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

FILING DUE DATE: CALENDAR FILERS — APRIL 30, 2019

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/ TA X E S

Michigan Department of Treasury — 4600 (Rev. 12-18)

E-filingyourreturniseasy,fast,andsecure!

VisitTreasury’sWebsiteatwww.MIfastfile.orgforalistofe-fileresourcesandhowtofindane-fileprovider.

W W W. M I FA S T F I L E .O R G

2018 MICHIGAN Business Tax

(MBT)STANDARD TAXPAYERS

This booklet contains information on completing a Michigan Business Tax

return for calendar year 2018 or a f iscal year ending in 2019.

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Michigan Business Tax (MBT) Election Only those taxpayers that have been approved to receive,have received, or have been assigned a certificated creditthathasnotyetfullybeenclaimedorutilizedmayelect tobeMBTtaxpayers. Ifa taxpayerfilesanMBTreturnfor itsfirsttax year beginning after December 31, 2011, the taxpayermakes the election to file and pay under the MBT until thecertificated credit and any carryforward of that credit areexhausted.Exceptfortaxpayerswithcertainqualifyinghistoricpreservation, brownfield redevelopment, or farmland credits,theelectionmustbemadeforthefirsttaxyearbeginningafterDecember31,2011.Oncetheelectionismadeandthereturnissubmitted,thetaxpayermaynotamendthereturntorevoketheelection.IfthetaxpayerisnotsubjecttotheCorporateIncomeTax (CIT) and does not have a certificated credit or does notelecttoremainundertheMBTelection,thattaxpayerwillnothaveabusiness tax liability for theperiodsbeginningonandafter January 1, 2012. Find a list of certificated credits in theGeneralInformationforStandardTaxpayersintheMBT Forms and Instructions for Standard Taxpayers(Form4600).

Helpful Hints for Completing an MBT ReturnMBT Annual Return (Form 4567)Thedefinitionofgrossreceiptsisnotthesameasthedefinitionof sales. Refer to MCL 208.1111 for the definition of grossreceiptsandMCL208.1115forthedefinitionofsales.Taxpayers claiming the deduction for contractors must bepersons included in SIC codes 15, 16, or 17 and the entityclaiming the deduction does not claim the SBAC. Refer tohttp://osha.gov/pls/imis/sic_manual.htmlforamorecompletelistofSICcodes.Thestaffingcompanydeductionisallowedforthosetaxpayerswhose business activities are included in Industry Group736 under the SIC Code. This deduction is not available forprofessional employer organizations (PEOs); only StaffingCompanies are eligible for the deduction. PEOs get anadjustmentincalculatingtheir“grossreceipts.”“Net Earnings from Self Employment” for purposes of thebusiness income tax base deduction, is the amount properlyreported on a schedule K-1 Form 1065 as self-employmentearningsforfederalincometaxpurposesforthetaxyear.WhenfilingareturnforaUnitaryBusinessGroup(UBG),onlyoneForm4567isrequiredfortheentiregroup.Separateentityinformation will be includedwith theUBG Combined Filing Schedule for Standard Members,Form4580.MBT Credits for Compensation, Investment, and Research and Development (Form 4570)WhenfillingoutForm4570toclaimtheITCCredit,makesuretoincludethedescription,location,anddateacquiredforeachassetlisted.Useadditionalsheetsifnecessary;“See Attached” is not acceptable.

MBT Schedule of Shareholders and Officers (Form 4577) and MBT Schedule of Partners (Form 4578)When claiming the Small Business Alternative Credit, Form

4577 or 4578 (whichever is applicable) is required to beincludedforanytaxpayerthatisnotanIndividual/Fiduciary.

AUBG that is claiming anSBAC is required to attachForm4577or4578,whicheverisapplicable,foreachmemberthatisnotanIndividual/Fiduciary.

MBT UBG Combined Filing Schedule for Standard Members (Form 4580)MembersofaUBGwillreporttheirdataonForm4580.Onceallmemberdata is combined and eliminations are calculated,thesefinalfigureswillcarrytoForm4567.AllcreditsclaimedonForm4580mustbesupportedby theapplicable formsandtheseformsmustbeincludedwhenfilingthereturn.

UBG members may have different tax year-ends. Thecombined return must include each member whose tax yearendswithorwithinthetaxyearofthedesignatedmember.

Estimates/Extensions• All estimated payments, extension payments, and tax

returnsmustbefiledunderthenameandaccountnumberoftheUBG’sdesignatedmember.

• If making estimated or extension payments by EFT, theassociatedvouchersarenotrequiredtobesubmitted.

Amended ReturnsNOTE: A taxpayer may not amend to revoke the electionto remain taxable under theMBT. Once the taxpayer makesa valid election to claim a certificated credit, the taxpayermust remain in theMBTuntil the certificated credit and anycarryforward of that credit are exhausted. Most certificatedcreditsmustbeclaimedforthetaxpayer’sfirsttaxyearendingafterDecember31,2011.

If amending the 2013 tax year, completeMBT Annual Return (Form 4567) and check the “Amended” box in the upper-rightcorner of the return, and attach a separate sheet explainingthe reason for the changes. Include an amended federal returnor a signed and dated Internal Revenue Service (IRS) auditdocument.Includeallschedulesandformsfiledwiththeoriginalreturn, even if not amending that schedule or form. Do notincludeacopyoftheoriginalreturnwithyouramendedreturn.

NOTE: TheMBT Simplified Return (Form4583) isno longeravailable. To amend a return for the 2013 tax year using thesimplified method, complete Form 4567 using the simplifiedinstructions included in the “General Information” section ofForm 4600 and check the “Amended” box in the upper-rightcornerofthereturn.

Toamendanannualreturnfor years prior to 2012,completeeithertheMBT Annual Return(Form4567)orMBT Simplified Return (Form4583) that is applicable for that year, check the“Amended” box in the upper-right corner of the return, andattachtherequireddocuments.

Accelerated CreditsAtaxpayerwithacertificatedcreditundersection435(Historic)or437(Brownfield)oftheMichiganBusinessTaxAct(MBTA),oranyunusedcarryforwardofsuchcertificatedcreditthatmay

Important Information for 2018 — Michigan Business Tax, Standard Taxpayer

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be claimed in a taxyear ending afterDecember 31, 2011,mayelect to pay the tax imposed by theMBTA in the tax year inwhichthatcertificatedcreditmaybeclaimedinlieuoftheCIT.If a personwith a certificated credit under section 435 or 437that elects topay theMBT is amemberof aUnitaryBusinessGroup(UBG),theDesignatedMemberoftheUBG,andnotthemember, shallfileaUBGreturnandpay the tax, ifany,undertheMBTAandclaimthatcertificatedcredit.

For a tax year beginning after December 31, 2011, if acertificateofcompletion,assignmentcertificate,orcomponentcompletioncertificateisissuedundersection437toataxpayer,or if a certificate of completed rehabilitation, assignmentcertificate, or reassignment certificate is issued under section435 to a taxpayer, beginning on and after January 1, 2012,the taxpayermay elect to claim an accelerated refund for 90percentoftheamountofthatcertificate.

Ifsection437or435providesthatpaymentofacreditwillbemadeover aperiodofyearsor limits theannual amountof a

payment, an accelerated refund may only be claimed for theamountpayableintheyearclaimed.

However, a taxpayer claiming the Special ConsiderationHistoricPreservationCreditundersection435(20)mayelecttoclaim an accelerated refund for the balance of the credit, butthe amount of that refund shall be equal to 86 percent of theamountofthecredit.

For more details, see the Request for Reduced Refundable Credit Payout for the Brownfield Redevelopment Credit and Historic Preservation Credit(Form4889).MichiganTaxFormsare online atwww.michigan.gov/taxes. An accelerated creditrefundwillbepaidwithin60daysafterForm4889isfiled.

IfataxpayerfilesForm4889andclaimsanacceleratedcredit,thetaxpayermakestheelectiontofileandpayundertheMBTuntilthecertificatedcreditandanycarryforwardofthatcreditare exhausted. A taxpayer claiming an accelerated credit onForm4889mustalsofileanannualMBTreturn.

Who Files a Standard Return?Only those taxpayers with a certificated credit, which isawardedbutnotyet fullyclaimedorutilized,mayelect tobeMBTtaxpayers. Ifa taxpayerfilesanMBTreturnandclaimsa certificated credit, the taxpayer makes the election to fileand pay under theMBT until the certificated credit and anycarryforwardofthatcreditareexhausted.Oncetheelectionismadeandthereturnissubmitted,thetaxpayermaynotamendthereturntorevoketheelection.Formostcertificatedcredits,the electionmust have beenmade for the taxpayer’s first taxyearendingafterDecember31,2011.

Insurance companies andfinancial institutionswill calculatetax liabilityusingspecialized taxbasesand rules,whicharecovered in separate booklets (see the Insurance Company Annual Return for Michigan Business and Retaliatory Taxes (Form 4588) and Annual Return for Financial Institutions (Form4590),respectively).Apersonthatwouldbeastandardtaxpayer if viewed separately is defined and taxed as afinancialinstitutionifitisowned,directlyorindirectly,byafinancialinstitutionandisunitarywiththatowner.

Using This BookletThis MBT booklet includes forms and instructions for all“standard taxpayers” (all filers except insurance companiesand financial institutions). These forms are designated for 2013calendaryearfilers,andfiscalfilerswithtaxyearsendingin2014.

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

Overview of MBT for Standard TaxpayersMBT imposes both a Modified Gross Receipts Tax anda Business Income Tax on all standard taxpayers withapportioned or allocated gross receipts (annualized, ifapplicable)equalto$350,000ormore,where:• TheModifiedGrossReceiptsTaxrateis0.8percent,and• TheBusinessIncomeTaxrateis4.95percent.Thestatutethenofferscreditsthatreducetheinitialcalculationof tax. This includes a limited allowance of Single BusinessTax(SBT)creditcarryforwards.

The Modified Gross Receipts Tax base consists ofgross receipts less purchases from other firms and othersubtractions.Gross receiptsaredefinedas theentireamountreceivedbyataxpayerfromanyactivitycarriedonfordirector indirect gain, benefit, or advantage to the taxpayer or toothers,withcertainspecificexceptions. (See the instructionsfor the MBT Annual Return (Form 4567) for additionalguidance.)

Formosttaxpayers,theBusinessIncomeTaxbaseisthatpartoffederal taxable income (as defined forMBT purposes) derivedfrombusinessactivity,withcertainadditionsandsubtractions.

Required Corporate Income Tax ComparisonMBTliabilityiscalculatedasthehigherofMBTorhypotheticalCITliabilityunderthecertificatedcreditelection.Ifbothtaxesresultinarefund,thetaxpayermusttakethelesserrefund.

Taxpayers calculate theirbusiness incomeandmodifiedgrossreceipts taxbases, andMBT tax liability applying all credits,deductions, and exemptions available under the MBT act.

2018 General Information for Standard Taxpayers Insurance Companies and Financial Institutions: See the Michigan Business Tax (MBT) Instruction Booklet for Insurance Companies (Form 4592) or the MBT Instruction Booklet for Financial Institutions (Form 4599) at www.michigan.gov/taxes.

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

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Filing MBT/CIT Quarterly Tax Estimates for 2019If 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.

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.

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)EFTUnitat517-636-6925foralternatepaymentmethods.

Theestimatedpaymentmadewitheachquarterly returnmustbecomputedontheactualMBTforthequarter,or25percentoftheestimatedtotalliabilityifpayinganMBTliability.

Toavoidinterestandpenaltycharges,estimatedpaymentsmustequal at least 85 percent of the total liability for the tax yearand the amount of each estimated payment must reasonablyapproximate the tax liability for thatquarter. If theprioryear’stax under theMBTAct is $20,000 or less, estimated taxmaybebasedontheprioryear’stotaltaxliabilitypaidinfourequalinstallments.(“Fourequalinstallments”describestheminimumpaceofpayments thatwill satisfy thissafeharbor.) If theprioryear’staxliabilitywasreportedforaperiodlessthan12months,thisamountmustbeannualizedforpurposesofboththe$20,000ceiling and calculating the quarterly payments due under thismethod.Paymentsatamoreacceleratedpacealsowillqualify.Iftheyear’staxliabilityis$800orless,estimatesarenotrequired.

NOTE: For those continuing to file MBT, reliance on thetax liabilityof theprioryearasameans toavoid interestandpenaltychargesisonlyallowedifyouhadbusinessactivityinMichiganinthatprioryear.Areturnmustbefiledtoestablishthetaxliabilityforthatprioryear,evenifgrossreceiptsintheprioryearwerelessthan$350,000.Inaddition,ifyourbusinesswas not in existence in the preceding year, no safe harborexists. In such a case, estimates must be based on theMBTliability for the current year. For thosefilingCIT, there is nosafeharborinthisfirstyearofCITfiling.Theestimatesmustequalatleast85percentofthetotalliabilityasstatedabove.

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

Then, as if they were subject to the CIT, taxpayers calculatetheir business income tax base, andCIT liability applying allcreditsanddeductionsavailableundertheIncomeTaxAct.ThehypotheticalCIT liability is then reduced (not belowzero) bytheamountofcertificatednonrefundablecreditsusedtooffsetthe MBT liability. The hypothetical CIT liability is furtherreduced by the total amount of certificated refundable creditsclaimed under theMBT liability calculation, resulting in thetaxpayers’ final hypothetical CIT liability. Taxpayers’ finalMBTliabilityconsistsofthehigherofthecalculatedMBTandhypotheticalCITliabilities.IfbothMBTandhypotheticalCITliabilitiesresultintaxrefunds(negativeliability),taxpayersareentitledtothelowerrefundamount.

Specific forms are provided to perform the MBT to CITcomparison and determine the tax liability or refund. TheMichigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer (Form 4946) is used for thestandard taxpayer comparison. The Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Insurance Filer(Form4974)isusedfortheinsurancecompany’scomparison. TheMichigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Financial Filer (Form4975)isusedforthefinancialinstitution’scomparison.

Certificated CreditsCertificatedcreditsarethoselistedatMCL208.1107.

Nonrefundable Certificated Credits• RenaissanceZoneCredit(Forms4595and4573)• HistoricPreservationCredit(Forms4573and4584)• MEGAFederalContractCredit(Forms4584and4573)• BrownfieldRedevelopmentCredit(Forms4584and4573)• FilmInfrastructureCredit(Form4573)• MEGA Plug-In Traction Battery Manufacturing Credit

(Form4573)• AnchorCompanyPayrollCredit(Forms4584and4573)• Anchor Company Taxable Value Credit (Forms 4584 and

4573)• MEGAPoly-SiliconEnergy costCredit andMiscellaneous

MEGABatteryCredits(Forms4584and4573).

Certificated Refundable Credits• MEGAEmploymentTaxCredit(Form4574)• Hybrid Technology Research and Development Credit

(Form4574)• FarmlandPreservationCredit(Forms4594and4574)• MEGAFederalContractCredit(Forms4584and4574)• MEGAPhotovoltaicTechnologyCredit(Form4574)• FilmProductionCredit(Form4574)• AnchorCompanyPayrollCredit(Forms4584and4574)• Anchor Company Taxable Value Credit (Forms 4584 and

4574)• MEGAPoly-SiliconEnergy costCredit andMiscellaneous

MEGABatteryCredits(Forms4584and4574).

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Electronic Filing of MBT ReturnsMichigan has an enforced MBT e-file mandate. Softwaredevelopers producing MBT tax preparation software andcomputer-generated forms must support e-file for all eligibleMichiganformsthatareincludedintheirsoftwarepackage.AlleligibleMBT returnspreparedusing taxpreparation softwareorcomputer-generatedformsmustbee-filed.

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

Treasury will continue to accept certain Portable DocumentFormat(PDF)attachmentswithMBTe-filedreturns.Acurrentlist of defined attachments is available in the CIT “MichiganTaxPreparerHandbookforElectronicFilingPrograms,”whichis available on the Treasury Web site at www.MIfastfile.org by clicking on “Tax Preparer,” then “Corporate Income TaxHandbook” for the applicable tax year. Follow your softwareinstructionsforsubmittingattachmentswithane-filedreturn.

If the MBT return includes supporting documentation orattachmentsthatarenotonthepredefinedlistofattachments,thereturncanstillbee-filed.Followyoursoftwareinstructionsforincluding additional attachments. The tax preparer or taxpayershouldretainfilecopiesofalldocumentationorattachments.

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 FirstBeforepreparingMBTreturns,completeallfederaltaxforms.Theseformsmayinclude:

• Individuals,Partnerships,orFiduciaries—U.S.Form1040,1041, 1065 and related SchedulesC,C-EZ,D,E,K, 4797,and8825.

• Corporations—U.S.Form1120,1120-S,andSchedulesD,K,851,940,4562,4797,and8825.

• LimitedLiabilityCompanies(LLCs)—Federalformslistedabove,dependingonhowfederalreturnshavebeenfiled.

ReferencethesefederalformstocompleteForm4567.

Copiesofcertainpagesfromthesefederalformsmustalsobeattachedtotheannualreturnfiled.Seetheinstructionsfortheannualreturnforfurtherdetails.

Completing Michigan FormsTreasury captures the information from paper MBT returnsusing an Intelligent Character Recognition process. Ifcompleting a paper return, avoid unnecessary delays caused

bymanualprocessingbyfollowingtheguidelinesbelowsothereturnisprocessedquicklyandaccurately.

• 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]. Do not use a check mark[a].

• Leave lines/boxes blank if they do not apply or if theamountiszero,unlessotherwiseinstructed.

• Do not enter data in boxes filled with Xs.

• Do not write extra numbers, symbols, or notes on thereturn, 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 thefollowing 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 amountswith anegative signinfrontofthenumber(donotuseparentheses).Forexample,a loss in the amount of $22,459 should be reported as-22,459.

• Percentages should be carried out four digits to theright of the decimal point. Do not round percentages. Forexample, 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 an MBT Annual ReturnFirst,determinewhetherthetaxpayerhasacertificatedcredit.If the taxpayer does not have a certificated credit, itmay notfileMBTandmaybe subject to theCIT.Additionally, for allcertificatedcreditsother thanqualifying historicpreservation,brownfield redevelopment, or farmland credits, the taxpayermusthavemade theelection for itsfirst taxyearendingafterDecember31,2011,inordertocontinueundertheMBT.

If the taxpayer determines it is eligible andwishes to file anMBT return, then standard taxpayerswill use Form 4567. Itis available to all standard taxpayers, and allows for thecalculationofallcredits,includingcreditsthatcanbeclaimedonlybyusing this form.Tocalculategross receipts (Part1of

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the form) and business income (Part 2), useWorksheet 4700and theBusiness IncomeWorksheet (Worksheet 4746), basedonorganizationtypeofthetaxpayer.

ForataxpayerusingForm4567,firstcompletelines1through53 to calculate total liability before all credits. At that point,if any nonrefundable creditswill be claimed, begin theMBTNonrefundable Credits Summary (Form 4568), which servesseveralimportantfunctions:

• Actsasachecklistofnonrefundablecredits• Identifiestheorder inwhichnonrefundablecreditsmustbe

claimed• Identifies the form on which each nonrefundable credit is

calculated• Trackstaxliabilityasitisreducedbyeachcreditinproper

order• Identifies (whereapplicable) thepointatwhich tax liability

reaches zero and no further nonrefundable creditsmay beclaimedinthecurrentfilingperiod.

Complete Form4568 from top to bottom.For each credit thetaxpayer qualifies for, calculate the credit as identified on theappropriate form and bring the result back to the appropriatelineonForm4568.

After total nonrefundable credits are determined on Form4568,line40,carrythefiguretoForm4567,line54.Thelinesfollowing are straightforward, but take care to consider anyavailablerefundablecreditsonForm4567,Part4.

TheMBT Simplified Return(Form4583)isnolongerprovidedas the simplified return to calculate the Small BusinessAlternative Credit and the Gross Receipts Filing ThresholdCredit. Instead, the simplified calculation can be computedusingForm4567.Eligibilityrequirementstousethesimplifiedcalculation on Form 4567 are described below under theheading“EligibilityfortheSimplifiedCalculation.”

Eligibility for the Simplified Calculation

The simplified calculation for qualified standard taxpayerscanonlybecalculatedonForm4567. Standard taxpayersareeligibletousethesimplifiedcalculationifallof thefollowingrequirementsaremet:• Grossreceiptsdonotexceed$19,000,000.• Adjustedbusinessincomedoesnotexceed$1,440,400.• Adjusted business income does not exceed $160,000 for

IndividualsorFiduciaries.• FilerisnotaUnitaryBusinessGroup(UBG)ormemberof

aUBG.• Filer does not have to complete the MBT Schedule of

RecaptureofCertainBusinessTaxCreditsandDeductions(Form4587), and does not have net investmentTaxCreditrecapture from the MBT Credits for Compensation,Investment,andResearchandDevelopment(Form4570).

• Filerisnotapportioningbusinessactivity.• Nopartnerhasdistributive incomeofmore than$160,000.

Partnership must include the MBT Schedule of Partners(Form4578).

• No individual, shareholder, or officer has allocated incomeover$160,000.CorporationsmustincludetheMBTScheduleofShareholdersandOfficers(Form4577).(DoesnotapplytoIndividualsandFiduciariesfilingasIndividuals.)

• Filerisnotafiscalfiler.

NOTE: Taxpayers leasing employees from professionalemployer organizations must include the compensationof officers and shareholders (of the operating company)who receive compensation from the professional employerorganizations in determining the taxpayers’ eligibility forSmallBusinessAlternativeCredit.

NOTE: AmemberofaLimitedLiabilityCompany(LLC) ischaracterized forMBT purposes as a partner, shareholder, orownerbasedon the federal taxclassificationof theLLC. AnLLC taxed as a Partnership for federal purposes must fileas a Partnership for MBT. Similarly, an LLC taxed as a CCorporation or S Corporation for federal purposes must fileunderthatsamestatusforMBT.

Corporations: Allocated income in the case of a CCorporationiseither:

a) Shareholder or officer compensation and director feesfromForm4577,columnL,or

b)Shareholderorofficercompensation,directorfees,andshareofbusinessincomeorlossfromForm4577,columnN.

Ifeither (a)or (b) isgreater than$160,000, theCorporation isnoteligibletousethesimplifiedcalculation.

Allocated income for an S Corporation is shareholdercompensation, director fees, and share of business income orlossfromForm4577,columnN.

Tax Period Less Than 12 Months:Ifabusinessoperateslessthan 12 months, annualize gross receipts, business income,and all income of shareholders, officers, and partners todetermine the eligibility for the Small Business AlternativeCredit. Donotuseannualizednumberson the return,unlessrequested;usethemonlytodeterminefilingrequirementsandqualificationsforcredits.

Computing the Simplified Calculation on Form 4567

EligiblestandardtaxpayermayuseForm4567tocomputetheSimplifiedCalculationbyusingthefollowinginstructions:

• Complete lines 1 through 10 of Form 4567, leave line 11blank.

• Complete only lines 12 and 28, and leave blank lines 13through27,andlines29through50onForm4567.

• Complete Form 4577 if the taxpayer is either an SCorporationoraCCorporationandcompleteForm4578ifthetaxpayerisaPartnership.

• Complete lines 2 through 9 on Form 4571. Carry theamountfromline9toline14,line20,andline21onForm4571.Leaveblanklines10through13and15through19onForm4571.

• Completelines22through28onForm4571tocalculatetheGrossReceiptsFilingThresholdCredit.

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• Carrytheamountonline28ofForm4571toline9andline41ofForm4568.Carrythesameamounttoline55ofForm4567. This is the total tax after theGrossReceipts FilingThresholdCreditbasedontheSimplifiedCalculation.

• Leave line 56 blank, and complete lines 57 through 73 asapplicableonform4567.

Further General GuidanceForpurposesofMBT,personmeansanindividual,firm,bank,financial institution, insurance company, limited partnership,limited liability partnership, copartnership, partnership,joint venture, association, corporation, S Corporation, LLC,receiver, Estate, Trust, or any other group or combination ofgroupsactingasaunit.

A taxpayer includes a single person or aUBG liable for tax,interest,orpenalty.AUBGmustfileacombinedMBTreturn.(For a definition of UBG, and details on filing a combinedMBTreturn,see“UBGsandCombinedFiling”inthisGeneralInformation.)

Businesses reporting less than 12 months must annualizegross receipts to determine which forms to file, and theeligibility for a Small Business Alternative Credit. (See“Filing ifTaxYearIsLessThan12Months” in this“GeneralInformation”sectionformoreguidanceonannualization.)

Individual. If a person ownsmore than one business that isregistered as Individual (e.g., a convenience store and rentalproperty),fileoneMBTreturn.

A husband and wife who file their U.S. 1040 as “marriedfiling jointly” but own separate businesses,maintain separaterecords and file separate federal Schedule C forms, will fileseparateMBT returns if they do notmeet the definition of aUBG (as defined in “UBGs and Combined Filing” in this“GeneralInformation”section).

Limited Liability Company. An LLC is classified forMBTpurposes according to its federal tax classification. Thefollowing terms, whenever used inMBT forms, instructions,andstatute,includeLLCsasindicated:

Partnership includesanLLCfederally taxedasaPartnership,andamemberofthisLLCisapartner.

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

C Corporation includes an LLC federally taxed as a CCorporation, and a member of this LLC is a shareholder. Amemberorotherpersonperformingduties similar to thoseofanofficerinanincorporatedentityisan“officer”inthisLLC.

NOTE:Inthisbooklet,theterm“corporation,”usedwithoutaCorS,generallyreferstobothtypes.

Disregarded Entity. A person that is a disregarded entityfor federal income tax purposes under the internal revenuecode must file as a disregarded entity for MBT purposes.Thismeansthatadisregardedentityforfederaltaxpurposes,including a singlemember LLC or Q-Sub,must file as if itwere a sole proprietorship if owned by an individual, or abranchordivisionifownedbyanotherbusinessentity.

REMINDER: Partners and S Corporation shareholders(including LLC members treated as such) may have topay tax on their share of income from a Partnership or SCorporation. For a partner or SCorporation shareholderwhois an Individual, this shareofbusiness income is taxedundertheMichigan Individual Income Tax Act. For a partner or SCorporationshareholder that issubject toMBT(Individualorentity), this incomemust be included in theBusiness IncomeTaxbase, but then is subtracted (a losswill be added) on theMBT annual return filed for the partner or shareholder tothe extent that it was included in arriving at the partner’s orshareholder’sbusinessincome.

EXCEPTION: If this partner or shareholder does not have acertificated credit, the partner or shareholder is not permittedtofiletheMBT(unlessthepartnerorshareholderisamemberofaUBGthathaselected tofileMBT).However, thepartneror shareholder, if an Individual, may be subject toMichiganIndividualIncomeTax.

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”sectioninForm4600.

Determining the Existence and Membership of a UBGUnitary Business Group means a group of United Statespersons,otherthanaforeignoperatingentity,thatsatisfiesthecontroltestandrelationshiptest.

United States personisdefinedinInternalRevenueCode(IRC)§7701(a)(30).AforeignoperatingentityisdefinedbystatuteinMichiganCompiledLaws(MCL)208.1109(5).

Control Test. The control test is satisfied when one personowns or controls, directly or indirectly,more than 50 percentof the ownership interestwith voting or comparable rights ofthe other person or persons.A person owns or controlsmorethan 50 percent of the ownership interest with voting rightsor ownership interest that confer comparable rights to votingrightsofanotherpersonifthatpersonownsorcontrols:

Morethan50percentofthetotalcombinedvotingpowerofallownershipinterestswithvoting(orcomparable)rights,or

More than 50 percent of the total value of all ownershipinterestswithvoting(orcomparable)rights.

Relationship Tests. The definition of a Unitary BusinessGroup requires that the group of persons have businessactivitiesoroperationsthateither:

1)Resultinaflowofvaluebetweenoramongpersonsinthegroup,or

2) Are integrated with, dependent upon, or contribute toeachother.

A taxpayerneedonlymeetoneof the twoalternative tests tosatisfytherelationshiptest.

1) Flow of value is established when members of the group

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demonstrateoneormoreoffunctionalintegration,centralizedmanagement, and economiesof scale.Examplesof functionalintegration include common programs or systems and sharedinformationorproperty.Examplesofcentralizedmanagementinclude common management or directors, shared stafffunctions, and business decisions made for the UBG ratherthan separately by each member. Examples of economiesof scale include centralized business functions and pooledbenefitsorinsurance.Groupsthatcommonlyexhibitaflowofvalue include vertically or horizontally integrated businesses,conglomerates, parent companies with their wholly ownedsubsidiaries,andentities in thesamegeneral lineofbusiness.Flowofvaluemustbemorethanthemereflowoffundsarisingoutofpassiveinvestment.

2) The alternate “contribution/dependency” relationship testaskswhether business activities are integratedwith, dependentupon, or contributed to each other. Businesses are integratedwith, are dependent upon, or contribute to each other undermany of the same circumstances that establish flow of value.However, this alternate relationship test is also commonlysatisfiedwhen one entity finances the operations of another orwhenthereexistintercompanytransactions,includingfinancing.

Formore informationon thecontrol and relationship tests forUBGs, see Revenue Administrative Bulletin (RAB) 2010-1,MBT—UnitaryBusinessGroupControlTest,andRAB2010-2,MBT—Unitary Business Group Relationship Tests, on theTreasury Web site at www.michigan.gov/treasury/ under“ReportsandLegalResources.

Exemption Guidelines for MBTCertain exemptionsmay exist for those taxpayers electing toremainintheMBT.Theymayinclude:• Most persons who are exempt from federal income tax

undertheIRC• Nonprofitcooperativehousingcorporations• Foreign persons domiciled in a subnational jurisdiction that

doesnotimposeanincomeorotherbusinesstaxonasimilarlysituated person domiciled inMichigan. For purposes of thisprovision,foreignpersonisdefinedinMCL208.1207(8).

• If a taxpayer is exempt under either of the first two bulletsabove, but has unrelated business taxable income as definedintheIRC,thatbusinessactivityissubjecttotheMBTandareturn will be required if the apportioned or allocated grossreceipts are $350,000 or more from the unrelated businessactivity.

• Receipts from the production of agricultural goodsconstitute gross receipts for MBT purposes, including thegross receipts filing threshold of $350,000. Farmerswhoseprimary activity is the production of agricultural goodsmust combine the apportioned or allocated gross receiptsfromagriculturalactivityandanyotheractivitiesotherthanagricultural production to determine thefiling requirementbasedonthegrossreceiptsthreshold.MBTfilingisrequiredifthetotalcombinedallocatedorapportionedgrossreceiptsare over $350,000. Total combined gross receiptsmust beincludedinline12ofForm4567.Asubtractionfromgrossreceipts for the total gross receipts from the agriculturalactivityofapersonwhoseprimaryactivity(i.e.,morethan

50percentofgrossreceipts)istheproductionofagriculturalgoodsisallowedindeterminingmodifiedgrossreceiptsforthetaxbase.

Foreign persons that are not exempt from the MBT mustcalculate business income, gross receipts, the BusinessIncomeandModifiedGrossReceiptsTaxbases,and thesalesfactor differently than domestic taxpayers. Refer to MCL208.1207(4)-(8)fordetails.

Foracomplete listofexemptions,consultacopyof theMBTAct(PA36of2007,asamended)atwww.legislature.mi.gov.

If a taxpayer is exemptandhasnounrelatedbusiness taxableincome, filing anMBT return is not required unless filing toutilizeacertificatedcredit.

Filing the Correct FormTheMBT Simplified Return(Form4583)isnolongerprovidedforfiling thesimplifiedreturn tocalculate theSmallBusinessAlternative Credit and the Gross Receipts Filing ThresholdCredit. Instead, the simplified calculation can be computedusingForm4567. Eligibility to use the simplified calculationonForm4567aredescribedundertheheading“EligibilityfortheSimplifiedCalculation.”

OnlyfiletheMBTusingForm4567if::

• the taxpayerhasaqualifiedcertificatedcreditandelects toremaintaxedundertheMBT;or

• the taxpayer has claimed a certificated credit using the2014 Request for Accelerated Payment for the Brownfield Redevelopment Credit and the Historic Preservation Credit (Form4889).

If the taxpayer does not satisfy one or both criteria, thetaxpayercannotfiletheMBT.

Different primary returns and instruction booklets areavailable for insurance companies (Form 4588) and financialinstitutions (Form 4590). The tax base for each of thesespecial taxpayercategories is fundamentallydifferent than forstandardtaxpayers.

Filing if Tax Year Is Less Than 12 MonthsInmostcases,annualreturnsmustbefiledforthesameperiodas federal income taxreturns. If thefilingperiod is less than12 months, annualize to determine which forms to file, andtheeligibilityforaSmallBusinessAlternativeCredit.Donotuseannualizednumbersonareturnunlessspecified;usethemonly to determine filing requirements and qualifications forcredits.

Tax year means the calendar year, or the fiscal year endingduringthecalendaryear,uponthebasisofwhichthetaxbaseofataxpayeriscomputed.Ifareturnismadeforafractionalpartofayear,taxyearmeanstheperiodforwhichthereturnismade.

A taxpayer that has a 52- or 53-week tax year beginning notmore than seven days before December 31 of any year isconsideredtohaveataxyearbeginningafterDecemberofthattaxyear.

Example 1:A taxpayerwith a federal tax year beginning on

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Monday,December29,2008,willbetreatedasfollows:• 2008taxyearendofDecember31,2008.• DuedateofApril30,2009.• 2009taxyearbeginningJanuary1,2009.

Example 2: A taxpayer with a federal tax year ending onSunday,January3,2010,willbetreatedasfollows:• 2009taxyearendofDecember31,2009.• DuedateofApril30,2010.• 2010taxyearbeginningonJanuary1,2010.

Example 3: A 52- or 53-week year closing near the end ofJanuaryiscommonintheretailindustry.Suchataxpayerwillbetreatedasfollows:• 2008-09fiscalyearendwillbeJanuary31,2009.• DuedatewillbeMay31,2009.• 2009-10fiscalyearwillbeginonFebruary1,2009.

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.

Annualize prior year’s tax liability to determine whetherestimates may be based on that liability. If the prior year’sannualizedliabilityis$20,000orless,estimatesmaybebasedontheannualizedamountifpaidinfourequalinstallments.

Example: A fiscal year taxpayer with a tax year ending inJunefilesasix-monthreturnendingJune2010reportingataxliabilityof$9,000.EstimatesforthetaxyearendingJune2011maybebasedontheannualizedliabilityof$18,000.Estimatesmustbepaidinfourequalinstallmentsof$4,500.

See appropriate forms (MBT Common Credits for Small Business (Form 4571); MBT Schedule of Shareholders and Officers (Form 4577); andMBT Schedule of Partners (Form4578)) for annualization instructions pertaining to the SmallBusinessAlternativeCredit.

Individuals and Fiduciaries: A business registered as anIndividualorFiduciarythatisinbusinesslessthan12monthsisnotrequiredtoannualize.

Due Dates of Annual ReturnsAnnualreturnsaredueonorbefore the lastdayof thefourthmonthaftertheendofthetaxyear. Forexample,areturnforcalendaryear2017isdueApril30,2018.AreturnforafiscalyearendingJune30,2018,isdueOctober31,2018.

Additional Filing TimeIfadditionaltimeisneededtofileanannualtaxreturn,requestaMichiganextensionbyfilinganApplication for Extension of Time to File Michigan Tax Returns(Form4).

UBG NOTE:Extensionrequestsmustbefiledunderthenameand account number of a UBG’s designated member to be avalidrequestforextension.

Filing a federal extension request with the IRS does notautomatically grant an MBT extension. The IRS does notnotifystategovernmentsofextensions.

Extension applications must be postmarked on or before theduedateofanannualreturn.

Although Treasury may grant extensions for filing MBTreturns, it will not extend the time to pay. Extensionapplications received without proper payment will not beprocessed. Penalty and interestwill accrue on the unpaid taxfromtheoriginalduedateofthereturn.

Properlyfiledandpaidestimatesalongwiththeamountincludedon the extension applicationwill be accepted as payment on atentativereturn,andanextensionmaybegranted.Itisimportantthattheapplicationiscompletedcorrectly.

Once a properly prepared and timely filed application alongwithappropriateestimatedtaxpaymentsisreceived,Treasurywillgrantanextensionofeightmonthstofilethetaxreturn.

Any estimated tax that may be due with the request shouldbepaid in the samemannerasestimatedpaymentswerepaidduringtheyear.

A written response will be sent to the legal address on filewhenavalidextensionapplicationisreceived.

If anMBT extension is filed on time but the total paymentsreceivedbytheoriginalduedatearelessthan90percentofthetaxliability,a10percentnegligencepenaltymayapply.

An extension of time to file will also extend the statute oflimitations.

Amending a ReturnNOTE: A taxpayermay not amend to revoke the election toremain taxable under the MBT. Once the taxpayer makes avalid election to claima certificatedcredit, the taxpayermustremain in theMBT until the credit and any carryforward ofthatcreditareexhausted.

If amending the 2018 tax year, completeMBT Annual Return (Form 4567) and check the “Amended” box in the upper-rightcorner of the return, and attach a separate sheet explainingthe reason for the changes. Include an amended federal returnor a signed and dated Internal Revenue Service (IRS) auditdocument.Includeallschedulesandformsfiledwiththeoriginalreturn, even if not amending that schedule or form. Do notincludeacopyoftheoriginalreturnwithyouramendedreturn.

Toamendareturn toclaimarefund,filewithinfouryearsoftheduedateoftheoriginalreturn(includingvalidextensions).Interestwillbepaidbeginning45daysaftertheclaimisfiledor the due date, whichever is later. Most certificated creditsmust be claimed for the taxpayer’s first tax year ending afterDecember31,2011.

Ifamendingareturntoreportadeficiency,penaltyandinterestmayapplyfromtheduedateoftheoriginalreturn.

