestmentornewjobsrequirementsoftheagreemententeredwith MEGA, the taxpayer shall have a percentage of theamountpreviouslyclaimedaddedbacktothetaxliabilityofthetaxpayerinthetaxyearthatthetaxpayerfailstocomplywiththeagreement,andshallhaveitscredit terminatedorreducedprospectively.

Line 17: Enter the calculated recapture amount of allMEGAAdvanced Lithium Ion Battery Pack Credits claimed onpreviouslyfiled4584forms.

Include completed Form 4902 as part of the tax return filing.

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Calculation of MBT ITC Recapture Amount

Calculation of MBT ITC Recapture BasesFor each category of assets disposed of (or moved out ofMichigan) that triggers an MBT ITC recapture, enter theinformationrequestedbelow.

In each category of disposed of/moved asset, group assets bytaxableyearinwhichtheywereacquired.Alleventsthathavevarying datesmust be listed separately.Multiple dispositions(or transfers) may be combined as one entry, subject to thefollowing: all combined events must satisfy the terms ofthe table in which they are entered. “Taxable Year in whichdisposed of assets were acquired” must be the same for alleventscombinedonasingleline.

UBGs: If capital asset subject to recapture is fromamemberthat was not part of the group in the tax year the asset wasacquired, make a separate line entry for the tax year thememberfiledoutsideof thegroup.Takecare to report in thisline information requested in each column only from themember’ssinglefilings,notthegroup’s.

NOTE: A sale of qualifying property reported on theinstallment method for federal income tax purposes causesa recapturebasedupon the entire sale price in theyear of thesale.The recapture is reducedby anygain reported in federaltaxableincome(asdefinedforMBTpurposes)intheyearofthesale.Thegainattributabletotheinstallmentsalethatisreportedin subsequentyears increases thecreditbase (or reducesothersourcesof recapture) for thoseyears, andmustbe reportedoncolumn C of the appropriateWorksheet based on the type ofasset.

UBGs: The recapture of capital investments for UBGs iscalculated on combined assets of standard members of theUBG. Assets transferred between members of the group arenot a capital investment in qualifying assets for purposesof calculating this credit or its recapture. Disposing of ortransferring an asset outside of the UBG triggers recapture.Also,moving an asset outside ofMichigan creates recapture,evenifthetransferistoamemberoftheUBG.

Worksheet 1a — Depreciable Tangible AssetsEnter all dispositions of depreciable tangible assets locatedinMichigan thatwereacquiredormoved intoMichiganafteracquisition in a tax year beginning after 2007 andwere soldor otherwise disposed of during the current filing period.Give all information required for eachdisposition in columnsAthroughF.IncolumnA,enterthetaxableyearinwhichthedisposed of assetswere acquired.Enter combined gross salesprice(netofcostsofsale)incolumnB,andincolumnC,entertotalgainorlossincludedincalculatingfederaltaxableincome(asdefinedforMBTpurposes).

NOTE:Salespriceincludesanybenefitderivedfromthesale.

Worksheet 1b — Depreciable Mobile Tangible AssetsEnter all dispositionsofdepreciablemobile tangible assets thatwere acquired after 2007 andwere sold or otherwise disposedofduringthecurrentfilingperiod.GiveallinformationrequiredforeachdispositionincolumnsAthroughF.IncolumnA,enterthe taxableyear inwhich thedisposedofassetswereacquired.Entergrosssalesprice(netofcostsofsale)incolumnB,andincolumnC,entertotalgainorlossincludedincalculatingfederal

Worksheet 1a — Depreciable Tangible AssetsA B C D E F

Taxable Year (End Date) In Which Disposed

Assets Were Acquired (MM-DD-YYYY)

Combined Sales Priceof Disposed Assets by

Year of AcquisitionNet Gain/Loss From

Sale of Assets

CIT Apportionment Percentage from Form 4891, line 9g, or Form

4908, line 9c

ApportionedGain/Loss

Multiply Column Cby Column D

MBT ITC Recapture(Base 1)

Subtract Column EFrom Column B

Worksheet 1b — Depreciable Mobile Tangible AssetsA B C D E F

Taxable Year (End Date) In Which Disposed

Assets Were Acquired (MM-DD-YYYY)

Combined Sales Price of Disposed Assets byYear of Acquisition

Net Gain/Loss FromSale of Assets

Adjusted ProceedsSubtract Column C

From Column B

CIT Apportionment Percentage from Form 4891, line 9g, or Form

4908, line 9c

MBT ITC Recapture(Base 2)

Multiply Column Dby Column E

Worksheet 1c — Assets Transferred Outside MichiganA B

Taxable Year (End Date) In Which Disposed

Assets Were Acquired (MM-DD-YYYY)

MBT ITC Recapture Combined Adjusted Federal Basis of

Disposed Assets by Year of Acquisition(Base 3)

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taxableincome(asdefinedforMBTpurposes).

For property placed in service afterDecember 31, 2007, gainreflected in federal taxable income (as defined for MBTpurposes) is thegain reported federallyexcept that it shallbecalculatedasifIRC§168(k)werenotineffect.

NOTE:Salespriceincludesanybenefitderivedfromthesale.

Worksheet 1c — Assets Transferred Outside Michigan

Enteralldepreciabletangibleassetsotherthanmobiletangibleassetsacquiredafter2007thatwereeligibleforITCandwere

transferredoutsideMichiganduringthefilingperiod.Giveallinformation required foreachdisposition incolumnAandB.In columnA, enter the taxable year inwhich thedisposedofassetswereacquired,andincolumnB,enteradjustedbasisasusedforfederalpurposes.DonotusearecomputedMBTbasisforthispurpose.

Calculation of MBT ITC Recapture Rates and AmountsComplete Worksheet 2 (on the following page), enteringeach taxyear (EndDate) inwhich thedisposedof assets thattriggeredMBTITCrecapturewereacquired.

NOTE: Line references on columns below are based on the 2010 and 2011 MBT Form 4570. Lines for 2008 and 2009 MBT forms are different, so if copying information from a 2008 and 2009 MBT form, choose the appropriate lines.

Worksheet 2• Column A: Enter in chronological order, beginning withthe earliest, the tax year end date of each acquisition year ofdisposed of assets that triggered MBT ITC recapture fromWorksheet1athrough1c.

UBGs: If capital asset subject to recapture is fromamemberthat was not part of the group in the tax year the asset wasacquired, make a separate line entry for the tax year thememberfiledoutsideof thegroup.Takecare to report in thisline information requested in each column only from themember’ssinglefilings,notthegroup’s.

• Column B: Enter allowable MI compensation and ITCamount from Form 4570, line 26 with the correspondingacquisitionyearincolumnA.

• ColumnC: Enter theMI compensation credit amount fromForm 4570, line 3with the corresponding acquisition year incolumnA.

• Column D: Calculate net ITC amount: subtract column Cfrom column B for each tax year. If difference is negative,enter zero. This is the amount of ITC that offsets MBTliability.

• Column F: MBT capital investment amount. Enter totalamountofcapitalinvestmentreportedonForm4570,line8,foreachtaxyearlistedoncolumnE.

•ColumnG:ITCrate.Enter2.32%fortaxyearsoncolumnEthatendwith2008,otherwiseenter2.9%.

•ColumnH:Calculategross ITCamount:multiplycolumnFbycolumnGforeachtaxyear.

•ColumnJ:MBTrecaptureofcapital investment. Entertotalamount of recapture of capital investment reported on Form4570,line16,foreachtaxyearlistedoncolumnI.

• Column L: Gross MBT ITC recapture amount. Multiplycolumn J by columnK. This represents the total amount ofITCrecaptureavailabletobereportedinthetaxyear.

• Column M: MBT ITC recapture amount offset by credit.Enter the lesser of columns H and L. This is the amount ofavailableITCrecapture thatwasoffsetby the totalamountofavailableITCintheyear.

•ColumnO:SBTcreditrecaptureamount.EntertotalamountfromForm4570,line19foreachtaxyearlistedoncolumnN.

•ColumnP:SBTITCrecaptureamountoffsetbycredit.EnterlesseroftheamountoncolumnO,andtheamountofcolumnHminuscolumnM.ThisistheamountofSBTITCrecapturethatwasoffsetbythetotalamountofavailableITCinthetaxyear.

•ColumnQ: TotalMBTITCused. AddcolumnsD,M,andP.ThetotalamountofMBTITCusedequalstotheamountofcreditthatoffsetsMBTITCrecapture,SBTITCrecapture,andtheMBTliability.

•ColumnR:Extentusedrate. DivideamountsoncolumnQbyamountsoncolumnH.

•ColumnT:MBTrecapturebase.EntertotalamountofMBTITC recapturebase fromWorksheet 1a, columnF;Worksheet1b,columnFandWorksheet1c,columnB.

• Column U: MBT recapture amount. Multiply amount incolumnTbyratesincolumnG,andincolumnR.

AddupfiguresineachrowofcolumnU,andcarrythatamounttoForm4902,line1.IfthetotalofallrowsincolumnUislessthanzero,enterzeroonForm4902,line1.

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Worksheet 2 — Calculation of MBT ITC Recapture Rates and AmountsA B C D

Taxable Year (End Date) in which MBT ITC Disposed

Assets were acquired

Allowable Michigan compensation and ITC credit

amount from Form 4570, line 26

Michigan Compensation Credit Amount from Form 4570, line 3

ITC that offsets MBT liability Subtract column C

from column B (Enter 0 if less than 0)

E F G h

Taxable Year (repeat from column A)

MBT Capital Investment Amount from Form 4570,

line 8

ITC rate (2.32% for tax years ending in 2008, or 2.9% otherwise)

Gross ITC Credit Amount Multiply column F

by column G

I J k L M

Taxable Year (repeat from column A)

MBT Recapture of Capital Investment Amount from

Form 4570, line 16

ITC rate (2.32% for tax years ending in 2008, or 2.9% otherwise)

Gross MBT ITC Recapture Multiply column J

by column K

MBT ITC Recapture Amount Offset by Credit Lesser

of column L and H

N O P Q R

Taxable Year (repeat from column A)

SBT ITC Credit Recapture Amount from Form 4570,

line 19

SBT ITC Recapture Amount Offset by Credit Lesser

of column O, and column (H – M)

Total MBT ITC Credit Used Add columns D, M, and P

Extent Credit Used Rate Divide column Q by column H

S T U

Taxable Year (repeat from column A)

Recapture base. Enter total amount of

recapture from Worksheet 1a, column F; Worksheet 1 b, column F; and Worksheet 1c,

column B.

Recapture Amount. Multiply column T by

column G and by column R

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Calculation of SBT ITC Recapture Amount

Calculation of SBT ITC Recapture Bases

For each category of asset disposed of (or moved out ofMichigan) that triggers an SBT ITC recapture, enter theinformationrequestedbelow.

In each category of disposed of/moved asset, group assets bytaxableyearinwhichtheywereacquired.Alleventsthathavevarying datesmust be listed separately.Multiple dispositions(or transfers) may be combined as one entry, subject to thefollowing: all combined events must satisfy the terms ofthe table in which they are entered. “Taxable Year in whichdisposedassetswereacquired”mustbethesameforalleventscombinedonasingleline.

NOTE: A sale of qualifying property reported on theinstallmentmethod for federal income tax purposes causes arecapture of the entire gross proceeds in the year of the sale.The recapture is reduced by any gain reported in federaltaxable income in the year of the sale. The gain attributableto the installment sale that is reported in subsequent yearsincreasesthecreditbase(orreducesothersourcesofrecapture)for those years, and must be reported on column C of theappropriateWorksheetbasedonthetypeofasset.

UBGs: Fill necessary Worksheets 3a, 3b, and 3c for eachmemberofthegroupwhohasdisposedofassetsthattriggeredanSBTITCrecaptureinthecurrentfilingperiod.

Worksheet 3a Depreciable Tangible Assets

For depreciable tangible assets located inMichigan thatwereacquired or moved into Michigan after acquisition in a taxyearbeginningafter1999andpriorto2008,andweresoldorotherwisedisposedofduringthetaxyear,enterthefollowing:

Line 1, Column A:Group the depreciable tangible assets thatwere disposed of during the current filing period by the taxyear inwhich theywereacquired.Usea separate rowforeachacquisition year. Enter the tax years of acquisition (end datesonly) in chronological order, starting with the first tax yearbeginningafter1999.Anacquisitionyear forwhich therewereno dispositions of depreciable tangible assets during the filingperiod may be omitted. However, do not omit the acquisitionyear of depreciable tangible assets that have been sold on aninstallmentmethodifgainsattributabletoinstallmentpaymentsreceivedduringthecurrentfilingperiodmustbereported.

Line 1, Column B: Total gross proceeds from all depreciabletangibleassetsthatwereacquiredinthesametaxableyearanddisposed of during thefiling period. If a qualifying assetwassold on an installment sale in a prior filing period, the entiresale price was reported for recapture purposes in the year ofsale.Therefore, if a paymentwas received on that installmentsale in the current filing period, do not report that amount asgross proceeds for this period. See instructions for columnC,however,withrespecttothegainfromthatinstallmentpayment.

Worksheet 3a — Depreciable Tangible Assets1. A B C D E FTaxable Year (End Date)

In Which Disposed Assets Were Acquired

(MM-DD-YYYY)

Combined Sales Priceof Disposed Assets by

Year of AcquisitionNet Gain/Loss From

Sale of Assets

Apportionment Percentage from Form 4891, line 9g, or Form

4908, line 9c

ApportionedGain/Loss

Multiply Column Cby Column D

SBT ITC Recapture(Base 1)

Subtract Column EFrom Column B

Worksheet 3b — Depreciable Mobile Tangible Assets2. A B C D E FTaxable Year (End Date)

In Which Disposed Assets Were Acquired

(MM-DD-YYYY)

Combined Sales Price of Disposed Assets byYear of Acquisition

Net Gain/Loss FromSale of Assets

Adjusted ProceedsSubtract Column C

From Column B

ApportionmentPercentage from Form 4891, line 9g, or Form

4908, line 9c

SBT ITC Recapture(Base 2)

Multiply Column Dby Column E

Worksheet 3c —Assets Transferred Outside Michigan3. A BTaxable Year (End Date)

In Which Disposed Assets Were Acquired

(MM-DD-YYYY)

SBT ITC Recapture Combined Adjusted Federal Basis of

Disposed Assets by Year of Acquisition(Base 3)

80

Line 1, Column C:Net total gains/losses reflected in federaltaxable income from all depreciable tangible assets thatwereacquired in the same taxable year and disposed of duringthe filing period.Report also in columnC any gain reflectedin federal taxable income that is attributed to an installmentpayment received during the current CIT filing period, froma prior installment sale of an asset that was of a type andacquisition date covered in this table. For property placedin service prior to January 1, 2008, gain reflected in federaltaxable income is equal to the gain reported for federalpurposes. Keep in your files a separate worksheet with theappropriate information regarding each depreciable tangibleasset located in Michigan that was acquired or moved intoMichigan after acquisition in a tax year beginning after 1999andpriorto2008,andwassoldorotherwisedisposedofduringthetaxyear.Sumthetotalgrossproceedsandgainorlossforalldisposedofassetsacquiredinthesametaxableyear.Enterinthisformonlythetotalsumofgrossproceedsandgain/lossgroupedbytaxableyeartheassetswereacquired.Useonerowper group of disposed of assets acquired in the same taxableyear.Startfromtheearliestacquisitionyear.

Line 1, Column D:Enter theapportionmentpercentage fromForm4891,line9g,orForm4908,line9c.Ifnotapportioning,enter100percent.Enterthesameapportionmentpercentageforeachrowcompleted.

Line 1, Column F:SubtractcolumnEfromcolumnBforeachrow. IfcolumnE isa loss,add itspositivevalue tocolumnBforeachappropriaterow.AlossincolumnEwillincreasetherecapturebase.

Worksheet 3b — Depreciable Mobile Tangible Assets

Mobiletangibleassetsareallofthefollowing:

• Motor vehicles that have a gross vehicle weight rating of10,000 pounds ormore and are used to transport property orpersonsforcompensation;• Rolling stock (railroad freight or passenger cars,locomotivesorotherrailcars),aircraft,andwatercraftusedbytheownertotransportpropertyorpersonsforcompensationorused by the owner to transport the owner’s property for sale,rental,orfurtherprocessing;• Equipmentuseddirectlyincompletionof,orinconstructioncontracts for, the construction, alteration, repair, orimprovementofproperty.

For depreciable mobile tangible assets that were acquired ina tax year beginning after 1999 and prior to 2008, andweresold or otherwise disposed of during the tax year, enter thefollowing:

Line 2, Column A: Group the depreciable mobile tangibleassets that were disposed of during the filing period by thetaxyear inwhich theywere acquired.Usea separate row foreach acquisition year. Enter the tax years of acquisition (enddates only) in chronological order, starting with the first taxyearbeginningafter1999.Anacquisitionyearforwhichtherewere no dispositions of depreciable mobile tangible assetsduringthefilingperiodmaybeomitted.However,donotomitthe acquisitionyear of depreciablemobile tangible assets thathavebeensoldonaninstallmentmethodifgainsattributableto

installmentpaymentsreceivedduringthecurrentfilingperiodmustbereported.