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If any changes are made to a federal income tax return thataffectanMBTtaxbase,filinganamendedreturn 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.

Compute penalty and interest for underpaid estimates usingthe MBT Penalty and Interest Computation for Underpaid Estimated Tax(Form4582).Ifataxpayerprefersnottofilethisform,Treasurywillcomputethepenaltyandinterestandsendabill.

Thefollowingchartshowstheinterestratethatappliestoeachfilingperiod.Anew interest rate is setat1percentabove theadjustedprimerateforeachsix-monthperiod.

Beginning Date Rate Daily RateJanuary 1, 2018 5.15% 0.0001411

July 1, 2018 5.41% 0.0001482January 1, 2019 5.9% 0.0001616

For a complete list of interest rates, see the RevenueAdministrative Bulletins on Treasury’s Web site atwww.michigan.gov/treasury/ under “Reports and LegalResources.”

Signing the ReturnAll returns must be signed and dated by the taxpayer or thetaxpayer’s authorized agent. This may be the owner, partner,corporate officer, or association member. The corporate officermaybethepresident,vicepresident,treasurer,assistanttreasurer,chief accounting officer, or other corporate officer (such as taxofficer)authorizedtosignthecorporation’staxreturn.

If someone other than the above prepared the return, thepreparermust give his or her business address and telephonenumber.

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:Aswith any tax returnsubmitted toTreasuryonpaper,anelectronic tax returnmustbe signed by an authorized tax return signer, the Electronic

Return Originator (ERO), if applicable, and the paid taxpreparer, if applicable.NOTE: If the returnmeets one of theexceptions to the e-file mandate and is being filed on paper,itmust bemanually signed and dated by the taxpayer or thetaxpayer’sauthorizedagent.

TheMBTFed/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.

FormMI-8879will be printed and contain the taxpayer PIN.ThetaxpreparerwillretainFormMI-8879inhisorherrecordsaspartofthetaxpayer’sprintedreturn.MBTStateStandAlonee-filingssubmittedwithouta taxpayerPINwillberejectedbyTreasury.Do notmail FormMI-8879 toTreasury and do notincludeFormMI-8879asanattachmentwiththee-filereturn.

Mailing AddressesMailtheannualreturnandallnecessaryschedulesto:

With payment:MichiganDepartmentofTreasuryPOBox30113LansingMI48909

Without payment:MichiganDepartmentofTreasuryPOBox30783LansingMI48909

Mailanextensionapplication(Form4)to:MichiganDepartmentofTreasuryPOBox30774LansingMI48909-8274

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

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

Make all checks payable to “State of Michigan.” Printtaxpayer’sFederalEmployer IdentificationNumber (FEIN)orMichigan Treasury (TR) assigned number, the tax year, and“MBT”onthefrontofthecheck.Donotstaplethechecktothereturn.

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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.

Mailcorrespondenceto:BusinessTaxDivision,MBTUnitMichiganDepartmentofTreasuryPOBox30059LansingMI48909

To Request FormsInternetCurrent and past year forms are available onTreasury’sWebsiteatwww.michigan.gov/treasuryforms.

Alternate Format

Printed material in an alternate format may be obtained bycalling(517)636-6925.

TTY

AssistanceisavailableusingTTYthroughtheMichiganRelayServicebycalling711.

Michigan Department of Treasury4567 (Rev. 08-18), Page 1 of 3 Check if this is an

amended return.See instructions.2018 MICHIGAN Business Tax Annual Return

Issued under authority of Public Act 36 of 2007. MM-DD-YYYY MM-DD-YYYY

1. Return is for calendar year 2018 or for tax year beginning: and ending:2. Taxpayer Name (print or type) 7. Federal Employer Identification Number (FEIN) or TR Number

Doing Business As (DBA) 8. Organization Type (LLC or Trust, see instructions)

C Corporation / LLC C CorporationIndividualStreet Address Check if

new address. (See instructions)

S Corporation /LLC S Corporation

City State ZIP/Postal Code Country Code Fiduciary

3. Principal Business Activity 4. Business Start Date in MichiganPartnership / LLC Partnership

5. NAICS (North American Industry Classification System) Code 6. If Discontinued, Effective Date Check if Filing Michigan Unitary Business Group Return.(Include Form 4580.)9.

Check if line 11 includes sales of transportation services.10.

11. Apportionment Calculationa. Michigan Sales (if no Michigan sales, enter zero) ................................................................. 11a. 00b. Total Sales ............................................................................................................................. 11b. 00c. Apportionment Percentage. Divide line 11a by line 11b ........................................................ 11c. %

PART 1: MODIFIED GROSS RECEIPTS TAX12. Gross Receipts (see instructions)...................................................................................................................... 12. 00

Subtractions from Gross Receipts13. Inventory acquired during the tax year .............................................................................................................. 13. 0014. Depreciable assets acquired during the tax year .............................................................................................. 14. 0015. Materials and supplies not included in inventory or depreciable property ......................................................... 15. 0016. Staffing Company: Compensation of personnel supplied to customers ............................................................ 16. 00

If claiming the Small Business Alternative Credit, skip to line 18.17. Deduction for contractors in SIC Codes 15, 16 and 17 ..................................................................................... 17. 00

SIC Code:18. Film rental or royalty payments paid by a theater owner to a film distributor and/or film producer ................... 18. 0019. Qualified Affordable Housing Project (QAHP) Deduction

a. Gross receipts attributable to residential rentals in Michigan ........... 19a. 00b. Number of residential rent restricted units in Michigan owned

by the QAHP ..................................................................................... 19b.c. Total number of residential rental units in MI owned by the QAHP .. 19c.d. Divide line 19b by line 19c and enter as a percentage .................... 19d. %e. Multiply line 19a by line 19d ............................................................. 19e. 00f. Limited dividends or other distributions made to owners of the QAHP 19f. 00g. QAHP Deduction. Subtract line 19f from line 19e ....................................................................................... 19g. 00

20. Payments made by taxpayers licensed under Article 25 or Article 26 of the Occupational Code to independent contractors licensed under Article 25 or Article 26 .................................................................... 20. 00

21. Miscellaneous (see instructions) ....................................................................................................................... 21. 0022. Total Subtractions from Gross Receipts. Add lines 13 through 18 and 19g through 21 .................................... 22. 0023. Modified Gross Receipts. Subtract line 22 from line 12. If less than zero, enter zero ....................................... 23. 0024. Apportioned Modified Gross Receipts Tax Base. Multiply line 23 by percentage on line 11c ........................... 24. 0025. Multiply line 24 by 0.8% (0.008) ....................................................................................................................... 25. 0026. Enrichment Prohibition for dealers of personal watercraft or new motor vehicles. Enter amount collected

during tax year ................................................................................................................................................... 26. 0027. Modified Gross Receipts Tax Before All Credits. Enter the greater of line 25 or line 26 ............................. 27. 00

+ 0000 2018 11 01 27 0 Continue on Page 2

2018 Form 4567, Page 2 of 3 FEIN or TR Number

PART 2: BUSINESS INCOME TAX

28. Business Income. If negative, enter as negative. (If business activity protected under PL 86-272, complete and attach Form 4586 and/or 4581, as applicable; see instructions) ................................................................ 28. 00

Additions to Income29. Interest income and dividends derived from obligations or securities of states other than Michigan ................. 29. 0030. Taxes on or measured by net income ................................................................................................................ 30. 0031. Tax imposed under MBT .................................................................................................................................... 31. 0032. Any carryback or carryover of a federal net operating loss ................................................................................ 32. 0033. Losses attributable to other flow-through entities that are taxed under the MBT ............................................... 33. 00

Account No.34. Royalty, interest, and other expenses paid to a related person .......................................................................... 34. 0035. Miscellaneous (see instructions) ....................................................................................................................... 35. 0036. Total Additions to Income. Add lines 29 through 35........................................................................................... 36. 0037. Business Income Tax Base After Additions. Add lines 28 and 36. If negative, enter as negative .............. 37. 00

Subtractions from Income38. Dividends and royalties received from persons other than U.S. persons and foreign operating entities .......... 38. 0039. Income attributable to other flow-through entities that are taxed under the MBT .............................................. 39. 00

Account No.40. Interest income derived from United States obligations .................................................................................... 40. 0041. Net earnings from self-employment. If less than zero, enter zero .................................................................... 41. 0042. Miscellaneous (see instructions) ....................................................................................................................... 42. 0043. Total Subtractions from Income. Add lines 38 through 42 ................................................................................ 43. 00

44. Business Income Tax Base. Subtract line 43 from line 37. If negative, enter as negative ..................................... 44. 0045. Apportioned Business Income Tax Base. Multiply line 44 by percentage on line 11c ....................................... 45. 0046. Available MBT business loss carryforward from previous MBT return. Enter as a positive number.................. 46. 0047. Subtract line 46 from line 45. If negative, enter here as negative, skip line 48, and enter zero on line 49. A

negative number here is the available business loss carryforward to the next MBT filing period (see instr.) ..... 47. 00

48. Qualified Affordable Housing Deduction. If line 47 is positive, complete lines 48a through 48i as follows:(1) If taking the QAHP deduction only, complete lines 48a through 48i. (UBGs, see instructions.) (2) If taking the seller’s deduction only, skip lines 48a through 48h and carry the amount from Form 4579, line 5, to line 48i. (3) If taking both deductions, complete the QAHP deduction calculation on lines 48a through 48h, and add to the total at line 48i the amount from Form 4579, line 5.

a. Gross rental receipts attributable to residential units in Michigan ........................................................................................... 48a. 00

b. Rental expenses attributable to residential rental units in Michigan ... 48b. 00c. Taxable income attributable to residential rental units. Subtract line

48b from line 48a .............................................................................. 48c. 00d. Number of residential rent restricted units in Michigan owned by

the Qualified Affordable Housing Project .......................................... 48d.

e. Total number of residential rental units in Michigan owned by the Qualified Affordable Housing Project ................................................ 48e.

f. Divide line 48d by line 48e and enter as a percentage..................... 48f. %g. Multiply line 48c by line 48f............................................................... 48g. 00h. Limited dividends or other distributions made to the owners of

the QAHP ......................................................................................... 48h. 00i. Qualified Affordable Housing Deduction. Subtract line 48h from line 48g. (See instructions.) .................... 48i. 00

49. Subtract line 48i from line 47. If less than zero, enter zero ............................................................................... 49. 0050. Business Income Tax Before All Credits. Multiply line 49 by 4.95% (0.0495)....................................................... 50. 00

+ 0000 2018 11 02 27 8 Continue and sign on Page 3

2018 Form 4567, Page 3 of 3 FEIN or TR Number

PART 3: TOTAL MICHIGAN BUSINESS TAX 51. Total Michigan Business Tax Before Credits. Add lines 27 and 50 ............................................................. 51. 0052. The annual surcharge is no longer applicable. There is no amount to be entered on this line ......................... 52. X X X X X X X X X 00

53. Enter amount from line 51. If apportioned or allocated gross receipts are less than $350,000, enter zero ...... 53. 0054. Nonrefundable credits from Form 4568, line 40 ................................................................................................ 54. 0055. Total Tax After Nonrefundable Credits. Subtract line 54 from line 53. If less than zero, enter zero ............. 55. 0056. Recapture of Certain Business Tax Credits and Deductions from Form 4587, line 13 ...................................... 56. 0057. Total MBT Tax Liability. Add lines 55 and 56................................................................................................... 57. 0058. Corporate Income Tax adjustment from Form 4946, line 39 ............................................................................. 58. 0059. Total Tax Liability. Add lines 57 and 58 ........................................................................................................... 59. 00

PART 4: PAYMENTS, REFUNDABLE CREDITS AND TAX DUE60. Overpayment credited from prior MBT return .................................................................................................... 60. 0061. Estimated tax payments .................................................................................................................................... 61. 0062. There is no amount to be entered on this line. Skip to line 63........................................................................... 62. X X X X X X X X X 0063. Tax paid with request for extension ................................................................................................................... 63. 0064. Refundable credits from Form 4574, line 23 ..................................................................................................... 64. 0065. Payment and credit total. Add lines 60 through 64. (If not amending, then skip to line 67.) ............................. 65. 00

66.AMENDED RETURN

ONLY

a. Payments made with original and/or amended returns 66a. 00b. Overpayment from original and/or amended returns . 66b. 00c. Add lines 65 and 66a and subtract line 66b

from the sum.............................................................. ........................................................ 66c. 0067. TAX DUE. Subtract line 65 (or line 66c, if amending) from line 59. If less than zero, leave blank .................... 67. 0068. Underpaid estimate penalty and interest from Form 4582, line 38 .................................................................... 68. 00

69. Annual return penalty (a) % = (b) 00 plus interest (c) 00 . Total ...... 69d. 0070. PAYMENT DUE. If line 67 is blank, go to line 71. Otherwise, add lines 67, 68 and 69d .................................. 70. 00

PART 5: REFUND OR CREDIT FORWARD71. Overpayment. Subtract lines 59, 68 and 69d from line 65 (or line 66c, if amending).

If less than zero, leave blank (see instructions) ................................................................................................. 71. 0072. CREDIT FORWARD. Amount on line 71 to be credited forward and used as an estimate for next tax year .... 72. 0073. REFUND. Amount on line 71 to be refunded..................................................................................................... 73. 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.Preparer’s PTIN, FEIN or SSN

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

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 30783, Lansing MI 48909

WITH PAYMENT. Pay amount on line 70. Mail check and return to: Michigan Department of Treasury, PO Box 30113, Lansing MI 48909

Make check payable to “State of Michigan.” Print taxpayer’s FEIN or TR Number, the tax year, and “MBT” on the front of the check. Do not staple the check to the return.

+ 0000 2018 11 03 27 6

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PurposeTo calculate the Modified Gross Receipts Tax and BusinessIncome Tax for standard taxpayers. Insurance companiesshould file the MBT Insurance Company Annual Return for Michigan Business and Retaliatory Taxes (Form 4588) andFinancial Institutions should file theMBT Annual Return for Financial Institutions(Form4590).

NOTE:BeginningJanuary1,2012,onlythosetaxpayerswithacertificatedcredit,whichisawardedbutnotyetfullyclaimedorutilized,mayelecttobeMBTtaxpayers.IfataxpayerfilesanMBT return and claims a certificated credit, the taxpayermakes theelection tocontinue tofileandpayunder theMBTuntilthecertificatedcreditandanycarryforwardofthatcreditareexhausted.

Special Instructions for Unitary Business GroupsAUnitary Business Group (UBG) isagroupofUnitedStatespersons,otherthanaforeignoperatingentity,thatsatisfiesthefollowingcriteria:

• Oneof thepersonsownsorcontrols,directlyor indirectly,more than50percentof theownership interestwithvotingrights (or rights comparable to voting rights) of the otherUnitedStatespersons;AND

• The UBG has operations which result in a flow of valuebetween persons in the UBG or has operations that areintegratedwith, are dependent upon, or contribute to eachother.Flowofvalueisdeterminedbyreviewingthetotalityof facts and circumstances of business activities andoperations.

Formore informationon thecontrol and relationship tests forUBGs, see Revenue Administrative Bulletin (RAB) 2010-1Michigan Business Tax-Unitary Business Group Control Testand RAB 2010-2 Michigan Business Tax-Unitary BusinessGroupRelationshipTestsontheDepartmentofTreasuryWebsite at www.michigan.gov/taxes. (Click on the “ReferenceLibrary”linkontheleftsideofthepage.)

A foreign operating entity means a United States personthat 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 inInternalRevenueCode(IRC)§871(l)(1)(B)(ii).

InMichigan, a UBGwith standard members must file Form4567. A Designated Member (DM) must file the return onbehalf of the standard members of the group. In a parent-subsidiarycontrolledgroup,thecontrollingmembermustserveasDMifithasnexuswithMichigan.Ifitdoesnothavenexus,the controllingmembermay appoint anymemberwith nexustoserveasDM.ThetaxyearoftheDMdeterminesthefilingperiod for theUBG. The combined returnmust include eachtaxyearofeachmemberthatendswithorwithinthetaxyear

oftheDM.

NOTE on Designated Members: If the UBG filedMBT in2011andelectedtofileMBTin2012,thentheUBGmustusethesameDMiftheDMstillhasnexusandisstillamemberoftheUBGin2012.IftheDMnolongerhasnexusorisnolongeramemberof theUBG, then theUBGmust selectanewDM.See the “Supplemental Instructions for StandardMembers inUBGs”inForm4600fortherulesonselectinganewDM.

NOTE on Certificated Credits and the UBG: If amemberofaUBGholdsacertificatedcreditandwishes toclaimthatcredit then the entire UBG, and not only the member, mustmaketheelectiontoremaintaxableundertheMBT.TheUBGmust file and pay under theMBT until the certificated creditandanycarryforwardofthatcreditareextinguished.

ForMBT, taxpayermeans a person or aUBG liable for tax,interest, or penalty. Beginning January 1, 2012, only thosetaxpayerswith a certificated credit,which is awarded but notyet fullyclaimedorutilized,mayelect tobeMBT taxpayers.If a taxpayer files an MBT return and claims a certificatedcredit,thetaxpayermakestheelectiontofileandpayundertheMBTuntilthecertificatedcreditandanycarryforwardofthatcreditareexhausted.

For more information on UBGs, see the instructions for theMBT Unitary Business Group Combined Filing Schedule (Form4580),and the“Supplemental Instructions forStandardMembers in UBGs” in theMBT Forms and Instructions for Standard Taxpayers(Form4600).

The gross receipts of aUBG is the sumof the gross receiptsof each person included in the UBG, other than a foreignoperatingentityorapersonsubject tothetaxasaninsurancecompanyorfinancialinstitution,lessanygrossreceiptsarisingfromtransactionsbetweenpersonsincludedintheUBG.Grossreceiptsofeachmembershouldreflect theaccountingmethodthatmemberusedtocomputeitsfederaltaxableincome.

The business income of a UBG is the sum of the businessincome of each person included in the UBG, other than aforeign operating entity or a person subject to the tax as aninsurance company or financial institution, less any itemsof income and related deductions arising from transactions,including dividends, between persons included in the UBG.Businessincomeofeachmembershouldreflecttheaccountingmethod that member used to compute its federal taxableincome.

In general, phase-ins, thresholds, credit limits, and othercomponentsusedtodetermine tax liabilityrelate to thegroupasasingletaxpayer,nottoindividualpersonsthatcomprisethegroup.Exceptionstothisgeneralrulearenotedininstructionstotheapplicableforms.Thegroupofpersonsonthecombinedreturnistreatedasthetaxpayer(adistinctentity)forpurposesoftheMBTAct.

Taxpayer CertificationA return filed by a UBG must be signed by an individual

Instructions for Form 4567 Michigan Business Tax (MBT) Annual Return

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authorized to sign on behalf of the DM. Provide a telephonenumberforthatindividualattheDM’soffice.

General InstructionsDatesmustbeenteredinMM-DD-YYYYformat.

Forperiodslessthan12months,seethe“GeneralInformationforStandardTaxpayers”sectioninForm4600.

A person that is a disregarded entity for federal income taxpurposesundertheinternalrevenuecodeshallbeclassifiedasadisregardedentityforthepurposesoffilingtheMBTannualreturn.

A taxpayer, other than a UBG, that does not file a separatefederal return must prepare a pro forma federal return orequivalent schedule and use it as the basis for preparing itsMBTreturn.ForstandardmembersofaUBG,thisproformarequirement is addressed in Form 4580, Part 2A, and itsinstructions.

UBGs: Complete Form 4580 before beginning Form 4567.Answer lines 1 through 8 of Form 4567 as they apply to theDM.

MBT Liability: Beginning January 1, 2012, a taxpayercalculatesMBT liability as the greater ofMBT liability afterall credits, deductions, and exemptions or hypothetical CITliability minus deductions and credits available under thatact and minus certificated credits allowed under the MBT.This calculation of liability requires a taxpayer to calculatethe business income and modified gross receipts tax basesand available MBT credits, including certificated credits,deductions, and exemptions available under theMBT. Then,thetaxpayerwillcalculatetheCITcomparisonontheSchedule of Corporate Income Tax Liability(Form4946).AtaxpayerispermittedtoreducehypotheticalCITliabilitybyalldeductionsandcreditswhichwouldbe allowedunder that tax aswell astheamountofcertificatedcreditallowedundertheMBT.Theamount of certificated credit allowed under the MBT is theamountofnonrefundablecreditneededtooffsetMBTliabilityortheentireamountofarefundablecredit.

If the taxpayer’s hypothetical CIT liability would be higherthan its MBT liability, the taxpayer will add the differenceto MBT liability on line 58 of Form 4567. This is the CITadjustment. If the result of both steps of the calculation is anegative number, the taxpayer will receive a refund of thelower negative; but a nonrefundable credit cannot be usedto reduce liability below zero. Remaining nonrefundablecertificated credit may be carried forward to succeeding taxyears.

For purposes of this calculation: For a Partnership or SCorporation, business income includes payments and itemsof incomeandexpenseattributable to thebusiness activityofthepartnershiporScorporationandseparatelyreportedtothemembers.

Amended Returns: To amend a current or prior year annualreturn,completetheForm4567thatisapplicableforthatyear,checktheboxintheupper-rightcornerofthereturn,andattachaseparatesheetexplainingthereasonforthechanges.Includean amended federal return or a signed and dated Internal

Revenue Service (IRS) audit document, if applicable. Includeall formsfiledwith the original return, even if not amendingeach form. Enter the figures on the amended return as theyshouldbe.

Do not include a copy of the original return with the amended return.

NOTE: A taxpayer may not amend a return to revoke theelectiontoremaintaxableundertheMBT.Oncethetaxpayermakes a valid election to claim a certificated credit, thetaxpayer must remain in the MBT until the credit and anycarryforwardofthatcreditareexhausted.

Refund Only: If apportioned or allocated gross receipts areless than$350,000andthereisnorecapture,andthetaxpayeris filing Form 4567 to claim a refund of estimates paid, skiplines13through57andlines64through67.

UBGs: Ifcombinedapportionedorallocatedgrossreceiptsofallmembers (before eliminations) are less than $350,000 andthere is no recapture, and the taxpayer is filing Form 4567solelytoclaimarefundofestimatespaid,Form4580mustalsobe included. The designatedmembermust complete Part 1A,Part2B(skiplines18through65),Part3,andPart4ofForm4580.ForeachmemberlistedinPart1A,completePart1Band2A(skip lines18 through65).SeeForm4567for instructionsoncompletingthatform.

Simplified CalculationSee the “2015 General Information for Standard Taxpayers”in the Michigan Business Tax for Standard Taxpayers (Form 4600) for instructions on “Computing the SimplifiedCalculation”foreligibletaxpayers.

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 thetaxableperiodasreportedtotheIRS.

Tax year means the calendar year, or the fiscal year endingduringthecalendaryear,uponthebasisofwhichthetaxbaseof a taxpayer is computed. If a return ismade for apart of ayear, taxyearmeans theperiod forwhich the return ismade.Generally, a taxpayer’s tax year is for the same period as iscoveredbyitsfederalincometaxreturn.

Line 2: Enter the complete address and, if other than theUnitedStates,enter the two-digitabbreviationfor thecountrycode. See the list of country codes in MBT Forms and Instructions for Standard Taxpayers(Form4600).

Any correspondence regarding the return filed and/or refundwill be sent to the address usedhere.Check thenewaddressboxif theaddressusedon this linehaschangedfromthe lastfiling. The taxpayer’s primary address in the Department ofTreasury (Treasury) files, identified as the legal address andused for all purposes other than refund and correspondenceon a specificMBT return,will not changeuntil the customerspecifically makes the change on their Michigan TreasuryOnline (MTO) account. Visit michigan.gov/mtobusiness for

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moreinformation.

UBGs: In theName field, enter the name of theDM for thestandardmembersofthisUBG.

Line 3: Enter a brief description of business activity (e.g.,forestry, fisheries, mining, construction, manufacturing,transportation,communication,electric,gas,sanitaryservices,wholesaletrade,retailtrade,finance,orservices,etc.).

Line 4: EnterthestartdateoffirstbusinessactivityinMichigan.

Line 5: Enter the entity’s six-digit North American IndustryClassification System (NAICS) code. For a complete list ofsix-digitNAICS codes, see theU.S.CensusBureauWeb siteatwww.census.gov/eos/www/naics/,orenterthesameNAICScodeusedwhenfilingtheentity’sU.S.Form1120,ScheduleK;U.S. Form 1120S; U.S. Form 1065; or U.S. Form 1040,ScheduleC.

Line 6: Enter the date, if applicable, on which the taxpayerwentoutofexistence.Ifthetaxpayerisstillsubjecttoanothertax administered by Treasury, or continues to exist but hasstoppeddoingbusinessinMichigan,donotusethisline.Also,donotusethislineif thetaxpayerisaUBGandonememberhasstoppeddoingbusiness.

Adiscontinuancemaybeprocessedbyupdatingtheaccountbyusing theMichiganTreasuryOnline (MTO)website.Visitmichigan.gov/mtobusinessformoreinformation.

Line 7: Use the taxpayer’s Federal Employer IdentificationNumber (FEIN) or the Michigan Treasury (TR) assignednumber.Besuretousethesameaccountnumberonallforms.

If the taxpayer does not have an FEIN or TR number,the taxpayer must register before filing this form.Taxpayers are encouraged to register online atwww.michigan.gov/mtobusiness.Clickonthequicklink“NewBusiness” for information on how to obtain a FEIN, which isrequired to submit a return through e-file. Taxpayers usuallycan obtain an FEIN from the IRS within 48 hours. Taxpayersregistering with the State online usually receive an accountnumberwithinsevendays.

Returnsreceivedwithoutaregisteredaccountnumberwillnotbeprocesseduntilsuchtimeasanumberisprovided.

NOTE: TR numbers are generally assigned to accounts thathavenotacquiredanFEIN.OnceanFEINisreceived,Treasurywill use the FEIN as the account number, if provided. Tochange account numbers, a taxpayer should submit Form 163soTreasurycanupdate the recordsandmake sure theaccountnumbersarelinked.

UBGs: Enter the FEIN or TR Number of the DM for thestandardmembersofthisUBG.

Line 8: Check the box that describes theDM’s organizationtype. A Trust or a Limited Liability Company (LLC) shouldchecktheappropriateboxbasedonitsfederalreturn.

NOTE:Apersonthatisadisregardedentityforfederalincometaxpurposesundertheinternalrevenuecodeshallbeclassifiedas a disregarded entity for the purposes of filing the MBTannualreturn.Thismeansthatadisregardedentityforfederal

taxpurposes, includingasinglememberLLCorQ-Sub,mustfileasifitwereasoleproprietorshipifownedbyanindividual,orabranchordivisionifownedbyanotherbusinessentity.

Line 9:Check this box iffiling aMichiganUBG return andincludeaForm4580foreachmemberoftheUBGincludedinthisfiling.

Line 10: Check this box if the taxpayer has sales that arereceipts from transportation services. Taxpayers that checkthis box also must complete lines 11a, 11b, and 11c. TocalculateMichiganSalesfromTransportationServices,seetheinstructionsforline11andthetableinthe“SourcingofSalestoMichigan”sectionoftheseinstructions.

Line 11: For a Michigan-based taxpayer, all sales areMichigan sales unless the taxpayer is subject to tax inanother state.A taxpayerwill bedeemed subject to a tax inanother state if the taxpayer has due process and commerceclause nexuswith that state. In that state, the taxpayermustbe subject to a business privilege tax, a net income tax, afranchise tax measured by net income, a franchise tax forthe privilege of doing business, a Corporation stock tax, ora tax of the type imposed under theMBTAct, or that statehasjurisdictiontosubjectthetaxpayertooneormoreofsuchtaxesregardlessofwhetherornotthetaxisimposed.

IfnoMichigansales,enterzero.

MBT is based only on business activity apportioned toMichigan.A taxpayer thathasnotestablishednexuswithoneother state or a foreign country is subject to MBT on theirentire business activity. Business activity is apportioned toMichiganbasedonsales.

Sale orSalesmeans the amounts received by the taxpayer asconsiderationfromthefollowing:

• 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 ordinarycourseof its tradeorbusiness.For intangibleproperty, theamountsreceivedwillbelimitedtoanygainreceivedfromthedispositionofthatproperty.

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

intangible property, including interest, that constitutesbusinessactivity.

• Anycombinationofbusinessactivitiesdescribedabove.• Fortaxpayersnotengagedinanyotherbusinessactivities,sales

includeinterest,dividends,andotherincomefrominvestmentassetsandactivitiesandfromtradingassetsandactivities.

Complete the Apportionment Calculation using amounts forthe taxpayer’s business activity only.Donot include amountsfromaninterestinaPartnership,SCorporation,orLLC.

Use the information in the “Sourcing of Sales to Michigan”section of these instructions to determine Michigan sales. Ifsalesreportedareadjustedbyadeductionforqualifiedsalestoaqualifiedcustomer,asdeterminedbytheMichiganEconomic

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Growth Authority (MEGA), attach the Anchor District TaxCreditCertificate orAnchor JobsTaxCreditCertificate fromtheMichiganEconomicDevelopmentCorporation(MEDC)assupport.

For sales from the performance of services, see RAB 2010-5,“MichiganBusinessTaxWhereBenefitofServicesisReceived,”on the Treasury Web site at www.michigan.gov/treasury/,under“ReportsandLegalResources.”

For transportationservices thatsourcesalesbasedonrevenuemiles, enter a sales amount on Line 11a bymultiplying totalsales of the transportation service by the ratio of Michiganrevenue miles over revenue miles everywhere as providedin the “Sourcing of Sales toMichigan” chart for that type oftransportation service.Revenue milemeans the transportationfor a consideration of one net ton inweight or one passengerthedistanceofonemile.

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

PART 1: MODIFIED GROSS RECEIPTS TAXLine 12: Gross receipts means the entire amount received bythe taxpayer, as determined by using the taxpayer’smethod ofaccounting for federal income tax purposes, from any activity,whetherinintrastate,interstate,orforeigncommerce,carriedoutfordirectorindirectgain,benefitoradvantagetothetaxpayerortoothers,withcertainexceptions.

Calculationof gross receipts also involves a deductionof anyamountdeductedasbaddebt for federal income taxpurposesthat corresponds to items of gross receipts included in themodified gross receipts tax base for the current tax year orpasttaxyears.ThisreductionisreflectedintheGross Receipts Worksheet(Worksheet4700)discussedbelow.Receiptsinclude,butarenotlimitedto:

• Someorallreceipts(salesproceeds)fromthesaleofassetsusedinabusinessactivity.

• Saleofproducts.• Servicesperformed.• Gratuitiesstipulatedonabill.• Salestaxcollectedonthesaleoftangiblepersonalproperty,

subjecttoaphase-outschedule.• Dividendandinterestincome.• Grosscommissionsearned.• Rents.• Royalties.• Salesofscrapandothersimilaritems.• Clientreimbursedexpensesnotobtainedinanagencycapacity.• Gross proceeds from sales between affiliated companies,

includingmembersofaUBG.

UseWorksheet4700,inForm4600,tocalculategrossreceipts.

Attach the worksheet to the return. Gross receipts are notnecessarily derived from the federal return, however, theworksheet will calculate gross receipts as defined by law in

mostinstances.Taxpayersandtaxprofessionalsareexpectedtobefamiliarwithuncommonsituationswithintheirexperience,which produce gross receipts not identified by specific lineson Worksheet 4700, and report that amount on the mostappropriate line. Treasury may adjust the figure resultingfrom the worksheet to account properly for such uncommonsituations.

A taxpayer should compute its gross receipts using the sameaccountingmethodused in the computationof its net incomeforfederalincometaxpurposes.

Producers of Agricultural Goods: The total gross receiptsfrom all business activity must be reported on line 12,including the gross receipts from agricultural activity of apersonwhoseprimaryactivityistheproductionofagriculturalgoods. A subtraction is allowed on line 21 for the grossreceipts thathavebeen includedon this line thatare fromtheagriculturalactivityofapersonwhoseprimaryactivity is theproductionofagriculturalgoods.

Producers of Oil or Gas, and Minerals: The total grossreceiptsfromallbusinessactivitymustbereportedonline12,includingthegrossreceiptsfromtheproductionofoilandgaseven if this activity is subject to theSeveranceTaxonOilorGas, andMinerals, 1929 PA 48. A subtraction is allowed online 21 for the gross receipts that have been included on thislinethatarefromtheproductionofoilandgasthataresubjecttotheSeveranceTaxonOilorGas,andMinerals.

Line 13: Enter inventory acquired during the tax year,including freight, shipping, delivery, or engineering chargesincluded in the original contract price for that inventory, andanypre-paidsalestaxrequiredtobepaidontheinventoryatthetime of purchase.Neither pre-paid sales tax, nor the sales taxcollectedupon resaleof that inventory is excluded fromgrossreceipts calculated onWorksheet 4700.Thismust be reportedonline12ofForm4567.

Inventorymeans the stock of goods, including electricity andnatural gas, held for resale in the ordinary course of a retailor wholesale business, and finished goods, goods in processof amanufacturer, and rawmaterials purchased fromanotherperson. Inventory also includes shipping and engineeringcharges so long as such charges are included in the originalcontract price for the associated inventory and floor planinterestforlicensednewcardealers.

For purposes of this deduction, floor plan interest meansinterestpaidthatfinancesanypartoftheperson’spurchaseofnewmotorvehicle inventoryfromamanufacturer,distributor,or supplier. However, amounts attributable to any invoiceditems used to providemore favorable floor plan assistance toa person subject to the tax imposed under this act than to apersonnotsubjecttothistaxareconsideredinterestpaidbyamanufacturer,distributor,orsupplier.

Foraperson that isasecurities trader,broker,ordealeroraperson included in theUBGof that securities trader,broker,or dealer that buys and sells for its own account, inventoryincludes contracts that are subject to the CommodityExchange Act, 7 USC 1 to 27f; the cost of securities asdefinedunderIRC§475(c)(2);andforasecuritiestrader,the

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costofcommoditiesasdefinedunderIRC§475(e)(2);andforabrokerordealer, the costof commodities asdefinedunderIRC § 475(e)(2)(b), (c), and (d), excluding interest expenseotherthaninterestexpenserelatedtorepurchaseagreements.Asusedinthisprovision:

• Broker and dealer mean those terms as defined undersection78c(a)(4)and(a)(5)oftheSecuritiesExchangeActof1934,15USC78c.

• Securities tradermeansapersonthatengagesinthetradeorbusinessofpurchasingandselling investmentsand tradingassets.

Inventorydoesnotincludeanyofthefollowing:

• Personal property under lease or principally intended forleaseratherthansale.

• PropertyallowedadeductionorallowancefordepreciationordepletionundertheIRC.

• Laborcosts.

Line 14: Enter assets purchased from other firms, includingthecostsoffabricationandinstallation,acquiredduringthetaxyearofatypethatare,orundertheIRCwillbecome,eligiblefor depreciation, amortization, or accelerated capital costrecoveryforfederalincometaxpurposes.

Line 15:Totheextentnotincludedininventoryordepreciableproperty, enter materials and supplies, including repair partsandfuel.

Materials and supplies means tangible personal propertypurchased in the tax year that are ordinary and necessary expenses to be used in carrying on a trade or business.Materials and supplies includes repair parts and fuel. Fuelmeansmaterialsusedandconsumedtoproduceheatorpowerbyburning.Fueldoesnotincludeelectricity.

Line 16: A staffing company may deduct compensation ofpersonnel supplied to its clients, including wages, benefits,workers’ compensation costs, and all payroll taxes paid forpersonnel provided to the clients of staffing companies asdefinedunderMBT.Staffing companymeansataxpayerwhosebusiness activities are included in Industry Group 736 undertheStandard IndustrialClassification (SIC)Code as compiledbytheUnitedStatesDepartmentofLabor.

Payments to a staffing company by a client do not constitutepurchasesfromotherfirms.

Line 17: For taxpayers that fall under SIC major groups 15(Building Construction General Contractors and OperativeBuilders), 16 (Heavy Construction Other Than BuildingConstructionContractors),and17(ConstructionSpecialTradeContractors) anddonot claim theSmallBusinessAlternativeCredit (SBAC) underMCL 208.1417, the following paymentsareconsideredpurchasesfromotherfirms:

• Paymentstosubcontractorsforaconstructionprojectunderacontractspecifictothatproject,and

• To the extent not deducted as inventory and materials andsupplies, payments for materials deducted as purchasesin determining the cost of goods sold for the purpose of

calculatingtotalincomeonthetaxpayer’sfederalincometaxreturn.

UBGs: This subtraction is only available to amember of theUBG if the group does not claim the SBAC for the tax year.However, for purposes of the SIC code requirement, it issufficientthattheUBGmemberthatmadethepaymentslistedabove be included in SIC codes 15, 16, or 17. Therefore, therelevant SIC code is entered in the member’s page of Form4580(Part2A,Line22),andtheSICcodefieldonForm4567shouldbeleftblankbyaUBG.

Persons included in SIC codes 15, 16, and 17 includegeneral contractors (of residential buildings includingsingle-family homes; industrial, commercial, andinstitutional buildings; bridges, roads, and infrastructure,etc.); operative builders; and trade contractors (suchas electricians, plumbers, painters, masons, etc.). Seehttp://www.osha.gov/pls/imis/sic_manual.html for a morecompletelist.

A subcontractor is an Individual or entity that enters into acontractandassumessomeoralloftheobligationsofapersonincludedinSICcodes15,16,and17assetforthintheprimarycontract specific to a project. Thus, payments made to anindependentcontractortoprovidegenerallaborservicestothecontractornotspecifictoaparticularcontractdonotconstitutepurchases from other firms. However, payments made to asubcontractor for services and materials provided under acontract specific to a particular construction project (such asthe construction of commercial property on Main Street) doconstitutepurchasesfromotherfirms.Thereisnolimitationorcondition that the subcontractors towhom suchpayments aremadebelicensed.