Line 2, Column B:Totalgrossproceedsfromalldepreciablemobile tangible assets thatwere acquired in the same taxableyear and disposed of during the filing period. If a qualifyingassetwas sold on an installment sale in a prior filing period,the entire sale price was reported for recapture purposes intheyearof sale.Therefore, if apaymentwas receivedon thatinstallment sale in the current filing period, do not reportthat amount as gross proceeds for this period. See columnC, however, with respect to the gain from that installmentpayment.

Line 2, Column C:Net total gains/losses reflected in federaltaxable income from all depreciable mobile tangible assetsthat were acquired in the same taxable year and disposed ofduring the filing period. Report also in column C any gainreflected in federal taxable income that is attributed to aninstallment payment received during the current CIT filingperiod, fromaprior installment saleofanasset thatwasofatype and acquisition date covered in this table. For propertyplaced in service prior to January 1, 2008, gain reflected infederaltaxableincomeisequaltothegainreportedforfederalpurposes. Keep in your files a separate worksheet with theappropriate information regarding each depreciable mobiletangibleassetacquiredinataxyearbeginningafter1999andprior to 2008, and sold or otherwise disposed of during thetaxyear.Sumthe totalgrossproceedsandgainor lossforalldisposedofassetsacquired in thesame taxableyear.Enter inthisformonlythetotalsumofgrossproceedsandgainorlossgroupedbytaxableyeartheassetswereacquired.Useonerowper group of disposed of assets acquired in the same taxableyear.

Line 2, Column D: Subtract figures in column C fromamountsincolumnBforeachrow.IfcolumnCisaloss,additspositivevaluetocolumnBforeachappropriaterow.AlossincolumnCwillincreasetherecapture.

Line 2, Column E:Enter theapportionmentpercentage fromForm4891,line9g,orForm4908,line9c.Ifnotapportioning,enter100percent.Enterthesameapportionmentpercentageforeachrowcompleted

Line 2, Column F:MultiplyamountsincolumnDbycolumnEforeachrow.

Worksheet 3c — Assets Transferred Outside Michigan

For depreciable tangible assets other than mobile tangibleassetsacquired in taxyearsbeginningafter1999andprior to2008,thatwereeligiblefortheITCintaxyearsbeginningafter1999andpriorto2008,andweretransferredoutsideMichiganduringthetaxyear,enterthefollowing:

Line 3, Column A: Group the depreciable tangible assetsother thanmobile tangible assets thatwere transferred out ofMichigan during the filing period by the tax year in whichthey were acquired. Use a separate row for each acquisitionyear. Enter the tax years of acquisition (end dates only) inchronological order, startingwith thefirst tax year beginningafter 1999. An acquisition year for which there were notransfersofdepreciabletangibleassetsoutofMichiganduring

81

Calculation of SBT ITC Recapture RatesRecapture rates can be calculated using any of 3 methodsdescribedinthe“MethodSummaryTable”below.TheTablehighlights themethods’ pros and cons. Choose yourmethod,andfollowtheappropriateinstructionstocalculatetheratesonWorksheet4a,line4,columnE.

NOTE: Whichever method is used, the calculated effectiverecapture rate of SBT ITCby year cannot be higher than thefigurecalculatedunderMethodAforanyyear.

NOTE ON USING ThE SIMPLEST METhOD: Whenthe amount of SBT ITC used equals the amount of SBT ITCcreated,thethreemethodsyieldthesameresult.Thisoccursineitherofthefollowingsituations:

Calendar year filer(*):2009MBTForm4569, lines2 and3,areequalforthelatest2009taxyearreturnfiled;

Fiscal year filer(*):2008MBTForm4569,line4,equalszeroforthelatest2009taxyearreturnfiled;

• Filers(**)whohavefiledanMBTForm4583foreither2008or2009taxyear;or• Filers(**)who haveNOTfiled 2008 or 2009MBT return,andhavefiledMBTreturn(s)fortaxyear(s)after2009.

(*) For UBGs, the condition applies only for groups where all members were included in every 2008 and 2009 MBT return filed by the group.

(**) Filers refers to single filers (non-UBGs) or UBG members in the current tax year who were not part of a group in 2008 or 2009 and were single-filers then. Not filing a Form 4567 does not allow a taxpayer to preserve SBT credit carryforward from one year to the next.

ThesimplestmethodthatcanbeusedisMethodA.Taxpayersthatmeeteitherof thesituationsaboveshoulduseMethodA.Itprovidescorrectresultsusingtheleastamountofdatainputfromthetaxpayer.

thefilingperiodmaybeomitted.

Line 3, Column B: Total sumof adjusted federal basis fromall depreciable tangible assets acquired in the same taxableyearand transferredoutofMichiganduring thefilingperiod.Keep in your files a separate worksheet with the appropriateinformation regarding each depreciable tangible asset otherthan mobile tangible assets acquired in tax years beginning

after1999andprior to2008, thatwereeligiblefor theITCintax years beginning after 1999 and prior to 2008, and weretransferredoutsideMichiganduringthetaxyear.Sumthetotaladjusted federal basis for all such transferred assets acquiredinthesametaxableyear.Enterinthisformonlythetotalsumofadjustedfederalbasisgroupedbythetaxableyeartheassetswere acquired. Use one row per group of such transferredassetsacquiredinthesametaxableyear.Startfromtheearliesttaxableyear.

METhOD SUMMARY TABLETYPE OF METhOD PROS CONSMethod A • Easytocalculate.

• Worksforall typesoftaxpayers, includinganytypeofUBGgroups.• Taxpayer or UBG member disposing of ITCassetonlyneedtoenterinformationonWorksheet4a foryears inwhichassets that trigger recapturewereacquired.

• MethoddoesnottakeintoaccounttheextenttowhichtheITCcreditwasused.

Method B • Takesintoaccounttheextent towhichtheITCwasused.

• Taxpayers must fill Worksheets 4a, 4b, and4c and enter necessary information in Treasurywebtool.• Information onWorksheet 4a must be enteredforallyearsinwhichassetswereboughtandITCwas claimed, whether or not those assets weredisposedofinthecurrenttaxyear.

Method C • Taxpayers fill only Worksheet 4a, line 4,columnE.

• Taxpayer needs to develop own calculationprocedure that reflects the MBT statute. Retainrecordstosubstantiatecalculation.

82

UBGs: Fill necessary Worksheets 3a, 3b, and 3c for eachmemberofthegroupwhohasdisposedofassetsoutsideofthegroup, which triggered an SBT ITC recapture in the currentfilingperiod.

• Method A: ○ Worksheet 4a, line 4, columns A through D: Enterin the tax year end date of each acquisition year ofdisposed assets that triggered SBT ITC recapture.(ThosedatesshouldbethesameasappearincolumnAofWorksheet3athrough3c.)For each year displayed in column A, enter FormC-8000ITC information required in the appropriatecolumn,usingreturndataspecificfromeachapplicabletax year. If the amount of column C is zero for aparticular year, and the amount on C-8000ITC, line10 for that year is larger than zero, taxpayersmaynotenter zero on column E if the taxpayers fall in eitherofthetwocategoriesexplainedbelow,andmustdotheappropriatecalculationsasfollows:

1) Taxpayers who used the straight methodto calculate the SBT liability for that taxable year:calculate the credit rate as instructed on C-8000ITC,line 26 for that taxable year, and enter the result oncolumnE;or

2) Taxpayerwhoused theexcesscompensationreductionmethodtocalculatetheSBTliabilityforthattaxable year: calculate the credit rate on C-8000ITC,line 26, for that taxable year; subtract the percentagefoundonC-8000S,line6,from100%,andmultiplytheresultofthatsubtractionbythecalculatedcreditrateonC-8000ITC,line26.EntertheresultoncolumnE.

○ Worksheet 4b, line 5, columns A and B:Leavelinesblank.

○ Worksheet 4a, line 4, Column E:DividetheamountincolumnCbytheamountincolumnB,foreachtaxableyearincolumnA,andenterasapercentage.

○ Worksheet 4c, lines 6, 7, and 8: leave all columnsblank.

• Method B: ○ Worksheet 4a, line 4, columns A through D:Gatherall C-8000ITC forms filed for tax years beginning onor after January 1, 2000. (If an amended C-8000ITCwasfiled, use thefigures from the amended form, nottheoriginal.)Sortallthereturnsinchronologicalorderof taxable year end date, from earliest to latest date.Starting with the Form C-8000ITC for the earliestapplicable SBT filing period, enter the informationrequested on the table for each taxable year (use onerowforeachreturn).