The taxpayer bears the burden to prove it is entitled to adeduction in computing its tax liability. It is presumed thatgoodbusinesspracticewould includedocumentationsuchasawrittencontractthatwouldsupportadeductionfromgrossreceipts for payments to subcontractors as purchases fromother firms. The supporting information for payments to asubcontractorcouldbe incorporated into thecontract for thespecific project or memorialized in a separate contract witha subcontractor specifying the project to which the costspertain.

Line 18: Enter film rental or royalty payments paid by atheater owner to a film distributor, a film producer, or a filmdistributorandproducer.

Line 19: Enter any deduction available to a QualifiedAffordableHousingProject(QAHP).

PublicAct(PA)168of2008providesforadeductionfromthemodified gross receipts and apportioned business income taxbasesforaQualifiedAffordableHousingProject.

Qualified Affordable Housing Project means a person thatis organized, qualified, and operated as a limited dividendhousing association that has a limitation on the amount ofdividends or other distributions thatmay be distributed to itsownersinanygivenyearandhasreceivedfunding,subsidies,grants, operating support, or construction or permanentfundingthroughoneormorepublicsources.

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A limited dividend housing association is organized andqualified pursuant to Chapter 7 of the State HousingDevelopmentAuthorityAct(MCL125.1491etseq).

If these criteria are satisfied, a QualifiedAffordable HousingProject may deduct its gross receipts attributable to theresidential rental units in Michigan it owns multiplied bya fraction, the numerator of which is the number of rentrestricted units in Michigan owned by that QualifiedAffordable Housing Project and the denominator of which isthenumberofallresidentialrentalunitsinMichiganownedbytheproject.Thisdeductionisreducedbytheamountoflimiteddividends or other distributions made to the owners of theproject. Amounts received by the management, construction,or development company for completion and operation of theproject and rental units do not constitute gross receipts forpurposesofthededuction.

MCL208.1201(8)governstheterminationofthisdeduction.

UBGs: Leave lines 19a through 19f blank and carry theamountfromForm4580,Part2B,line24g,columnC,toForm4567,line19g.

Line 20: Enter payments made by taxpayers licensed underArticle 25 (Real Estate Brokers and Salespersons) or Article26 (Real Estate Appraisers) of the Occupational Code [MCL339.2501to339.2518and339.2601to339.2637]toindependentcontractorslicensedunderArticles25or26.

Line 21: There are three items that qualify for entry on thisline.Ifmorethanonetypeapplies,enterthecombinedtotalasasingleamount.

A)Forapersonclassifiedunder the2002NorthAmericanIndustrial Classification System (NAICS) Number 484, ascompiled by the United States Office ofManagement andBudget, that does not qualify for a credit under Section417, enter the payment,made on or after July 12, 2011, tosubcontractorstotransportfreightbymotorvehicleunderacontract specific to that freight tobe transportedbymotorvehicle.Attachalettertoexplaintheactivitythatqualifiesfor this subtraction and the date of the payment. IncludetheNAICScode.

B) Enter on this line the gross receipts included on line12,whichresultfromtheagriculturalactivityofapersonwhoseprimaryactivity(i.e.,morethan50percentofgrossreceipts)istheproductionofagriculturalgoods.

C)Enteronthis linethegrossreceipts includedonline12whichresultfromtheproductionofoilorgas,andmineralsifthatproductionofoilorgas,andmineralsissubjecttotheSeveranceTaxonOilorGas,1929PA48.

Line 26:Enter the amount ofMBTModifiedGrossReceiptsTaxcollectedinthetaxyear.

Section 203(5) of the MBT Act permits new motor vehicledealers licensed under the Michigan Vehicle Code,PA300of1949,MCL257.1 to257.923, anddealersofneworusedpersonalwatercrafttocollecttheModifiedGrossReceiptsTax in addition to the sales price. The act states the “amountremitted to the Department for the [Modified Gross ReceiptsTax] ...shallnotbeless thanthestatedandcollectedamount.”

Therefore, the entire amount ofModified Gross Receipts Taxstated and collected by newmotor vehicle dealers and neworusedpersonalwatercraftdealersmustbe remitted toTreasury.Thereshouldbenoinstancewhereadealerwouldbecollectingamounts of Modified Gross Receipts Tax from customers inexcessof the amountof taxes remitted toTreasury.Taxpayerswho elect to separately collect the Modified Gross ReceiptsTax,inadditiontosalesprice,underMCL208.1203(5)mayfileand remit the tax as estimated paymentswith theirCorporate Income Tax Quarterly Return(Form4913).

NOTE:Onlynewmotorvehicledealersanddealersofneworused personal watercraft are permitted to separately itemizeandcollectataximposedundertheMBTActfromcustomersinaddition tosalesprice,and thatauthority is limited toonlythe Modified Gross Receipts Tax imposed and levied underSection 203 of theMBTAct. The statute does not authorizeseparate itemizing and collectionof theBusiness IncomeTaxbyanytaxpayer.

UBGs:Add the combined total after eliminations fromForm4580,Part2B,line29,columnC,tothenumberonForm4567,line25,andenterthesumonline26.

NOTE: For a UBG in which no member charged MGR(Modified Gross Receipts) tax as an invoice item, line 26should match line 25. For a UBG in which one or morememberschargedMGRtaxasaninvoiceitemandovercharged(on amember-by-member basis) for the year, line 26 will belarger than line 25 by the combined amount of themembers’proformaovercharges.

PART 2: BUSINESS INCOME TAXIfbusinessactivityisprotectedunderPublicLaw(PL)86-272,complete and include theMBT Schedule of Business Activity Protected Under Public Law 86-272 (Form4586).Leave lines28through50blank.

UBGs: If business activity of a UBG member is protectedunderPL86-272,thatmembermustclaimprotectionbyfilingForm4586(ifthatmemberistheDM)orForm4581(ifanon-designatedmember).Reportonly theactivitiesof themembernamedon that form. Ifallmembersof theUBGareclaimingPL 86-272 protection, then the UBG will leave lines 28through50blank.SolongasonememberofaUBGhasnexuswithMichigan and exceeds the protections of PL 86-272, allmembers of the UBG— includingmembers protected underPL 86-272—must be included when calculating the UBG’sBusinessIncomeTaxbaseandapportionmentformula.PL86-272willonlyremovebusiness incomefromtheapportionableBusiness IncomeTaxbasewhenallmembersof theUBGareprotectedunderPL86-272.

Line 28: Business income means that part of federal taxableincome derived from business activity. For MBT purposes,federal taxable incomemeanstaxableincomeasdefinedbyIRC§63,exceptthatfederaltaxableincomeshallbecalculatedasifIRC§168(k)[asappliedtoqualifiedpropertyplacedinserviceafterDecember31,2007]andIRC§199werenotineffect.ForaPartnershiporSCorporation(orLLCfederallytaxedassuch),business income includes payments and items of income andexpense that are attributable to business activity of the

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Partnership or S Corporation and separately reported to thepartnersorshareholders.

Use the Business Income Worksheet (Worksheet 4746), inForm4600,tocalculatebusinessincome.Attachtheworksheetto the return. The worksheet will calculate business incomeas defined by law in most instances. Taxpayers and taxprofessionals are expected to be familiar with uncommonsituations within their experience, which produce businessincome not identified by specific lines on theworksheet, andreportthatamountonthemostappropriateline.Treasurymayadjust the figure resulting from Worksheet 4746 to accountproperlyforsuchuncommonsituations.

For an organization that is a mutual or cooperative electriccompany exempt under IRC § 501(c)(12), business incomeequals the organization’s excess or deficiency of revenuesover expenses as reported to the federalgovernmentby thoseorganizations exempt from the federal income tax under theIRC,lesscapitalcreditspaidtomembersof thatorganization,less income attributed to equity in another organization’s netincome, and less income resulting from a charge approvedby a state or federal regulatory agency that is restricted fora specified purpose and refundable if it is not used for thespecifiedpurpose.

For a tax-exempt person, business income means only thatpartof federal taxable income (asdefined forMBTpurposes)derivedfromunrelatedbusinessactivity.

For an Individual or an Estate, or for a Partnership or Trustorganizedforestateorgiftplanningpurposes,businessincomeis that part of federal taxable income (as defined for MBTpurposes)derivedfromtransactions,activities,andsources inthe regularcourseof theperson’s tradeorbusiness, includingthefollowing:• All income from tangible and intangible property if the

acquisition,rental,lease,management,ordispositionoftheproperty constitutes integral parts of the person’s regulartradeorbusinessoperations.

• Gainsorlossesincurredinthetaxpayer’stradeorbusinessfrom stock and securities of any foreign or domesticcorporationanddividendandinterestincome.

• Income derived from isolated sales, leases, assignments,licenses, divisions, or other infrequently occurringdispositions, transfers, or transactions involving tangible,intangible,orrealpropertyifthepropertyisorwasusedintheperson’stradeorbusinessoperation.

• Incomederivedfromthesaleofaninterestinabusinessthatconstitutesanintegralpartof theperson;’sregular tradeorbusiness.

• Incomederivedfromtheleaseorrentalofrealproperty

NOTE: Personal investment income, gains from the sale ofpropertyheldforpersonaluseandenjoyment,orotherassetsnotusedinatradeorbusiness,andanyotherincomenotspecificallyderived from a trade or business that is earned, received, orotherwise acquired by an Individual, an Estate, or a Trust orPartnershiporganizedor established for estate or gift planningpurposes,apersonorganizedexclusivelytoconductinvestmentactivity solely for a third party individual or a person related

to that individual, or a common trust established under theCollectiveInvestmentFundsActof1941, isnot includedin theBusiness Income Tax base. This exclusion only applies to thespecific typesof taxpayers identifiedabove. Investment incomeand any other types of income earned or received by all othertypesofpersonsortaxpayersnotspecificallyreferencedmustbeincludedinthebusinessincomeofthetaxpayer.

Additions to IncomeAdditions are generally required to the extent deducted inarrivingatfederaltaxableincome.(Businessincome,line28.)

Line 29: Enter any interest income and dividends frombondsandsimilarobligationsorsecuritiesofstatesotherthanMichigan and their political subdivisions in the same amountthatwasexcludedfromfederal taxable income(asdefinedforMBTpurposes).Reduce thisadditionbyanyexpensesrelatedto the foregoing income that were disallowed on the federalreturnbyIRC§265or291.

Line 30: Enter all taxes on, or measured by, net incomeincludingcityandstatetaxes,ForeignIncomeTax,andFederalEnvironmentalTaxclaimedasadeductiononthefederalreturn.

Line 31: Enter the Michigan Business Tax, includingsurcharge,claimedasadeductiononthefederalreturn.

Line 32:Enter anynetoperating loss carrybackor carryoverthat was deducted in arriving at federal taxable income (asdefined for MBT purposes) reported on line 28. Enter thisamountasapositivenumber.

Line 33:Enteranylossesincludedinfederaltaxableincome(as defined forMBT purposes) that are attributable to otherentitiesthathavemadeavalidelectiontofileundertheMBTandhavefiledundertheMBT.Ifthereisonlyonesuchentityto report, enter its FEIN or TR number in the field on thisform. If there ismore than one such entity to report, enteron the form the FEIN or TR number of one of the entitiesand attach a list of the account numbers of all. On the listincludeabreakdownoftheamountofthislossadd-backthatisattributabletoeachentity.Inanycase, theamountonline33shouldbethetotalofalllosses,notjustthelossoftheoneentityidentifiedontheform.

UBGs: It is not necessary to attach a list of entities inconnection with this line item because all entities for whicha loss add-back is being reported have been identified on thecorresponding lineofForm4580,or a similar list requiredasanattachmenttoForm4580.

Line 34:Enteranyroyalty,interest,orotherexpensepaidtoa person related to the taxpayer by ownership or control forthe use of an intangible asset if the person is not includedin the taxpayer’s UBG. Royalty, interest, or other expensedescribedhere is not required tobe included if the taxpayercan demonstrate that the transaction has a nontax businesspurpose other than avoidance of this tax, is conducted witharm’s-length pricing and rates and terms as applied inaccordancewith IRC§482and1274(d), and satisfiesoneofthefollowing:• Is a pass-through of another transaction between a third

party and the related person with comparable rates and

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terms.• Results in double taxation. For this purpose, double

taxationexistsifthetransactionissubjecttotaxinanotherjurisdiction.

• IsunreasonableasdeterminedbyTreasury,andthetaxpayeragreesthattheadditionwouldbeunreasonablebasedonthetaxpayer’sfactsandcircumstances.

• Therelatedperson(recipientofthetransaction)isorganizedunder the laws of a foreign nation which has in force acomprehensiveincometaxtreatywiththeUnitedStates.

Line 35: There currently are no additions required that arerecordedonthisline.Leavethislineblank.

Subtractions from Income

Subtractions are generally available to the extent included inarrivingatfederaltaxableincome(BusinessIncome,line28).

Line 38: Enter any dividends and royalties received frompersonsotherthanUnitedStatespersonsandforeignoperatingentities, including, but not limited to, amounts determinedunderIRC§78orIRC§951to965.

NOTE: To the extent deducted in arriving at federal taxableincome,anydeductionunderIRC250(a)(1)(B)shouldbeaddedbackonthisline(i.e.,nettedagainstsubtractionsmadeonthisline).

Line 39:Enteranyincomeincludedinfederaltaxableincome(asdefined forMBTpurposes) that are attributable to other entitiesthat havemadeavalid election tofileunder theMBTandhavefiled under theMBT. If there is only one such entity to report,enteritsFEINorTRnumberinthefieldonthisform.Ifthereismorethanonesuchentitytoreport,enterontheformtheFEINorTRnumberofoneoftheentitiesandattachalistof theaccountnumbersofall.Onthelistincludeabreakdownoftheamountofthis incomesubtraction that isattributable toeachentity. Inanycase,theamountonline39shouldbethetotalofallincome,notjusttheincomeoftheoneentityidentifiedontheform.

UBGs: It is not necessary to attach a list of entities inconnectionwiththislineitembecauseallentitiesforwhichanincome subtraction is being reported have been identified onthecorrespondinglineofForm4580,orasimilarlistrequiredasanattachmenttoForm4580.

Line 40:To theextent included in federal taxable income(asdefined for MBT purposes), deduct interest income derivedfromUnitedStatesobligations.

Line 41:To theextent included in federal taxable income (asdefined forMBT purposes), deduct any earnings that are netearnings from self-employment as defined under IRC § 1402of the taxpayer,or apartnerorLLCmemberof the taxpayer.The amount deducted shall be the amount properly reportedona scheduleK-1-form1065as self-employmentearnings forfederalincometaxpurposesforthetaxyear.

Line 42: There are two items that qualify for entry on thisline. If both types apply, enter the combined total as a singleamount.

A) For tax years that begin after December 31, 2009, tothe extent included in federal taxable income, deductthe amount of a charitable contribution made to theAdvance Tuition Payment fund created under section 9of the Michigan Education Trust Act, PA 316 of 1986,MCL 390.1429. This is deductible only to the extent thatcontributionwasNOT federallydeductible.

B) Enter the Book-Tax deduction to the extent available.Thedeductionisonlyavailabletoataxpayerthatreporteda Book-Tax amount on Form 4593 with an original 2008MBTannualreturn.

TheBook-Taxdeductioniscalculatedasfollows:

1) Total of amount reported onColumnC of Form 4593with the original 2008 MBT annual return. (For UBGs,compute the sum of the amounts reported by all currentmembersofthegroupwhofiledForm4593.)

2) Calculate the amount needed to offset the net deferredtax liability of the taxpayer which results from theimpositionof thebusiness income tax, at a rateof4.95%,and the modified gross receipts tax, at a rate of 0.8%,calculated for the first fiscal period ending after July 12,2007.

3)Takethelesseroftheresultof(1)or(2).

4) Report on this line 4% of the result of step 3. Theremaining percentage of the amount from step 3 will bedeductibleinfutureyears.

A taxpayer claiming the Book-Tax deduction must maintainrecords and work papers necessary to support the calculationandjournalentryidentifiedforthesamelengthoftimethatthededuction is available, and to support a potential audit of thetaxpayer’sbusinessbytheMichiganDepartmentofTreasury.

Line 45: If line45 isnegative,enterasanegativenumber.Alossonline45willcreate(orincrease)theMBTbusinesslosscarryforwardforthenextyear.

Line 46: Deduct any available MBT business loss incurredafterDecember31,2007.Enterasapositivenumber.

Business lossmeansanegativebusinessincometaxbase,afterapportionment,ifapplicable.

OnlyanMBTbusiness lossmaybeusedandonly frompriorconsecutiveyearswhenthetaxpayerwasanMBTtaxpayer.

NOTE: MBT business loss carryforward is not the same asthe federal net operating loss carryforward or carryback. Itis alsonot the sameasaCorporate IncomeTaxbusiness losscarryforward. A CIT business loss carryforward may not beentered on this line or applied against theMBT tax base. Ataxpayer that acquires the assets of another corporation in atransactiondescribedundersection381(a)(1)or (2)of theIRCmay deduct anyMBTbusiness loss carryforward attributabletothatdistributorortransferorcorporation.

Line 47:Subtract line46 from line45.Anynegativeamounton line 47 is an MBT business loss which may be carriedforwardtothenextfilingperiod,excepttotheextentthatallor

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someportionof thisbusiness losshasexceeded itsusable lifeoftentaxyears.

NOTE:Anybusiness losscreatedon this returnmayonlybeapplied against a subsequentMBT business income tax base.This business loss may not be applied against a subsequentCorporateIncomeTaxtaxbase.

Line 48: If line47 ispositive, enter theQualifiedAffordableHousingDeduction,ifapplicable.

NOTE:Ifclaimingboththeseller’sandtheQAHPdeductions,completetheQAHPdeductioncalculationonlines48athrough48h, and add to the total at line 48i the amount from Form4579,line5.

PA168of2008providesforadeductionfromtheapportionedBusiness IncomeTax base to aQualifiedAffordableHousingProject and a seller of residential rental units to a QualifiedAffordable Housing Project. Qualified Affordable HousingProjectisdefinedunderinstructionsforline19.

ThesellermaytakeadeductionfromitsapportionedBusinessIncome Tax base equal to the gain from the sale of theresidential rental units to the Qualified Affordable HousingProject, as calculated on the MBT Qualified AffordableHousing Seller’s Deduction (Form 4579). Enter the amountfromForm4579,line5.(AllMBTforms,includingForm4579,areavailableonlineatwww.michigan.gov/mbt.)

The Qualified Affordable Housing Project may deduct fromits apportioned Business Income Tax base an amount equalto theproductof the taxable incomeattributable toresidentialrental units in Michigan it owns multiplied by a fraction,the numerator ofwhich is the number of rent restricted unitsin Michigan owned by that Qualified Affordable HousingProject and the denominator of which is the number of allresidentialrentalunitsinMichiganownedbytheproject.MCL208.1201(8)governstheterminationofthisdeduction.

In general, taxable income attributable to residential rentalunits is gross rental receipts attributable to residential rentalunits in Michigan (purchased pursuant to an operationagreement) less rental expenses attributable to residentialrentalunitsinMichigan,including,butnotlimitedto,repairs,interest,insurance,maintenance,utilities,anddepreciation.

Specifically,PartnershipsmayuseaRentalRealEstateIncomeandExpensesofaPartnershiporanSCorporation(U.S.Form8825)todetermineitstaxableincomeattributabletoresidentialrental units in Michigan. To the extent that the QualifiedAffordable Housing Project is taxed as something other thana Partnership or S Corporation, the Qualified AffordableHousing Projectmay use the Supplemental Income and Loss(U.S. Form 1040, Schedule E) or the relevant portions of theU.S. Corporation Income Tax Return (U.S. Form 1120), asappropriate. If the Qualified Affordable Housing Project is aCorporation,theexpensespermittedshouldbelimitedtothosealsolistedontheLow-IncomeHousingCreditAgenciesReportof Noncompliance or Building Disposition (U.S. Form 8823)andU.S.Form1040,ScheduleE.Rentalreceiptsandexpensesmustbecalculatedwithoutregardtoanygainorlossresultingfromthedispositionofrentalproperty.Also,sincePartnershipsare subject to tax as a person under MBT, flow-through

amountsfromotherPartnershipsarenotconsidered.

Improvementsthatincreasethevalueofthepropertyorextendits life, such as replacing a roof or renovating a kitchen, arenot deductible rental expenses. Any passive activity losslimitations applicable to the Qualified Affordable HousingProject’s federal return also apply for purposes of MCL208.1201(7).

The Qualified Affordable Housing Project’s deductionis reduced by the amount of limited dividends or otherdistributions made to the owners of the project. Incomereceived by the management, construction, or developmentcompany for completion and operation of the project andrental units does not constitute taxable income attributable toresidentialrentalunits.

UBGs: Leave lines 48a through 48h blank and carry theamount fromForm4580,Part 2B, line45i, columnC, to line48i.

When the seller claims a deduction for the year of sale, theStatewillplacea lienon thepropertyequal to theamountoftheseller’sdeduction.IfthebuyerfailstoqualifyasaQualifiedAffordable Housing Project or fails to operate any of theresidential rental units as rent restricted units in accordancewith the operation agreement within 15 years after the dateof purchase, the lien placed on the property for the amountof the seller’s deduction becomes payable to the State. Thelien is payable through a “recapture” to be added to the taxliability of the buyer in the year the recapture event occurs.The recapture is calculatedonMBT Schedule of Recapture of Certain Business Tax Credits and Deductions (Form 4587),andisreducedproportionallyforthenumberofyearsthebuyerqualifiedforthededuction.

PART 3: TOTAL MICHIGAN BUSINESS TAXLine 53: IMPORTANT: If apportioned or allocated grossreceipts are less than $350,000, enter a zero on this line. Areturn to report tax credit recapture is mandatory, however,even if a taxpayer is otherwise not required to file a returnbecauseitdoesnotmeetthefilingthresholdof$350,000.

Tax Years Less Than 12 Months: If the reported taxyear isless than 12 months, gross receipts must be annualized. Ifannualizedgrossreceiptsdonotexceed$350,000,enterzeroonthisline.

AnnualizingMultiply each applicable amount, total gross receipts, adjustedbusiness income, and shareholder, officer, and partner income,and,for fiscal filers,dividetheresultbythenumberofmonthsthe business operated. Generally, a business is considered inbusiness for onemonth if the business operated formore thanhalfthedaysofthemonth.Ifthetaxyearislessthanonemonth,consider the tax year to be onemonth for the purposes of thecalculation.

UBGs: If apportioned or allocated gross receipts beforeintercompany eliminations (gross receipts from Form 4580,Part 2B, line 17, columnA, multiplied by the apportionmentpercentage reported on Form 4567, line 11c) are less than$350,000, enter a zeroon this line.Groupmembers reporting

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a period of less than 12months with this group returnmustannualize theirgross receiptsfigureonamemberbymemberbasis. Use each member’s number of months reported in thegroup’s tax year.Once all applicablemembers’ gross receiptsfiguresareannualized,addallmembers’figures todeterminethegroup’sannualizedapportionedorallocatedgrossreceipts.

Line 58: If the amount entered on Form 4946, line 39, is apositivenumber,enterthatamountonthisline.Onlyapositiveamountmaybeenteredonthisline.

NOTE: Include a completed copy of Form 4946 with thisreturnregardlessofwhetheranamountisenteredonLine58.

PART 4: PAYMENTS, REFUNDABLE CREDITS, AND TAX DUELine 61: Enter the total estimated taxes paid. Include allpayments made on returns that apply to the current tax year.For example, calendar year filers includemoney paidwith thecombinedreturnsforreturnperiodsJanuarythroughDecember.

Amended Returns Only:Line 66a: Entertotalpayment(s)madewithoriginaland/or

prioramendedreturnsforthisperiod.Line 66b: Enternetoverpaymentreceived(refund(s)received

plus credit forward(s) created) from the originaland/orprioramendedreturnsforthisperiod.

Line 66c: Addlines65and66aandsubtractline66bfromthesum.

Line 68: If penalty and interest are owed for not filingestimated returns or for underestimating tax, completethe MBT Penalty and Interest Computation for Underpaid Estimated Tax (Form 4582) to compute penalty and interestdue. If a taxpayer choosesnot tofile this form,Treasurywillcomputepenaltyandinterestandbillforpayment.

Line 69:Entertheannualreturnpenaltyrateonline69a.Addtheoverduetaxpenaltyonline69btotheoverduetaxinterestinline69c.Entertotalonline69d.

Refertothe“ComputingPenaltyandInterest”sectioninForm4600 to determine the annual return penalty rate and use thefollowing “OverdueTaxPenalty” and “OverdueTax Interest”worksheets.

WORKSHEET – OVERDUE TAX PENALTYA. TaxduefromForm4567,line67......... 00B. Late/extensionorinsufficient

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

CarryamountfromlineCtoForm4567,line69b.

WORKSHEET – OVERDUE TAX INTERESTA. TaxduefromForm4567,line67......... 00B. Applicabledailyinterestpercentage.. %C. Numberofdaysreturnwaspastdue...D. MultiplylineBbylineC.................... %E. MultiplylineAbylineD.................... 00

CarryamountfromlineEtoForm4567,line69c.

Line 69c: NOTE: If the late period spans more than oneinterest rate period, divide the late period into the numberof days in each of the interest rate periods identified in the“Computing Penalty and Interest” section in Form 4600, andapplythecalculationsinthe“OverdueTaxInterest”worksheetseparately to each portion of the late period. Combine theseinterestsubtotalsandcarrythetotaltoline66c.

PART 5: REFUND OR CREDIT FORWARDLine 71: If the amount of the overpayment, less any penaltyandinterestdueonlines68and69dislessthanzero,enterthedifference (as a positive number) on line 70. If the amount isgreaterthanzero,enteronline71.

NOTE: If an overpayment exists, a taxpayer must elect arefundofalloraportionoftheamountand/ordesignatealloraportionoftheoverpaymenttobeusedasanestimateforthenextMBTtaxyear.Completelines72and73asapplicable.

Line 72: If the taxpayer anticipates an MBT liability in thefiling period subsequent to this return, some or all of anyoverpaymentfromline71maybecreditedforwardtothenexttaxyearasanestimatedpayment.EnterthedesiredamounttouseasanestimateforthenextMBTtaxyear.

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

Other Supporting Forms and SchedulesFederal Forms:Attachcopiesoftheseformstothereturn.

UBGs: SeeForm4580 instructions for information regardingfederalattachmentsformembersofUBGs.

• C Corporations: U.S. Form 1120 (pages 1 through 4),Schedule D,Form851,Form4562,andForm4797. Iffilingaspartofaconsolidated federal return,attachapro formaorconsolidatedschedule.

• S Corporations: U.S. Form 1120-S (pages 1 through 4)*,Schedule D,Form851,Form4562,Form4797,Form8825.

• Individuals:U.S.Form1040(pages1and2),Schedules C, C-EZ, D, E,andForm4797.

• Fiduciaries:U.S.Form1041(pages1through2), Schedule D,andForm4797.

• Partnerships: U.S. Form 1065, (pages 1 through 5)*,Schedule D,Form4797,andForm8825.

• Limited Liability Companies: Attach appropriatescheduleslistedabovebasedonfederalreturnfiled.

• Federally Exempt Entities: In certain circumstances,a federally taxexempt entitymustfile anMBT return. Inthosecases,attachU.S.Form990-T(pages1through4).

* Do not send copies of K-1s. Treasury will request them ifnecessary.

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TANGIBLE AND REAL PROPERTY Sale of tangible personal property

Property 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 theultimatedestinationatthepointthatthepropertycomestorestregardlessofthefreeonboardpointorotherconditionsofthesales.

Property stored in transit for60daysormoreprior to receiptbythepurchaseror thepurchaser’sdesignee,or inthecaseofadocksalenotpickedupfor60daysormore,shallbedeemedto have come to rest at this ultimate destination. Propertystored in transit for fewer than60daysprior to receiptby thepurchaserorthepurchaser’sdesignee,orinthecaseofadocksalenotpickedupbefore60days,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 taxpayer

To the extent property is used in this State. For example, theextent an aircraft will be deemed to be used is determinedby multiplying all the receipts from the lease or rental ofthe aircraft by a fraction, the numerator of the fraction isthe number of landings of the aircraft in this State and thedenominatorof the fraction is the totalnumberof landingsoftheaircraft.

If theextentofuseof any transportationpropertywithin thisStatecannotbedetermined, then the receiptsare in thisStateifthepropertyhasitsprincipalbaseofoperationsinthisState.

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, 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 general

Recipientofservicesreceivesallof thebenefitof theservicesinthisState.

If the recipientof the services receives someof thebenefitoftheservicesinthisState,receiptsareincludedinthenumeratoroftheapportionmentfactorinproportiontotheextentthattherecipientreceivesbenefitoftheservicesinthisState.

For more information regarding how a taxpayer determineswhere the recipient of services performed receives thebenefit of those services, see RAB 2010-5, MichiganBusiness TaxWhere Benefit of Services is Received, on theMichigan Department of Treasury (Treasury) Web site atwww.michigan.gov/taxes.

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

Sourcing of Sales to Michigan

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*AborrowerisconsideredlocatedinthisStateiftheborrower’sbillingaddressisinthisState.

indirectly from trustees, sponsors, or participants of employee benefit plans that have accounts in a regulated investment companyTo 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 propertyOnlyifoneormoreofthefollowingapply:• 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 propertyPropertyislocatedinthisState.

IfpropertyislocatedbothinthisStateandoneormoreotherstates, ifmore than50percentof the fairmarketvalueof therealpropertyislocatedwithinthisState.

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 andactivities and from tradingassets andactivities,including,butnot limited to, investment securities; trading

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accountassets;federalfunds;securitiespurchasedandsoldunder agreements to resell or repurchase; options; futurescontracts; forward contracts; notional principal contractssuch as swaps; equities; and foreign currency transactionsareinthisStateiftheaveragevalueoftheassetsisassignedto a regular place of business of the taxpayer within thisState.

○ 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 revenuemilesofthepersoneverywhere.

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:

• Propertyand individuals–Proportionedbasedon the totalgross receipts for passenger miles and ton mile fractions,separatelycomputedandindividuallyweightedbytheratioofgrossreceiptsfrompassengertransportationtototalgrossreceipts from all transportation, and by the ratio of grossreceipts from freight transportation to total gross receiptsfromalltransportation,respectively.

Michigan Ton Miles x Gross Receipts from Transportation of PropertyTotal Ton Miles

+Michigan Passenger Miles x Gross Receipts from

Transportation of PassengersTotal Passenger Miles

= Michigan Sales from Transportation Services

• Oil by pipeline – Proportioned based on the ratio that the

gross receipts for thebarrelmiles transported in thisStatebeartothegrossreceiptsforthebarrelmilestransportedbythepersoneverywhere.

• Gasby pipeline –Proportioned based on the ratio that thegross receipts for the1,000 cubic feetmiles transported inthisStatebeartothegrossreceiptsforthe1,000cubicfeetmilestransportedbythepersoneverywhere.

NOTE: Ifa taxpayercanshowthatrevenuemile informationis not available or cannot be obtained without unreasonableexpense to the taxpayer, receiptsattributable to thisStatewillbe that portion of the revenue derived from transportationserviceseverywhereperformedthatthemilesoftransportationservices 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:For transportationservices thatsourcesalesbasedonrevenuemiles,enterasalesamountonForm4567,Line11a,bymultiplyingtotalsalesofthetransportationservicebytheratioofMichigan revenuemiles over revenuemiles everywhere asprovidedinthetableonthispageforthattypeoftransportationservice. Revenue mile means the transportation for aconsideration of one net ton in weight or one passenger thedistanceofonemile.Onlytransportationservicesaresourcedusing revenuemiles. To the extent the taxpayer has businessactivitiesor revenuestreamsnot fromtransportationservices,thosereceiptsshouldbesourcedaccordingly.

TELECOMMUNICATIONS SERVICESSale 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.

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

CallbothoriginatesandterminatesinthisState.

CalleitheroriginatesorterminatesinthisStateandtheserviceaddressislocatedinthisState.

Sale of postpaid telecommunications service

Origination point of telecommunication signal (as firstidentifiedby the serviceprovider’s telecommunication systemor as identifiedby information receivedby the seller from itsserviceproviderifsystemusedtotransporttelecommunicationsignalsisnottheseller’s)islocatedinthisState.

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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.

NOTE: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.

OTHERDefault for all other receipts not otherwise sourced here

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

For more information regarding how a taxpayer determineswhere the recipient of servicesperformed receives thebenefitof those services, see RAB 2010-5, Michigan Business TaxWhereBenefit of Services is Received, on the TreasuryWebsiteatwww.michigan.gov/taxes.

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Michigan Department of Treasury4946 (Rev. 04-18), Page 1 of 2

Attachment 26

2018 MICHIGAN Schedule of Corporate Income Tax Liability for a Michigan Business Tax FilerIssued under authority of Public Act 36 of 2007 and PA 39 of 2011.

Taxpayer Name (print or type) Federal Employer Identification Number (FEIN)

PART 1: APPORTIONMENT CALCULATION1. Michigan sales of the taxpayer. (If no Michigan sales, enter zero) ................................................................ 1. 002. Total sales of the taxpayer ............................................................................................................................. 2. 003. Apportionment percentage. Divide line 1 by line 2 ............................................................................................. 3. %

PART 2: BUSINESS INCOME TAX4. Federal taxable income from federal Form 1120 (Includes ag activities. Non-C Corporations, see instructions.) 4. 005. Domestic production activities deduction based on IRC § 199 reported on federal Form 8903, to the extent

deducted from federal taxable income .............................................................................................................. 5. 006. Miscellaneous (see instructions) ........................................................................................................................ 6. 007. Adjustments due to decoupling of Michigan depreciation from IRC § 168(k).

If adjustment is negative, enter as negative:a. Net bonus depreciation adjustment .................................................. 7a. 00b. Gain/loss adjustment on sale of eligible depreciable asset(s) ........... 7b. 00c. Add lines 7a and 7b. If negative, enter as negative....................................................................................... 7c. 00

8. Add lines 4, 5, 6 and 7c. If negative, enter as negative ...................................................................................... 8. 009. For a Unitary Business Group (UBG), total group eliminations from business income. (See instructions.)

All other filers, enter zero................................................................................................................................... 9. 0010. Business Income. All filers, subtract line 9 from line 8. If negative, enter as negative .................................... 10. 00

Additions to Business Income11. Interest income and dividends derived from obligations or securities of states other than Michigan ................. 11. 0012. Taxes on or measured by net income, including CIT (see instructions) ............................................................. 12. 0013. Any carryback or carryover of a federal net operating loss (enter as a positive number) ................................... 13. 0014. Royalty, interest, and other expenses paid to a related person that is not a UBG member of this taxpayer ...... 14. 0015. Miscellaneous (see instructions) ....................................................................................................................... 15. 0016. Total Additions to Income. Add lines 11 through 15 ........................................................................................... 16. 0017. Corporate Income Tax Base After Additions. Add lines 10 and 16. If negative, enter as negative .............. 17. 00

Subtractions from Business Income18. Income from non-unitary FTEs (Enter loss as negative) ................................................................................... 18. 0019. Dividends and royalties received from persons other than U.S. persons and foreign operating entities .......... 19. 0020. Interest income derived from United States obligations .................................................................................... 20. 0021. Miscellaneous (see instructions) ....................................................................................................................... 21. 0022. Total Subtractions from Income. Add lines 18 through 21 ................................................................................. 22. 00

23. Corporate Income Tax Base. Subtract line 22 from line 17. If negative, enter as negative .......................... 23. 0024. Apportioned Corporate Income Tax Base. Multiply line 23 by percentage from line 3 ...................................... 24. 0025. Apportioned income from non-unitary FTEs and pro forma CIT business loss carryforward ............................ 25. 0026. Add line 24 and line 25. If negative, enter zero ................................................................................................. 26. 0027. Corporate Income Tax Before Credit. Multiply line 26 by 6% (0.06). If apportioned or allocated gross

receipts are less than $350,000, enter zero ...................................................................................................... 27. 00

+ 0000 2018 56 01 27 6 Continue on Page 2

2018 Form 4946, Page 2 of 2 Taxpayer FEIN

PART 3: TOTAL CORPORATE INCOME TAX28. Small Business Alternative Credit (see instructions) ......................................................................................... 28. 0029. Tax Liability after the Small Business Alternative Credit. Subtract line 28 from line 27............................. 29. 00

PART 4: CERTIFICATED AND RECAPTURED CREDITS30. Certificated Nonrefundable Credits from Form 4947, line 11 ............................................................................ 30. 0031. Subtract line 30 from line 29. If less than zero, enter zero ................................................................................ 31. 0032. Recapture of Certain Business Tax Credits for CIT from Form 4947, line 28 .................................................... 32. 0033. Total Tax Liability. Add line 31 and line 32 ......................................................................................................... 33. 0034. Certificated Refundable Credits from Form 4947, line 39 ................................................................................. 34. 0035. Subtract line 34 from line 33. If negative, enter as negative.............................................................................. 35. 00

PART 5: MBT CALCULATION TO COMPARE AGAINST CIT36. Total MBT Liability after Recapture from Form 4567, line 57 ............................................................................ 36. 0037. Refundable Credits from Form 4574, line 23..................................................................................................... 37. 0038. MBT Liability after Refundable Credits. Subtract line 37 from line 36. If less than zero, enter as a negative

number. A negative number here represents an overpayment .......................................................................... 38. 0039. If line 35 is greater than line 38, enter the difference. If line 38 is greater than or equal to line 35, enter zero.

Carry to Form 4567, line 58. (See examples below.) ........................................................................................ 39. 00

EXAMPLES

1. If both lines 38 and 35 are tax due:Example A: Line 38 = $100; line 35 = $300; enter 200 on line 39Example B: Line 38 = $300; line 35 = $100; enter 0 on line 39

2. If both lines 38 and 39 are overpaymentsExample C: Line 38 = ($700); line 35 = ($400); enter 300 on line 39Example D: Line 38 = ($400); line 35 = ($700); enter 0 on line 39

3. Of lines 38 and 39, if one is tax due and one is an overpaymentExample E: Line 38 = ($500); line 35 = $200; enter 700 on line 39Example F: Line 38 = $200; line 35 = ($500); enter 0 on line 39

+ 0000 2018 56 02 27 4

33

PurposeTo calculate the Corporate Income Tax (CIT) liability forstandard taxpayers filing a Michigan Business Tax (MBT)return.

Ataxpayercalculates thebusiness incomeandmodifiedgrossreceiptstaxbasesoftheMBTandappliesallcredits,includingcertificatedcredits,deductions,andexemptionsavailableundertheMBT.Then,ataxpayercalculatesthebusinessincometaxbaseundertheCIT,appliesallcreditsanddeductionsavailableunder the CIT and the amount of certificated credit allowedfrom the MBT. The amount of certificated credit allowedfrom theMBT is the amount of nonrefundable credit neededtooffsetMBT liabilityplus theentireamountofa refundablecredit.Iftheresultofbothstepsofthecalculationisanegativenumber, the taxpayer will receive a refund of the lowernegative;butanonrefundablecredit cannotbeused to reduceliabilitybelowzero.Ataxpayermustpaythehigherliabilityortakethelowerrefund.

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

Public Law 86-272 Protection: If business activity isprotectedunderPublicLaw(PL)86-272,leavelines4through29blank.Formore information,pleasesee the instructions toPart2ofForm4567.

Name and Account Number: Enter the name and FederalEmployer Identification Number (FEIN) as they appear onthe corresponding copy of theMichigan Business Tax Annual Return(Form4567).

UBGs: Complete one Form 4946 for the group, with allnumbersenteredreflectingthetotalamountforallmembersinthegroup.

Exempt income (loss) from certain flow-through entities (FTEs): PublicAct 233 of 2013 provides that, in the case ofan FTE that made the election to remain taxable under theMBT, each owner of the FTE that does not file as amemberof a unitary business group with the FTE shall disregard allitems attributable to that member’s ownership interest in theelectingFTEforallpurposesoftheCIT.IfthetaxpayerfilingthisformownsaninterestinanFTEthatfilesanMBTreturnfortheFTE’staxyearthatendswithorwithinthistaxpayer’staxyear,thetaxpayer’sdistributiveshareofincome(loss)fromsuch FTEwill be exempt from the taxpayer’sCIT portion oftheMBT/CITcomparisoncalculation.However,donotexcludethe exempt income (loss) on lines 4 through 22 of this form.ThecorporateincometaxbaseattributabletosuchFTEwillberemovedvialine18..

Part 1: Apportionment CalculationFor a Michigan-based taxpayer, all sales are Michigan salesunless the taxpayer is subject to tax in another stateor foreigncountry.Ataxpayerissubjecttoataxinanotherstateorforeigncountryifthetaxpayerissubjecttoabusinessprivilegetax,anet

incometax,afranchisetaxmeasuredbynetincome,afranchisetax for the privilege of doing business, a corporate stock tax,or if the stateor foreigncountryhas jurisdiction to subject thetaxpayerto1ormoreoftheabovelistedtaxes.Inthatstate,thetaxpayermustbesubjecttoabusinessprivilegetax,anetincometax,afranchisetaxmeasuredbynetincome,afranchisetaxfortheprivilegeofdoingbusiness,oracorporationstocktax,orthatstate has jurisdiction to subject the taxpayer to oneormore ofsuchtaxesregardlessofwhetherthetaxisimposed.

The CIT is based only on business activity apportioned toMichigan.A taxpayer thathasnotestablishednexuswithoneother state or a foreign country is subject to the CIT on itsentire business activity. Business activity is apportioned toMichiganbasedonsales.

Sale orSalesmeans the amounts received by the taxpayer asconsiderationfromthefollowing:

• Thetransferoftitleto,orpossessionof,propertythatisstockin trade or other property of a kind which would properlybe included in the inventory of the taxpayer if on hand atthecloseof the taxperiod,orpropertyheldby the taxpayerprimarily 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.

• Performanceofserviceswhichconstitutebusinessactivities.• Therental,leasing,licensing,oruseoftangibleorintangible

property, including interest, that constitutes businessactivity.

• Anycombinationofbusinessactivitiesdescribedabove.• Fortaxpayersnotengagedinanyotherbusinessactivities,sales

includeinterest,dividends,andotherincomefrominvestmentassetsandactivitiesandfromtradingassetsandactivities.

Ifaflow-throughentity(FTE)isunitarywiththetaxpayer,thetaxpayer’s sales factor includes its proportionate share of thesalesoftheFTE.Proportionatesalesbetweenthetaxpayeranda unitary FTE, and between FTEs unitarywith the taxpayer,are eliminated. See CIT Unitary Relationships with Flow-Through Entities(Form4900)forfurtherguidance.

Use the information in the “Sourcing of Sales to Michigan”sectioninCIT for Standard Taxpayersbooklet(Form4890)todetermineMichigansales.

Line 1: Enter Michigan sales that are directly attributableto the taxpayer plus the proportionate Michigan sales, aftereliminations, from unitary FTEs. The amount of Michigansales to includefromunitaryFTEs iscomputedonCITForm4900.

For transportationservices thatsourcesalesbasedonrevenuemiles, enter (or include) a Michigan sales amount on thisline by multiplying total sales of the transportation serviceby the ratio of Michigan revenue miles over revenue mileseverywhere. Revenue mile means the transportation for aconsideration of one net ton in weight or one passenger the

Instructions for Form 4946Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer

34

distanceofonemile.

Certain typesof transportation serviceshavespecial sourcingprovisions.Seethe“SourcingofSalestoMichigan”sectionoftheCIT for Standard Taxpayersbooklet(Form4890).

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

UBGs:Enteronthis line theentireamountofMichigansalesof all members in the group after eliminations. For moreinformation see the instructions for CIT Data for Unitary Business Group Members(Form4897).

Line 2: Enter total sales that are directly attributable to thetaxpayer plus the proportionate total sales, after eliminations,fromunitaryFTEs.Theamountof totalsales to includefromunitaryFTEsiscomputedonCITForm4900.

Fortransportationservices,enter(orinclude)totalsales.

UBGs:Enteronthislinetheentireamountoftotalsalesofallmembersinthegroupaftereliminations.Formoreinformationsee the instructions forCIT Data on Unitary Business Group Members(Form4897).

PART 2: BUSINESS INCOMELine 4: Non-CCorporationsenterthislineasbusinessincome.Business income includes payments and items of income andexpense attributable to the business activity of the Non-CCorporation (Partnership or S Corporation) and separatelyreportedtothemembers.

Agricultural activities:Includeincomefromtheproductionofagricultural activities on line 12. Farms are not exempt undertheCIT.Furthermore,thetaxbaseattributabletotheproductionofagriculturalgoodsbyapersonwhoseprimaryactivityistheproductionofagriculturalgoodsissimilarlynotexempt.

Line 5:Generally, IRC199was repealed effective for taxyearsbeginning after December 31, 2017. Therefore, most taxpayerswillleavethislineblank.However,thefederaldeductioncanstillbetakeninlimitedcircumstancesorit’spossiblethatamemberofaUBGreturnincludesinthisreturnitstaxyearbeginningbeforeJanuary1,2018.Inbothcases,thededuction(s)shouldbereportedonthisline.

Line 6: There are currently no miscellaneous items to beenteredonthisline.Leavethislineblank.

Line 9: For UBGs only: Enter the group’s total eliminationsfromfederaltaxableincome.

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,thereisnoeliminationwithanotherwiserelatedentityif the related entity is excluded from the UBG. For example,consider a group with a U.S. parent, a U.S. subsidiary, and aforeign operating entity subsidiary that would otherwise bea UBG, but the foreign operating entity is excluded from theUBG by definition. The U.S. parent filing a UBG return maynot eliminate intercompany transactions between itself and theforeignoperatingentity.

Additions to Business IncomeLine 11: Enter any interest income and dividends frombondsandsimilarobligationsorsecuritiesofstatesotherthanMichigan and their political subdivisions in the same amountthatwasexcludedfromfederal taxable income(asdefinedforCITpurposes).ReducethisadditionbyanyexpensesrelatedtotheforegoingincomethatweredisallowedonthefederalreturnbyIRC§265and§291.

Line 12: Enter all taxes on, or measured by, net incomeincludingcityandstatetaxes,ForeignIncomeTax,andFederalEnvironmental Tax claimed as a deduction on the taxpayer’sfederal return. This includes the tax imposed under the CITto the extent claimed as a deduction on the taxpayer’s federalreturn. This also includes, to the extent deducted in arrivingat federal taxable income (as defined for CIT purposes), theBusinessIncomeTaxcomponentof theMBT.ThisdoesNOTincludetheModifiedGrossReceiptscomponentoftheMBT.

Line 13:Enter anynetoperating loss carrybackor carryoverthat was deducted in arriving at federal taxable income (asdefined for CIT purposes). Enter this amount as a positivenumber.

Line 14: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 thetaxpayerbyownershiporcontrolfortheuseofanintangibleasset if the person is not included in the taxpayer’s UBG.Royalty, interest, or other expense described here is notrequired to be included if the taxpayer can demonstrate thatthe transaction has a nontax business purpose other thanavoidanceof this tax, isconductedwitharm’s-lengthpricingandratesandtermsasappliedinaccordancewithIRC§482and§1274(d),andsatisfiesoneofthefollowing:

• Isapassthroughofanothertransactionbetweenathirdpartyandtherelatedpersonwithcomparableratesandterms.

• Results in double taxation. For this purpose, doubletaxationexistsifthetransactionissubjecttotaxinanotherjurisdiction.

• Is unreasonable as determined by the Treasurer, and thetaxpayer agrees that the addition would be unreasonablebasedonthetaxpayer’sfactsandcircumstances.

• Therelatedperson(recipientofthetransaction)isorganizedunder the laws of a foreign nation which has in force acomprehensiveincometaxtreatywiththeUnitedStates.

Line 15: Enter on this line the expenses that resulted fromtheproductionofoilandgas if thatproductionofoilandgasis subject toMichigan severance tax on oil or gas, 1929 PA48.Also enter expenses related to the incomederived fromamineraltotheextentthatincomeisincludedonline21andthatexpensewasdeductedinarrivingatfederaltaxableincome.

35

Subtractions from Business Income

Subtractions are generally available to the extent included in arriving at FTI (as defined for CIT purposes).

Line 18: Complete all other subtractions from business income, lines 19 through 21, before completing line 18. Enter on this line the sum of all entries in Column C of CIT Non-Unitary Relationships with Flow-Through Entities (Form 4898). If an amount is entered on this line, Form 4898 should be used to compute the amount required to be entered here. Do not include Form 4898 with this filing. Retain a copy for your records.

To calculate apportionment properly, line 18 removes from the corporate income tax base the taxpayer’s distributive share of income (loss) attributable to a non-unitary flow-through entity (FTE). Income or loss received as a distributive share from a non-unitary FTE is subtracted here (prior to apportionment of the CIT tax base on line 24), and apportioned on Form 4898 according to the FTE’s apportionment factor. The resulting amount from Form 4898 is then added back on line 25.

Flow-through entity means an entity that for the applicable tax year is treated as a subchapter S corporation under section 1362(a) of the IRC, a general partnership, a trust, a limited partnership, a limited liability partnership, or a limited liability company, that for the tax year is not taxed as a C corporation for federal income tax purposes.

See the General Information section of the instructions for Form 4898 for an explanation of FTEs with which a taxpayer is not unitary.

Line 19: Enter, to the extent included in federal taxable income (as defined for CIT purposes), any dividends and royalties received from persons other than United States persons and foreign operating entities, including, but not limited to, amounts determined under IRC § 78 or IRC § § 951 to 965.

NOTE: To the extent deducted in arriving at federal taxable income, any deduction under IRC 250(a)(1)(B) should be added back on this line (i.e., netted against subtractions made on this line).

Line 20: To the extent included in federal taxable income (as defined for CIT purposes), deduct interest income derived from United States obligations.

Line 21: Enter on this line income from the production of oil and gas if that production of oil and gas is subject to Michigan severance tax on oil and gas, 1929 PA 48, to the extent that income was included in federal taxable income. Also enter, income derived from a mineral to the extent included in federal taxable income.

Line 25: The entry on this line is the combination of the following two items:

Item 1: The apportioned amount of corporate income tax base attributable to the taxpayer’s distributive share of income (loss) from a non-unitary flow-through entity (FTE). The amount for this Item 1 can be found by summing all the entries from Column E of CIT Form 4898. If an amount is entered on this line, Form 4898 should be used to compute the amount required to be entered here. Do not include Form 4898 with this filing.

Retain a copy for your records.

NOTE: In this calculation, do not include distributive share items attributable to an FTE that is not unitary with the taxpayer and has a valid election in place to file MBT for its tax year that ends with or within the taxpayer’s tax year, in accordance with PA 233 of 2013.

Item 2: Subtract from Item 1 any available pro forma CIT business loss incurred as an MBT taxpayer after December 31, 2011. Business loss means a negative business income tax base, after apportionment, if applicable. For this calculation, pro forma CIT business loss is available if line 26 of the previous year’s Form 4946 was negative prior to applying the “If negative, enter zero” instruction found on that line. Convert this amount to a positive number before subtracting it from Item 1. If the result of the calculation described above is negative, enter it as a negative on the form.

The calculation described above is illustrated as follows:

If apportioned income from non-unitary FTEs is 100, and pro forma CIT business loss carryforward from the prior period is 250, the entry on line 25 is -150.

If apportioned loss from non-unitary FTEs is -100, and pro forma CIT business loss carryforward from the prior period is 60, the entry on line 25 is -160.

For any return with a non-zero amount on this line, attach a statement identifying separately the amount attributable to Item 1 and Item 2.

Line 26: If line 26 is negative, enter zero on this form but retain the negative amount for use on line 25 of Form 4946 for the next tax year.

NOTE: Any loss carryforward created in this calculation will evaporate when the taxpayer’s MBT election ends. This is described as a pro forma CIT business loss because it cannot be claimed on an actual CIT return.

Line 27: IMPORTANT: If apportioned or allocated gross receipts, as defined under the MBT, are less than $350,000, enter a zero on this line. If a business operated less than 12 months, annualize gross receipts to determine if this rule applies.

AnnualizingMultiply each applicable amount, total gross receipts, adjusted business income, and shareholder, officer, and partner income by 12 and divide the result by the number of months the business operated. Generally, a business is considered in business for one month if the business operated for more than half the days of the month. If the tax year is less than one month, consider the tax year to be one month for the purposes of the calculation.

PART 3: TOTAL CORPORATE INCOME TAXLine 28: Calculate this line by using the Small Business Alternative Credit Calculation for the Corporate Income Tax worksheet later in these instructions.

Retain the worksheet with your tax records. Do not include the worksheet as part of this return.

Include completed Form 4946 as part of the tax return filing.

36

Small Business Alternative Credit Calculation for the Corporate Income TaxWorksheet for the 2017 Michigan Business Tax

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:

• Gross receipts exceed $20,000,000; or• Adjusted business income after loss adjustment exceeds

$1,363,700; or• Any shareholder or officer has allocated income after loss

adjustment of over $180,000, as determined on the MBT 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 less than $20,000,000.

NOTE: A taxpayer claiming the CIT Small Business Alternative Credit on Line 28 should complete CIT Form 4894 before completing this worksheet, and retain a copy for its records. Do not include a copy of Form 4894 as part of this return.

1. Gross Receipts (see instructions).......................................................................................................................... 1. . 002. Tax liability prior to this credit from Form 4946, line 27 ......................................................................................... 2. . 00

Adjusted Business Income3. Business Income from Form 4946, line 10 ............................................................................................................ 3. . 004. Carryback or carryover capital loss. Enter as a positive number (see instructions) .............................................. 4. . 005. Carryback or carryover of a federal net operating loss from Form 4946, line 13. 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 4946, line 28 (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................................................................................................. 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 4946, line 28 ...................................................................................................................... 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.

37

PurposeThisworksheetisusedtoallowataxpayertocalculatetheCITSmallBusinessAlternativeCreditforstandardtaxpayersfilingaMichiganBusinessTax(MBT)return.

Due to differences between the MBT Small BusinessAlternative Credit and the CIT Small Business AlternativeCredit, a taxpayer must use this worksheet and may not useMBT Common Credits for Small Businesses(Form4571)whencalculatingitsCITSmallBusinessAlternativeCredit.

A taxpayer is disqualified from taking the Small BusinessAlternative Credit under certain circumstances, which aredetailedbelow.Financialinstitutionsandinsurancecompaniesarenoteligibleforthiscredit

Do not attach this worksheet or any supporting forms to theMBT filing. A taxpayer must retain this worksheet and anysupportingformsinitsrecords.

Eligibility for the Small Business Alternative Credit

Taxpayers are not eligible for the Small BusinessAlternativeCreditifanyofthefollowingconditionsexist:

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

$1,363,700 for Corporations (and LLCs federally taxed assuch).

• Any shareholder or officer has allocated income afterloss adjustment of over $180,000, as determined on theCIT Schedule of Shareholders and Officers (Form 4894).(RetainaproformacopyofForm4894foryourrecords,ifnecessary.)

In addition, the Small BusinessAlternativeCredit is reducedif a shareholder or an officer has allocated income after lossadjustmentofmorethan$160,000butlessthan$180,000.Thisreduction is based on the officer/shareholder with the largestallocatedincome.

TheSmallBusinessAlternativeCreditalsoisreducedifgrossreceiptsexceed$19,000,000butarenotmorethan$20,000,000.

Allocatedincomeisthegreaterofeither:

(a) Shareholders’ or officers’ compensation anddirector feesfromForm4894,columnL,or

(b) Shareholders’ compensation, director fees, and share ofbusiness income (or loss) after loss adjustment, from Form4894,columnN.

If either (a) or (b) is greater than $180,000, the Corporationis not eligible for the Small Business Alternative Credit. Inaddition,ifeither(a)or(b)ismorethan$160,000butnotmorethan$180,000,theCorporationmustreducetheSmallBusinessAlternativeCreditbasedontheofficerorshareholderwiththelargestallocatedincome.

Instructions for the Small Business Alternative Credit Calculation for the Corporate Income Tax Worksheet

Tax Years Less Than 12 MonthsIf the reported tax year is less than 12 months, grossreceipts, adjusted business income, and shareholders’ orofficers’ compensation and share of business incomemust beannualizedtodetermineeligibilityandreductionpercentage.Ifannualizedgrossreceiptsexceed$19,000,000butdonotexceed$20,000,000, annualize figures to compute the ReductionBasedonGrossReceipts,lines15through18.NOTE: Ifashareholderownedstockforlessthantheentiretaxyear of the corporation, or an officer served as an officer lessthantheentiretaxyear,shareholdercompensationamountsmustbeannualizedwhendeterminingdisqualifiers.

AnnualizingMultiplyeachapplicableamount,totalgrossreceipts,adjustedbusinessincome,andshareholderandofficerincomeby12anddividetheresultbythenumberofmonthsinthetaxyear.Ifthetaxyearislessthanonemonth,considerthetaxyeartobeonemonthforthepurposesofthiscalculation.Loss AdjustmentIf taxpayers are not eligible for the full Small BusinessAlternative Credit due to an adjusted business income orallocated income disqualifier, they may benefit from the CIT Loss Adjustment for the Small Business Alternative Credit(Form4895). If the adjusted business income was less than zero inany of the five years immediately preceding this filing periodand Small Business Alternative Credit was received for thatsameyear,thetaxpayermaybeabletoreducethecurrentyear’sadjusted business income or allocated income amounts by theloss. SeeForm4895 formore details.Do not attach a copy ofForm4895totheMBTfiling. Ifalossadjustmentisused,thetaxpayermust retainacompletedForm4895 in its records.DonotattachForm4895tothisreturn.UBGs: See“SpecialInstructionsforUBGs”forForm4895.AlossadjustmentwillnotpreventareductionoreliminationoftheSmallBusinessAlternativeCreditbasedongross receiptsthatexceed$19,000,000.ItwillalsonotchangetheamountofcompensationonForm4894,columnL.NOTE: If using a loss adjustment, Form 4895must be usedwhenusingthisworksheettocalculatetheCITSmallBusinessAlternativeCredit. This formmustbeused inplaceofForm4571due to thedifferencesbetween theMBTSmallBusinessAlternative Credit and the CIT Small Business AlternativeCredit.

Special Instructions for UBGsUBGs calculate the gross receipts and adjusted businessincome disqualifiers at the UBG level AFTER eliminatingintercompany transactions. Note that this differs from thecomparablecalculationinMBT. ForaUBGtoclaimaSmallBusinessAlternativeCredit, eachmemberof theUBG that isacorporation(includinganentitytaxedfederallyassuch)mustcompleteForm4894,columnL.RetainacompletedForm4895inyourrecords;donotattachForm4895tothisreturn.

38

Thedisqualifierthatisbasedoncompensationand/orshareofbusiness income attributable to an owner or officer is appliedon a combined basis. All items paid or allocable to a singleindividualwillbecombinedwhencalculating thedisqualifier,regardless of the number of entities fromwhich the amountsmaybederived.

NOTE: This is a change from the comparable calculation inMBT.Formore informationonUBGs, see the“SupplementalInstructionsforUBGs”inForm4890.

Inaddition,adisqualifierappliestoaUBGifsuchdisqualifierapplies to any member of that UBG. For example, a UBGis disqualified from taking the SBAC if thatUBG includes amember forwhich the allocated income after loss adjustmentof a shareholder is $180,000. The reduction percentages forthe credit also apply to the entire group if they apply to onemember.

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

Name and Account Number: Enternameandaccountnumberasreportedonpage1oftheMBT Annual Return(Form4567).

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

Line 1: EnteramountfromForm4567,line12.Forperiodslessthan12months,enterannualizedgrossreceipts.Forguidance,see the “Annualizing” section at the beginning of theseinstructions.

UBGs:AllUBGfilerswill use the amount fromForm 4567,line12,aftereliminatinggrossreceiptsincludedinthatamountthat arise from intercompany transactions. For periods lessthan12months,line10reflectstheannualizedamountforthepurposeofcompletingForm4893.

Adjusted Business IncomeLine 3:EnterbusinessincomefromForm4946,line10.

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

UBGs: Enter business income for all members from Form4946,line10.

Line 4: Enter, to the extent deducted in determining federaltaxable income,acarrybackorcarryoverofacapital lossfromScheduleDoffederalForm1120.Enterasapositivenumber.

UBGs: Combine for all members all carryback or carryoverofacapitalloss,totheextentdeductedindeterminingfederaltaxableincome,andenteronline4.Enterasapositivenumber.

Line 9: If loss adjustment is successfully applied to cure anABIdisqualifier,ignoretheapparentdisqualificationonline9oftheworksheetandproceedwithcalculatingtheSBAContheremainderoftheworksheet.

Small Business Alternative Credit CalculationLine 12: The Small Business Alternative Credit is reduced

if a shareholder or an officer has allocated income after lossadjustmentofmore than$160,000butnotmore than$180,000.This reduction is based on the officer/shareholder with thelargest allocated income. Enter the allocated income of theshareholder or officer with the highest allocated income afterlossadjustment,evenifthatfigureis$160,000orless.

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

Line 13:Forataxpayerwhoseshareholdersorofficersallhaveallocated income (after loss adjustment) of $160,000 or less,enter100percent.

All other taxpayers, see the table at the bottom of thisworksheettodeterminewhatpercenttoenteronthisline.

Line 14:Alltaxpayersmustcompletethisline.

If gross receipts from line 1 are $19,000,000 or less, carry theamountonline14toForm4946,line28.

Reduction Based on Gross Receipts

Complete this section if gross receipts are more than$19,000,000butnotmorethan$20,000,000.

Line 17:Foraresultlessthanzero,enterzero.

Do not include this worksheet as part of the tax return filing.

Michigan Department of Treasury4947 (Rev. 04-18)

Attachment 29

2018 MICHIGAN Schedule of Certificated CreditsIssued under authority of Public Act 38 of 2011.

Taxpayer Name (print or type) Federal Employer Identification Number (FEIN)

PART 1: CERTIFICATED NONREFUNDABLE CREDITS1. This credit has expired. Leave this line blank and skip to line 2 ........................................................................ 1. X X X X X X X X X 002. Eligible Renaissance Zone Credit (see instructions) ......................................................................................... 2. 003. Historic Preservation Credit Net of Recapture from Form 4568, line 22 ........................................................... 3. 004. MEGA Federal Contracts Credit from Form 4568, line 28 ................................................................................. 4. 005. Brownfield Redevelopment Credit from Form 4568, line 32 .............................................................................. 5. 006. Film Infrastructure Credit from Form 4568, line 35 ............................................................................................ 6. 007. MEGA Plug-In Traction Battery Manufacturing Credit from Form 4568, line 36 ................................................ 7. 008. Anchor Company Payroll Credit from Form 4568, line 37 ................................................................................. 8. 009. Anchor Company Taxable Value Credit from Form 4568, line 38 ...................................................................... 9. 00

10. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4568, line 39 ... 10. 0011. Certificated Nonrefundable Credits for CIT. Add lines 2 through 10 and carry to Form 4946, line 30,

or Form 4975, line 8 ......................................................................................................................................... 11. 00

PART 2: RECAPTURE OF CERTAIN BUSINESS TAX CREDITS — Amount may not be less than zero. See instructions.12. Recapture of MBT Investment Tax Credit (see instructions) ............................................................................. 12. 0013. Recapture of Single Business Tax (SBT) Investment Tax Credit from Form 4585, line 7 ................................. 13. 0014. This recapture has expired. Leave this line blank and skip to line 15 ............................................................... 14. X X X X X X X X X 0015. Recapture of MBT MEGA Employment Tax Credit from Form 4587, line 2a ..................................................... 15. 0016. This recapture has expired. Leave this line blank and skip to line 19 ............................................................... 16. X X X X X X X X X 0017. This recapture has expired. Leave this line blank and skip to line 19 ............................................................... 17. X X X X X X X X X 0018. This recapture has expired. Leave this line blank and skip to line 19 ............................................................... 18. X X X X X X X X X 0019. Recapture of MEGA Federal Contract Credit from Form 4587, line 4 ............................................................... 19. 0020. Recapture of MEGA Photovoltaic Technology Credit from Form 4587, line 5 ................................................... 20. 0021. This recapture has expired. Leave this line blank and skip to line 22 ............................................................... 21. X X X X X X X X X 0022. Recapture of MBT Brownfield Redevelopment Credit from Form 4587, line 7 .................................................. 22. 0023. Recapture of Film Infrastructure Credit from Form 4587, line 8f ....................................................................... 23. 0024. Recapture of Anchor Company Payroll Credit from Form 4587, line 9.............................................................. 24. 0025. Recapture of Anchor Company Taxable Value Credit from Form 4587, line 10 ................................................ 25. 0026. Recapture of Miscellaneous MEGA Battery Credits from Form 4587, line 12a ................................................. 26. 0027. Recapture of Start-Up Business Credit from Form 4573, line 8 ........................................................................ 27. 0028. Total Recapture of Certain Business Tax Credits for CIT. Add lines 12, 13, 15, 19, 20 and 22 through 27,

and carry to Form 4946, line 32, or Form 4975, line 10 .................................................................................... 28. 00

PART 3: CERTIFICATED REFUNDABLE CREDITS — Amount may not be less than zero. See instructions.29. MEGA Employment Tax Credit from Form 4574, line 12 ................................................................................... 29. 0030. This credit is no longer available. Leave this line blank and skip to line 31 ...................................................... 30. X X X X X X X X X 0031. Farmland Preservation Credit from Form 4574, line 15 .................................................................................... 31. 0032. MEGA Federal Contract Credit from Form 4574, line 16................................................................................... 32. 0033. MEGA Photovoltaic Technology Credit from Form 4574, line 17 ....................................................................... 33. 0034. Film Production Credit from Form 4574, line 18 ................................................................................................ 34. 0035. This credit is no longer available. Leave this line blank and skip to line 36 ...................................................... 35. X X X X X X X X X 0036. Anchor Company Payroll Credit from Form 4574, line 20 ................................................................................. 36. 0037. Anchor Company Taxable Value Credit from Form 4574, line 21 ...................................................................... 37. 0038. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4574, line 22 ... 38. 0039. Certificated Refundable Credits. Add lines 29, 31 through 34, and 36 through 38, and carry to Form 4946,

line 34, or Form 4975, line 12 ............................................................................................................................ 39. 00

+ 0000 2018 58 01 27 2

40

41

PurposeTo allow qualified taxpayers that elect to file MichiganBusinessTax(MBT)fortaxyearsendingafter2011toidentifytheir certificated credits and recapture of certain tax credits.These amounts will be used in calculating the pro formaCorporate IncomeTax (CIT) liability on theSchedule of CIT Liability for a MBT Filer (Form 4946), which is a requiredelementincalculatingMBTliabilityfortaxyearsendingafter2011.

NOTE: Only a limited number of credits and recaptureslistedon this formapply tofinancial institutionsor insurancecompanies. Credits and recaptures applicable to financialinstitutionsareidentifiedintheinstructionsoftheformsfromwhich figures on this form originate. A credit or recaptureshouldnotbereportedonForm4947ifitisnotreportedononeofthefollowingforms:

• Nonrefundable Credits Summary(Form4568)• Credits for Compensation, Investment, and Research and

Development(Form4570)• Miscellaneous Nonrefundable Credits(Form4573)• Refundable Credits(Form4574)• Investment Tax Credit Recapture From Sale of Assets

Acquired Under Single Business Tax(Form4585)• Schedule of Recapture of Certain Business Tax Credits

(Form4587)• Renaissance Zone Credit Schedule(Form4595).

NOTE for Insurance Companies: InsuranceCompanies calculate certificated credits separately on theMiscellaneous Credits for Insurance Companies (Form4596) and the Schedule of Corporate Income Tax Liability for a Michigan Business Tax Insurance Filer (Form4974).

Line-by-Line InstructionsLinesnotlistedareexplainedontheform.

Name and Account Number: Enter name and accountnumber as reported on page 1 of the applicableMBT annualreturn (eitherMBT Annual Return (Form 4567) for standardtaxpayers,MBT Annual Return for Financial Institutions (Form4590), or Insurance Company Annual Return for Michigan Business and Retaliatory Taxes(Form4588).

UBGs: Complete one form for the group. Enter designatedmember’snameandaccountnumber.Totheextentthatcreditsarecalculatedonapro-forma,memberlevelbasisonthe4568,4595,or4574,enterthetotalcreditamountforthegrouponthisform.

PART 1: Certificated Nonrefundable CreditsIfnottakinganycreditsinPart1,skiptoPart2.

Line 2: Not all Renaissance Zone credits are certificatedcreditstobereportedonthisform.Seespecialinstructionsonthe MBT Renaissance Zone Credit Schedule (Form 4595) to

determinewhichRenaissanceZone credits are certificated.Acertificated Renaissance Zone credit will be identified by thecheckbox on line 2 of Form 4595. Only a credit of that typemaybe reportedon this line.Enter credit amount fromForm4595,line25b,forwhichcertificatedstatusisproperlyclaimedonForm4595,line2.

If a taxpayer has activity in more than one certificatedRenaissanceZone,aseparateForm4595willbefiledforeachZone. In that case, report here the combined total of creditsclaimed on all Forms 4595, line 25b, for which certificatedstatusisproperlyclaimedonForm4595,line2.

DO NOTusetheRenaissanceZonecreditamountfromForm4573orForm4596tocompletethisform.

Line 3: An Historic Preservation Credit may be classifiedas refundable or nonrefundable, depending upon an electionmade by the taxpayer. Use this line only to report anHistoric Preservation Credit that is properly classified asnonrefundable. If a refundable historic preservation creditwas claimed as an accelerated credit on the Request for Accelerated Payment for the Brownfield Redevelopment Credit and the Historic Preservation Credit (Form 4889),that credit amount is not reported on this form. Standardtaxpayers and financial institutions use the HistoricPreservationCreditNet ofRecapture amount as reportedonForm4568,line22.

Line 4:AMEGAFederalContractsCreditmaybeclassifiedasrefundableornonrefundable,dependinguponanelectionmadeby the taxpayer.Use this lineonly to reportaMEGAFederalContracts Credit that is properly classified as nonrefundable,andreportedonForm4568.

Line 5: A Brownfield Redevelopment Credit may beclassified as refundable or nonrefundable, depending upon anelectionmade by the taxpayer. Use this line only to report aBrownfieldRedevelopmentCreditthatisproperlyclassifiedasnonrefundable. If a refundableBrownfield creditwas claimedas an accelerated credit on Form 4889, that credit amount isnot reported on this form. Standard taxpayers and financialinstitutions use theBrownfieldRedevelopmentCredit amountasreportedonForm4568,line32

Line 6: Standard taxpayers and financial institutions use theamountfromForm4568,line35.

Line 7: For tax years ending after December 31, 2014, the MEGA Plug-In Traction Battery Manufacturing Credit is no longer available. However, unused credit carryforwardfromtheimmediatelyprecedingtaxyearmaystillbeclaimed,ifavailable.

Line 8:AnAnchorCompanyPayrollCreditmaybeclassifiedas refundable or nonrefundable, depending upon an electionmadeby the taxpayer.Use this lineonly to report anAnchorCompany Payroll Credit that is properly classified asnonrefundable,andreportedonForm4568.

Line 9: An Anchor Company Taxable Value Credit may be

Instructions for Form 4947 Schedule of Certificated Credits

42

classified as refundable or nonrefundable, depending uponanelectionmadeby the taxpayer.Use this lineonly to reportan Anchor Company Taxable Value Credit that is properlyclassifiedasnonrefundable,andreportedonForm4568.

Line 10: AMEGA Poly-Silicon Energy Cost Credit may beclassified as refundable or nonrefundable, depending uponanelectionmadeby the taxpayer.Use this lineonly to reporta MEGA Poly-Silicon Energy Cost Credit that is properlyclassifiedasnonrefundable,andreportedonForm4568.

PART 2: Recapture of Certain Business Tax CreditsIfnotreportinganyrecapturesinPart2,skiptoPart3.

Line 12: See the section “Calculation of MBT ITC CreditRecaptureAmount”laterintheseinstructions.

Line 13: UBGs: In aUBG, a separate copy of Form4585 isfiledforeachmemberthathasactivityreportableonthatform.IfthereturnincludesmultiplecopiesofForm4585,reportherethe combined total of recapture reported on all Forms 4585,line7.

PART 3: Certificated Refundable CreditsLine 29:Standard taxpayersandfinancial institutionsuse theMEGAEmployment TaxCredit amount as reported on Form4574,line12.

Line 30: This credit cannot be claimed for a tax period ending in 2016 or later.

Line 32:AMEGAFederalContractsCreditmaybeclassifiedas refundable or nonrefundable, depending upon an electionmade by the taxpayer. Use this line only to report aMEGAFederal Contracts Credit that is properly classified asrefundable,andreportedonForm4574,line16.

Line 33:Standard taxpayersandfinancial institutionsuse theMEGAPhotovoltaicTechnologyCreditamountasreportedonForm4574,line17.

Line 34:Standard taxpayersandfinancial institutionsuse theFilmProductionCreditamountasreportedonForm4574,line18.

Line 35: The MEGA Plug-In Traction Battery Manufacturing Credit is no longer available as a newly arising credit. Line 7 of this formwill continue to be usedto claimanunusedcredit carryforward from the immediatelyprecedingtaxyear.

Line 36: An Anchor Company Payroll Credit may beclassified as refundable or nonrefundable, depending upon anelectionmadeby the taxpayer.Use this lineonly to reportanAnchor Company Payroll Credit that is properly classified asrefundable,andreportedonForm4574,line20.

Line 37: AnAnchor Company Taxable Value Credit may beclassified as refundable or nonrefundable, depending uponanelectionmadeby the taxpayer.Use this lineonly to reportan Anchor Company Taxable Value Credit that is properlyclassifiedasrefundable,andreportedonForm4574,line21.

Line 38: AMEGA Poly-Silicon Energy Cost Credit and the

Miscellaneous MEGA Battery Credits may be classified asrefundable or nonrefundable, depending upon an electionmade by the taxpayer in the year the credit arises. Use thisline to report aMEGAPoly-Silicon EnergyCost Credit and/oranyMiscellaneousMEGABatteryCreditsthatareproperlyclassifiedasrefundableandreportedonForm4574,line22.

43

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)

Calculation of MBT ITC Credit Recapture AmountCalculation of MBT ITC Credit Recapture BasesFor each category of asset disposed (or moved out ofMichigan)thattriggersanMBTITCcreditrecapture,entertheinformationrequestedbelow.

In each category of disposed/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.

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 themember filed outside of the group. Take care to report onthis line information requested in each columnonly 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.Forpropertyplaced in serviceprior to January1, 2008,

gain reflected in federal taxable income (as defined forMBTpurposes)isequaltothegainreportedforfederalpurposes.

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 assets were 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,enter

44

Calculation of MBT ITC Recapture Rates and AmountsCompleteWorksheet 2 (on the following page), entering eachtaxable year (End Date) in which the disposed assets thattriggeredMBTITCcreditrecapturewereacquired.

NOTE: Lines references on columns below are based on 2010 MBT form 4570. Lines for 2008 and 2009 MBT forms are different, so if copying information from a 2008 or 2009 MBT form, choose the appropriate lines.