NOTE: For SBT tax yearswhen the taxpayer filed aC-8000withnoC-8000ITC,oraC-8030,enteronline4Athetaxableyearenddate,andenterzeroforlines4B,4C,and4D.Donotenter any information on lines 4A through 4D for SBT taxyears inwhich the taxpayer filed nothingORfiled aC-8044.Ifmorethanonereturnwasfiledforthesametaxyear(thatis,thetaxpayerfiledanamendedreturn),useonlytheinformation

fromthelatestreturnfiledforthattaxyear.

UBGs:FillsetofWorksheets4a,4b,and4cforeachmemberof the group who disposed of assets that triggered SBT ITCrecaptureinthecurrenttaxyear.

○ Worksheet 4b, line 5, columns A and B: Startingwith Form 4569 for the earliest 2008 and latest 2009applicable MBT filing period, enter the informationrequestedontable.Ifmorethanonereturnwasfiledforthesametaxyear(thatis,thetaxpayerfiledanamendedreturn), useonly the information from the latest returnfiledforthattaxyear.

NOTE: ForMBT tax years that the taxpayerfiledForm4567andnoForm4569,enteron line5Athe taxableyearenddate,and enter zero for line 5B. Do not enter any informationon lines 5A and 5B for MBT years in which the taxpayerfiled nothing or filed a Form 4583. See Note on Using the Simplest Method under theheadingCalculation of SBT ITC Recapture Rates in this instructions.Not filing a Form 4567doesnotallowataxpayertopreserveSBTcreditcarryforwardfromoneyeartothenext.

UBGs:Duringtaxyearsendingin2008and2009,UBGgroupswereallowedtooffsetthegroupliabilitybyclaimingmember’sSBT ITC carryforward.When completingWorksheet 4b, line5, column B, enter the portion of the total group SBT ITCcarryforward used by the group for each year that pertains tothe specificmember that isdisposingofSBT ITCasset in thecurrent tax year, as calculated in the example below. If themember completingWorksheet 4b was not part of a UBG in2008and/or2009taxyears,andfiledasastandalonefiler,takecare to report onWorksheet 4b, lines 5A and 5B informationfromthemember’ssinglyfiledreturns.

Example: In 2008, group ABC files MBT return claiming$1,000,000 in SBT ITC carryforward. The group consistedof Company 1, Company 2, Company 3, and Company 4.Company 4’s tax year ended after the tax year of the group’sDesignated Member, so Company 4’s data was not includedin group ABC’s 2008 MBT return, even though Company4 was part of the UBG. The total $1,000,000 in SBT ITCcarryforward resulted from the sum of $200,000 in SBT ITCcarryforward from Company 1, $300,000 from Company 2,and$500,000fromCompany3.Inthecurrentyear,companies2, 3 and 4 dispose of capital investment outside of the group,which triggers SBT ITC recapture. Therefore, Group ABCfills a Form 4902 to report the sum of SBT ITC recapturefromCompany 2, Company 3, and Company 4.When fillingthe Worksheet 4b, line 5, column B for Company 2, report$200,000–which represents theportionof the totalSBT ITCcarryforward claimed by the group in 2008 that correspondsonly to Company 2’s SBT ITC carryforward in 2008. WhenfillingWorksheet 4b, line 5, columnB forCompany 3, report$500,000–which representsCompany3’s portionof the totalSBT ITC carryforward claimed by the group in 2008.WhenfillingWorksheet 4b, line 5, columnB forCompany4, report$0–whichrepresentsCompany4’sportionofthetotalSBTITCcarryforwardclaimedbythegroupin2008.

○ Worksheet 4a, Column E:Foreachtaxableyear,entertheratescalculatedonWorksheet4c,line8,columnM.

83

○ Worksheet 4c (lines and columns not listed areexplainedonthetable):• Line 6, column A: Enter only taxable years in

which SBT ITC disposed assets were acquired.Dates shouldmatch those listedonWorksheets3a,3b,and3c,columnsA.Listeachdateonlyonce.

• Line 6, column C: Foreachtaxableyearonline6,columnA,findthecorrespondingSBTITCamountreportedonworksheet4a,line4,columnC,andNet

Capital Investment amount reported onWorksheet4a, line 4, column B. Divide amounts fromWorksheet 4a, line 4, columnC by amounts fromworksheet 4a, line 4, column B for each taxableyear and enter results here. If the quotient of thatdivisionforaparticular taxyearonline6,columnA equals zero, and the amount on Worksheet 4c,line 6, columnB is positive, insteadof zero, enterthefollowingonline6,columnCasappropriate:

Worksheet 4a4. A B C D E

Return ForTaxable Year

Ending(MM-DD-YYYY)

Net Capital Investment(C-8000ITC, Line 24)

SBT ITC(C-8000ITC, Line 33)

SBT ITC Used(C-8000ITC, Line 36)

Maximum or Actual Calculated

Effective Recapture

Percentage Rate of SBT ITC by Year

%%%

Worksheet 4b5. A B

Return ForTaxable Year

Ending(MM-DD-YYYY)

SBT ITC Carryforward Used(Form 4569, line 3)

Worksheet 4c6. A B C D

Taxable Year (End Date)

In Which Disposed Asset Were Acquired

(MM-DD-YYY)

SBT CapitalInvestment Amount (C-8000ITC, line 10)

SBT ITC Credit RateDivide line 4, column C,

by line 4, column B(See Instructions if zero)

Gross SBT ITC Credit Amount Multiply column B

by column C

7. E F G h

Taxable Year(repeat from column A)

SBT Recapture CapitalInvestment Amount(C-8000ITC, line 23)

Gross SBT ITC Credit RecaptureMultiply column F by column C

SBT Recapture Amount Offset by Credit

Lesser of columns D and G

8. I J k L M

Taxable Year(repeat from column A)

SBT ITC Credit AmountThat offsets SBT liability

(from webtool)Total SBT ITC Credit Amount Used

Add columns J and H

Extent Credit Used RateDivide column K by

column D (cannot be more than 1)

SBT ITC Recapture Rate Multiply columns C

and L. Carry amount to Worksheet 4a, line 4,

column E

84

Calculation of SBT ITC Recapture AmountsTocompleteWorksheet5,followtheinstructionsbelow:

Line 9, Column A: Enter in chronological order, beginningwith the earliest, the tax year end date of each acquisitionyearofdisposedassetsthattriggeredSBTITCrecapturefromWorksheets3athrough3c.

Line 9, Column B: Separately for each acquisition yearlisted in column A, combine the corresponding amountsin Worksheet 3a, column F, Worksheet 3b, column F, andWorksheet3c,columnBforalldisposedassetsthattriggeredSBTITCrecapture.

Line 9, Column C: For each acquisition year listed in

column A, enter the corresponding SBT ITC effective ratefromWorksheet 4a, columnE.Match the acquisition year inWorksheet 5, column A, with the corresponding acquisitionyearinWorksheet4a,columnA.

Line 9, Column D:MultiplycolumnBbycolumnCforeachacquisitionyear.

Add up figures in each row ofWorksheet 5, column D, andcarrythatamounttoForm4902,line2.

UBGs: Add up figures in each row of Worksheet 5, line 9,columnD fromeverygroupmember thathasdisposedassetsthattriggeredSBTITCrecapture.Carrythesumofallyears,forallgroupmembers,toform4902,line2.

Worksheet 5 — Calculation of SBT ITC Recapture Amounts9. A B C D

Taxable Year (End Date) In Which Disposed

Assets Were Acquired (MM-DD-YYYY)

Total SBT ITC Recapture Base by Year of Acquisition

Add amounts from Worksheet 3a, column F; Worksheet 3b, column F; and Worksheet 3c,

column B

Year-Specified Recapture Percentage Rate from

Line 4, Column ERecapture Amount

Multiply Column B by Column C%%%

10. TOTAL. Enter total of Line 1, column D. Carry total to Form 4902, line 2. If less than zero, enter zero. ...... 00

1) Taxpayer used the straightmethod to calculate theSBT liability for that taxableyears: calculated thecredit rate on C-8000ITC, line 26 for that taxableyear,andentertheresulthere;

2) Taxpayer used the excess compensationreduction method to calculate the SBT liabilityfor that taxable year: calculate the credit rate onC-8000ITC, line 26, for that taxable year; subtractthe percentage found on C-8000S, line 6, from100%,andmultiplytheresultofthatsubtractionbythe calculated credit rate on C-8000ITC, line 26.Entertheresulthere.