Worksheet 2• Column A: Enter in chronological order, beginning with

the earliest, the tax year end date of each acquisition yearof disposed assets that triggeredMBT 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 andITC credits amount from Form 4570, line 26 with thecorrespondingacquisitionyearincolumnA.

• ColumnC:Enter theMIcompensationcreditamount fromForm4570,line3withthecorrespondingacquisitionyearincolumnA.

• Column D: Calculate net ITC credit amount: subtractcolumn C from column B for each taxable year. Ifdifferenceislessthanzero(isnegative),enterzero.ThisistheamountofITCcreditthatoffsetsMBTliability.

• Column F: MBT capital investment amount. Enter totalamountofcapitalinvestmentreportedonForm4570,line8foreachtaxableyearlistedoncolumnE.

• Column G: ITC rate. Enter 2.32% for taxable years oncolumnEthatendwith2008,otherwiseenter2.9%.

• Column H: Calculate gross IC credit amount: multiplycolumnFbycolumnGforeachtaxableyear.

• ColumnJ:MBTrecaptureofcapitalinvestment.Entertotalamountofrecaptureofcapitalinvestmentreportedonform4570,line16,foreachtaxableyearlistedoncolumnI.

• Column L: Gross MBT ITC credit recapture amount.

Multiply column J by columnK. This represents the totalamountofITCcreditrecaptureavailabletobereportedinthetaxyear.

• Column M: MBT ITC credit recapture amount offset bycredit. Enter the lesser of columns H and L. This is theamountofavailableITCcredit recapture thatwasoffsetbythetotalamountofavailableITCcreditintheyear.

• ColumnO:SBTcreditrecaptureamount.EntertotalamountfromForm4570,line19foreachtaxableyearlistedoncolumnN.

• Column P: SBT ITC credit recapture amount offset bycredit. Enter lesser of the amount on column O, and theamountofcolumnHminuscolumnM.This is theamountof SBT ITC credit recapture that was offset by the totalamountofavailableITCcreditinthetaxableyear.

• ColumnQ:TotalMBTITCused.AddcolumnsD,M,andP.ThetotalamountofMBTITCusedequalstotheamountof credit that offsetsMBT ITC credit recapture, SBT ITCcreditrecapture,andtheMBTliability.

• ColumnR:Extentusedrate.DivideamountsoncolumnQbyamountsoncolumnH.

• Column T: MBT recapture base. Enter total amount ofrecapturecapital investmentfromWorksheet1a,columnF;Worksheet1b,columnFandWorksheet1c,columnB.

• ColumnU: MBT recapture amount. Multiply amount incolumnTbyratesincolumnG,andincolumnR.

AddupfiguresineachrowofcolumnU,andcarrythatamounttoForm4947,line12.

the taxable year in which the disposed assets were acquired.Entergrosssalesprice(netofcostsofsale)incolumnB,andincolumnC,entertotalgainorlossincludedincalculatingfederaltaxableincome(asdefinedforMBTpurposes).

For property placed in service prior to January 1, 2008, gainreflected in federal taxable income (as defined for MBTpurposes)isequaltothegainreportedforfederalpurposes.

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 MichiganEnteralldepreciabletangibleassetsotherthanmobiletangibleassetsacquiredafter2007thatwereeligibleforITCandweretransferred outside Michigan during the filing period. Giveall informationrequiredforeachdisposition incolumnAandcolumn B. In columnA, enter the taxable year in which thedisposedassetswereacquired,andincolumnB,enteradjustedbasis as used for federal purposes. Do not use a recomputedMBTbasisforthispurpose.

45

Worksheet 2 — Calculation of MBT ITC Recapture Rates and AmountsNOTE: Lines references on columns below are based on 2010 MBT form 4570. Lines for 2008 and 2009 MBT forms are different, so if copying information from a 2008 or 2009 MBT form, choose the appropriate lines.

A 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

Michigan Department of Treasury4568 (Rev. 04-18), Page 1 of 2

Attachment 02

2018 MICHIGAN Business Tax Nonrefundable Credits SummaryIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax before all credits from Form 4567, line 53, or Form 4590, line 26 ....................................................... 1. 00

2. SBT credit carryforwards used from Form 4569, line 13 ............................................................................ 2. 003. Tax After SBT credit carryforwards. Subtract line 2 from line 1.

If less than zero, enter zero .................................................................. 3. 00

4. a. Compensation and Investment Tax Credits from Form 4570, line 26 .................................................... 4a. 00

b. If Form 4570, line 20, is negative, enter here as a negative number. Otherwise, leave blank .............. 4b. 00

5. Research and Development Credit from Form 4570, line 33 ..................................................................... 5. 006. Tax After Research and Development Credit. Subtract lines 4a, 4b

and 5 from line 3 (see instructions) ....................................................... 6. 00

7. Small Business Alternative Credit from Form 4571, line 13 or 19, whichever applies................................ 7. 00

8. Gross Receipts Filing Threshold Credit from Form 4571, line 27 ............................................................... 8. 009. Tax After Gross Receipts Filing Threshold Credit. Subtract lines 7 and

8 from line 6 (see instructions) .............................................................. 9. 00

10. Community and Education Foundations Credit from Form 4572, line 5 ..................................................... 10. 00

11. Homeless Shelter/Food Bank Credit from Form 4572, line 9 ..................................................................... 11. 0012. Tax After Homeless Shelter/Food Bank Credit. Subtract lines 10 and

11 from line 9. If less than zero, enter zero ........................................... 12. 00

13. This credit is no longer available. Leave this line blank and skip to line 15 ............................................... 13. X X X X X X X X X X X 00

14. This credit is no longer available. Leave this line blank and skip to line 15 ............................................... 14. X X X X X X X X X X X 00

15. Start-up Business Credit from Form 4573, line 9. If less than zero, enter as a negative number ............. 15. 0016. Tax After Start-up Business Credit. Subtract lines 13 and 15 from line

12. If less than zero, enter zero ............................................................. 16. 00

17. Public Contribution Credit from Form 4572, line 14.................................................................................... 17. 00

18. Arts and Culture Credit from Form 4572, line 19 ........................................................................................ 18. 0019. Tax After Arts and Culture Credit. Subtract lines 17 and 18 from line

16 (see instructions) .............................................................................. 19. 00

20. Next Energy Business Activity Credit from Form 4573, line 12 .................................................................. 20. 00

21. Renaissance Zone Credit from Form 4573, line 14 .................................................................................... 21. 00

22. Historic Preservation Credit Net of Recapture from Form 4573, line 17b .................................................. 22. 00

23. Low-Grade Hematite Credit from Form 4573, line 22................................................................................. 23. 00

24. New Motor Vehicle Dealer Inventory Credit from Form 4573, line 27 ........................................................ 24. 00

+ 0000 2018 15 01 27 2 Continue on Page 2

2018 Form 4568, Page 2 of 2 FEIN or TR Number

25. Large Food Retailer Credit from Form 4573, line 31 .................................................................................. 25. 00

26. Mid-size Food Retailer Credit from Form 4573, line 35 .............................................................................. 26. 00

27. Bottle Deposit Administration Credit from Form 4573, line 39 .................................................................... 27. 00

28. MEGA Federal Contract Credit from Form 4573, line 41............................................................................ 28. 00

29. Individual or Family Development Account Credit from Form 4573, line 47 ............................................... 29. 00

30. Bonus Depreciation Credit from Form 4573, line 51 .................................................................................. 30. 00

31. International Auto Show Credit from Form 4573, line 54 ............................................................................ 31. 00

32. Brownfield Redevelopment Credit from Form 4573, line 56 ....................................................................... 32. 00

33. Private Equity Fund Credit from Form 4573, line 61 .................................................................................. 33. 00

34. Film Job Training Credit from Form 4573, line 66 ...................................................................................... 34. 00

35. Film Infrastructure Credit from Form 4573, line 72 ..................................................................................... 35. 00

36. MEGA Plug-In Traction Battery Manufacturing Credit from Form 4573, line 75 ......................................... 36. 00

37. Anchor Company Payroll Credit from Form 4573, line 77 .......................................................................... 37. 00

38. Anchor Company Taxable Value Credit from Form 4573, line 79 ............................................................... 38. 0039. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4573,

line 81 ......................................................................................................................................................... 39. 0040. Total Nonrefundable Credits. Add lines 2, 4a, 4b, 5, 7, 8, 10, 11, 15, 17, 18, and 20 through 39. Enter

total here and carry total to Form 4567, line 54, or Form 4590, line 27...................................................... 40. 00

41. Tax After Nonrefundable Credits. Subtract line 40 from line 1. If less than zero, enter zero. (This line must be equal to Form 4567, line 55, or Form 4590, line 28.) .......................................................................... 41. 00

+ 0000 2018 15 02 27 0

49

PurposeThe purpose of this form is to determine a taxpayer’s taxliabilityafterapplicationofnonrefundabletaxcredits.

Form 4568 is intended to summarize all applicablenonrefundable credits. Specific eligibility criteria, includingvarying credit carryforward life spans, apply to each of thenonrefundable credits. For more details about each of thecredits,refertotheMBTActortheinstructionsforthespecificformsreferencedonthisform.

NOTE:BeginningJanuary1,2012,onlythosetaxpayerswithacertificatedcredit,whichisawardedbutnotyetfullyclaimedorutilized,mayelecttobeMBTtaxpayers.

NOTE: This form may be used by both standard taxpayersand financial institutions. Insurance companies use theMiscellaneous Credits for Insurance Companies(Form4596)toclaimcreditsforwhichtheymaybeeligible.Ofthecreditslistedonthisform,financialinstitutionsmayonlyclaimthefollowing:

• SingleBusinessTax(SBT)CreditCarryforwards• CompensationCredit• RenaissanceZoneCredit• HistoricPreservationCredit• IndividualorFamilyDevelopmentAccountCredit• BrownfieldRedevelopmentCredit• FilmInfrastructureCredit.

Thegoalofarrangingcreditsinthisfashionistominimizetheneedfortaxpayerstogothroughalltheavailableformsbeforedeciding which ones may be applicable to them. Under thepresent arrangement, taxpayers are able to identify the formspertaining to them, and efficiently prepare the tax return.Taxpayersshouldclaimallcreditsforwhichtheyareeligible.

Special Instructions for Unitary Business GroupsCreditsareearnedandcalculatedoneitheranentity-specificorgroupbasis,asdeterminedbytherelevantstatutoryprovisionsfor the respective credits. Intercompany transactions are noteliminatedforthecalculationofanycredits.Creditsearnedorcalculatedoneitheranentity-specificorgroupbasisbyUnitaryBusinessGroup(UBG)membersaregenerallyappliedagainstthe tax liability of the UBG, unless otherwise specified bystatute.

Entity-specificprovisionsareappliedonamember-by-memberbasisandareaddressedintheline-by-lineinstructionsofeachform. In none of these cases does a taxpayer that is a UBGtake the entity type of its parent, DesignatedMember (DM),or any othermember of theUBG.AUBG taxpayer will notbe attributed an entity type based on the composition of itsmembers.

CompleteoneForm4568forthegroup.

FurtherUBGinstructionsareprovidedontheformswherethecreditsarecalculated.

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

Name and Account Number: Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either the MBT Annual Return (Form 4567) for standardtaxpayersortheMBT Annual Return for Financial Institutions (Form4590)).

Line 6:Althoughmostof theentrieson this formarecreditsthatcausetaxliability todecrease, if thereisanentryonline4b,subtractingthatnegativenumberwillcausetaxliabilitytoincrease.

Thetotalcreatedbythecalculationsinthislinecannotbelessthanzero.A totalof less thanzero isonlypossible throughacalculationerrororanincorrectlineentry.

Line 9:Thetotalcreatedbythecalculationsinthislinecannotbe less than zero. A total of less than zero is only possiblethroughacalculationerrororanincorrectlineentry.

Line 16:Althoughmostoftheentriesonthisformarecreditsthatcausetaxliability todecrease, if there isanegativeentryon line 15, subtracting that negative number will cause taxliabilitytoincrease.

Line 19: The total created by the calculations in this linecannot be less than zero. A total of less than zero is onlypossiblethroughacalculationerrororanincorrectlineentry.

Include completed Form 4568 as part of the tax return filing.

Instructions for Form 4568 Michigan Business Tax (MBT) Nonrefundable Credits Summary

50

Michigan Department of Treasury4569 (Rev. 04-18)

Attachment 03

2018 MICHIGAN Business Tax - Single Business Tax (SBT) Credit CarryforwardsIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax before credit from Form 4567, line 53, or Form 4588, line 23, or Form 4590, line 26 .................................... 1. 00

SBT HISTORIC PRESERVATION CREDIT. If not claiming this credit, carry amount from line 1 to line 5.

2. Enter any unused credit carryforward from the 2017 Form 4569, line 4. (UBGs, see instructions) ...................... 2. 00

3. SBT Historic Preservation Credit Carryforward used. Enter lesser of line 1 or line 2 ........................................... 3. 00

4. SBT Credit Carryforward to 2019. If line 2 is greater than line 1, enter the difference (see instructions) ............. 4. 00

5. Tax After Credit Carryforward. Subtract line 3 from line 1. Cannot be less than zero ......................................... 5. 00

SBT “NEW” BROWNFIELD CREDIT. If not claiming this credit, carry amount from line 5 to line 12.

6. Enter any unused credit carryforward from the 2017 Form 4569, line 11. (UBGs, see instructions) ..................... 6. 00

7. Recapture of MBT Brownfield Credit in the current tax year ................................................................................. 7. 008. If line 7 is greater than line 6, enter the difference.

Carry amount to Form 4584, line 39 .................................................................... 8. 00

9. Remaining credit carryforward from 2017. If line 6 is greater than line 7, enter the difference. Otherwise, enter zero ........ 9. 00

10. SBT New Brownfield Credit Carryforward used. Enter lesser of line 5 or line 9 ................................................... 10. 00

11. SBT Credit Carryforward to 2019. If line 9 is greater than line 5, enter the difference (see instructions) ............. 11. 0012. Tax After Credit Carryforward. Subtract line 10 from line 5. Cannot be less than zero.

(This line must be equal to Form 4568, line 3, or Form 4596, line 9.) ................................................................... 12. 00

13. TOTAL SBT CREDIT CARRYFORWARDS USED. Add lines 3 and 10.Enter here and carry to Form 4568, line 2, and Form 4570, line 23; or carry to Form 4596, line 6 ...................... 13. 00

+ 0000 2018 19 01 27 4

PurposeThis form is designed to calculate the amount of the SBTHistoricPreservationCreditand/ortheSBT“New”BrownfieldCredit carryforwards that may be claimed for the currenttax year and the credit carryforward to the taxpayer’s nextMichiganBusinessTax(MBT)return(subjecttoexpiration,asdescribedbelow).

Credit carryforwards are totaled here and then carried to theMBT Nonrefundable Credits Summary(Form4568)ortheMBT Miscellaneous Credits for Insurance Companies(Form4596).

NOTE: Beginning January 1, 2012, only those taxpayerswith a certificatedcredit,which is awardedbutnotyet fullyclaimed or utilized, may elect to be MBT taxpayers. If ataxpayerfilesanMBTreturnandclaimsacertificatedcredit,the taxpayer makes the election to file and pay under theMBTuntilthecertificatedcreditandanycarryforwardofthatcreditareexhausted. Ataxpayermakingavalidcertificatedcreditelectionmayalsoclaimthecreditsonthisform.

General InformationSBTHistoricPreservationCreditand“New”BrownfieldCreditcarryforwardsmaybeclaimedagainstMBTuntiltheSBTActlifespansofthosetwocarryforwardsexpire.

In addition to the time limitation on their use against MBT,each SBT credit carryforward is limited to the amount ofMBT liability calculated immediately prior to claiming thatcarryforward.If the tax liabilityafteracreditcarryforwardiszero,anycreditcarryforwardavailableafterthatpointwillnotbeallowedinthecurrentfilingperiod.

However, the remainder of this form must be completed tocalculate the amount of SBT credit carryforward that maybe available for the taxpayer’s next MBT return (subject toexpirationrules).

The ability to claim SBT credit carryforwards is availableto standard taxpayers, financial institutions, and insurancecompanies.

Special Instructions for Unitary Business Groups All members of a Unitary Business Group (UBG) shouldcombine their SBT credit carryforwards by type. If morethanonememberof aUBGhas the same typeofSBTcreditcarryforward, the UBG must use the oldest one first. Thecombined credit carryforwards will be applied to the entireUBG’s tax liability. As support, credit carryforwards arereported on a separate entity basis by each standard taxpayermemberoftheUBGontheUnitary Business Group Combined Filing Schedule (Form4580).

CompleteoneForm4569forthegroup.

Findadditionalinformationoncalculatingcreditcarryforwardsin the “Supplemental Instructions for Standard Membersin UBGs” section in the MBT Forms and Instructions for Standard Taxpayers(Form4600).

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

Name and Account Number:Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either the MBT Annual Return (Form 4567) for standardtaxpayers, theMBT Annual Return for Financial Institutions (Form 4590), or theMBT Insurance Company Annual Return for Michigan Business and Retaliatory Taxes(Form4588)).

SBT HISTORIC PRESERVATION CREDITLine 2: UBGs: Standard taxpayers, enter the carryforwardamountfromForm4580,Part2B,line46,columnC.Financialinstitutions, enter the combined total of carryforward amountsreported on line 26 of theUBG Combined Filing Schedule for Financial Institutions(Form4752)byallmembersofthegroup.

Line 3: This is the amount of SBT Historic PreservationCredit carryforward that may be used in this filing period.Credit recapture is calculated and reported on the MBT Election of Refund or Carryforward of Credits (Form4584).

Line 4: This is the amount of SBT Historic PreservationCreditcarryforward tobecarried to the taxpayer’snextMBTreturn(subjecttoexpirationrules).

SBT “NEW” BROWNFIELD CREDITLine 6: UBGs: Standard taxpayers, enter the carryforwardamountfromForm4580,Part2B,line47,columnC.Financialinstitutions,enterthecombinedtotalofcarryforwardamountsreportedonline27ofForm4752byallmembersofthegroup.

Line 7:RecaptureofMBTBrownfieldRedevelopmentCreditin the current tax year. The amount that should otherwise beadded to the tax liability may instead be used to reduce thecreditcarryforwardreported.

Line 8: Carry amount to Form 4584, line 40. (This is theamountofMBTrecapturestillremaining,andwillbeusedtoreducetheMBTcreditreportedonForm4584.Anyrecaptureamount remaining after application of the current year creditwillincreasethetaxliability.)

Line 11: ThisistheamountofSBT“New”BrownfieldCreditcarryforward tobecarried to the taxpayer’snextMBTreturn(subjecttoexpirationrules).

Line 13: Total SBT Credit Carryforwards Used. Standardtaxpayers and financial institutions carry this amount toForm 4568, line 2, and, if applicable, the MBT Credits for Compensation, Investment and Research and Development (Form4570),line23.InsurancecompaniescarrytoForm4596,line6.

Include completed Form 4569 as part of the tax return filing.

Instructions for Form 4569 Single Business Tax (SBT) Credit Carryforwards

Michigan Department of Treasury4570 (Rev. 04-18), Page 1 of 4 Attachment 04

2018 MICHIGAN Business Tax Credits for Compensation, Investment, and Research and DevelopmentIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability before the Compensation and Investment Tax Credits from Form 4568, line 3 ............................. 1. 00

PART 1: COMPENSATION CREDIT. If not claiming this credit, go to Part 2.

2. Michigan Compensation ................................................................................................................................... 2. 00

3. Multiply line 2 by 0.37% (0.0037). .................................................................................................................... 3. 00

PART 2: INVESTMENT TAX CREDITRead instructions to ensure eligibility before claiming this credit. If not claiming this credit, carry amount from line 3 to line 21.Capital Investments

4. Total eligible depreciable tangible assets located in Michigan that were acquired during the tax year (from line 35). ........................................................................................................................................................ 4. 00

5. Total eligible depreciable tangible assets purchased or acquired for use outside of Michigan in a tax year beginning after December 31, 2007, that were transferred into Michigan during the tax year (from line 36) .... 5. 00

6. Total eligible depreciable mobile tangible assets that were acquired during the tax year (from line 37) ............ 6. 007. Mobile Tangible Assets. If subject to apportionment, multiply line 6 by the percentage from Form 4567,

line 11c. If not subject to apportionment, enter amount from line 6 ..................................................................... 7. 00

8. Total Capital Investments. Add lines 4, 5 and 7 ................................................................................................. 8. 00

9. Total cost paid or accrued of all depreciable real and personal property located everywhere that was acquired during the tax year (authorized under MCL 208.1513(3)) .................................................................................... 9. 00LINE 9 IS FOR STATISTICAL PURPOSES ONLY AND SHOULD NOT BE USED IN ANY CALCULATION ON THIS FORM.

Recapture of Capital Investments Acquired or Transferred into Michigan During the Tax Year10. Adjusted Proceeds from recapture of eligible depreciable tangible assets located in Michigan that were

acquired or transferred into Michigan during the tax year and were also sold or otherwise disposed of during the tax year (from line 39)...................................................................................................................................... 10. 00

If subject to apportionment, complete lines 11 and 12; otherwise, go to line 13.

11. Apportioned gains/losses. Multiply line 38, column F, by the percentage from Form 4567, line 11c ..................... 11. 0012. Apportioned Adjusted Proceeds. If line 11 is a gain, subtract it from line 38, column E. If line 11 is a loss, add

its positive value to line 38, column E.................................................................................................................... 12. 0013. Adjusted Proceeds from recapture of eligible depreciable mobile tangible assets acquired during the tax year

that were sold or otherwise disposed of during the tax year (from line 41) .............................................................. 13. 00

If subject to apportionment, complete line 14; otherwise, go to line 15.

14. Apportioned Adjusted Proceeds. Multiply line 13 by percentage from Form 4567, line 11c ................................. 14. 00

15. Adjusted Federal Basis of eligible depreciable tangible assets (other than mobile tangible assets) acquired during the tax year that are eligible for the Investment Tax Credit and are transferred outside Michigan during the tax year (from line 42)...................................................................................................................................... 15. 00

16. Recapture of Capital Investments. Add lines 10, 13, and 15. Or, if taxable in another state, add lines 12, 14, and 15 ........................................................................................................................................ 16. 00

+ 0000 2018 23 01 27 5 Continue on Page 2

2018 Form 4570, Page 2 of 4 FEIN or TR Number

Net Capital Investments17. Net MBT Capital Investment. Subtract line 16 from line 8 ................................................................................. 17. 0018. Multiply line 17 by 2.9% (0.029) ............................................................................................................................ 18. 0019. Net Recapture Amount. Enter sum of amounts from Worksheet 2, total of column U, and Form 4585, line 7 ...... 19. 0020. Subtract line 19 from line 18. If negative, carry amount to Form 4568, line 4b .................................................... 20. 00

PART 3: REDUCED COMPENSATION AND INVESTMENT TAX CREDITS21. Add lines 3 and 20. If line 20 is negative, enter amount from line 3 ...................................................................... 21. 0022. Enter amount from Form 4567, line 51, or Form 4590, line 22.............................................................................. 22. 0023. Total SBT credit carryforwards used from Form 4569, line 13 ............................................................................... 23. 0024. Subtract line 23 from line 22. If less than zero, enter zero ..................................................................................... 24. 0025. Multiply line 24 by 52% (0.52) ................................................................................................................................ 25. 0026. Allowable Credit. Enter lesser of line 21 or line 25. Carry amount to Form 4568, line 4a ................................... 26. 0027. If line 20 is negative, enter amount from line 20 as a positive number. If line 20 is positive, leave this line blank ... 27. 0028. Tax After Compensation and Investment Tax Credits. Subtract line 26 from line 1 and add line 27 ...................... 28. 00

PART 4: RESEARCH AND DEVELOPMENT CREDIT29. Research and development expenses in Michigan ................................................................................................ 29. 0030. Multiply line 29 by 1.9% (0.019) ............................................................................................................................. 30. 0031. Multiply line 24 by 65% (0.65) ................................................................................................................................ 31. 0032. Ceiling for Research and Development Credit. Subtract line 26 from line 31 ....................................................... 32. 0033. Research and Development Credit. Enter the lesser of line 30 or line 32. Carry amount to Form 4568, line 5 ........ 33. 0034. Tax After Research and Development Credit. Subtract line 33 from line 28.

(This line must be equal to Form 4568, line 6.) ...................................................................................................... 34. 00

+ 0000 2018 23 02 27 3 Continue on Page 3

2018 Form 4570, Page 3 of 4 FEIN or TR Number

Table 1 - Enter all eligible depreciable tangible assets located in Michigan that were acquired during the tax year.A B C D

Description CityDate Acquired

(MM-DD-YYYY)Cost Paid or Accrued

During Tax Year

35. Total of column D. Carry amount to line 4, page 1 ................................................................................................ 35. 00

Table 2 - Enter all eligible depreciable tangible assets purchased or acquired for use outside of Michigan in a tax year beginning after December 31, 2007, that were transferred into Michigan during the tax year.

A B C D

Description City

Date Physically Located in Michigan

(MM-DD-YYYY)Federal Adjusted Basis as of Date Transferred

36. Total of column D. Carry amount to line 5, page 1 ................................................................................................ 36. 00

Table 3 - Enter all eligible depreciable mobile tangible assets that were acquired during the tax year.A B C D

Description StateDate Acquired

(MM-DD-YYYY)Cost Paid or Accrued

During Tax Year

37. Total of column D. Carry amount to line 6, page 1 ................................................................................................ 37. 00

+ 0000 2018 23 03 27 1 Continue on Page 4

2018 Form 4570, Page 4 of 4 FEIN or TR Number

Table 4 - Enter all eligible depreciable tangible assets located in Michigan that were acquired or transferred into Michigan during the tax year and were also sold or otherwise disposed of during the tax year. (Enter dates as MM-DD-YYYY.)

A B C D E FDescription City Date Acquired Date Sold Gross Sales Price Gain/Loss

38. Totals of columns E and F. A loss in column F will increase recapture ............................ 38. 00 0039. Adjusted Proceeds. If line 38, column F, is a gain, subtract it from line 38, column E. If line 38, column F, is a

loss, add its positive value to line 38, column E. Carry amount to line 10, page 1 ................................................. 39. 00

Table 5 - Enter all eligible depreciable mobile tangible assets acquired during the tax year that were also sold or otherwise disposed of during the tax year. (Enter dates as MM-DD-YYYY.)

A B C D E FDescription State Date Acquired Date Sold Gross Sales Price Gain/Loss

40. Totals of columns E and F. A loss in column F will increase recapture ............................ 40. 00 0041. Adjusted Proceeds. If line 40, column F, is a gain, subtract it from line 40, column E. If line 40, column F, is a

loss, add its positive value to line 40, column E. Carry amount to line 13, page 1 ................................................. 41. 00

Table 6 - Enter all eligible depreciable tangible assets (other than mobile tangible assets) acquired during the tax year that are eligible for the Investment Tax Credit and were transferred outside Michigan during the tax year. (Enter dates as MM-DD-YYYY.)

A B C D EDescription City Date Acquired Date Transferred Federal Adjusted Basis

42. Adjusted Federal Basis. Total of column E. Carry amount to line 15, page 1 ......................................................... 42. 00

+ 0000 2018 23 04 27 9

57

PurposeTo claim the Compensation Credit, Investment Tax Credit(ITC), and the Research and Development Credit calculatedhereandcarried to theMBT Nonrefundable Credits Summary (Form4568).

NOTE: This form may be used by standard taxpayers toclaim eligible credits and by financial institutions to claimthe Compensation Credit only. Insurance companies use theMiscellaneous Credits for Insurance Companies (Form 4596)toclaimcreditsforwhichtheymaybeeligible.

The Compensation Credit and ITC together are limited to 52percentofthetotaltaxliability.TheResearchandDevelopmentCredit, combined with the Compensation Credit and ITC, arelimitedto65percentofthetaxliability.

ThisformwillalsodetermineanITCrecapturethatpotentiallycouldincreasethetaxliability.

NOTE: Beginning January 1, 2012, only those taxpayerswith a certificated credit, which is awarded but not yet fullyclaimed or utilized, may elect to be MBT taxpayers. If ataxpayerfiles anMBT returnandclaimsa certificatedcredit,thetaxpayermakestheelectiontofileandpayundertheMBTuntilthecertificatedcreditandanycarryforwardofthatcreditare exhausted. A taxpayer making a valid certificated creditelectionmayalsoclaimthecreditsonthisform.

Special Instructions for Unitary Business GroupsCreditsareearnedandcalculatedoneitheranentity-specificorgroupbasis,asdeterminedbytherelevantstatutoryprovisionsfor the respective credits. The credits on this form arecalculatedonagroupbasis.Intercompanytransactionsarenoteliminatedforthecalculationofanycredits.Assetstransferredbetween members of the group are not considered capitalinvestments in qualifying assets for purposes of calculatingthe ITC in Part 2. Credits are generally applied against thetax liability of the Unitary Business Group (UBG), unlessotherwisespecifiedbystatute.

CompleteoneForm4570forthegroup.

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

DatesmustbeenteredinMM-DD-YYYYformat.

Name and Account Number:Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either the MBT Annual Return (Form 4567) for standardtaxpayersortheMBT Annual Return for Financial Institutions (Form4590)).

PART 1: COMPENSATION CREDITUBGs: If the taxpayer is aUBG, theCompensationCredit iscalculated on the combined Michigan compensation of theUBGmembers. Intercompany transactions are not eliminatedforthispurpose.

Line 2:Entercompensation,asdefinedinMichiganCompiledLaws208.1107(3), paid in the taxyearonbehalf ofor for thebenefit of employees, officers, or directors. Generally, underthis definition, compensation includes, but is not limited to,paymentsthataresubjecttoorspecificallyexemptorexceptedfromwithholdingunder InternalRevenueCode (IRC)§3401through§3406.

Compensation also includes fringe benefits and any earningsthat are net earnings from self-employment, as defined underIRC § 1402, of the taxpayer, partner, or Limited LiabilityCompany member of the taxpayer. Wages, salaries, fees,bonuses, commissions, and other payments made in the taxyear on behalf of or for the benefit of employees, officers, ordirectors,aswellasnetearnings fromself-employment,mustbereportedonacashbasis.

Paymentsmade to a pension plan, retirement or profit sharingplan,employeeinsuranceplans,andpaymentsunderhealthandwelfarebenefitplans,aswellastheadministrationfeespaidforthe administration of the health and welfare benefit plan, arecompensation. Compensation also includes certain paymentsmadebylicensedtaxpayersthatarestatutorilyidentified.Thesecompensationpaymentsarecalculatedonacashoraccrualbasisconsistentwith the taxpayer’smethodofaccounting for federalincome taxes. The statute provides for certain exclusions fromcompensation, including employee discounts on merchandiseand services, payments for State and federal unemploymentcompensationandfederalinsurancecontributions,andpaymentsmadetomostindependentcontractors.

Expensesincurredforthebenefitofthetaxpayerratherthanforthebenefitofemployeesofthetaxpayerarenotcompensation.Noncompensation expenses might include payments reportedonaForm1099toanemployeefor therentalofabuildingorforinterestincome.

This credit is calculated on the taxpayer’s Michigancompensation.

Compensation is “in this state” if (a) the individual’s serviceis performed entirelywithinMichigan, or (b) the individual’sservice is performed both within Michigan and outsideMichigan, but the services performed outside Michigan areincidentaltotheindividual’sservicewithinMichigan.

Example 1: Sales Co. employs Salesperson whose territoryincludesbothDetroit,Michigan,andToledo,Ohio.Salespersoncalls on customers located in both Michigan and Ohio. ThecompensationpaidtoSalespersonisnot“compensationinthisstate” because Salesperson’s activity is not limited solely toMichigan,andcallingoncustomersinOhioisnotincidentaltoSalesperson’sactivityinMichigan.

Example 2: Manufacturer employs Engineer at its Michiganfacility.Severaltimesayear,Engineertravelsoutofstatetomeetwithsuppliers.AlthoughEngineerperformsservicesbothwithinMichiganandoutsideMichigan,Engineer’sout-of-stateservicesare incidental to Engineer’s services within Michigan. ThecompensationpaidtoEngineeris“compensationinthisstate.”

Instructions for Form 4570, Michigan Business Tax (MBT) Credits for Compensation, Investment, and Research and Development

58

PART 2: INVESTMENT TAX CREDITUse Part 2 to determine the total eligible acquisitions anddispositionsforthefilingperiod.CompleteTables1through6(lines35 through42)beforecompleting lines4 through16. Ifmorespaceisneededforanyassetsacquired,sold,ordisposedofinthistaxyear,includeadditionalcopiesofpage3orpage4(asapplicable)oftheformidentifyingthenameandaccountnumber at the top with only the additional applicable fieldscompleted. Financial institutions and insurance companies donotqualifyforthiscredit.

For tax years beginning after 2007, taxpayers may claim anITC for a percentage of the net costs paid or accrued in thefilingperiodforqualifyingtangibleassetsphysicallylocatedinMichigan.Theassetsmustbeofatypethatareorwillbecomeeligible for depreciation, amortization, or accelerated capitalcost recovery for federal income tax. Mobile tangible assets(defined in the instructions for line 8), wherever located, aresubject toapportionment in the samemanneras the taxbase.Assets purchased or acquired after 2007 for use outside ofMichigan andmoved intoMichigan during the filing period,also qualify for ITC. Disposition of an asset, or moving anassetoutofMichigan,createsrecapturethatreducesthecredit.Ifrecaptureexceedsthepositivecreditearnedbyacquisitions,thetaxliabilityisincreased.

NOTE: Recapture from dispositions during the filing periodof assets acquired (or moved into Michigan) after 1999 andbefore 2008 is calculated on theMBT Investment Tax Credit Recapture from Sale of Assets Acquired Under Single Business Tax(Form4585).

If,duringthefilingperiod,ataxpayeracquireddepreciablerealorpersonalpropertyordisposedofdepreciablerealorpersonalpropertythatwasacquiredinataxyearbeginningafter1999,completethisformandincludeitaspartoftheannualreturn.Ifpropertydisposedofduringthefilingperiodwasacquiredinataxyearbeginningafter1999andbefore2008,alsocompleteandincludeForm4585.

UBGs: If the taxpayer is a UBG, the ITC is calculated oncombined assets of standard members of the UBG. Assetstransferred between members of the group are not a capitalinvestmentinqualifyingassetsforpurposesofcalculatingthiscredit.

Thefollowinginstructionsfor thePart2“CapitalInvestments(Acquisitions)” and “Recapture of Capital Investments(Dispositions)”sectionsprovideinformationoncompletingthetablesonpages3and4ofthisform.TheinstructionsforPart4followthesesections.

Capital Investments (Acquisitions)NOTE: When completing tables 1 through 6, leave lines/boxesblankiftheydonotapplyoriftheamountiszero,unlessotherwiseinstructed.

NOTE: For Tables 1 through 3, all events that have varyingdatesmustbelistedseparately.“Various”isnotavalidentryinadatefield.Multipleacquisitions(ortransfers)maybecombinedasoneentry,subjecttothefollowing:allcombinedeventsmustsatisfy the terms of the table inwhich they are entered. “DateAcquired” (or“DatePhysicallyLocated inMichigan”)mustbe

thesameforalleventscombinedonasingleline.

Costincludescostsoffabricationandinstallation.

Table 1: Enter a short description (for example, equipment,building, etc.), city or township inwhich the asset is located,date acquired, and cost paid or accrued of all eligibledepreciable tangible assets located in Michigan that wereacquiredduringthefilingperiod.

IfmultiplepagesofForm4570,Table1,areincluded,carrythegrandtotalofallTable1,columnD,entriestoline4.

Table 2: Enter a short description (for example, equipment,automobile,etc.),cityortownshipinwhichtheassetislocated,date physically located in Michigan, and adjusted basis (ascalculated for federal purposes) as of the date moved of alleligible depreciable tangible assets purchased or acquiredfor use outside ofMichigan after 2007 that weremoved intoMichigan during the filing period for a business use. Do notincludemobiletangibleassets(seebelow).

IfmultiplepagesofForm4570,Table2,areincluded,carrythegrandtotalofallTable2,columnD,entriestoline5.

Table 3: Enter a short description (for example, constructionequipment,aircraft,etc.),thestateinwhichtheassetprimarilywas based during the tax year, date acquired, and cost paidor accrued during the filing period for all depreciablemobiletangible assets that were acquired during the filing period,whetherlocatedinMichiganoroutsideMichigan.

Mobile tangible assetsareallofthefollowing:

• Motor vehicles that have a gross vehicle weight rating of10,000poundsormoreandareusedtotransportpropertyorpersonsforcompensation.

• Rolling stock (railroad freight or passenger cars,locomotives, or other railcars), aircraft, and watercraftused by the owner to transport property or persons forcompensationorusedbytheownertotransporttheowner’spropertyforsale,rental,orfurtherprocessing.

• Equipmentuseddirectlyincompletionof,orinconstructioncontracts for, the construction, alteration, repair, orimprovementofproperty.

IfmultiplepagesofForm4570,Table3,areincluded,carrythegrandtotalofallTable3,columnD,entriestoline6.

Recapture of Capital Investments (Dispositions)Use this section to compute credit recapture from disposition(or moving out of Michigan) of tangible, depreciable real orpersonal property that was acquired in a tax year beginningafter 2007. Recapture from the disposition of qualifyingproperty thatwasacquired ina taxyearbeginningafter1999butbefore2008iscalculatedonForm4585andreportedhere.

NOTE: A sale of qualifying property reported on theinstallment method for federal income tax purposes causesa recapture based upon the entire sale price in the year ofthe sale. The recapture is reduced by any gain reported infederal taxable income (as defined for MBT purposes) inthe year of the sale. The gain attributable to the installmentsale that is reported in subsequent years increases the credit

59

base (or reduces other sources of recapture) for those years.For property placed in service prior to January 1, 2008, gainreflected in federal taxable income (as defined for MBTpurposes)isequaltothegainreportedforfederalpurposes.