• Line 8, column J: Enter amount of ITC usedprovided by the webtool that corresponds toeach taxable year displayed on line 8, column I.Access the Michigan Department of Treasury(Treasury)Web tool by going to the Treasury site(www.michigan.gov/mbt4585tool), and enter thenecessaryinformationasinstructed.

• Line 8, column M: For each taxable year on line8, column I, multiply line 6, column C by line 8,column L. Enter results here. Match the taxableyear on line8, column I with the taxableyear onWorksheet4a, line4,columnA,andcarryamountfrom line 8, column M to Worksheet 4a, line 4,columnEforeachappropriatedtaxyearline.

• Method C: ○ Worksheet 4a, columns A through D:FillcolumnA,andleaveallothersblank.

○ Worksheet 4b, columns A and B: Leavelinesblank.

○ Worksheet 4a, Column E: Enter results from thetaxpayer’s own software of choice (that is, a non-Treasury Web tool) or the taxpayer’s own calculationthat reflects the MBT statute. Retain records tosubstantiatefiguresenteredinthefiledreturn.

Michigan Department of Treasury4903 (Rev. 03-16)

Attachment 8

2016 Michigan Corporate Income Tax Withholding Opt-Out ScheduleIssued under authority of Public Act 38 of 2011.

Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN)

Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN)

A B C

Flow-Through Entity Information FEINDistributive Income (see instructions)

Name

Address

City State ZIP/Postal Code

Name

Address

City State ZIP/Postal Code

Name

Address

City State ZIP/Postal Code

Name

Address

City State ZIP/Postal Code

Name

Address

City State ZIP/Postal Code

Name

Address

City State ZIP/Postal Code

Name

Address

City State ZIP/Postal Code

If more space is needed, include additional copies of Form 4903. Repeat the taxpayer name and FEIN at the top of every copy.

+ 0000 2016 36 01 27 2

87

PurposeTo report the flow-through entities to which this taxpayerhas provided aCertification of Exemption for Flow-Through Withholding Payments (Form 4912), in order to relieve theFlow-ThroughEntity(FTE)ofitsobligationtowithholdonthistaxpayer.

General InstructionsA Corporate Income Tax (CIT) taxpayer is able to relievean FTE of its Flow-Through Withholding requirementsto withhold on that CIT taxpayer by filing an exemptioncertificate with the FTE. A taxpayer that has submitted anexemptioncertificatetoanFTEmustfilloutthisformtoreporteachFTEtowhichithassubmittedanexemptioncertificate.Ifmorespace isneededtoreportallof theflow-throughentitiesthathavereceivedanexemptioncertificatefromthistaxpayer,include additional copies of Form 4903. Include at the top ofeachForm4903thenameandFederalEmployerIdentificationNumber (FEIN) of the taxpayer. If this taxpayer is aUnitaryBusiness Group (UBG), enter the FEIN of the DesignatedMember(DM)atthetopofeachadditionalForm4903.

NOTE:Form4903isrequiredtobeincludedinthetaxpayer’staxreturnif ithassubmittedacertificateofexemption(Form4912) toanFTE.The taxpayershouldnot,however, includeacopyofForm4912withthisCITreturn.Instead,retainacopyforyourrecords.

NOTE: Flow-through withholding is repealed effective withFTEs’ taxyearsbeginningafter June 30, 2016, underPublicAct158.ACITtaxpayershouldnothavehadanytaxwithheldon itsbehalfbyFTEswith taxyearsbeginningafterJune30,2016.

Flow-through entities that are unitary with this taxpayer: If this taxpayer has submitted an exemption certificate to anFTEitisunitarywith,entertheinformationforthisFTEfirst.Ifmore thanonecopyofForm4903 is required,only list theflow-through entities that this taxpayer is unitary with once.FormoreinformationonwhatconstitutesaunitaryrelationshipbetweenanFTEandataxpayer,seetheinstructionsforFlow-Through Entities that are Unitary with the Taxpayer (Form4900).

UBGs: If this taxpayer is a UBG and has submitted anexemption certificate to an FTE it is unitary with, andmorethanonememberoftheUBGhasanownershipinterestintheFTE,entertheinformationforthisFTEontheForm4903thatiscompletedby theDM. If theDMhas tofilemore thanonecopyofForm4903,only list theflow-throughentities that theUBGisunitarywithonce.

Column by Column InstructionsTaxpayer information: Enter the name and FEIN of thetaxpayerfilingthisformasreportedonpage1ofCITAnnualReturn(Form4891).

UBGs:IfthistaxpayerisaUBG,enterthenameandFEINoftheDMforthestandardmembersofthisUBGonthefirstlineasithasbeenreportedonpage1ofForm4891.EnterthenameandFEINofthememberof theUBGthat isreportingonthisformonthesecondlineasithasbeenreportedonpageoneoftheapplicableCIT Data on UBG Members (Form4897).

Column A:Enter thename,address,city,state,andZipcodeoftheFTEthatthistaxpayerhasfiledanexemptioncertificatewith.

Column B:Enter theFTE’sFEIN that this taxpayerhasfiledanexemptioncertificatewith.

Column C: Enter the taxpayer’s unapportioned distributiveshare of the flow-through entity’s income, as reported to thetaxpayerbytheFTE.

Include completed Form 4903 as part of the tax return filing.

Instructions for Form 4903Corporate Income Tax Withholding Opt-Out Schedule

88

Michigan Department of Treasury4911 (Rev. 03-16)

Attachment 5

2016 Michigan Corporate Income Tax Schedule of Flow-Through WithholdingIssued under authority of Public Act 38 of 2011.

Complete this form if Flow-Through Withholding was withheld on behalf of the taxpayer by a flow-through entity, and the flow-through entity’s tax year ended with or within the taxpayer’s filing period. Sum the amount of withholding in Column E and carry to Form 4891, line 46; Form 4905, line 44; or Form 4908, line 25. (If amending a return, carry the sum to Form 4892, line 46; Form 4906, line 44; or Form 4909, line 25.)

Taxpayer Name (If Unitary Business Group, Name of Designated Member) Federal Employer Identification Number (FEIN)

Unitary Business Groups Only: Name of the Unitary Business Group Member Reporting on This Form Federal Employer Identification Number (FEIN)

A B C D E

Flow-Through Entity Name FEIN

Check (X) if the

Flow-Through is Unitary

Distributive Share of Income from the

Flow-Through Entity

Withholding Paid by the Flow-Through Entity on Behalf of this Taxpayer

If more space is needed, include additional copies of Form 4911. Repeat the taxpayer name and FEIN at the top of every copy.

+ 0000 2016 48 01 27 7

91

Instructions for Form 4911 Michigan Corporate Income Tax: Schedule of Flow-Through Withholding

PurposeThe purpose of this form is to report the Flow-ThroughWithholding (FTW) paymentsmade by a flow-through entity(FTE)onbehalfofaCorporateIncomeTax(CIT)filer.

General InstructionsThis formmustbeusedbya taxpayer that is a standardfiler,insurance company, financial institution, or unitary businessgroup(UBG)thathasanownershiporbeneficialinterestinanFTEthathasremittedFTWpaymentstothestateofMichiganon behalf of the taxpayer that is filing this form. Reportedon this formwill be the FTWpaymentsmade by the FTE ifthat FTE’s tax year endedwith or within the tax year of thetaxpayerfilingthisform.

NOTE: Flow-through withholding is repealed effective withFTEs’ taxyearsbeginningafter June 30, 2016, underPublicAct158.ACITtaxpayershouldnothavehadanytaxwithheldon itsbehalfbyFTEswith taxyearsbeginningafterJune30,2016.

In addition to being required to withhold on the distributiveshare of income received by nonresident individualmembers,an FTE that reasonably expects to have more than $200,000in business income after allocation and apportionment in thetaxyear is also required towithholdon thedistributive shareof income received by its members that are C Corporationsand other FTEs. There is not a requirement to withold onfinancial institutions and insurance companies. In addition,underPA233of2013,iftheFTEhasmadeavalidelectiontofileMichiganBusinessTax(MBT),itisnotobligatedtoremitFTW on behalf of its members. However, if FTW paymentsweremadeonbehalfofanyCITtaxpayer,itmustcompletethisformtoreceivecreditfortheFTWpaymentsonitsCITreturn.

An FTE isanentitythat,fortheapplicabletaxyear,istreatedas a subchapter S Corporation under section 1362(a) of theinternalrevenuecode,ageneralpartnership,a trust,a limitedpartnership,alimitedliabilitypartnership,oralimitedliabilitycompany that is not taxed as a C Corporation for federalincometaxpurposes.

Column-by-Column InstructionsName and Account Number: Enter the name and FederalEmployer Identification Number (FEIN) of the taxpayer asreported on page 1 of the Michigan Corporate Income Tax Annual Return (Form 4891), Insurance Company Annual Return for Corporate Income and Retaliatory Taxes (Form4905), Corporate Income Tax Annual Return for Financial Institutions(Form4908),orapplicableamendedreturn.

UBGs: Complete a separate form for each UBGmember onwhosebehalfanyFTWpaymentsweremade.Enter theFEINand name of the Designated Member in the Taxpayer NameandFEINfieldsandthemember’snameandFEINtowhomthescheduleappliesonthelinebelow.

Columns A and B: Identify each FTE that remitted FTWpayments on behalf of the taxpayer filing this form by nameandFEIN.

Column D: Enter the unapportioned distributive share oftaxable income received from the FTE as it is listed on thenoticeofwithholdingprovidedbytheFTE.

Column E: Enter the FTW paymentsmade on behalf of thetaxpayer by the FTE as it is listed on the notice provided tothe taxpayer by the FTE. Included on this column would beFTWpaymentsmadebyflow-throughentitieswhosetaxyearsended with or within the tax year of the taxpayer filing thisform. For example, a 2014 calendar year filer would includeFTWpaymentsmadebyanFTEwhose taxyear endedonorafterJanuary1,2014,andonorbeforeDecember31,2014.Theamount listed here should match the amount of withholdingreportedtothetaxpayerbytheFTE.

Thecombinedamountenteredinthiscolumnshouldbeenteredon line 46 of Form 4891 if this form is filed by a standardtaxpayer; line44ofForm4905if thisformisfilledoutbyaninsurance company; or line 25 of Form 4908 if this form isfilledoutbyafinancialinstitution.

UBG NOTE:The totalofcolumnE foreachmember shouldbecarriedtoForm4897,line38,forthatmember.

FINANCIAL UBG NOTE: The total of column E for eachmember should be carried to Form 4910, line 27, for thatmember.

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Important InformationAn extension of time to file is not an extension of time to pay. ReadtheLine-by-LineInstructionsbeforecompletingForm4. Theformandpaymentmustbepostmarkedonorbeforetheoriginalduedateofthereturn.NOTE: Do not use this form for City of Detroit extensions. UseForm5209forindividualcityfilingextensionsorForm5301forcitycorporateextensions.Income Tax (Individual, Composite and Fiduciary)FileForm4oracopyofyourfederalextension.Anextensionoftimeto file the federal return automatically extends the time to file theMichiganreturntothenewfederalduedate.An extension of time to file is not an extension of time to pay.Ifyouhavenotbeengrantedafederalextension,theMichiganDepartmentofTreasury(Treasury)willgranta180-dayextension for Individual IncomeTax(IIT)andcompositereturns,ora165-dayextensionforfiduciaryreturns.• Donotfile this form if a refund is expectedor ifyouarenot

submittingpaymentwiththisform.• If,atthetimetheextensionisfiled,itisdeterminedadditional

Michigan tax is due, send the amount due and a completedForm 4 or a copy of your federal extension form. If filingForm4,donotsendacopyofthefederalextensiontoTreasury.Retain a copy for your records. Extension requests receivedwithoutpaymentwillbedenied.Latefilingpenaltyandinterestwillaccrueontheunpaidtaxfromtheoriginalduedateofthereturn.

• Payments made to date include withholding, estimated taxpayments,acreditforwardfromtheprevioustaxyear,andanyother payments previously made for this tax year. IIT filersshouldincludeanyMichiganwithholding.

CIT and MBTBusinesstaxfilersmustusethisformtorequestanextensionandmust file it even if the InternalRevenue Service has approved afederalextension.

• Ifthisformisproperlyprepared,meetingalllistedconditions,and filed timely, Treasury will grant you an extension to thelast day of the eighth month beyond the original due dateregardlessofwhetheryouaregrantedafederalextension.

• DonotsendacopyofthefederalextensiontoTreasury.Retainacopyforyourrecords.

• An extension of time to file is not an extension of time to pay. If there will be a business tax liability, payment mustbe included with this form and/or appropriate estimatedtax payments must have been made during the tax year,or the extension request will be denied.Latefilingpenaltyandinterestwillaccrueontheunpaidtaxfromtheoriginalduedateofthereturn.

NOTE: Public Act 38 of 2011 established the MichiganCorporate Income Tax (CIT). The CIT took effect January 1, 2012, and replaced theMichiganBusiness Tax (MBT),except for certain businesses that opt to continue claimingcertificated credits.Fiscal Filers of theCITorMBTmust consulteitherthe“SupplementalInstructionsforStandardFiscalCITFilers”section in theCIT Forms and Instructions for Standard Taxpayers (Form 4890) or the “Supplemental Instructions for StandardFiscal MBT Filers” section in the MBT Forms and Instructions for Standard Taxpayers (Form 4600), for additional details oncompletingForm4.NOTE:Business taxfilers shouldcheck thebox forCITorMBTbasedonthebusinesstaxtheyplantofile.However,thisformwillextend both business taxes for the 2016 tax year if it is properlyprepared,meetsalllistedconditions,andisfiledtimely.ThisformdoesnotmaketheelectiontoremainundertheMBT.

Unitary Business Group (UBG)AUBGmustfile a combined return for its business taxes underthe name and Federal Employer Identification Number (FEIN)or Michigan Treasury (TR) assigned number of the DesignatedMember (DM) of the group. Only the DM may submit a validForm4fortheUBG.IfanyothermembersubmitsForm4,itwillnotextend the time forfiling thecombined return.AnypaymentincludedwithsucharequestwillbeappliedtotheUBG.IfaUBGincludesstandardmembersandfinancial institutions, itwillhavetwoDMsandfile twocombined returns. In that case, a separateextensionmustberequested(ifdesired)foreachcombinedreturn,throughtheDMdesignatedonthatreturn.Formoreinformation,see the “Supplemental Instructions for Standard Members inUBGs”sectioninForm4890orForm4600.

4 (Rev. 05-16)

Form 4, Instructions for Application for Extension of Time to File Michigan Tax Returns

# Detach here and mail with your payment. Do not fold or staple the application.Michigan Department of Treasury, Form 4 (Rev. 05-16) Issued under the authority of Public

Acts 281 of 1967, as amended and 36 of 2007.Application for Extension of Time to File Michigan Tax Returns

Make check payable to “State of Michigan.” Print “Michigan Extension” and last four digits of filer’s Social Security number or full account number on the check. Mail to: Michigan Department of Treasury, PO Box 30774, Lansing, MI 48909

1. Extension request is for the following tax 2. Month and Year Your Tax Year Ends (MM-YYYY) 3. Full Federal Employer Identification or TR No.

Check ONLY ONEFiduciary Tax*(includes Composite Filers)

Income Tax* (excludes Home Heating Credit) 4.

 5. Filer’s Full Social Security No. (9 digits)Check if extension is requested for good cause (see instructions).Michigan Business

TaxCorporate Income Tax

6. 7. Spouse’s Full Social Security No. (if filing jointly)Check if an extension was granted for

filer’s federal tax return.* Do not file this form if a refund will be shown on the return.

8. Business or Trust Name 9. Tentative Annual Tax

10. Filer’s Name (first name, middle initial, last name) or Fiduciary/Trustee Name 11. Total Payments Made to Date

12. Mailing Address (Address, City, State and ZIP Code) 13. Payment Amount

.00Do NoT WRITE IN ThIS SpACE

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Line-by-Line InstructionsLines not listed are explained on the form.