UBGs: If the taxpayer is a UBG, the recapture of capitalinvestments is calculated on combined assets of standardmembersoftheUBG.Assetstransferredbetweenmembersofthegrouparenotacapital investment inqualifyingassets forpurposes of calculating this credit or its recapture. However,movinganassetoutsideofMichigancreatesrecapture,evenifthetransferistoamemberoftheUBG.

Using the Correct Tables to Calculate RecaptureEnterinformationonTables4,5,6asexplainedbelowONLY forassetsthatarebeingdisposedofinthecurrentfilingperiod,and that were purchased, acquired, ormoved intoMichiganALSOinthecurrentfilingperiod.

Information for assets disposed of in the current filing periodandpurchased,acquired,ormoved intoMichigan in taxyearsincluded in PREVIOUS filing periods must be entered onworksheets1a,1b,and1cprovidedattheendoftheinstructionsfor this form.Recapture for assets thatwereacquired in a taxyearbeginningbefore2008anddisposedofduringthecurrentfilingperiodisreportedonForm4585.

The total credit recapture for assets reported on worksheets1a, 1b, and 1c is calculated onWorksheet 2 at the end of thisinstructions,andwillbereportedonline19onthisform.Ifthefiler is also reporting SBT ITC recapture on Form 4585, addboththetotalsumfromWorksheet2,columnU,andtheamountfromForm4585, line7andenter thesumon line19onForm4579(thisform).

NOTE: For Tables 4 through 6,allevents thathavevaryingdates must be listed separately. “Various” is not a validentry in a date field. Multiple dispositions (or transfers)may be combined as one entry, subject to the following: Allcombined eventsmust satisfy the terms of the table inwhichthey are entered. “Date Acquired”must be the same for allevents combined on a single line, and “Date Sold” (or “DateTransferred”)alsomustbethesame.

Table 4: Enter all dispositions of depreciable tangible assetslocated in Michigan that were acquired or moved intoMichigan in the current filing period, and were ALSO soldor otherwise disposed of during the current filing period.Give all information required for eachdisposition in columnsA through F. In column A, enter a short description (forexample, equipment, building, etc.). Enter gross sales price(netofcostsofsale)incolumnE,andincolumnF,entertotalgainor loss includedincalculatingfederal taxable income(asdefinedforMBTpurposes).

NOTE:Salespriceincludesanybenefitderivedfromthesale.

IfmultiplepagesofForm4570,Table4,areincluded,carrythegrandtotalofallline39entriestoline10.

Table 5: Enter all dispositions of depreciablemobile tangibleassetsthatwereacquiredinthecurrentfilingperiodandwereALSO soldorotherwisedisposedofduring thecurrentfilingperiod. Give all information required for each disposition incolumnsA throughF. In columnA, enter a short description

(for example, construction equipment, aircraft, etc.). Entergross sales price (net of costs of sale) in column E, and incolumnF,entertotalgainorlossincludedincalculatingfederaltaxableincome(asdefinedforMBTpurposes).

For property placed in service in the current filing period,gain reflected in federal taxable income (as defined forMBTpurposes) is thegain reported federallyexcept that it shallbecalculatedasifIRC§168(k)werenotineffect.

NOTE:Salespriceincludesanybenefitderivedfromthesale.

IfmultiplepagesofForm4570,Table5,areincluded,carrythegrandtotalofallline41entriestoline13.

Table 6:Enteralldepreciabletangibleassets(otherthanmobiletangible assets) acquired in the current filing period that wereeligible for ITC andwereALSO transferred outsideMichiganduring the current filing period. Give all information requiredforeachdispositionincolumnsAthroughE.IncolumnA,entera short description (e.g., equipment, automobile, etc.) and incolumnB,entertheMichigancityortownshipinwhichtheassetwaslocatedbeforeitstransfer.IncolumnE,enteradjustedbasisas used for federal purposes. Do not use a recomputed MBTbasisforthispurpose.

IfmultiplepagesofForm4570,Table6,areincluded,carrythegrandtotalofallTable6,columnE,entriestoline15.

PART 4: RESEARCH AND DEVELOPMENT CREDITLine 29: As used in this part, research and development expensesmeansthattermasdefinedinIRC§41(b).

UBGs:IfthetaxpayerisaUBG,theResearchandDevelopmentCredit iscalculatedon thecombinedresearchanddevelopmentexpenses of standard members of the UBG. Intercompanytransactions are not eliminated for this purpose. QualifiedexpensesincurredbymembersofaUBGthatarepaidtofellowmembersareincludedincalculatingthegroup’scredit.

Include completed Form 4570 as part of the tax return filing.

IMPORTANT:Complete theworksheets on the followingpages for assets disposed (or moved out of Michigan) inthe current filing period thatwere purchased, acquired, ormovedintoMichiganinaprevioustaxyearbeginningafterDecember31,2007.

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Calculation of MBT ITC Credit Recapture Amount

Calculation of MBT ITC Credit Recapture BasesFor each category of asset disposed (or moved out ofMichigan)thattriggersanMBTITCcreditrecapture,entertheinformationrequestedbelow.

• Use theworksheets below to report informationONLYonassetsdisposed(ormovedoutofMichigan)inthecurrentfilingperiodthatwerepurchased,acquired,ormovedintoMichiganinaPREVIOUStaxyearbeginningafterDecember31,2007.• Usetables4,5,and6ontheformtoreportassetsthatweredisposed of or moved out of Michigan in the current filingperiod AND were also purchased, acquired, or moved intoMichiganinthesamecurrentfilingperiod.

In each category of disposed/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.

UBGs: Ifanasset subject to recapture is fromamember thatwasnotpartofthegroupinthetaxyeartheassetwasacquired,make a separate line entry for the tax year the memberfiled outside of the group. Take care to report in this lineinformationrequestedineachcolumnonlyfromthemember’ssinglefilings,notthegroup’s.

NOTE: A sale of qualifying property reported on the

installment method for federal income tax purposes causesa recapturebasedupon theentiresaleprice in theyearof thesale.Therecapture is reducedbyanygainreported infederaltaxable income (as defined forMBT purposes) in the year ofthe sale. The gain attributable to the installment sale that isreported in subsequent years increases the credit base (orreduces other sources of recapture) for those years, andmustbe reported on columnCof the appropriateWorksheet basedon the type of asset. For property placed in service prior toJanuary 1, 2008, the gain reflected in federal taxable income(asdefinedforMBTpurposes)isequaltothegainreportedforfederalpurposes.

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 assets were acquired. Enter combined gross salesprice(netofcostsofsale)incolumnB,andincolumnC,enter

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

MBT ApportionmentPercentage from

Form 4567, line 11c, or Form 4590, line 10c

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

MBT ApportionmentPercentage from

Form 4567, line 11c, or Form 4590, line 10c

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)

61

totalgainorlossincludedincalculatingfederaltaxableincome(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 taxable year in which the disposed assets were acquired.Entergrosssalesprice(netofcostsofsale)incolumnB,andincolumnC,entertotalgainorlossincludedincalculatingfederaltaxableincome(asdefinedforMBTpurposes).

For property placed in service prior to January 1, 2008, gainreflected in federal taxable income (as defined for MBTpurposes)isequaltothegainreportedforfederalpurposes.

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 MichiganEnteralldepreciabletangibleassets(otherthanmobiletangibleassets)acquiredafter2007thatwereeligibleforITCandweretransferred outside Michigan during the filing period. Giveall informationrequiredforeachdisposition incolumnAandB. In columnA, enter the taxableyear inwhich thedisposedassetswereacquired,andincolumnB,enteradjustedbasisasusedforfederalpurposes.DonotusearecomputedMBTbasisforthispurpose.

Calculation of MBT ITC Recapture Rates and AmountsCompleteWorksheet 2 (on the following page), entering eachtaxable year (End Date) in which the disposed assets thattriggeredMBTITCcreditrecapturewereacquired.

NOTE: Lines references on columns below are based on2010MBT form4570.Lines forMBT forms prior to 2010are different, so if copying information fromMBT formsotherthan2010,choosetheappropriatelines.

Worksheet 2• Column A: Enter in chronological order, beginning withthe earliest, the tax year end date of each acquisition yearof disposed assets that triggered MBT ITC recapture fromWorksheet1athrough1c.

UBGs: Ifanasset subject to recapture is fromamember thatwasnotpartofthegroupinthetaxyeartheassetwasacquired,make a separate line entry for the tax year the memberfiled outside of the group. Take care to report in this lineinformationrequestedineachcolumnonlyfromthemember’ssinglefilings,notthegroup’s.

•ColumnB:EnterallowableMIcompensationandITCcreditsamount from Form 4570, line 26 with the correspondingacquisitionyearincolumnA.

• ColumnC: Enter theMI compensation credit amount fromForm 4570, line 3with the corresponding acquisition year incolumnA.

•ColumnD:CalculatenetITCcreditamount:subtractcolumnC from columnB for each taxable year. If difference is lessthanzero(isnegative),enterzero. This is theamountof ITCcreditthatoffsetsMBTliability.

• Column F: MBT capital investment amount. Enter totalamountofcapitalinvestmentreportedonForm4570,line8,foreachtaxableyearlistedoncolumnE.

• Column G: ITC rate. Enter 2.32% for taxable years oncolumnEthatendwith2008,otherwiseenter2.9%.

• Column H: Calculate gross ITC credit amount: multiplycolumnFbycolumnGforeachtaxableyear.

•ColumnJ:MBTrecaptureofcapital investment. Entertotalamount of recapture of capital investment reported on Form4570,line16,foreachtaxableyearlistedoncolumnI.

•ColumnL:GrossMBTITCcreditrecaptureamount.MultiplycolumnJbycolumnK.ThisrepresentsthetotalamountofITCcreditrecaptureavailabletobereportedinthetaxyear.

• Column M: MBT ITC credit recapture amount offset bycredit.EnterthelesserofcolumnsHandL.Thisistheamountof available ITC credit recapture that was offset by the totalamountofavailableITCcreditintheyear.

•ColumnO:SBTcreditrecaptureamount.EntertotalamountfromForm4570,line19foreachtaxableyearlistedoncolumnN.

•ColumnP:SBTITCcreditrecaptureamountoffsetbycredit.Enter lesser of the amount on column O, and the amount ofcolumnHminus columnM. This is the amount of SBT ITCcreditrecapturethatwasoffsetbythetotalamountofavailableITCcreditinthetaxableyear.

•ColumnQ: TotalMBTITCused. AddcolumnsD,M,andP.ThetotalamountofMBTITCusedequalstotheamountofcredit that offsetsMBT ITC credit recapture, SBT ITC creditrecapture,andtheMBTliability.

•ColumnR:Extentusedrate. DivideamountsoncolumnQbyamountsoncolumnH.

• Column T: MBT recapture base. Enter total amount ofrecapture capital investment from Worksheet 1a, column F;Worksheet1b,columnFandWorksheet1c,columnB.

• Column U: MBT recapture amount. Multiply amount incolumnTbyratesincolumnG,andincolumnR.

AddupfiguresineachrowofcolumnU,andcarrythatamounttoline19.IffilerisalsoreportingSBTITCrecapture,addboththetotalsumfromcolumnUinthisform,andtheamountfromForm4585,line7andenterthesumonline19onthisform.

62

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 1b, column F; and Worksheet 1c,

column B.

Recapture Amount. Multiply column T by

column G and by column R

Michigan Department of Treasury4571 (Rev. 04-18), Page 1 of 2

Attachment 06

2018 MICHIGAN Business Tax Common Credits for Small BusinessesIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

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:

• Gross receipts exceed $20,000,000.• Adjusted business income after loss adjustment exceeds

$1,474,200.• Any individual, shareholder or officer has allocated income

after loss adjustment of over $180,000, or any partner has distributive share of income after loss adjustment of over $180,000, as determined on Form 4577 or 4578.

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

• Any individual, shareholder or officer has allocated income after loss adjustment of over $160,000 but not over $180,000, or any partner has distributive share of income after loss adjustment of over $160,000 but not over $180,000, as determined on Forms 4577 or 4578.• Gross receipts exceed $19,000,000 but are not more than $20,000,000.

Taxpayers claiming the small business alternative credit, other than individuals and fiduciaries filing as individuals MUST complete and include Form 4577 or 4578, as applicable.

1. Tax liability prior to this credit from Form 4568, line 6 ........................................................................................... 1. 00

PART 1: SMALL BUSINESS ALTERNATIVE CREDITIf not claiming a Small Business Alternative Credit, skip to Part 2.Adjusted Business Income

2. Business Income from Form 4567, line 28 (see instructions)................................................................................ 2. 003. Gross capital loss utilized on federal return (see instructions) .............................................................................. 3. 004. Federal net operating loss carryover or carryback from Form 4567, line 32 ......................................................... 4. 005. Add lines 2, 3, and 4 ............................................................................................................................................. 5. 006. Compensation and director fees of active shareholders from Form 4577, line 3 ................................................. 6. 007. Compensation and director fees of officers from Form 4577, line 4 ..................................................................... 7. 008. Adjusted Business Income. Add lines 5, 6 and 7................................................................................................... 8. 00

Small Business Alternative Credit Calculation9. Small Business Alternative Tax. Multiply line 8 by 1.8% (0.018). If less than zero, enter zero ............................ 9. 00

10. Small Business Alternative Credit. Subtract line 9 from line 1. If less than zero, enter zero ......................... 10. 0011. Allocated income/distributive share of income used for reduction (see instructions) .. 11. 0012. Reduction percentage from Reduced Credit Table on page 2 (based on amount from line 11) .......................... 12. %13. Reduced Credit. Multiply line 12 by line 10. If gross receipts from Form 4567, line 12, are less than or equal

to $19,000,000, carry amount to Form 4568, line 7 (see instructions) .................................................................. 13. 0014. Tax After Small Business Alternative Credit. Subtract line 13 from line 1 ............................................................. 14. 00

Reduction Based on Gross ReceiptsComplete this section if gross receipts are more than $19,000,000 but not more than $20,000,000.

15. Gross receipts from Form 4567, line 12 (see instructions) .................................................................................... 15. 0016. Excess gross receipts. Subtract $19,000,000 from line 15 .................................................................................. 16. 0017. Excess percentage. Divide line 16 by $1,000,000, and enter as a percentage .................................................... 17. %18. Allowable percentage. Subtract line 17 from 100% ............................................................................................... 18. %19. Small Business Alternative Credit. Multiply percentage on line 18 by the credit on line 13.

Carry amount to Form 4568, line 7 ........................................................................................................................ 19. 0020. Tax After Small Business Alternative Credit. Subtract line 19 from line 1 ............................................................. 20. 00

+ 0000 2018 27 01 27 7 Continue on Page 2

2018 Form 4571, Page 2 of 2 FEIN or TR Number

PART 2: GROSS RECEIPTS FILING THRESHOLD CREDIT Complete this section if apportioned gross receipts are equal to or greater than $350,000 but less than $700,000.See instructions for tax years less than 12 months.

21. Tax before credit from line 1, 14 or 20, whichever applies .................................................................................... 21. 0022. Threshold Ceiling .................................................................................................................................................. 22. 700,000 0023. Gross Receipts from Form 4567, line 12 (see instructions) .................................................................................. 23. 0024. Apportioned Gross Receipts. Multiply line 23 by percentage from Form 4567, line 11c ....................................... 24. 0025. Excess Gross Receipts. Subtract line 24 from line 22. If negative, enter zero on line 27 (no credit allowed) ...... 25. 0026. Gross Receipts Filing Threshold Credit Percentage. Divide line 25 by $350,000, and enter as a percentage ..... 26. %27. Gross Receipts Filing Threshold Credit. Multiply line 26 by line 21. Carry amount to Form 4568, line 8 ........ 27. 0028. Tax After Gross Receipts Filing Threshold Credit. Subtract line 27 from line 21. (This line must be equal to

Form 4568, line 9.) ................................................................................................................................................ 28. 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 2018 27 02 27 5

65

Purpose ToallowtaxpayerstocalculatetheSmallBusinessAlternativeCreditandtheGrossReceiptsFilingThresholdCredit.CreditsarecalculatedhereandthencarriedtotheMBT Nonrefundable Credits Summary(Form4568).

A taxpayer is disqualified from taking the Small BusinessAlternative Credit under certain circumstances, which aredetailedbelow.

A taxpayer with gross receipts allocated or apportioned toMichigan equal to or greater than $350,000, but less than$700,000,mayclaimaGrossReceiptsFilingThresholdCredit.

Unitary Business Groups (UBGs):TaxpayersthatarepartofaUBGmustuse thegross receiptsof the entiregroupbeforeeliminations to determine if the gross receipts allocated orapportionedtoMichiganarebetween$350,000and$700,000.

NOTE: Beginning January 1, 2012, only those taxpayerswith a certificated credit, which is awarded but not yet fullyclaimed or utilized, may elect to be MBT taxpayers. If ataxpayerfiles anMBT returnandclaimsa certificatedcredit,thetaxpayermakestheelectiontofileandpayundertheMBTuntilthecertificatedcreditandanycarryforwardofthatcreditare exhausted. A taxpayermaking a valid certificated creditelectionmayalsoclaimthecreditsonthisform.

NOTE:Amember of a LimitedLiabilityCompany (LLC) ischaracterized forMBT purposes as a partner, shareholder, orowner, basedon the federal tax classificationof theLLC.AnLLCtaxedasaPartnershipforfederalpurposesisrequiredtofileasaPartnershipforMBT.Similarly,anLLCtaxedasaCCorporationoranSCorporationforfederalpurposesmustfileunderthatsameentitytypeforMBT.

NOTE:Apersonthatisadisregardedentityforfederalincometaxpurposesundertheinternalrevenuecodeshallbeclassifiedas a disregarded entity for the purposes of filing the MBTannualreturn.

Fiscal Year Filers: See “Supplemental Instructions forStandard Fiscal MBT Filers” in the MBT Forms and Instructions for Standard Taxpayers(Form4600).

Eligibility for the Small Business Alternative CreditTaxpayers are not eligible for the Small BusinessAlternativeCreditifanyofthefollowingconditionsexist:

• Grossreceiptsexceed$20,000,000.• Adjustedbusinessincomeafterlossadjustmentexceeds:

○ $1,474,200forCorporationsorPartnerships(andLLCsfederallytaxedassuch).

○ $180,000forIndividualsorFiduciaries.

• Any shareholder or officer has allocated income after lossadjustmentofover$180,000oranypartnerhasdistributiveshare of income after loss adjustment of over $180,000, as

determined on the MBT Schedule of Shareholders and Officers (Form 4577) or the MBT Schedule of Partners (Form4578).

In addition, the Small BusinessAlternativeCredit is reducedif an Individual, a partner in a Partnership, a shareholder ofaCorporation, or an officer of aCCorporation has allocatedincome (or distributive share of income, for a partner) afterlossadjustmentofmorethan$160,000.Thisreductionisbasedon the individual/partner/officer/shareholder with the largestallocatedordistributiveshareofincome.

TheSmallBusinessAlternativeCreditalsoisreducedifgrossreceiptsexceed$19,000,000butarenotmorethan$20,000,000.

C CorporationsAllocatedincomeforCCorporationsiseither:

(a) A shareholder or officer’s compensation and director feesfromForm4577,columnL,or

(b) A shareholder’s compensation, director fees, and share ofbusinessincome(orloss)afterlossadjustment,fromForm4577,columnN.

Ifeither(a)or(b)isgreaterthan$180,000foranyshareholderorofficer,theCorporationisnoteligiblefortheSmallBusinessAlternativeCredit.Inaddition,ifeither(a)or(b)ismorethan$160,000 but not more than $180,000 for any shareholderor officer, the Corporation must reduce the Small BusinessAlternativeCreditbasedontheofficerorshareholderwiththelargestallocatedincome.

S CorporationsAllocated income for S Corporations is shareholder’scompensation,director fees, and shareofbusiness income (orloss),afterlossadjustment,fromForm4577,columnN.

NOTE: IndividualsandFiduciariesfilingasIndividualsdonotneedtofileForm4577orForm4578.

NOTE: Taxpayers leasing employees from professionalemployer organizations must include the compensation ofofficers (of the operating company) and shareholders whoreceivecompensationindeterminingtheeligibilityfortheSmallBusinessAlternativeCredit even though their compensation ispaidbytheprofessionalemployerorganization.

NOTE:Ifashareholderownedstockforlessthantheentiretaxyear of the corporation, or an officer served as an officer lessthan the entire tax year, shareholder compensation amountsmustbeannualizedwhendeterminingdisqualifiers.

Tax Years Less Than 12 MonthsIf the reported tax year is less than 12months, gross receipts,adjustedbusinessincome,partners’distributiveshareofbusinessincome, and shareholders’ and officers’ allocated or distributiveshare of incomemust be annualized to determine eligibility. Ifannualizedgross receiptsexceed$19,000,000butdonotexceed$20,000,000,annualizefigures tocompute theReductionBasedonGrossReceipts,lines15through20.

Instructions for Form 4571 Michigan Business Tax (MBT) Common Credits for Small Businesses

66

AnnualizingMultiply each applicable amount, total gross receipts, adjustedbusinessincome,andshareholder,officer,andpartnerincomeby12anddivide the result by thenumberofmonths thebusinessoperated.Generally,abusinessisconsideredinbusinessforonemonthifthebusinessoperatedformorethanhalfthedaysofthemonth. If the taxyear is less thanonemonth, consider the taxyeartobeonemonthforthepurposesofthecalculation.Loss AdjustmentIf taxpayers are not eligible for the full Small BusinessAlternative Credit due to an adjusted business income orallocated incomedisqualifier, theymaybenefit from theMBT Loss Adjustment for the Small Business Alternative Credit (Form 4575). If the adjusted business income was less thanzeroinanyofthefiveyearsimmediatelyprecedingthetaxyearforwhich a taxpayer is claiming a credit and anMBTSmallBusiness Alternative Credit was received for that same year,thetaxpayermaybeabletoreducethecurrentyear’sadjustedbusinessincomeorallocatedincomeamountsbytheloss.SeeForm4575formoredetails.

A loss adjustment will not prevent a reduction to the SmallBusiness Alternative Credit based on gross receipts thatexceed $19,000,000. It will also not change the amount ofcompensationonForm4577,columnL,foraCCorporation.

Special Instructions for UBGsUBGscalculatethegrossreceiptsandadjustedbusinessincomedisqualifiersattheUBGlevelwithouteliminatingintercompanytransactions. For a UBG to claim a small business alternativecredit,eachmemberoftheUBGthatisacorporation(includingan entity taxed federally as such) must file Form 4577. Eachmember of the UBG that is a partnership (including an entitytaxed federally as such) must file Form 4578. The disqualifierthat is based on allocated or distributive share of income isappliedonaseparateentitybasisusingaproformacalculationforbusinessincomeandisnotacombinedamountreceivedfromallmembersofaUBG.See the“Supplemental Instructions forStandardMembersinUBGs”sectioninForm4600.

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

Name and Account Number: Enternameandaccountnumberasreportedonpage1oftheMBT Annual Return(Form4567).

UBGs: Completeoneformforthegroup.EntertheDesignatedMember (DM) name in the Name field and the DM accountnumberintheFederalEmployerIdentificationNumber(FEIN)orTRNumberfield.

PART 1: SMALL BUSINESS ALTERNATIVE CREDITSkip to Part 2 of this form if not claiming a Small BusinessAlternativeCredit.Business income is adjusted by federal net operating losscarryover or carryback from Form 4567, line 32. It isalso adjusted by compensation and director fees of activeshareholdersandofficersfromForm4577andbycapitallosses.

Adjusted Business IncomeLine 2:EnterbusinessincomefromForm4567,line28.Ifnotsubject to Business Income Tax, enter business income fromthe Business Income Worksheet (Worksheet 4746) in Form4600.Attachthisworksheettothereturn.UBGs: Enter the business income before eliminations fromForm4580,Part2B,line30A.

Line 3:Enterallcapitallossesthatwereusedfederallytooffsetcapitalgain.ThisisnotthenetfigurefoundontheScheduleDlinesidentifiedbelow.Itistheamountofcapitallossesthatwereused in reaching the net figure on the federal return lines. IffilingaU.S.Form1040or1041,includethecapitallossamountthat the Individual or Fiduciary was able to use against thecapital gain and the capital loss amount that the Individual orFiduciarywaspermittedtodeductfromordinaryincome($3,000orless).Usebothlong-termandshort-termcapitallosseshere.Include the capital losses used in calculating the net figureusing “Net short-term capital gain or (loss)” and “Net long-termcapitalgainor(loss)”fromScheduleDoffederalForms1040,1041,1065,1120and1120Sasapplicable.UBGs:Combineallcapitallossesforallmembersandenteronline3.

Line 6 and line 7: Fiscal Year Filers: See “SupplementalInstructionsforStandardFiscalMBTFilers”inForm4600.

Small Business Alternative Credit CalculationLine 11: The Small Business Alternative Credit is reducedif an Individual, a partner in a Partnership, a shareholder ofaCorporation, or an officer of aCCorporation has allocatedincome (or distributive share of income, for a partner) afterlossadjustmentofmorethan$160,000.Thisreductionisbasedon the individual/partner/officer/shareholder with the largestallocated or distributive share of income. Enter the allocatedincomeof theshareholderorofficerwiththehighestallocatedincomeafterlossadjustmentorthehighestdistributiveshareofincomeassignedtoapartnerorindividual,evenifthatfigureis$160,000orless.

If loss adjustment is successfully applied to fully or partiallycure an owner’s allocated or distributive income disqualifier,enteronline11thenumberfromForm4575,line5.

Line 12: For a taxpayer whose owners or officers all haveallocatedordistributiveshareof incomeafter lossadjustmentof$160,000orless,enter100percent.Allothertaxpayers,seethetableatthebottomofpage2ofthisformtodeterminewhatpercenttoenteronthisline.

Line 13:Alltaxpayersmustcompletethisline.

If gross receipts from Form 4567, line 12, are $19,000,000 orless, carry the amount on line 13 toForm4568, line 7. For taxyears less than12months,useannualizedgrossreceipts. Forguidance, see the “Annualizing” section at the beginning oftheseinstructions.

UBGs: For the purpose of calculating the credit reductionbased on gross receipts, the UBG combined gross receiptsmust reflect the sum of every member’s gross receipts on a12-monthbasis,beforeeliminations.Therefore,ifnomembersof the UBG are short-year filers, use the amount from the

67

MBT Unitary Business Group Combined Filing Schedule for Standard Members(Form4580),Part2B,line17A.Otherwise,forall short-yearmembersof thegroup,annualize theirgrossreceiptsamount fromForm4580,Part2A, line17A,and thencombinetheannualizedamountswiththegrossreceipts(Form4580,Part2A,line17A)fortheremaininggroupmembers.

Reduction Based on Gross Receipts

Line 15:Fortaxperiodslessthan12months,enterannualizedgross receipts to determine if annualized gross receipts aremorethan$19,000,000butnotmorethan$20,000,000.

UBGs: To calculate the entry for this line, see the UBGguidanceunderline13.Enterthesumofallmembers’12-monthbasisgrossreceipts,beforeeliminations,online15ofthisform.

PART 2: GROSS RECEIPTS FILING THRESHOLD CREDITComplete Part 2 if apportioned gross receipts are equal to orgreaterthan$350,000butlessthan$700,000.

Line 23:Fortaxperiodslessthan12months,enterannualizedgross receipts.Forguidance, see the“Annualizing” sectionatthebeginningoftheseinstructions.

UBGs: To calculate the entry for this line, see the UBGguidance under line 13. Enter the sum of all members’12-monthbasis gross receipts, before eliminations, on line23ofthisform.

Include completed Form 4571 as part of the tax return filing.

68

Michigan Department of Treasury4572 (Rev. 04-18)

Attachment 10

2018 MICHIGAN Business Tax Charitable Contribution CreditsIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability prior to this credit from Form 4568, line 9 ................................................................................. 1. 00

COMMUNITY AND EDUCATION FOUNDATIONS CREDITIf not claiming the Community or Education Foundations Credit, carry amount from line 1 to line 6.

Code 1 Code 2

2. Enter Community and/or Education Foundation Code(s) (see instructions) ........ 2.3. Community and Education Foundations donation amount .......................................................................... 3. 004. Multiply line 3 by 50% (0.50) ....................................................................................................................... 4. 00

5. Community and Education Foundations Credit. Enter the lesser of line 4, $5,000, or 5% (0.05) of the tax on Form 4567, line 53. Carry amount to Form 4568, line 10 .......................................................... 5. 00

6. Tax After Community and Education Foundations Credit. Subtract line 5 from line 1. If less than zero, enter zero ................................................................................................................................................... 6. 00

HOMELESS SHELTER/FOOD BANK CREDITIf not claiming the Homeless Shelter/Food Bank Credit, carry amount from line 6 to line 10.

7. Homeless Shelter/Food Bank cash donation amount ................................................................................. 7. 008. Multiply line 7 by 50% (0.50) ....................................................................................................................... 8. 00

9. Homeless Shelter/Food Bank Credit. Enter the lesser of line 8, $5,000, or 5% (0.05) of the tax on Form 4567, line 53. Carry amount to Form 4568, line 11 ........................................................................... 9. 00

10. Tax After Homeless Shelter/Food Bank Credit. Subtract line 9 from line 6. If less than zero, enter zero.(This line must be equal to Form 4568, line 12.) ......................................................................................... 10. 00

PUBLIC CONTRIBUTION CREDITIf not claiming the Public Contribution Credit, complete line 11 and carry amount to line 15.

11. Enter tax amount from Form 4568, line 16 .................................................................................................. 11. 0012. Public Contribution donation amount........................................................................................................... 12. 0013. Multiply line 12 by 50% (0.50) ..................................................................................................................... 13. 00

14. Public Contribution Credit. Enter the lesser of line 13, $5,000, or 5% (0.05) of line 11.Carry amount to Form 4568, line 17 ............................................................................................................ 14. 00

15. Tax After Public Contribution Credit. Subtract line 14 from line 11. If less than zero, enter zero ................ 15. 00

ARTS AND CULTURE CREDITIf not claiming the Arts and Culture Credit, carry amount from line 15 to line 20.

16. Arts and Culture donation amount (see instructions) .................................................................................. 16. 0017. Qualified donation amount. Subtract $50,000 from line 16. If less than zero, enter zero ............................ 17. 0018. Multiply line 17 by 50% (0.50) ..................................................................................................................... 18. 00

19. Arts and Culture Credit. Enter the lesser of line 18, $100,000, or the tax from line 15.Carry amount to Form 4568, line 18 ............................................................................................................ 19. 00

20. Tax After Arts and Culture Credit. Subtract line 19 from line 15. If less than zero, enter zero.(This line must be equal to Form 4568, line 19.) ......................................................................................... 20. 00

+ 0000 2018 31 01 27 8

70

Purpose Toallowstandardtaxpayerstoclaimthecharitablecontributioncredits.CreditsarecalculatedhereandthencarriedtotheMBT Nonrefundable Credits Summary(Form4568).

NOTE:Financialinstitutionsandinsurancecompaniesarenoteligibleforthesecredits.

NOTE: Beginning January 1, 2012, only those taxpayerswith a certificated credit, which is awarded but not yet fullyclaimed or utilized, may elect to be MBT taxpayers. If ataxpayerfiles anMBT returnandclaimsa certificatedcredit,thetaxpayermakestheelectiontofileandpayundertheMBTuntilthecertificatedcreditandanycarryforwardofthatcreditare exhausted. A taxpayer making a valid certificated creditelectionmayalsoclaimthecreditsonthisform.

Special Instructions for Unitary Business GroupsCredits are generally earned and calculated on a group basis,unless the relevant statute contains entity-specific provisions.These credits, including the ceilings on these credits, arecalculatedonagroupbasis.

CompleteoneForm4572forthegroup.

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

Name and Account Number:Enternameandaccountnumberasreportedonpage1oftheMBT Annual Return(Form4567).

CreditsCOMMUNITY AND EDUCATION FOUNDATIONS CREDIT A partial credit is allowed when donating to the endowmentfund of a certified community foundation or educationfoundation. A list of certified foundations, if applicable, willbe posted as a Revenue Administrative Bulletin found onlineat www.michigan.gov/treasury under “Reports and LegalResources.” If avalid code isnot entered, a creditwill notbeallowed.Ifdonationsweremadetomorethantwofoundations,attachalistreferencingtheadditionalfoundations.

HOMELESS SHELTER/FOOD BANK CREDITApartial credit is allowedwhenmakinga cashdonation to aqualifying shelter for homeless persons, food kitchen, foodbank, or other entity whose primary purpose is to provideovernightaccommodations,food,ormealstoindigentpersons.Formore information, seeMichiganCompiledLaw208.1427,foundonlineatwww.legislature.mi.gov.

PUBLIC CONTRIBUTION CREDITA partial credit is allowed for Corporations and Partnerships(andLimitedLiabilityCompaniesfederallytaxedassuch)when

donationsaremadeduringthetaxableyeartopublicbroadcaststations located in Michigan, Michigan public libraries,institutionsofhigherlearninglocatedinMichiganoranonprofitcorporation, fund, foundation, trust, or association organizedand operated exclusively for the benefit of an institution ofhigher learning, the Michigan Colleges Foundation, and theMichigan Housing and Community Development Fund. Ataxpayer that also is subject to theMichigan Income TaxAct(PA281of1967)maynotclaimthiscreditundertheMBT.

ARTS AND CULTURE CREDITApartialcreditisallowedwhendonationsaremadetoeitherofthefollowing:

• Category A: A municipality or a nonprofit corporationaffiliated with a municipality and an art, historical, orzoological institute for the purpose of benefiting the art,historical,orzoologicalinstitute,OR

• Category B:Aninstitutedevotedtotheprocurement,care,study,anddisplayofobjectsoflastinginterestorvalue.

Tocalculate theArtsandCultureCredit,a taxpayermaycountaggregate contributions to the charities described in CategoryA above if those contributions exceed $50,000, as well asaggregate contributions to charities described inCategoryB ifthosecontributionsexceed$50,000.Ataxpayerisnotprecludedfromtakingthecreditfordonationsmadetobothcategoriesaslongasthetaxpayermeetstheminimumdonationseparatelyforeachcategoryanddoesnotexceedtheoverallcreditlimitationof$100,000.

Contributions within a category may be aggregated to reachthe $50,000 minimum. However, contributions made to onecategorymaynotbeaggregatedwithcontributionstotheothertoreachthe$50,000minimum.

Line 16: Use the worksheet below to calculate the donationamount.If aggregate contributions to Category A institutions exceed $50,000, enter that aggregate amount here

+If aggregate contributions to Category B institutions exceed $50,000, enter that aggregate amount here

=TOTAL Arts and Culture donation amount .................

Include completed Form 4572 as part of the tax return filing.

Instructions for Form 4572 Michigan Business Tax (MBT) Charitable Contribution Credits

Michigan Department of Treasury4573 (Rev. 04-18), Page 1 of 3

Attachment 11

2018 MICHIGAN Business Tax Miscellaneous Nonrefundable CreditsIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

PART 1 - If not taking any credits in Part 1, skip to Part 2.This credit is no longer available. - Skip to line 7.

1. This credit is no longer available. Leave this line blank and skip to line 7.............................................................. 1. X X X X X X X X 002. This credit is no longer available. Leave this line blank and skip to line 7.............................................................. 2. X X X X X X X X 00

3. This credit is no longer available. Leave this line blank and skip to line 7.............................................................. 3. X X X X X X X X 00This credit is no longer available. - Skip to line 7.

4. This credit is no longer available. Leave this line blank and skip to line 7.............................................................. 4. X X X X X X X X 005. This credit is no longer available. Leave this line blank and skip to line 7.............................................................. 5. X X X X X X X X 006. This credit is no longer available. Leave this line blank and skip to line 7.............................................................. 6. X X X X X X X X 00

START-UP BUSINESS CREDIT7. Start-Up Business Credit (attach MEDC Certificate) .............................................................................................. 7. 008. Recapture of Start-Up Business Credit .................................................................................................................. 8. 009. Start-Up Business Credit. Subtract line 8 from line 7. Carry to Form 4568, line 15. If less than zero, enter as

a negative number .................................................................................................................................................. 9. 00

PART 2 10. Tax from Form 4568, line 19 ................................................................................................................................... 10. 00

NEXT ENERGY BUSINESS ACTIVITY CREDIT. If not claiming, carry amount from line 10 to line 13.11. Next Energy Business Activity Credit (attach MEDC Certificate) ........................................................................... 11. 0012. Next Energy Business Activity Credit. Enter the lesser of line 10 or 11. Carry amount to Form 4568, line 20 .... 12. 0013. Tax After Next Energy Business Activity Credit. Subtract line 12 from line 10........................................................ 13. 00

RENAISSANCE ZONE CREDIT. If not claiming, carry amount from line 13 to line 15.If claiming, complete and include the Renaissance Zone Credit Schedule, Form 4595.

14. Renaissance Zone Credit. Amount from Form 4595, line 25b. Carry amount to Form 4568, line 21 ................... 14. 0015. Tax After Renaissance Zone Credit. Subtract line 14 from line 13. If less than zero, enter zero ........................... 15. 00

HISTORIC PRESERVATION CREDIT. If not claiming, carry amount from line 15 to line 18.16. Historic Preservation Credit from Form 4584, line 28 ......................................................................................... 16. 00

17a. Recapture of Historic Preservation Tax Credit from Form 4584, line 2 .................................................................. 17a. 0017b. Historic Preservation Credit Net of Recapture. Subtract line 17a from line 16.