Line 1: File a separate application for each tax type. Checkthe boxnext to the appropriate tax. Iffiling aComposite IncomeTax return (for nonresident partners or shareholders), check the “FiduciaryTax”box.IfrequestinganIndividualIncomeTax(IIT)extension, note the extension does not apply to aHomeHeatingCreditClaimorCityofDetroitextensions.Line 2:Enterthemonthandyearyourtaxyearends,NOTthedateyouaremakingthepayment.FormostIITfilers,thisdateis12-2016.Fiscal year Filers (CIT): See the “Supplemental Instructions forStandard Fiscal CIT Filers” section in theCorporate Income Tax Forms and Instructions for a Standard Taxpayer(Form4890).Lines 3, 5, and 7: CIT,MBT,Fiduciary,andCompositefilers,enteryour FEIN or TR number on line3. IIT filers only, enter your full SocialSecuritynumber(9digits)online5(andline7iffilingjointly).Line 4: Filers who have not been granted a federal extensionmay request an extension for good cause. Examples of goodcause include,butarenot limited to: (a) taxpayer’s initial return,(b)taxpayer’sfinalreturn,(c)achangeinaccountingperiod,and(d) taxpayer’s books and records are not available or complete.

notE:The inability to pay a tax due is not good cause.Line 6: Check the box if you have been granted a federalextension.Retaina copyofyour federal extension foryourfiles.Bycheckingtheboxonline6,youareaffirmingthatyouhaveafederalextensioninyourpossession.Youmustbeabletoproduceacopyforverification,ifrequested.Lines 8 and 10: If applicable, these lines must both becompletedtoavoiddelaysinprocessing.Line 13: Entertheamountofyourextensionpayment.IIT Filers: This payment should be claimed, in addition to anyestimates or credit forward, on the corresponding line of your MI-1040.YoumaymakeyourIITextensionpaymentelectronicallyusing Michigan’s e-Payments service. Payment options includedirect debit (eCheck) from your checking or savings account, orpayment by credit or debit card.Visitwww.michigan.gov/iit formoreinformation.

Penalty and InterestIf the tax due is underestimated and sufficient payment is notpaidwiththeapplicationforextension,interestwillbedueontheunpaidorunderpaidamount.The interest rate is 1 percent above the adjusted prime rate and is

Computation and Payment of Tax DueEstimatetaxliabilityfortheyearandpayanyunpaidportionoftheestimatewiththeapplicationforextension.

A. Taxbeforecredits............................................................................................................. A.B. Credits(ifany)................................................................................................................. B.C. Totalannualtaxliability.SubtractlineBfromlineA.

EnterhereandcarrytoForm4,line9............................................................................. C.D. Paymentsmadetodate.EnterhereandcarrytoForm4,line11*................................. D.E. Estimatedbalancedue.SubtractlineDfromlineC........................................................ E.F. AmountpaidwithForm4.EnterhereandcarrytoForm4,line13............................... F.

*Paymentsmadetodateincludewithholding,estimatedtaxpayments,acreditforwardfromtheprevioustaxyear,andanyotherpaymentspreviouslymadeforthistaxyear.

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2016 Supplemental Instructions for Standard Members in Unitary Business Groups (UBGs)

NOTE: These instructions for Unitary Business Groups(UBGs) are meant to supplement general instructions andform-specific instructions for standard taxpayers of theCorporateIncomeTax(CIT),nottoreplacethem.

StandardtaxpayersandstandardmembersrefertoalltaxpayersorUBGmembers,respectively,otherthanfinancialinstitutionsor insurance companies. Financial institutions that aremembersofaUBGshouldsee“SupplementalInstructionsforFinancialInstitutionMembersinUBGs”intheCIT Forms and Instructions for Financial Institutions(Form4907).

There is not a corresponding supplement for insurancecompaniesbecause,althoughtheycanbemembersofaUBG,theydonotfilecombinedreturns.

Introductory pages of this CIT instruction booklet containgeneral information designed to assist in identifyingthe existence and membership of a UBG. The followinginstructionsaddress:

• FilingcombinedreturnsbydifferentmembertypeswithinaUBG.• UnderstandingtheroleoftheDesignatedMember(DM).• For each type of UBG member that is reported on acombined return (standard andfinancial institution), there arerequiredformsthatcollectdatanecessaryforpreparationofacombinedreturn:

○ The CIT Unitary Business Group Affiliates Excluded from the Return of a Standard Taxpayer(Form4896)andCIT Data on Unitary Business Group Members (Form4897) support acombined returnof standardmembers tobefiledontheCIT Annual Return(Form4891).

○ The CIT Unitary Business Group Combined Filing Schedule for Financial Institutions (Form 4910) supportsa combined return of financial institutionmembers to befiledon theCIT Annual Return for Financial Institutions (Form4908).

Guidance that is specific toonlyone form iscontained in theinstructions for that form, in sections titled either “SpecialInstructionsforUnitaryBusinessGroups”orsimply“UBGs.”With the exception of a section providing supplementalinstructions for the Corporate Income Tax Loss Adjustment for the Small Business Alternative Credit (Form 4895), thefollowingareinstructionsthatapplytomorethanoneform.

Special Instructions and the Designated MemberSpecial Instructions for the Annual ReturnBydefinition,aUBGcanincludestandardmembers,insurancecompanies, and financial institutions. However, in somecases not all members of the UBG will be included on thesame return. All standard members in a UBG (except thoseownedbyandunitarywithafinancial institution)fileasinglecombinedreturnonForm4891.Financial institutionmembersof a UBG (and any standard member owned by and unitarywithafinancialinstitutioninthegroup)fileacombinedreturnon Form 4908. Insurance companymembers of a UBG eachfileseparatelyonForm4905.

Before completing a combined return, UBGs should firstcomplete Forms 4896 and 4897 or Form 4910. These formsare used to gather data from each member included inthe combined filing schedule and eliminate intercompanytransactions where applicable, to support the primary return.Insurance companies that are part of a UBG will each filea separate Form 4905, but should be listed as an excludedaffiliatewithanincompatible taxbaseonForm4896orForm4910,asapplicable,iftheyareunitarywithastandardtaxpayerorafinancialinstitution.

The Designated Member (DM)AUBG combined return of standardmembers is filed underthenameandFederalEmployerIdentificationNumber(FEIN)or Michigan Treasury (TR) assigned number of the DM ofthe standard member group. Designated Member means aUBGmember that has nexuswithMichigan andwill file thecombined CIT return on behalf of the standard members ofthe group. In a brother-sister controlled group, any memberwith nexus may be designated to serve as DM. In a parent-subsidiarycontrolledgrouporacombinedcontrolledgroup(aninterlocking combination of a parent-subsidiary group and abrother-sistergroup),thecontrollingmembermustserveasDMif it has nexuswithMichigan. If it does not have nexus, thecontrollingmembermayappointanymemberwithnexuswithMichigantoserveasDM.ThatDMmustcontinuetoserveassucheveryyear,unless itceases tobeagroupmemberor thecontrollingmemberattainsMichigannexus.ThefilingperiodofacombinedreturnisbasedonthetaxyearoftheDM.

IfaUBGiscomprisedofbothstandardmembersandfinancialinstitutions,theUBGwillhavetwoDMs(oneforthestandard

adjustedonJanuary1andJuly1.Interestischargedfromtheoriginalduedateofthereturntothedatethebalanceofthetaxispaid.Anyoneofthefollowingpenaltiesmayalsoapplytotheunpaidtax:• Theinitialpenaltyis5percentoftaxdue.Penaltyincreasesby

anadditional5percentpermonthorfractionthereof,afterthesecondmonth,toamaximumof25percentforfailuretopay;

• 10percentfornegligence;• 25percentforintentionaldisregardofthelaw.

When You have FinishedDetachForm4fromtheinstructionsandmailtotheaddressontheform.CITandMBTfilersthatsubmitaproperlycompletedrequestwill receive a written response at the legal address on file withTreasury.IITandFiduciaryTaxfilerswillnotreceivearesponse.IIT FilersIf you choose to make your extension payment electronically, you do not need to mail Form 4 to Treasury.

96

members completing Form 4891 and related forms, and onefor the financial institution members completing Form 4908and related forms). If the standardmembers are owned by afinancialinstitution,theywillfileonthefinancialUBGreturn,Form4910.

Role of the DM:TheDMspeaks,acts,andfilestheCITreturnon behalf of the group for CIT purposes. Only the DMmayfileavalidextensionrequestforthegroup.Treasurymaintainsthe group’s CIT data (e.g., prior CIT returns, business losscarryforward, overpayment credit forward) under the DM’snameandaccountnumber.Thedesignatedmembermustbeofthesametaxpayertype(standardorfinancialinstitution)asthemembersforwhichitfilesacombinedreturn.

Special Instructions for Supporting FormsMostformsarecompletedbyUBGsonagroupbasis.However,the following three forms must be completed with entity-specificdata,ratherthangroupwidedata:

• CIT Schedule of Shareholders and Officers(Form4894)• CIT Loss Adjustment for the Small Business Alternative Credit (Form4895). (In some circumstances, a separate copyofForm4895alsoiscompletedwithgroupwidedata.)• CIT Data on UBG Members(Form4897).

If more than one member completes one of these forms,multiple copies of that formmust be included in the group’scombinedreturn.