If less than zero, enter as a negative number. Carry to Form 4568, line 22 ......... 17b. 0018. Tax After Historic Preservation Credit. Subtract line 16 from line 15 and add line 17a .......................................... 18. 00

LOW-GRADE HEMATITE CREDIT. If not claiming, carry amount from line 18 to line 23.19. Current Year Credit. Multiply $1.00 by number of long tons of qualified low-grade hematite used ........................ 19. 0020. Unused credit from previous period MBT return ..................................................................................................... 20. 0021. Total Available Credit. Add lines 19 and 20 ............................................................................................................ 21. 0022. Low-Grade Hematite Credit. Enter the lesser of line 18 or line 21. Carry amount to Form 4568, line 23 ............ 22. 0023. Tax After Low-Grade Hematite Credit. Subtract line 22 from line 18 ...................................................................... 23. 0024. Credit Carryforward. If line 21 is greater than line 18, enter the difference ........... 24. 00

NEW MOTOR VEHICLE DEALER INVENTORY CREDIT. If not claiming, carry amount from line 23 to line 28.25. Amount paid to acquire new motor vehicle inventory in the tax year ..................................................................... 25. 0026. Multiply line 25 by 0.25% (0.0025) ......................................................................................................................... 26. 0027. New Motor Vehicle Dealer Inventory Credit. Enter lesser of line 23 or line 26. Carry amount to

Form 4568, line 24.................................................................................................................................................. 27. 0028. Tax After New Motor Vehicle Dealer Inventory Credit. Subtract line 27 from line 23. If less than zero,

enter zero ............................................................................................................................................................ 28. 00

+ 0000 2018 35 01 27 0 Continue on Page 2.

2018 Form 4573, Page 2 of 3 FEIN or TR Number:

LARGE FOOD RETAILER CREDIT. If not claiming, carry amount from line 28 to line 32.29. Michigan compensation .......................................................................................................................................... 29. 0030. Multiply line 29 by 1% (0.01) .................................................................................................................................. 30. 0031. Large Food Retailer Credit. Enter lesser of line 28, line 30, or $8,500,000. Carry amount to Form 4568, line 25 ..... 31. 0032. Tax After Large Food Retailer Credit. Subtract line 31 from line 28. If less than zero, enter zero .......................... 32. 00

MID-SIZE FOOD RETAILER CREDIT. If not claiming, carry amount from line 32 to line 36.33. Michigan compensation .......................................................................................................................................... 33. 0034. Multiply line 33 by 0.125% (0.00125) ..................................................................................................................... 34. 0035. Mid-size Food Retailer Credit. Enter lesser of line 32, line 34, or $300,000. Carry amount to Form 4568, line 26 .... 35. 0036. Tax After Mid-size Food Retailer Credit. Subtract line 35 from line 32. If less than zero, enter zero...................... 36. 00

BOTTLE DEPOSIT ADMINISTRATION CREDIT. If not claiming, carry amount from line 36 to line 40.37. Expenses incurred in compliance with MCL 445.571 - 445.576 ............................................................................. 37. 0038. Multiply line 37 by 30.5% (0.305) ........................................................................................................................... 38. 0039. Bottle Deposit Administration Credit. Enter the lesser of line 36 or 38. Carry amount to Form 4568, line 27 ..... 39. 0040. Tax After Bottle Deposit Administration Credit. Subtract line 39 from line 36. If less than zero, enter zero ........... 40. 00

MEGA FEDERAL CONTRACT CREDIT. If not claiming, carry amount from line 40 to line 42.41. MEGA Federal Contract Credit from Form 4584, line 37. Carry amount to Form 4568, line 28 .......................... 41. 0042. Tax After MEGA Federal Contract Credit. Subtract line 41 from line 40. If less than zero, enter zero ................... 42. 00

INDIVIDUAL OR FAMILY DEVELOPMENT ACCOUNT CREDIT. If not claiming, carry amount from line 42 to line 48.43. Contribution amount from MSHDA certificate (attach)............................................................................................ 43. 0044. Current Individual or Family Development Account (IFDA) Credit. Multiply amount on line 43 by 75% (0.75) ...... 44. 0045. Unused credit from previous period MBT return ..................................................................................................... 45. 0046. Total Available Credit. Add lines 44 and 45 ............................................................................................................ 46. 0047. IFDA Credit. Enter the lesser of line 42 or 46. Carry to Form 4568, line 29 .......................................................... 47. 0048. Tax After IFDA Credit. Subtract line 47 from line 42. If less than zero, enter zero.................................................. 48. 0049. Credit Carryforward. If line 46 is greater than line 42, enter the difference ...... 49. 00

BONUS DEPRECIATION CREDIT UNUSED CARRYFORWARD. If not claiming, carry amount from line 48 to line 52.50. Unused credit from previous MBT return ................................................................................................................ 50. 0051. Bonus Depreciation Credit. Enter the lesser of line 48 or line 50. Carry to Form 4568, line 30 .......................... 51. 0052. Tax After Bonus Depreciation Credit. Subtract line 51 from line 48. If less than zero, enter zero ............................ 52. 0053. Credit Carryforward. If line 50 is greater than line 48, enter the difference ...... 53. 00

INTERNATIONAL AUTO SHOW CREDIT. If not claiming, carry amount from line 52 to line 55.54. International Auto Show Credit. Enter the lesser of line 52 or $250,000. Carry to Form 4568, line 31 .............. 54. 0055. Tax After International Auto Show Credit. Subtract line 54 from line 52 ................................................................. 55. 00

BROWNFIELD REDEVELOPMENT CREDIT. If not claiming, carry amount from line 55 to line 57.56. Brownfield Redevelopment Credit from Form 4584, line 55. Carry amount to Form 4568, line 32 ............................. 56. 0057. Tax After Brownfield Redevelopment Credit. Subtract line 56 from line 55. If less than zero, enter zero ........................ 57. 00

PRIVATE EQUITY FUND CREDIT. If not claiming, carry amount from line 57 to line 62.58. Total activity of fund manager conducted in Michigan in the tax year .................................................................... 58. 0059. Total activity of fund manager conducted everywhere in the tax year .................................................................... 59. 0060. Credit percentage. Divide line 58 by line 59 ........................................................................................................... 60. %61. Private Equity Fund Credit. Multiply line 57 by line 60. Carry amount to Form 4568, line 33 ............................. 61. 0062. Tax After Private Equity Fund Credit. Subtract line 61 from line 57. If less than zero, enter zero .......................... 62. 00

FILM JOB TRAINING CREDIT. If not claiming, carry amount from line 62 to line 67.63. Amount from Qualified Job Training Expenditure Certificate provided by Michigan Film Office (attach) ............... 63. 0064. Unused credit from previous period MBT return ..................................................................................................... 64. 0065. Total Available Credit. Add lines 63 and 64 ............................................................................................................ 65. 0066. Film Job Training Credit. Enter the lesser of line 62 or line 65. Carry amount to Form 4568, line 34 ................. 66. 0067. Tax After Film Job Training Credit. Subtract line 66 from line 62. If less than zero, enter zero .............................. 67. 0068. Credit Carryforward. If line 65 is greater than line 62, enter the difference ...... 68. 00

+ 0000 2018 35 02 27 8 Continue on Page 3.

2018 Form 4573, Page 3 of 3 FEIN or TR Number:

FILM INFRASTRUCTURE CREDIT. If not claiming, carry amount from line 67 to line 73.69. Amount from Investment Expenditure Certificate provided by MI Film Office (attach) or assigned credit amount . 69. 0070. Unused credit from previous period MBT return ..................................................................................................... 70. 0071. Total Available Credit. Add lines 69 and 70 ............................................................................................................ 71. 0072. Film Infrastructure Credit. Enter the lesser of line 67 or line 71. Carry amount to Form 4568, line 35 ............... 72. 0073. Tax After Film Infrastructure Credit. Subtract line 72 from line 67. If less than zero, enter zero............................. 73. 0074. Credit Carryforward. If line 71 is greater than line 67, enter the difference ...... 74. 00

MEGA PLUG-IN TRACTION BATTERY MANUFACTURING CREDIT. If not claiming, carry amount from line 73 to line 76.

75. MEGA Plug-In Traction Battery Manufacturing Credit from Form 4584, line 64. Carry amount to Form 4568, line 36 ..................................................................................................................................................................... 75. 00

76. Tax After MEGA Plug-In Traction Battery Manufacturing Credit. Subtract line 75 from line 73. If less than zero, enter zero ............................................................................................................................................................... 76. 00

ANCHOR COMPANY PAYROLL CREDIT. If not claiming, carry amount from line 76 to line 78.77. Anchor Company Payroll Credit from Form 4584, line 72. Carry amount to Form 4568, line 37 ....................... 77. 0078. Tax After Anchor Company Payroll Credit. Subtract line 77 from line 76. If less than zero, enter zero .................. 78. 00

ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming, carry amount from line 78 to line 80.79. Anchor Company Taxable Value Credit from Form 4584, line 80. Carry amount to Form 4568, line 38 ............ 79. 0080. Tax After Anchor Company Taxable Value Credit. Subtract line 79 from line 78. If less than zero, enter zero ....... 80. 00

MEGA POLY-SILICON ENERGY COST CREDIT AND MISCELLANEOUS MEGA BATTERY CREDITS. If not claiming, carry amount from line 80 to line 82.

81. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credits from Form 4584, line 88. Carry amount to Form 4568, line 39 ............................................................................................................... 81. 00

82. Tax After Miscellaneous MEGA Battery Credit. Subtract line 81 from line 80. If less than zero, enter zero ........... 82. 00

+ 0000 2018 35 03 27 6

75

Purpose To allow standard taxpayers to claim certain miscellaneousnonrefundable credits. Generally, credits and anycarryforwards allowed are calculated here and then carriedto the MBT Nonrefundable Credits Summary (Form 4568).Review the descriptions carefully before claiming a credit astherearestricteligibilityrequirements.Followtheinstructionsontheformforeachcredit.

NOTE:Thisformmayalsobeusedbyfinancialinstitutionstoclaimalimitednumberofcredits:• RenaissanceZoneCredit• HistoricPreservationCredit• IndividualorFamilyDevelopmentAccountCredit• BrownfieldRedevelopmentCredit• AssignedFilmInfrastructureCredit.

Insurance companies use the Miscellaneous Credits for Insurance Companies (Form4596) to claim credits forwhichtheyareeligible.

NOTE:BeginningJanuary1,2012,onlythosetaxpayerswithacertificatedcredit,whichisawardedbutnotyetfullyclaimedorutilized,mayelecttobeMBTtaxpayers.

Fiscal Year Filers: All credits must be calculated using actual numbers from the period included on this return.Formoreinformation,see“SupplementalInstructionsforStandardFiscal MBT Filers” in the MBT Forms and Instructions for Standard Taxpayers(Form4600).

Special Instructions for Unitary Business GroupsCreditsareearnedandcalculatedoneitheranentity-specificorgroupbasis,asdeterminedbytherelevantstatutoryprovisionsfor the respective credits. Intercompany transactions are noteliminatedforthecalculationofmostcredits.Creditsearnedorcalculatedoneitheranentity-specificorgroupbasisbyUnitaryBusinessGroup(UBG)membersaregenerallyappliedagainstthe tax liability of the UBG, unless otherwise specified bystatuteortheseinstructions.

Entity-specificprovisionsareappliedonamember-by-memberbasis and are addressed in the “Line-by-Line Instructions.”Innoneof thesecasesdoesa taxpayer that isaUBGtaketheorganization typeof its parent,DesignatedMember (DM), orany othermember of theUBG.AUBG taxpayerwill not beattributedanorganizationtypebasedonthecompositionofitsmembers.

If any member of the UBG is eligible for an entity-specificcredit,astatementmustbeattachedtotheformidentifyingtheeligiblememberandany information requested for thecredit.If more than one member is eligible, requested informationshouldbeprovidedinthestatementonapermemberbasis.Thetotal amount from all eligiblemembers should be entered oneachcorrespondinglineontheform.

TotheextentthataqualifiedtaxpayerearningtheBrownfieldRedevelopment Credit or Historic Preservation Credit isincluded within a UBG taxpayer for relevant tax years,the qualified taxpayer’s unused pre-2008 BrownfieldRedevelopment Credit and/or Historic Preservation Credit(that is, such credits earned under the Single Business Tax(SBT)) may be applied against the tax liability imposed ontheentireUBGtaxpayer(ofwhichthequalifiedtaxpayerisamember)forthetaxyearsthecarryforwardwouldhavebeenavailableunderSBT.ThesecarryforwardsareclaimedontheMBT Single Business Tax Credit Carryforwards(Form4569).

Findadditionalinformationoncalculatingcreditcarryforwardsin the “Supplemental Instructions for Standard Membersin UBGs” section in the MBT Forms and Instructions for Standard Taxpayers(Form4600).

Line-by-Line Instructions

Lines not listed are explained on the form.

Name and Account Number: Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either the MBT Annual Return (Form 4567) for standardtaxpayersortheMBT Annual Return for Financial Institutions (Form4590)).

UBGs:Completeoneformforthegroup.EntertheDM’snameandaccountnumber.

UBG NOTE: If theeligible taxpayer is amemberof aUBG,a pro forma calculation must be performed to determine thetaxliabilityoftheeligibletaxpayerpriortothiscredit.Wherea pro forma calculation is required, the underlying objectiveis to determine what the tax liability of the UBG membergeneratingthecreditwouldhavebeenif thatmemberwasnotincludedintheUBG.Therefore, theUBGmembergeneratingthecreditmustcalculateitsproformataxliabilityasifitwasasingular,standalonetaxpayerinallaspects.Thissupportingcalculation shouldbeprovided in a statement attached to thisform.However,thiscalculationshouldneverbetransferredtoaForm4567ordisplayedassuch.

PART 1If not taking any credits in Part 1, skip to Part 2.

Lines 1-3: For tax years ending after December 31, 2016, theNASCARSpeedwayCreditisnolongeravailable.

Lines 4-6: For tax years ending afterDecember 31, 2012, theNASCARStadiumCreditisnolongeravailable.

Start-Up Business Credit The Start-Up Business Credit provides a credit for small,relatively new taxpayers with substantial research anddevelopment activity. For a qualified taxpayer, the credit isequaltothetaxpayer’sMBTliabilityfortheyear.Toqualify,ataxpayermustapplytoandobtainannualcertificationfromtheMichigan Economic Development Corporation (MEDC), andattachthatcertificatetoitsMBTreturn.Foranapplicationform

Instructions for Form 4573 Michigan Business Tax (MBT) Miscellaneous Nonrefundable Credits

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oradditionalinformation,calltheMEDCat(517)373-9808.

For the tax year for which a Start-Up Business Credit isclaimed, compensation, director fees, or distributive sharespaidbythetaxpayertoanyoneofthefollowingcannotexceed$135,000:

• A shareholder of a C Corporation or S Corporation.Shareholder meansapersonwhoownsoutstandingstockinabusinessor isamemberofabusinessentity (forexample,an LLC) that files as a corporation for federal income taxpurposes.Allmembersof a shareholder’s family, asdefinedby Internal Revenue Code (IRC) § 318(a)(1), that receivecompensationfromthebusinessareconsideredshareholders.

• AnofficerofaCCorporation.• ApartnerofaPartnershiporLimitedLiabilityPartnership.• AmemberofaLimitedLiabilityCompany(LLC).• AnIndividualwhoisanowner.

Officer means an officer of a corporation other than asubchapter S corporation, including all of the following:(a) The chairperson of the board, (b) The president, vicepresident, secretary, or treasurer of the corporation or board,(c) Persons performing similar duties and responsibilities topersonsdescribedinsubdivisions(a)and(b) that include,ataminimum,majordecisionmaking.

Corporations (and LLCs federally taxed as such)must reportcompensation and director fees of shareholders and (if a CCorporation) officers on the MBT Schedule of Shareholders and Officers (Form4577)and include it aspartof the return.Partnerships (and LLCs federally taxed as such) must reportdistributivesharestopartnersontheMBT Schedule of Partners (Form4578)andincludeitaspartofthereturn.

Ataxpayerthatmeetsthecriteriaandthatisaqualifiedstart-upbusinessthatdoesnothavebusinessincomefortwoconsecutivetax years may claim a credit against the tax imposed for thesecondofthosetwoconsecutivetaxyearsandeachimmediatelyfollowing consecutive tax year inwhich the taxpayer does nothavebusiness income.For thepurposesof thiscredit,businessincomeexcludesfundsreceivedfromsmallbusinessinnovationresearchgrantsandsmallbusinesstechnologytransferprogramsestablished under the Small Business Innovation DevelopmentAct of 1982, Public Law 97-219, reauthorized under the SmallBusinessResearch andDevelopment EnhancementAct, PublicLaw 102-564, and subsequently reauthorized under the SmallBusinessReauthorizationActof2000,PublicLaw106-554.

A Start-UpBusiness Credit cannot be claimed formore thana total of five tax years including the number of years thetaxpayerwaseligibletoclaimthecreditunderSBT.

UBGs: If the eligible taxpayer is a member of a UBG, thiscreditisbasedontheeligiblemember’sbusinessactivityonly.This credit amount is limited to the pro forma tax liabilitycalculated for the eligible taxpayer for that tax year. Theresultingcreditamountis thenappliedtowardstheUBG’staxliabilityforthattaxyear.

Line 7:EnterthetaxliabilityfromForm4568,line12,ortheeligiblemember’sproformaliabilityifpartofaUBG.AttachsupportingMEDCCertificationLetter.

UBGs: See guidance on pro forma calculations in the UBGnoteearlierintheseinstructions.

Line 8:EnteranyrecaptureofStart-UpBusinessCredit.

NOTE: A company claiming the Start-Up Business CreditundereitherMBTorSBTmustpaybackaportionofthecreditiftheyhavenobusinessactivityinMichiganandhavebusinessactivity outside ofMichigan within three years after the lasttaxyearinwhichthecreditwastaken.Thefollowingamountsmustbeaddedtothetaxliability:

• 100percentofthetotalofallcreditsclaimedifthemoveiswithin thefirst tax year after the last tax year forwhich acreditisclaimed.

• 67percentof the totalofall creditsclaimed if themove iswithinthesecondtaxyearafterthelasttaxyearforwhichacreditisclaimed.

• 33percentof the totalofall creditsclaimed if themove iswithin the third taxyearafter the last taxyear forwhichacreditisclaimed.

PART 2 Next Energy Business Activity Credit The Next Energy Business Activity Credit allows an eligibletaxpayertoclaimacreditforcertainqualifiedbusinessactivityifcertifiedundertheMichiganNextEnergyAuthorityAct.

Qualified business activity is research, development, ormanufacturing of an alternative energy marine propulsionsystem, an alternative energy system, an alternative energyvehicle, alternative energy technology, or renewable fuel (asdefinedintheMichiganNextEnergyAuthorityAct).

Line 11:AttachthecertificateissuedbyMEDCforthiscreditto the return to substantiate a claim. (If the certificate is notattached,thecreditwillbedisallowed.)

UBGs: If the eligible taxpayer is a member of a UBG, theeligiblemember’scalculatedproformaliability(notthegroup’sliability)mustbeusedtodeterminethecreditamountcertifiedby theMEDC. This supporting pro forma calculation shouldbeprovidedinastatementattachedtothisform.Seeguidanceon pro forma calculations in the UBG note earlier in theseinstructions.

Formoreinformation,calltheMEDCat(517)373-9808orvisittheMEDCWebsiteathttp://www.michiganadvantage.org/.

Renaissance Zone Credit The Renaissance Zone Credit encourages businesses andindividualstohelprevitalizeadesignatedZone.

Line 14: Complete and include the MBT Renaissance Zone Credit Schedule(Form4595)toclaimthiscredit.

NOTE the changed instructions for certain taxpayers for line24ofForm4595.

If located in more than one zone, complete and include aseparate Form 4595 for each zone. Add line 25b from eachForm4595andenterthesumonline14ofForm4573.

NOTE: Beginning January 1, 2012, certain renaissance zonecredits are available as a certificated credit. A certificatedrenaissance zone credit must be claimed beginning with the

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taxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

FormoreinformationseeForm4595.

FormoreinformationonRenaissanceZones,contactyourlocaltax assessor. For information on the MBT credit, contact theMichiganDepartmentofTreasury,CustomerContactDivision,MBTUnit,at517-636-6925.

Historic Preservation Credit The Historic Preservation Credit provides tax incentives forhomeowners, commercial property owners, and businessesto rehabilitate historic resources located in Michigan.Rehabilitation projectsmust be certified by theStateHistoricPreservationOffice(SHPO).

NOTE: Beginning January 1, 2012, the historic preservationcredit is available to the extent that a taxpayer had a Part2 approval, approved rehabilitation plan, approved highcommunity impact rehabilitation plan or preapproval letterby December 31, 2011, but has not fully claimed the creditbefore January 1, 2012. The credit may be claimed as eithera refundable accelerated credit (on Form 4889) or a non-refundable credit. Non-refundable credits and non-refundablecarryforwardsof thecredit areclaimedhere.A taxpayermayelect to claim a certificated historic preservation credit in theyear in which a credit is available and will be taxable undertheMBT until the qualifying credit and any carryforward ofthecreditareextinguished.Thecreditmustfirstbeclaimedinthe year that the certificate of completed rehabilitation of thehistoricresourcewasissued.

Line 16: Complete the MBT Election of Refund or Carryforward of Credits (Form4584) to claim this credit andelectacarryforwardofanyexcesscredit.

Line 17a: Recapture fromForm4584,Line2. If the resourceis sold or the certification of completed rehabilitation orpreapproval letter is revoked less than five years after thehistoricresourceisplacedinservice,apercentageofthecreditmaybesubjecttorecapture.

100percent Iflessthan1year80percent Ifatleast1year,butlessthan2years60percent Ifatleast2years,butlessthan3years40percent Ifatleast3years,butlessthan4years20percent Ifatleast4years,butlessthan5years

Questions regarding federal and State certification may bedirectedtoSHPOat(517)373-1630.Foradditionalinformation,visit the SHPO Web site at www.michigan.gov/shpo.InformationaboutFederalHistoricPreservationTaxIncentivesisavailableatwww.nps.gov/hps/tps/tax/index.htm.

Low-Grade Hematite Credit The Low-Grade Hematite Credit provides a credit equal toonedollarper longtonofqualifiedlow-gradehematitepelletsconsumedinanindustrialormanufacturingprocess,aprocessinwhich low-grade hematite is used as a rawmaterial in the

productionofpig ironor steel, that is thebusiness activityofthe taxpayer. If the credit exceeds the tax liability, the excessmaybecarriedforwardforfiveyears.

UBGs: The credit is calculated from the aggregate tonnageofqualified low-gradehematitepellets consumedbyallUBGmembersinanindustrialormanufacturingprocess.

Line 19: Low-grade hematite means any hematitic ironformation that is not of sufficient quality in its originalmineral state to bemined and shipped for the production ofpig ironor steelwithoutfirstbeingdrilled,blasted,crushed,and ground very fine to liberate the iron minerals and forwhichadditionalbeneficiationandagglomerationarerequiredto produce a product of sufficient quality to be used in theproductionofpig ironor steel.Qualified low-gradehematitemustbeproducedfromlow-gradehematiticironoreminedintheUnitedStates.

Line 20: UBGs: Enter the carryforward amount from Form4580,Part2B,line51,columnC.

Line 24: Ifline21isgreaterthanline18,enterthedifference.This is a credit carryforward to be used on the taxpayer’simmediatelyfollowingMBTreturn.

New Motor Vehicle Dealer Inventory Credit A taxpayer that is a newmotor vehicle dealer licensed underthe Michigan vehicle code, Michigan Compiled Law (MCL)257.1 to 257.923,may claim a credit against the tax equal to0.25percentoftheamountpaidbythetaxpayertoacquirenewmotorvehicleinventoryinMichiganduringthetaxyear.

Line 25: New motor vehicle inventory means new motorvehiclesornewmotorvehicleparts.

Large Food Retailer Credit An eligible taxpayermay claim a Large FoodRetailerCreditequalto1percentofthetaxpayer’scompensationinMichigan,nottoexceed$8,500,000.AtaxpayerthatclaimsaLargeFoodRetailer Credit cannot also claim a Mid-Size Food RetailerCredit.

Thetaxpayermustmeetallofthefollowingcriteria:

• Operates at least 17,000,000 square feet of enclosed retailspace and2,000,000 square feet of enclosedwarehouse spaceinMichigan.• Sellsallofthefollowingatretail:

○ Fresh, frozen, or processed food; food products; orconsumablenecessities.

○ Prescriptionsandover-the-countermedications. ○ Healthandbeautycareproducts. ○ Cosmetics. ○ Petproducts. ○ Carbonatedbeverages. ○ Beer,wine,orliquor.

• Sales of the items listed above represent more than35percentofthetaxpayer’stotalsalesinthetaxyear.

• MaintainsitsheadquartersoperationinMichigan.

Line 29:EntercompensationattributabletoMichigan.

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UBGs: If the eligible taxpayer is a UBG, enter thecompensationattributabletoMichiganfortheentireUBG.

Mid-Size Food Retailer Credit An eligible taxpayer may claim a Mid-Size Food RetailerCreditequalto0.125percentofthetaxpayer’scompensationinMichigan,nottoexceed$300,000.

Thetaxpayermustmeetallofthefollowingcriteria:

• Operates at least 2,500,000 square feet of enclosed retailspace and 1,400,000 square feet of enclosed warehouse,headquarters,andtransportationservicesinMichigan.

• Sellsallofthefollowingatretail: ○ Fresh, frozen, or processed food; food products; orconsumablenecessities.

○ Prescriptionsandover-the-countermedications. ○ Healthandbeautycareproducts. ○ Cosmetics. ○ Petproducts. ○ Carbonatedbeverages. ○ Beer,wine,orliquor.

• Sales of the items listed above represent more than 35percentofthetaxpayer’stotalsalesinthetaxyear.• MaintainsitsheadquartersoperationinMichigan.

Line 33:EntercompensationattributabletoMichigan.

UBGs: If the eligible taxpayer is a UBG, enter thecompensationattributabletoMichiganfortheentireUBG.

Bottle Deposit Administration Credit An eligible taxpayer may claim a Bottle DepositAdministrationCreditequalto30.5percentofthetaxpayer’sexpenses incurred during the tax year to complywithMCL445.571 to 445.576. Eligible taxpayer means a distributoror manufacturer who originates a deposit on a beveragecontainer in accordance with MCL 445.571 to 445.576.Beverage container and distributor mean those terms asdefinedunderMCL445.571to445.576.

UBGs: If the eligible taxpayer is amember of aUBG, enterexpenses incurred only by that eligible member. If multiplemembers of a UBG are eligible taxpayers, combine theexpensesofthoseeligiblemembers.

MEGA Federal Contract CreditThis credit is available for a qualified taxpayer or collectivegroup of taxpayers that have been awarded a federalprocurement contract from the U.S. Department of Defense,Department of Energy, or Department of Homeland Securityresultinginaminimumof25newfull-timejobs.

NOTE:Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, in

order for the taxpayer to remain taxable under theMBT andclaimthecredit.

Line 41:CompleteForm4584toclaimthiscreditandelectarefundorcarryforwardofanyexcesscredit.

For more information, contact MEDC at 517-373-9808or visit the MEDC Web site at michiganadvantage.org/MIAdvantage/Taxes-and-Incentives.

Individual or Family Development Account Credit

A taxpayerorqualifiedfinancial institutionmayclaima creditfor75percentofcertifiedcontributionsmadetoareservefundof a fiduciary organization in accordance with the Individualor Family Development Account Program Act, MCL 206.701to 206.711. A fiduciary organization is a 501(c)(3) exempt,charitableorganizationapprovedbytheMichiganStateHousingDevelopmentAuthority(MSHDA)tomanageareservefund.Areserve fund is a fund established andmanagedby afiduciaryorganizationhousedatafinancialinstitution.

This credit is nonrefundable but may be carried forward upto ten years. The credit may not exceed $1 million annuallyfor all taxpayers. The determination of whether the annuallimitisreachedwillbemadebyMSHDA,whichmustcertifycontributions eligible for a credit, in accordance with theIndividualorFamilyDevelopmentAccountProgramAct.

Attach the certificate issuedbyMSHDAfor this credit to thereturntosubstantiateaclaim.(Ifthecertificateisnotattached,thecreditwillbedisallowed.)

NOTE: For purposes of this credit, qualified financial institution isdefinedbyreferencetothedefinitionoffinancial institution in the Individual or Family Development AccountProgramAct, rather than theMBTAct.Financial institution for this credit is defined as “a state chartered bank, statechartered savings bank, savings and loan association, creditunion, or trust company; or a national banking associationorfederalsavingsandloanassociationorcreditunion.”

Line 45: UBGs: Standard taxpayers, enter the unused creditamountfromForm4580,Part2B,line52,columnC.Financialinstitutions,enterthecombinedtotalofcarryforwardamountsreportedontheUBG Combined Filing Schedule for Financial Institutions(Form4752),line30,byallmembersofthegroup.

Bonus Depreciation CreditFortaxyearsstartingafter2010,onlyunusedcarryforwardoftheBonusDepreciationCreditcanbeused.

Line 50:Entertheunusedcreditamountfrompreviousyear.

UBGs:Enter theunusedcreditamount fromForm4580,Part2B,line53,columnC.

International Auto Show CreditA taxpayer who owns, operates, or controls an internationalauto show inMichigan that meets certain criteriamay claima credit. An international auto show must meet all of thefollowingcriteria:

• Promote, advertise, or display the design or concept of

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products that are designed, manufactured, or produced, inwholeorinpart,inthisStateandareavailableforsaletothegeneralpublic.

• Usemorethan100,000squarefeetoffloorspace.• Beopentothegeneralpublicforatleastsevenconsecutive

daysinacalendaryear.• Haveattendanceexceeding500,000.• Have more than 3,000 credentialed journalists, including

internationaljournalists,whoattendtheautoshow.A taxpayerclaiming the InternationalAutoShowCreditmustmaintain in its records proof that the international auto showsatisfiesalloftheabovecriteria.

Line 54:Thecredit is equal to thequalified taxpayer’s entireMBTliabilityor$250,000,whicheverisless.

UBGs: If the eligible taxpayer is amember of aUBG, a proformataxcalculationmustbeattachedshowingtheindividualmember’s tax liability.Thiscredit isequal to the lesserof themember’sentireMBTliabilityor$250,000,whichever is less.SeeguidanceonproformacalculationsintheUBGnoteearlierintheseinstructions.

Brownfield Redevelopment CreditThe Brownfield Redevelopment Credit encourages businessesto make investment on eligible Michigan property that wasusedoriscurrentlyusedforcommercial,industrial,public,orresidential purposes and is either a facility (environmentallycontaminatedproperty),functionallyobsolete,orblighted.

NOTE: Beginning January 1, 2012, the Brownfieldredevelopmentcreditmaybeclaimedasacertificatedcreditifa taxpayerhasapreapproval letterbyDecember31,2011,buthasnotfullyclaimedthecreditbyJanuary1,2012.Thecreditmay be claimed as either a refundable accelerated credit (onForm4889)oranon-refundablecredit.Non-refundablecreditsand non-refundable carryforwards of the credit are claimedhere.Thecreditmustfirstbeclaimedintheyearinwhichthecertificateofcompletionisissued.

A taxpayer claiming a nonrefundable certificated brownfieldcreditmaymake the election in the year inwhich a credit isavailable and will remain taxable under the MBT until thequalifying credit and any carryforward of the credit areextinguished.

Line 56:CompleteForm4584toclaimthiscreditandelectacarryforwardofanyexcesscredit.

The administration of the Brownfield Redevelopment Creditprogram is assigned toMEGA. Formore information on theapprovalprocess,contacttheMEDCat517-373-9808.

Private Equity Fund Credit An eligible taxpayermay claim a PrivateEquity FundCreditequal to the eligible taxpayer’s tax liability attributable to theactivitiesasaneligibletaxpayerforthetaxyearafterclaimingany other credits allowed under the MBT Act multiplied bya fraction, the numerator ofwhich is the total activity of theprivateequityfundmanagerconductedinMichiganduringthetaxyear and thedenominator ofwhich is the total activityoftheprivateequityfundmanagerconductedeverywhereduring

thetaxyear.

Eligible taxpayer means a taxpayer that is a private equityfund which serves as a conduit for the investment of privatesecurities not listed on a public exchange by accreditedinvestorsorqualifiedpurchasersatanytimeduringwhichtheinvestmentisacquiredorsubsequentlyusedtoclaimthecreditunderthissection.

Accredited investormeansthattermasdefinedunderSection2oftheSecuritiesActof1933,15USC77b.

Qualified purchaser means that term as defined underSection2of the InvestmentCompanyActof1940,15UnitedStatesCode(USC)80a-2.

Line 58: Private equity fund manager means the person orpersons responsible for themanagementof the investmentsoftheeligibletaxpayer.

For purposes of this credit, the location of the activity of theprivate equity fund manager is based on the location of theoffice from which the fund manager conducts managementactivityfortheeligibletaxpayer.

UBGs: IftheeligibletaxpayerisamemberofaUBG,enteronlytheactivityoftheeligiblefundmanagerconductedinMichigan.

Line 59: If the eligible taxpayer is a member of a UBG,enteronly theactivityof theeligiblefundmanagerconductedeverywhere.

Line 61: If the taxpayer engages in both private equity fundactivities as well as other activities, the amount on line 70cannot be used. Instead, the taxpayer must do a pro formacalculation of the tax before this credit based solely on theprivateequityfundactivities.

UBGs: To the extent that a private equity fund is part ofa UBG, the Private Equity Fund Credit is equal to the taxliabilityof the eligiblememberprior to this credit,multipliedby a fractionwhich is theMichigan activities of themanagerover the activities of the manager everywhere. A pro formacalculation must be performed to determine the tax liabilityoftheeligibleUBGmemberpriortothiscredit.Seeguidanceon pro forma calculations in the UBG note earlier in theseinstructions.

Film Job Training Credit

An eligible production companymay claim a credit of up to50 percent of qualified job training expenditures in film anddigital media for qualified personnel, provided the taxpayerenters into an agreement with the Michigan Film Office,concurred in by the State Treasurer. If the credit exceeds thetaxpayer’s tax liability for the tax year, the excess may becarriedforwardtooffsettaxliabilityinsubsequentyearsforamaximumoftenyears.

Line 63: Upon verification that the taxpayer has compliedwith the agreement terms and the qualified job trainingexpendituresandeligibilityaremet,theFilmOfficewillissueaQualified Job Training Expenditure Certificateverifyingtheamount of the credit to be claimed. The certificate must beattachedtothereturntoreceivethecredit.

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NOTE: To qualify for the credit, a taxpayer must not bedelinquentinataxorotherobligationowedtoMichigannorbeownedorundercommoncontrolofanentitythatisdelinquent.Acreditcannotbeclaimedforanydirectexpenditureforwhicha Film Production Credit was claimed for either anMBT orwithholdingtaxliability.

Line 64: UBGs: Enter the unused credit amount from Form4580,Part2B,line55,columnC.

Line 68:Ifline65isgreaterthanline62,enterthedifference.Thisisacreditcarryforwardtobeusedonthetaxpayer’snextMBTreturn.

For more information, contact the Michigan FilmOffice at 1-800-477-3456 or visit the Web site atwww.michiganfilmoffice.org.

Film Infrastructure CreditAn eligible taxpayer may claim a credit for investment ina qualified film and digital media infrastructure project ofup to 25 percent of the base investment expenditures for theproject, provided the taxpayer enters into an agreement withtheMichiganFilmOffice,concurredinbytheStateTreasurer.The credit is reduced by the amount of any BrownfieldRedevelopment Credit claimed under Section 437 of theMBTAct for the samebase investment. If the credit exceedsthe taxpayer’s tax liability for the taxyear, theexcessmaybecarriedforwardtooffsettaxliabilityinsubsequentyearsforamaximumoftenyears.

Upon verification that the taxpayer has complied with theagreement terms and investment expenditures and eligibilityaremet, theFilmOfficewill issuean Investment Expenditure Certificatestatingtheamountofthecredit.Thecertificatemustbeattachedtothereturn.

The credit may be assigned in the tax year in which theInvestment Expenditure Certificate is received but any suchassignment is irrevocable. TheMBT Film Credit Assignment (Form4589)mustbeattachedtothereturnonwhichthecreditisclaimed.

An assigned credit amount must be claimed against theassignee’s MBT liability during the assignee’s tax year inwhichthecreditwasassigned.

NOTE: Beginning January 1, 2012, this credit is available asa certificated credit to the extent that the taxpayer has enteredinto an agreement with the Michigan Film Office with theconcurrence of the State Treasurer by December 31, 2011, butthecredithasnotbeenfullyclaimedorpaidpriortoJanuary1,2012.Thiscreditmustbeclaimedbeginningwiththetaxpayer’sfirst tax year ending afterDecember 31, 2011, in order for thetaxpayertoremaintaxableundertheMBTandclaimthecredit.

NOTE: To qualify for the credit, a taxpayer must not bedelinquentinataxorotherobligationowedtoMichigannorbeownedorundercommoncontrolofanentitythatisdelinquent.AcreditcannotbeclaimedforanydirectexpenditureforwhichaFilmProductionCreditwasclaimedagainsteitheranMBTorwithholdingtaxliability.

If the taxpayeroriginallyawarded thiscredit sellsorotherwisedisposesofanytangibleassets,thecostofwhichwereincluded

inthebaseinvestment,thattaxpayermustrecapturepartofthecreditintheyearofdisposition.CreditrecaptureisreportedonForm4587.

Line 70: UBGs: Standard taxpayers, enter the unused creditamountfromForm4580,Part2B,line56,columnC.Financialinstitutions,enterthecombinedtotalofcarryforwardamountsreportedonForm4752,line32,byallmembersofthegroup.