CIT Small Business Alternative Credit (Form 4893): For the Small Business Alternative Credit, the criteria toqualifyforthecreditshouldbeappliedonagroupbasis.Theadjusted business income disqualifier is calculated at thegroup level after intercompany eliminations. The allocatedincomedisqualifierisbasedonallitemspaidorallocabletoashareholder or officer by allmembers of theUBG.All itemspaid or allocable to a single individual frommembers of theUBG must be combined when calculating this disqualifier.ThisisachangefromthecomparablecalculationunderMBT.Inaddition,adisqualifierapplies toaUBGat thegroup levelif such disqualifier applies to any member of the UBG. Thereduction percentages for the credit also apply to the entiregroup if they apply to any one member of the group. If thequalification is satisfied, thecalculationof theavailablecreditamountshouldalsobeonagroupbasis.Thecalculationofthecredit should alsobedone after eliminationsof intercompanytransactions. The available amount of the Small BusinessAlternative TaxCredit is taken against the entire group’s taxliability. Additional UBG instructions are provided on formswheretheSmallBusinessAlternativeCreditiscalculated.

If the UBG is comprised of both standard members andfinancial institutions, two copies of supporting formswill becompleted (one group of supporting forms for the standardmembers’annualreturnandonegroupofsupportingformsforthefinancialinstitutions’annualreturn).

Effects of Members Joining a GroupWhenanentitybecomesamemberofaUBGpartwaythroughthemember’staxyear,forCITpurposesthenewmemberwillexperienceashorttaxyearbeginningonthedatethemember

joins the group, even if it does not have a short period forfederalpurposes.

For both the UBG return and the new member’s separateshort period return, tax baseswill be calculated using actualnumbersfromtheapplicableshortperiodofthenewmember.

If a member that is new to the group brings with it acarryforwardofabusinessloss,combinethatamountwithanycarryforwardofbusinesslossthatwasgeneratedbythegroupor brought to the group by anothermember. The groupmustthen use the oldest available business loss carryforward first,regardlessofsource.Iftwomemberseachcreated(orbrought)a business loss carryforward of the same age, and togetherthose exceed the amount allowable in this filing period afteruseofoldercarryforwards,thosemembers’respectivebusinessloss carryforwards are used in proportion to the amount theycreatedfor,orbroughtto,thegroup.

Effects of Members Leaving a GroupWhen a member of a UBG ceases to be a member partway through the member’s tax year, for CIT purposes thedepartingmemberwill experience a short taxyear endingonthedeparturedate, even if it doesnothavea shortperiod forfederalpurposes.

ForboththeUBGreturnandthedepartingmember’sseparateshort period return, tax baseswill be calculated using actualnumbers from the applicable short period of the departingmember.

Inmostcases,whenamember leaves thegroup,anybusinessloss carryforward of the unitary business group is dividedamongtheunitarybusinessgroupandthedepartingmembersinproportiontothelossesthememberswouldhavegeneratedhadeachmemberfiledseparately. Specifically, theportionofthe business loss carryforward of a taxpayer that is a unitarybusiness group attributable to a departing member is anamountequal to thebusiness losscarryforwardof theunitarybusinessgroupmultipliedbyafraction,thenumeratorofwhichis what would have been the business loss of that memberhad thatmemberfileda separate return, and thedenominatorof which is the sum of what would have been the separatebusinesslossesofallmembersofthegroupinthatyearhavingbusinesslossesifthosemembersfiledseparatereturns.

Other UBG-Related IssuesAn affiliated person that is excluded from membership in aUBGbecauseitisaforeignperson,whichhasnexusandmeetstheapplicablefilingthreshold,mustfileaseparateCITreturn.

Further Guidance on UBGsFor information on CIT issues, see the TreasuryWeb site atwww.michigan.gov/treasury/. Treasury posts updates to theCorporate Income Tax page and via Revenue AdministrativeBulletin(RAB).

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98

Country Codes

Countries are identifiedby two-letter codes–CountryCodes–which are requiredon someCorporate IncomeTax (CIT) forms,includingtheannualreturns.Thefollowingisalistofcountriesandtheircodes.

AF AfghanistanAX Åland IslandsAL AlbaniaDZ AlgeriaAS American SamoaAD AndorraAO AngolaAI AnguillaAQ AntarcticaAG Antigua & BarbudaAR ArgentinaAM ArmeniaAW ArubaAU AustraliaAT AustriaAZ AzerbaijanBS BahamasBH BahrainBD BangladeshBB BarbadosBY BelarusBE BelgiumBZ BelizeBJ BeninBM BermudaBT BhutanBO BoliviaBA Bosnia, HerzegovinaBW BotswanaBV Bouvet IslandBR BrazilIO Brit. Ind. Ocean Terr.BN Brunei DarussalamBG BulgariaBF Burkina FasoBI BurundiKH CambodiaCM CameroonCA CanadaCV Cape VerdeKY Cayman IslandsCF Cent. African Repub.TD ChadCL ChileCN ChinaCX Christmas IslandCC Cocos IslandsCO ColombiaKM ComorosCG Congo

CK Cook IslandsCR Costa RicaCI Côte D’ivoireHR CroatiaCU CubaCY CyprusCZ Czech RepublicCD Dem. Rep. of CongoDK DenmarkDJ DjiboutiDM DominicaDO Dominican RepublicEC EcuadorEG EgyptSV El SalvadorGQ Equatorial GuineaER EritreaEE EstoniaET EthiopiaFK Falkland IslandsFO Faroe IslandsFJ FijiFI FinlandFR FranceGF French GuianaPF French PolynesiaTF Fr. Southern Terr.GA GabonGM GambiaGE GeorgiaDE GermanyGH GhanaGI GibraltarGR GreeceGL GreenlandGD GrenadaGP GuadeloupeGU GuamGT GuatemalaGG GuernseyGN GuineaGW Guinea-BissauGY GuyanaHT HaitiHM Heard, McDonald Isl.VA Holy See (Vatican)HN HondurasHK Hong KongHU HungaryIS Iceland

IN IndiaID IndonesiaIR IranIQ IraqIE IrelandIM Isle Of ManIL IsraelIT ItalyJM JamaicaJP JapanJE JerseyJO JordanKZ KazakhstanKE KenyaKI KiribatiKW KuwaitKG KyrgyzstanLA LaosLV LatviaLB LebanonLS LesothoLR LiberiaLY LibyaLI LiechtensteinLT LithuaniaLU LuxembourgMO MacaoMK MacedoniaMG MadagascarMW MalawiMY MalaysiaMV MaldivesML MaliMT MaltaMH Marshall IslandsMQ MartiniqueMR MauritaniaMU MauritiusYT MayotteMX MexicoFM MicronesiaMD MoldovaMC MonacoMN MongoliaME MontenegroMS MontserratMA MoroccoMZ MozambiqueMM MyanmarNA Namibia

NR NauruNP NepalNL NetherlandsAN Netherlands AntillesNC New CaledoniaNZ New ZealandNI NicaraguaNE NigerNG NigeriaNU NiueNF Norfolk IslandKP North KoreaMP N. Mariana IslandsNO NorwayOM OmanPK PakistanPW PalauPS Palestinian Occ. Terr.PA PanamaPG Papua New GuineaPY ParaguayPE PeruPH PhilippinesPN PitcairnPL PolandPT PortugalPR Puerto RicoQA QatarRE RéunionRO RomaniaRU Russian FederationRW RwandaBL St. BarthélemySH St. HelenaKN St. Kitts & NevisLC St. LuciaMF St. MartinPM St. Pierre & MiquelonVC St. Vincent, Grenad.WS SamoaSM San MarinoST Sao Tome & PrincipeSA Saudi ArabiaSN SenegalRS SerbiaSC SeychellesSL Sierra LeoneSG SingaporeSK SlovakiaSI Slovenia

SB Solomon IslandsSO SomaliaZA South AfricaGS S. Georgia, SandwichKR South KoreaES SpainLK Sri LankaSD SudanSR SurinameSJ Svalbard, Jan MayenSZ SwazilandSE SwedenCH SwitzerlandSY Syrian Arab RepublicTW TaiwanTJ TajikistanTZ TanzaniaTH ThailandTL Timor-LesteTG TogoTK TokelauTO TongaTT Trinidad & TobagoTN TunisiaTR TurkeyTM TurkmenistanTC Turks & CaicosTV TuvaluUG UgandaUA UkraineAE United Arab Emir.GB United KingdomUS United StatesUM U.S. Minor Out. Isl.UY UruguayUZ UzbekistanVU VanuatuVE VenezuelaVN VietnamVG Virgin Islands, BritishVI Virgin Islands, U.S.WF Wallis & FutunaEH Western SaharaYE YemenZM ZambiaZW Zimbabwe

XX Countries-Other