Line 74:Ifline71isgreaterthanline67,enterthedifference.Thisisacreditcarryforwardtobeusedonthetaxpayer’snextMBTreturn.

For more information, contact the Michigan FilmOffice at 1-800-477-3456 or visit the Web site atwww.michiganfilmoffice.org.

MEGA Plug-In Traction Battery Manufacturing CreditThe MEGA Plug-In Traction Battery Manufacturing Creditencourages investment in the development, manufacture,commercialization, and affordability of advanced automotivehigh-power energy batteries. The credit is available only to ataxpayer that has entered into an agreementwithMEGA thatprovides that the taxpayer will manufacture plug-in tractionbattery packs in Michigan. The taxpayer must attach theMEGA certificate to the MBT annual return on which thecreditisclaimed.

For tax years ending after December 31, 2014, this credit is no longer available. However, unused credit from the immediately preceding tax year may still be claimed, if available.

NOTE: BeginningJanuary1,2012, thiscredit isavailableasacertificatedcredittotheextentthatthetaxpayerhasenteredintoanagreementwithMEGAbyDecember31,2011,butthecredithasnotbeenfullyclaimedorpaidpriortoJanuary1,2012.Thiscredit must be claimed beginning with the taxpayer’s first taxyearendingafterDecember31,2011,inorderforthetaxpayertoremaintaxableundertheMBTandclaimthecredit.

Formoreinformation,contactMEDCat(517)373-9808orvisittheMEDCWebsiteathttp://www.michiganadvantage.org/.

Line 75: For tax years ending after December 31, 2014, the MEGA Plug-In Traction Battery Manufacturing Credit is no longer available. Complete Form 4584 to claim any unused credit from the immediately preceding tax year, if available.

Anchor Company Payroll CreditThis credit is available for a qualified taxpayer that wasdesignated by MEGA as an anchor company within the lastfive years and that has influenced a newqualified supplier orcustomertoopen,locate,orexpandinMichigan.

NOTE:Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

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Line 77:CompleteForm4584toclaimthiscreditandelectarefundorcarryforwardofanyexcesscredit.

Formore information, contact theMEDC at 517-373-9808 orvisit theMEDCWeb site athttp://www.michiganadvantage.org/.

Anchor Company Taxable Value CreditThis credit is available for a qualified taxpayer that wasdesignated by MEGA as an anchor company within the lastfive years and that has influenced a newqualified supplier orcustomertoopen,locate,orexpandinMichigan.

NOTE:BeginningJanuary1,2012, thiscredit isavailableasacertificatedcredittotheextentthatthetaxpayerhasenteredintoanagreementwithMEGAbyDecember31,2011,butthecredithasnotbeenfullyclaimedorpaidpriortoJanuary1,2012.Thiscredit must be claimed beginning with the taxpayer’s first taxyearendingafterDecember31,2011,inorderforthetaxpayertoremaintaxableundertheMBTandclaimthecredit.

Line 79:CompleteForm4584 to claim this credit and elect arefundorcarryforwardofanyexcesscredit.

Formoreinformation,contacttheMEDCat(517)373-9808orvisit theMEDCWeb site athttp://www.michiganadvantage.org/.

MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery CreditsNOTE:BeginningJanuary1,2012,thesecreditsareavailableascertificatedcreditstotheextentthatthetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. These credits must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

Line 81:CompleteForm4584toclaimthesecreditsandelecta refund or carryforward of any excess credit, and to applyunused carryforwards of these credits from the immediatelyprecedingtaxyear.

ThemiscellaneousMEGAbattery creditson this line includethe MEGA Poly-Silicon Energy Cost Credit, MEGA Plug-in Traction Battery Integration Credit, MEGA BatteryManufacturing Facility Credit, MEGA Large Scale BatteryCredit,and/orMEGAAdvancedLithiumIonBatteryCredit.

The following credits are no longer available for tax years ending after the associated date. Complete Form 4584 toclaim any unused credit from the immediately preceding taxyear,ifavailable.

• MEGAAdvancedBatteryEngineeringCredit—December31,2014.• MEGAAdvancedLithiumIonBatteryCredit—December31,2016.

• MEGALargeScaleBatteryCredit--December31,2017.

Include completed Form 4573 as part of the tax return filing.

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Michigan Department of Treasury4574 (Rev. 04-18)

Attachment 14

2018 MICHIGAN Business Tax Refundable CreditsIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

PERSONAL PROPERTY TAX CREDIT. If not claiming this credit, skip to line 8.

1. Property taxes paid on eligible industrial personal property in the current MBT tax year (see instructions) .......... 1. 002. Multiply line 1 by 35% (0.35) .................................................................................................................................. 2. 003. Property taxes paid on eligible telephone personal property in the current MBT tax year (see instructions) .......... 3. 004. Multiply line 3 by 13.5% (0.135) ............................................................................................................................. 4. 005. Property taxes paid on eligible natural gas pipeline property in the current MBT tax year (see instructions) ........ 5. 006. Multiply line 5 by 10% (0.10) .................................................................................................................................. 6. 007. Personal Property Tax Credit. Add lines 2, 4 and 6 ............................................................................................ 7. 00

WORKER’S DISABILITY SUPPLEMENTAL BENEFIT (WDSB) CREDIT. If not claiming this credit, skip to line 9.008. WDSB Credit allowed by the Workers’ Compensation Agency ............................................................................. 8.

NEXT ENERGY PAYROLL CREDIT. Available only to businesses located within an alternative energy renaissance zone. If not claiming this credit, skip to line 12.

9. Enter alternative energy renaissance zone property information below:Street Address

City Parcel Number

10. Total payroll of research, development or manufacturing employees who work primarily within the zone ............ 10. 0011. Next Energy Payroll Credit. Multiply line 10 by 4.25% (0.0425) ......................................................................... 11. 00

MEGA EMPLOYMENT TAX CREDIT. If not claiming this credit, skip to line 15.0012. Credit amount from MEDC Annual Tax Credit Certificate (attach) ......................................................................... 12.

CREDIT NO LONGER AVAILABLE. X X X X X X X X 0013. This credit is no longer available. Leave this line blank and skip to line 15 ........................................................... 13.

CREDIT NO LONGER AVAILABLE. X X X X X X X X 0014. This credit is no longer available. Leave this line blank and skip to line 15 ........................................................... 14.

FARMLAND PRESERVATION CREDIT. If not claiming this credit, skip to line 16.0015. Credit amount from Form 4594, line 29 .................................................................................................................. 15.

MEGA FEDERAL CONTRACT CREDIT. If not claiming this credit, skip to line 17.0016. Credit amount from Form 4584, line 35a ................................................................................................................ 16.

MEGA PHOTOVOLTAIC TECHNOLOGY CREDIT. If not claiming this credit, skip to line 18.0017. Credit amount from Certificate provided by MEDC (attach) or assigned credit amount ......................................... 17.

FILM PRODUCTION CREDIT. If not claiming this credit, skip to line 20.

0018. Credit amount from Post-Production Certificate of Completion provided by Michigan Film Office (attach)

or assigned credit amount (see instructions) .......................................................................................................... 18.CREDIT NO LONGER AVAILABLE.

X X X X X X X X 0019. This credit is no longer available. Leave this line blank and skip to line 20 ........................................................... 19.ANCHOR COMPANY PAYROLL CREDIT. If not claiming this credit, skip to line 21.

0020. Credit amount from Form 4584, line 70a ................................................................................................................ 20.ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming this credit, skip to line 22.

0021. Credit amount from Form 4584, line 78a ............................................................................................................... 21.

MEGA POLY-SILICON ENERGY COST CREDIT AND MISCELLANEOUS MEGA BATTERY CREDITS. If not claiming this credit, skip to line 23.

0022. Credit amount from Form 4584, line 86a ................................................................................................................ 22.TOTAL REFUNDABLE CREDITS

0023. Add lines 7, 8, 11, 12, 15, 16, 17, 18, 20, 21 and 22. Enter total here and carry to Form 4567,

line 64; or Form 4590, line 37 ................................................................................................................................. 23.

+ 0000 2018 39 01 27 2

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PurposeTo allow standard taxpayers to claim certain credits.Unlessotherwise specified, if the amount of the credit exceeds thetax liability of the taxpayer for the tax year, that excess isrefunded.

NOTE:Thisformmayalsobeusedbyfinancialinstitutionstoclaimalimitednumberofcredits:

• MichiganEconomicGrowthAuthority(MEGA)EmploymentTaxCredit.

• AssignedMEGAPhotovoltaicTechnologyCredit.• AssignedFilmProductionCredit.

Insurance companies use the Miscellaneous Credits for Insurance Companies (Form4596) to claim credits forwhichtheyareeligible.

NOTE: Refundsof theBrownfieldRedevelopmentCreditandHistoric Preservation Credit are no longer available on Form4574.Taxpayersmay apply for an accelerated payment of thequalifiedcreditsbyfilingtheRequest for Accelerated Payment for the Brownfield Redevelopment Credit and the Historic Preservation Credit(Form4889).

NOTE:BeginningJanuary1,2012,onlythosetaxpayerswithacertificatedcredit,whichisawardedbutnotyetfullyclaimedorutilized,mayelecttobeMBTtaxpayers.

Fiscal Year Filers: See “Supplemental Instructions forStandard Fiscal MBT Filers” in the MBT Forms and Instructions for Standard Taxpayers(Form4600).

Special Instructions for Unitary Business Groups

Creditsareearnedandcalculatedoneitheranentity-specificora group basis, as determined by relevant statutory provisionsfor the respective credits. Inter-company transactions are noteliminatedforthecalculationofmostcredits.Creditsearnedorcalculatedoneitheranentity-specificorgroupbasisbyUnitaryBusinessGroup(UBG)membersaregenerallyappliedagainstthe tax liability of the UBG, unless otherwise specified bystatuteortheseinstructions.

Entity-specificprovisionsareappliedonamember-by-memberbasis. In none of these cases does a taxpayer that is a UBGtake the organization type of its parent, DesignatedMember(DM),oranymemberoftheUBG.AUBGtaxpayerwillnotbeattributedanorganizationtypebasedonthecompositionofitsmembers.

If any member of the UBG is eligible for an entity-specificcredit,astatementmustbeattachedtotheformidentifyingtheeligible member and any information requested for the credit.If more than one member is eligible, requested informationshouldbeprovidedinthestatementonapermemberbasis.Thetotal amount from all eligible members should be entered oneachcorresponding lineon this form.Line-by-line instructionsindicatecreditsrequiringentity-specificinformation.

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

NOTE: AlthoughqualificationforcertaincreditsisreviewedandapprovedbyMEGA,inmanycasesthecertificatesforsuchcredits are issued by the Michigan Economic DevelopmentCorporation(MEDC).

Name and Account Number:Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either the MBT Annual Return (Form 4567) for standardtaxpayersortheMBT Annual Return for Financial Institutions (Form4590)).

UBGs:Complete one form for the group.Enter theDMnamein theTaxpayerNamefieldandtheDMaccountnumberin theFederalEmployerIdentificationNumber(FEIN)field.

Personal Property Tax CreditThe Personal Property Tax Credit is available againstpersonal property taxes paid in the tax year on eligibleindustrial personal property, eligible telephone personalproperty, and eligible natural gas pipeline property. ThePersonal Property Tax Credit is available only to thetaxpayerwho timelyfiles the required statementsor reports,to whom an assessment or bill is issued, and who pays thetaxes in the tax year. A taxpayer that disagrees with theassessor’s classification of property must pursue a changeof classification through the property tax appeals process.Treasurywillnotreviseapropertyclassificationforpurposesofthesecredits.

Line 1: Eligible industrial personal property is propertyclassifiedas industrialpersonalpropertyunderSection34coftheGeneralPropertyTaxAct(MichiganCompiledLaw(MCL)211.34c).UnderMCL211.34c,theassessorischargedwiththeresponsibility of classifying property. The taxes must havebeenleviedafterDecember31,2007,andthetaxesmusthavebeenpaidduringthetaxyearincludedinthisreturn.

Line 3: Eligible telephone personal property is defined aspersonal property of a telephone company subject to the taxleviedunderMCL207.1 to207.21.The taxeson thispropertymusthavebeenpaidduringthetaxyearincludedinthisreturn.

Line 4: For eligible telephone personal property levied andpaid in the taxyear thecredit isequal to13.5percentof thetaxespaid.

Line 5: Eligible natural gas pipeline property is defined asnatural gas pipelines that are classified as utility personalpropertyunderSection34coftheGeneralPropertyTaxActandare subject to regulationunder theNaturalGasAct.The taxesmust have been levied afterDecember 31, 2007, and the taxesmusthavebeenpaidduringthetaxyearincludedinthisreturn.

Line 7:ThetaxpayerclaimingaPersonalPropertyTaxCreditmust attach to the MBT return copies of property tax billsthatproperly identify“eligible”propertyandprovideproofofpaymentofthetaxinthetaxyear.

Instructions for Form 4574 Michigan Business Tax (MBT) Refundable Credits

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UBGs:Addupthepropertytaxbillsforallmembersandenterthe total amount on the corresponding line. The requestedtax bills andproof of payment for eachmember claiming thePersonalPropertyTaxCreditshouldbeattachedtothegroup’sannualreturn.

Workers’ Disability Supplemental Benefit (WDSB) CreditThe WDSB Credit is available to self-insured taxpayers forthe amount authorized by the Department of Licensing andRegulatoryAffairs(LARA)duringthetaxyear.TheamountofthecreditisprovidedtotaxpayersbyLARA.

For more information on WDSB credit eligibility, contactLARA, Workers’ Compensation Agency at (517) 322-1879or 1-888-396-5041, or visit the LARA Web site atwww.michigan.gov/lara.

Line 8:AttachtothereturnacopyofthedocumentprovidedbyLARAtosubstantiateaclaimforthiscredit.

UBGs:Entertotalamountauthorizedforallmembersonline8andattachLARAdocumentationforeachmember.

Next Energy Payroll CreditNextEnergyPayrollCredit provides a payroll-based credit toa taxpayer located within an alternative energy RenaissanceZone. The credit is equal to the payroll amount for the taxyearattributable toemployeeswhoareworkingonalternativeenergy-related research, development, or manufacturingand whose regular place of employment is within the Zone,multiplied by theMichigan Individual Income Tax (IIT) rateforthatyear.(TheMichiganIndividualIncomeTaxratecanbefoundatwww.michigan.gov/taxes.)

Line 11: Multiplyline10bytheIndividualIncomeTaxrateof4.25%(0.0425).

UBGs: IfanymemberofaUBGisclaimingtheNextEnergyPayroll Credit, attach a statement identifying the member(s)and providing information requested on the form. Enter thetotalpayrollamountforalleligiblemembersonline10.

MEGA Employment Tax CreditThe MEGA Employment Tax Credit promotes economicgrowth and jobs in Michigan. For a period of time not toexceed 20 years, a taxpayer that is an authorized business oran eligible taxpayer may claim a credit equal to the amountcertifiedeachyearbyMEGA.

NOTE:Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

MEGAmaycertifyacreditbasedonanagreemententeredintoprior toJanuary1,2008,under theSingleBusinessTax(SBT).ThenumberofyearsforwhichthecreditmaybeclaimedunderMBTwillbeequaltothemaximumnumberofyears designatedin the resolution reduced by the number of years for which a

credithasbeenclaimedorcouldhavebeenclaimedunderSBT.

AtaxpayerthatclaimedacreditundereitherSBTorMBTthathadanagreementwithMEGAbasedonqualifiednewjobsasdefinedintheMEGAAct,andthatremoves51percentormoreof thosequalifiednew jobs fromMichiganwithin threeyearsafterthefirstyearinwhichthetaxpayerclaimedacredit,mustpaybackanamountequaltothetotalofallcreditsclaimednolaterthan12monthsafterthosequalifiednewjobsareremovedfromMichigan.RecaptureisreportedonForm4587.

For more information, contact MEDC at 1-888-522-0103 orvisit theMEDCWeb site athttp://www.michiganadvantage.org/.

Line 12: Approved businesses receive a certificate fromMEGA each year showing the total amount of tax creditallowed.AttachtheAnnualTaxCreditCertificatetothereturn.(Ifthecertificateisnotattached,thecreditwillbedisallowed.)

UBGs: Enter the total amount of MEGA Employment TaxCreditsclaimedbyeligiblemembersandprovidetherequestedMEGAcertificationforeacheligiblemember.

NASCAR Safety CreditThiscreditisnotavailablefortaxyearsafter2011.Leaveline13blank,andcontinuetoline14.

Farmland Preservation CreditFarmland Preservation Credit gives back to farmland ownersa portion of the property taxes paid on farmland. Farmlandownersqualify for thecreditbyagreeing topreserve the landasfarmlandandnotdevelopforanotheruse.

Toqualifyforthecredit,thetaxpayermustmeetthefollowingrequirements:

• Taxpayermustownfarmland,• Taxpayermust have entered into a FarmlandDevelopment

RightsAgreement (FDRA)with theMichiganDepartmentofAgriculture(MDA),and

• Taxpayer must complete the Michigan Farmland Preservation Tax Credit (Form4594).

If agreements with MDA were entered into on or afterJanuary 1, 1978, the gross receipts qualifications in Part 1 ofForm4594mustbesatisfied.

NOTE:Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredintoafarmlandpreservationagreementbyDecember31,2011.This credit must be claimed beginning with the taxpayer’sfirst taxyearendingafterDecember31,2011, inorder for thetaxpayertoremaintaxableundertheMBTandclaimthecredit.

UBGs: UBG members claiming this credit should total allamounts from Form 4594, line 29, and enter on line 16 eacheligible member should submit Form 4594, which would becalculated based upon that member’s respective property taxobligationanditsrespectiveMBTBusinessIncomeTaxbase.

MEGA Federal Contract CreditThis credit is available for a qualified taxpayer or collectivegroup of taxpayers that have been awarded a federal

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procurement contract from the United States Department ofDefense, Department of Energy or Department of HomelandSecurityresultinginaminimumof25newfull-timejobs.

NOTE: Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

CompleteForm4584toclaimthiscreditandelectarefundorcarryforwardoftheresultingoverpayment.

For more information, contact MEDC at 1-888-522-0103 orvisit theMEDCWeb site athttp://www.michiganadvantage.org/.

MEGA Photovoltaic Technology CreditTheMEGA Photovoltaic Technology Credit is available to aqualifiedtaxpayerthatentersintoanagreementwithMEGAtoconstructandoperateanewfacilityinMichiganwhichservesto develop andmanufacture photovoltaic energy, photovoltaicsystems,orotherphotovoltaictechnology.Photovoltaicenergy,systems, or technology rely on solar power. The credit isavailablefor25percentofthetaxpayer’scapitalinvestmentinthenewfacilityduringthetaxyear.

NOTE:Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

The credit generally must be taken in equal installmentsover a two-year period beginning in the tax year in whichthe certificate is issued.A taxpayermaymake an irrevocableassignmentofalloraportionof thecreditormayconveytheright to theassignmentona formprovidedbyMEGA,whichwillthenissueassignmentcertificatestotheassignee(s).

A taxpayerorassignee thatclaimsacreditandsubsequentlyfails to meet the requirements of the act or any otherconditions established by MEGA in the agreement may, asdeterminedbyMEGA,have its credit reducedor terminatedor have a percentage of the credit previously claimed addedbacktothetaxliabilityofthetaxpayerinthetaxyearthatthetaxpayerorassigneefailstocomply.RecaptureisreportedonForm4587.

A taxpayer certified to take the polycrystalline silicon creditunderMCL208.1432isdisqualifiedfromtakingthiscredit.

Line 17:ApprovedbusinessesreceiveacertificatefromMEGAeachyearshowingthetotalamountoftaxcreditallowed.Attachthe Annual Tax Credit Certificate to the return. A taxpayerclaiming an assigned MEGA Photovoltaic Technology Credit

must attach the assignment certificate to the return. (If thecertificateisnotattached,thecreditwillbedisallowed.)

Film Production Credit TheMichigan FilmOffice,with the concurrence of the StateTreasurer, may enter into an agreement with an eligibleproductioncompanyprovidingthecompanywitharefundablecreditagainstMBTtaxliabilityoragainsttaxeswithheldunderChapter7oftheMichiganIndividualIncomeTaxAct.

NOTE:Beginning January1, 2012, this credit is available asacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with the Michigan Film Office with theconcurrenceof theStateTreasurerbyDecember31,2011,butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

To qualify for the credit, an eligible production companymust spendat least$50,000 inMichigan for thedevelopment,preproduction, production, or postproduction costs of aState-certifiedqualifiedproductionandmustnotbedelinquentinataxorotherobligationowedtoMichigannorbeownedorundercommoncontrolofanentitythatisdelinquent.

A Post-Production Certificate will be issued verifying theamount of the credit to be claimed once the Michigan FilmOfficeissatisfiedthatexpenditureandeligibilityrequirementsaremet.

The credit may be assigned in the tax year in which thePost-Production Certificate is issued but such assignment isirrevocable.

For more information, contact the Michigan FilmOffice at 1-800-477-3456 or visit the Web site atwww.michiganfilmoffice.org.

Line 18: A taxpayer claiming aFilmProductionCreditmustattachthePost-ProductionCertificatetothereturn.AtaxpayerclaiminganassignedFilmProductionCreditmustattachtothereturnanMBT Film Credit Assignment (Form4589)approvedbyTreasury.(Ifthecertificateorapprovedassignmentformisnotattached,thecreditwillbedisallowed.)

UBGs: Enter the total amount for this credit claimed by alleligible members and provide the requested post-productioncertificationorForm4589foreacheligiblemember.

MEGA Plug-In Traction Battery Manufacturing Credit Line 19: For tax years ending after December 31, 2014, the MEGA Plug-In Traction Battery Manufacturing Credit is no longer available.

Anchor Company Payroll CreditThis credit is available for a qualified taxpayer that wasdesignated by MEGA as an anchor company within the lastfive years and that has influenced a newqualified supplier orcustomertoopen,locate,orexpandinMichigan.

NOTE: Beginning January1, 2012, this credit is available as

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acertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credit has not been full claimed or paid prior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

CompleteForm4584toclaimthiscreditandelectarefundorcarryforwardoftheresultingoverpayment.

For more information, contact MEDC at 1-888-522-0103 orvisit theMEDCWeb site athttp://www.michiganadvantage.org/.

Anchor Company Taxable Value CreditThis credit is available for a qualified taxpayer that wasdesignated by MEGA as an anchor company within the lastfive years and that has influenced a newqualified supplier orcustomertoopen,locate,orexpandinMichigan.

CompleteForm4584toclaimthiscreditandelectarefundorcarryforwardoftheresultingoverpayment.

For more information, contact MEDC at 1-888-522-0103 orvisit theMEDCWeb site athttp://www.michiganadvantage.org/.

MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery CreditsCompleteForm4584 toclaimtheMEGAPoly-SiliconEnergyCostCredit,MEGAPlug-inTractionBatteryIntegrationCredit,MEGA Battery Manufacturing Facility Credit, MEGA LargeScale Battery Credit, and/or MEGA Advanced Lithium IonBatteryCreditandelectarefundorcarryforwardofanyexcesscredit.CarryamountfromForm4584,line86aandenterithere.

The following credits are no longer available for tax years ending after the associated date. Complete Form 4584 to claim an used credit from the immediately preceding tax year, if available.

• MEGAAdvancedBatteryEngineeringCredit—December31,2014.• MEGAAdvancedLithiumIonBatteryCredit—December31,2016.• MEGALargeScaleBatteryCredit--December31,2017.

Include completed Form 4574 as part of the tax return filing.

Michigan Department of Treasury4575 (Rev. 05-18)

Attachment 09

2018 MICHIGAN Business Tax Loss Adjustment for the Small Business Alternative CreditIssued under authority of Public Act 36 of 2007.

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

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

INSTRUCTIONS: Use this worksheet to qualify for an otherwise disallowed Small Business Alternative Credit by adjusting current year adjusted business income. This is available only if a taxpayer had a negative adjusted business income in any of the five tax years immediately preceding this tax year and received an MBT Small Business Alternative Credit in the loss year. Partnerships and members of Unitary Business Groups, see instructions before completing.

PART 1: CURRENT YEAR AMOUNTSUse 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 4571, line 8 ................................................................................... 1. 002. Business Income Disqualifier.

Enter $180,000 for individuals, or $1,474,200 for all other organization types ......................................... 2. 00

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

Shareholder Income Disqualifier: $180,000

4. Enter the amount from Form 4571, line 5 .................................................................................................. 4. 00

5. Shareholder Income Disqualifier (See chart in instructions)...................................................................... 5. 006. Enter compensation and director fees from Form 4577, column L, of the shareholder creating the

disqualifier or reduction* ............................................................................................................................ 6. 00

7. Subtract line 6 from line 5. If less than zero, see instructions ................................................................... 7. 00

8. Divide line 7 by the percent of ownership from Form 4577, column G, for the shareholder on line 6 ....... 8. 00

9. Loss adjustment required. Subtract line 8 from line 4 ............................................................................... 9. 00* Note: If compensation exceeds $180,000 for any C Corporation shareholder or officer, a Small Business Alternative Credit cannot be claimed nor can a loss adjustment be used to reduce compensation from Form 4577, column L.

PART 2: AVAILABLE LOSS Read 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 11 through 16.Complete line 10 for the five immediately preceding tax years (oldest to the left). Then complete lines 11 through 16, 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.

10. Tax year end date (MM-DD-YYYY) ..........11. Adjusted business income .......................12. Loss used on prior returns .......................13. Loss available for current return ..............14. Loss adjustment required ........................15. Remaining loss adjustment required .......16. Loss adjustment carryforward .................

+ 0000 2018 43 01 27 3

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

If the ABI was less than zero in any of the five yearsimmediatelyprecedingthetaxyearforwhichacreditisbeingclaimed, and the taxpayer received an SBAC underMBT forthat same year, the taxpayer may adjust for the loss beforefiguring eligibility for the SBAC. Business income for creditpurposes is adjusted by using available loss from prior yearsonafirst-in,first-outbasisuntil thoselossesareextinguished.A loss adjustment will not affect a reduction to the SBACbased on gross receipts that exceed $19,000,000.Also, itwillnot change the amount of compensation in columnL for aCCorporationontheMBT Schedule of Shareholders and Officers (Form4577).

NOTE: Although this form is formatted for Corporations, itcanbeusedbyothertypesofentitieswithminoradjustments.Seeinstructionsforfurtherdetails.

Special Instructions for Unitary Business Groups (UBGs)

The ABI disqualifier must be calculated by the UBG bycombining the ABIs of its members. Likewise, to reducean ABI disqualifier of the UBG, loss adjustment must becalculatedonagroup levelandusedagainst thegroup’sABI.Generally, a UBG will file only one copy of this form, the“GroupCopyforABI.”

Members Not Included in UBG for Entire Lookback PeriodForyearsinwhichamemberwasnotpartoftheUBG,theUBGwilluse thatmember’savailable loss fromthoseseparateyearson a first-in, first-out basis until those losses are extinguished.These amounts are calculated initially at themember level butusedandmaintainedforuseinfutureyearsontheGroupCopyforABI.Supporting4575formsmustbefiledbyeachmemberthat has a loss available from the separate years that is usedagainst theUBG’sABIdisqualifier (member forms).OnlyPart2,lines10through13,ofForm4575needtobecompletedonthememberform.

Adjusted Business Income Disqualifier This disqualifier is calculated at the group level. If theUBGhasABIinexcessof$1,474,200,theUBGmustcompleteone,groupForm4575.ThegroupwideForm4575willcalculatelossavailable from theUBG’s prior tax years aswell as organizethe members’ available loss that may be used against thisdisqualifier. These member amounts are calculated initiallyat thememberlevelbutusedandmaintainedforuseinfutureyearsontheGroupCopyforABI.

In the Taxpayer Name field at the top of the page, enter theDesignated Member’s (DM’s) name followed by the DM’sFederal Employer Identification Number (FEIN) orMichigan

DepartmentofTreasury(TR)assignednumber.IntheUnitaryBusinessGroupsOnlyfield,enter“GROUPCOPYFORABI,”andleaveFEINorTRNumberfieldblank.Onthisgroupcopyof Form 4575, enter groupwide data for lines 1 through 3.Leave lines 4 through 9 blank.Complete lines 10 through 16followingline-specificinstructions.

To reduce theUBG’sABI disqualifier, the groupwill use itsavailable lossfromaprior taxperiodwhentheUBGreceivedthe 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 yearwhen thememberwaspartof theUBG to reduce thegroup’sABIdisqualifier.

For thepurposesofcompletingPart2, ifamember’sseparateyeardoesnot share a commonyear endwith theUBG,useaseparate column for thatmember. If somemembers’ separateyears share a common year end, total the amount of thosemembers’ available loss in a single column. Arrange all ofthe columns in chronological order. If additional columns areneededtoaccommodatethefiveprecedingperiods,createandattachatablecomparabletothatfoundinlines10through16.Apply to that custom table the calculations described in theformtextandinstructionsforlines10through16.

Lines 14 through 16 on theGroup Copy for ABIwill reflectthe usage of loss adjustment to resolve the ABI disqualifierand the maintenance of loss adjustment available for futureyears (within the five year statutory period). Loss adjustmentused for the ABI disqualifier is not recorded on the membercopyofForm4575.However,lossadjustmentusedfortheABIdisqualifier from amember’s separately filed years should betracked in the taxpayer’s records. Any ABI loss adjustmentremaining from a member’s separately filed years will beavailable to that member in the event themember leaves theUBGprior tocompleteusageof the loss adjustment availableby theUBG.See the“Supplemental Instructions forStandardMembersinUBGs”sectionintheMBT Forms and Instructions for Standard Taxpayers(Form4600)fordetails.

NOTE: If the UBG still has a disqualification on this basis(greater than $1,474,200) after completing the group’s Form4575 as described above, the UBG is disqualified from theSBAC.Donotproceedwiththeseinstructions.

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

DatesmustbeenteredinMM-DD-YYYYformat.

Name and Account Number:Enternameandaccountnumberasreportedonpage1oftheMBT Annual Return(Form4567).

UBGs: Generally, only one formwill be filed perUBG. See“Special Instructions for UBGs” above for exceptions. EntertheDM’s name in the TaxpayerName field and FEIN in thefirstidentificationline,and“GROUPCOPYFORABI”andnoFEINinthesecondidentificationline.

Instructions for Form 4575, Michigan Business Tax (MBT) Loss Adjustment for the Small Business Alternative Credit

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Part 1: Current Year Amounts

Use Part 1 to determine the amount of loss adjustmentnecessarytoqualifyfortheSBAC.

If the taxpayer is not eligible for the credit because the ABIexceeds$1,474,200($180,000forindividuals),completelines1through3.

If the taxpayer is not eligible because a shareholder’sallocated incomeexceeds$180,000,or apartner’sdistributiveincome exceeds $180,000, complete lines 4 through 9 for theshareholder(s) or partner(s) creating the disqualifier. The lossadjustment required is the largestamountneeded toeliminateallallocatedincomedisqualifiers.

Partnerships:Form4575isformattedforCorporations.TouseitforaPartnership,makethesechanges:

• Enter on line 6 any guaranteed payments made to thepartnercreatinga$180,000disqualifier.• On line 8, divide by the percentage of ownership fromcolumnCoftheMBT Schedule of Partners(Form4578).

Reduced SBAC: A reduction of the SBAC is required ifan Individual, a partner in a Partnership, a shareholder ofaCorporation, or an officer of aCCorporation has allocatedincome after loss adjustment of more than $160,000. ThisreductionisbasedontheIndividual/partner/officer/shareholderwiththelargestallocatedincome.

Complete lines 4 through 9 for the shareholder or partnercreatingtheneedtoreducetheSBAC.

Form4575shouldalwaysbecalculatedinitiallyusing$160,000on line 5. This calculation will establish taxpayer eligibilitywithout the need to reduce the SBAC. However, if the totallossavailableforthecurrentyearonline13doesnotequalorexceedthelossadjustmentrequiredonline9,thetaxpayermaystillcalculatealesserlossadjustmenttoclaimareducedcredit.

Try the calculation more than once. Substitute the numbersshown on the chart in the instructions for line 5, in order tomaximize theclaimedSBAC.Ifanegativenumber is reachedon line 7, a greater disqualifier amount is needed from thedisqualifiercharthereonline5.

Tax Year Less Than 12 Months: Business income andshareholder disqualifiersmust be calculated on an annualizedbasis.Enterannualizednumbersonlines1,4,and6.Part-yearshareholdersalsomustannualizecompensationandreportthatfigureonline6.

Annualizing

To annualize, multiply each applicable amount, ABI, orshareholder compensation, by 12 and divide the result by thenumberofmonthsthebusinessoperated.Generally,abusinessisconsideredinbusinessforonemonthifthebusinessoperatedformorethanhalfthedaysofthemonth.

NOTE:Ifthebusinesswasinoperationforlessthanamonthitisconsideredtohavebeeninbusinessfor1month.

UBGs: ForUBGmembers reporting a period of less than 12monthswith thegroup return, annualization is doneusing themember’s number ofmonths in the group’s tax year. Sum the

annualizedmemberfigures(whenapplicable)togetthegroup’stotalannualizedfigure.

Line 5: Form4575shouldalwaysbecalculated initiallyusing$160,000. This calculation will establish taxpayer eligibilitywithout the need to reduce the SBAC. However, if the totallossavailableforthecurrentyearonline13doesnotequalorexceedthelossadjustmentrequiredonline9,thetaxpayermaystillcalculatealesserlossadjustmenttoclaimareducedcredit.

Line 5 Eligible % of Credit$ 160,000 100% - no reduction$164,999 80%$169,999 60%$174,999 40%$180,000 20%

Line 7: If a negative number is reached, some reduction ofcredit is necessary. Return to line 5 and enter the higherdisqualifier amount from the chart. Continue this processuntil line 7 is greater than or equal to zero. This calculationestablishesthemaximumallowableSBAC.

Part 2: Available Loss

UsePart2todeterminethelossavailablefromthefiveprecedingperiods.Donotenteranegativesigninfrontofthelossamount.

Complete lines 11 through 16, one column at a time. Forthose lines, complete only columns for years that reported aloss (either generated or used) and received an SBAC. If thetaxpayerdidnotreportalossordidnotreceiveanSBACforataxyear,leavethatcolumn,lines11through16,blank.

Line 10:Enter thefivemost recent taxyears,beginningwiththe oldest year in the left column, including years in whichtherewasnolossornoSBACcredittaken.Thencompletelines11through16,onecolumnatattime,foreachyearinwhichalosswasgeneratedorusedandanSBACwasclaimed.

Line 11: Enter (as a positive number) the negativeABI fromForm4571,line8,fortaxyearswhereanSBACwasreceived.

UBGs: When completing a member’s form (see “SpecialInstrutions for UBGs” so circumstances in which a memberform isneeded), this line is calculatedusingmember specific(pro forma)data.Note, however, themember cannot enter anABIamountforataxyearthatitwaspartoftheUBGandtheUBG did not receive the SBAC. Themember may, however,enteranABIamountforataxyearthatitwasnotamemberoftheUBGand it received theSBAC, regardlessofwhether theUBGreceivedthecreditinthatsameyear.

WhencompletingtheGroupCopyforABI,enterthesumofthefollowing: 1)UBG’s negativeABI for tax years it received theSBAC,plus,2)amember’snegativeABIforataxyearwhenitreceivedtheSBACandwasnotpartoftheUBG.ThesememberamountsarecalculatedinitiallyatthememberlevelbutusedandmaintainedforuseinfutureyearsontheGroupCopyforABI.

Line 12:Enter theamountof lossenteredonline11 thatwasusedasanadjustmentinapriorperiod.

93

UBGs: When completing the Group Copy for ABI, if amember’snegativeABIwas includedonLine11(thememberreceivedacreditandwasnotpartof theUBGin the taxyearthe creditwas received), include any loss adjustment used bythat member in a prior period to offset an ABI disqualifier.Also enter any groupwide loss used against the UBG’s ABIdisqualifierinapriorperiod.

Line 13:Subtractline12fromline11toarriveatlossavailableon the current return. If less than zero, enter zero; no loss isavailable.

UBGs:OntheGroupCopyforABI,ifthegroup’smembershiphas not changed, that is, no member has joined or left thegroup since the filing of the prior year’s return, the amountscalculated on line 13 should equal the amounts on line 16 oftheprioryear’scorrespondingcolumns.Ifmembershipforthisyear isdifferent, theseamountsmaynotbe the same.See the“Supplemental Instructions for StandardMembers in UBGs”sectioninForm4600fordetails.

Line 14: Enter the amount from line 3 or line 9, whicheveris larger, in thefirst columnwhere a loss is available on line13. In subsequent columns, enter amount from line 15 of thepreviousapplicablecolumn.

Line 15:Ifline14islargerthanline13,subtractline13fromline14.Enterhereandon line14of thenextcolumnwherealossisavailableonline13.

Line 16:Ifline13islargerthanline14,subtractline14fromline13.Thisamountisavailabletouseinsubsequentperiods.

NOTE: To benefit from a loss adjustment, the total lossavailableforthecurrentyear,line13,mustequalorexceedthelossadjustmentrequiredonline14.

The function of this form is to demonstrate that a taxpayerthat otherwise would have been disqualified from the SBACduetoABI,orfullyorpartiallydisqualifiedduetoanowner’sallocated income is, after application of loss adjustment,allowedtoclaimafullorpartialSBAC.

If loss adjustment is successfully applied to cure an ABIdisqualifier, there is no calculated figure from this formthat feeds to another form. Simply ignore the apparentdisqualification on Form 4571, line 8 and proceed withcalculatingtheSBAContheremainderofForm4571.

If loss adjustment is successfully applied to fully or partiallycure an owner’s allocated income disqualifier, this will bedemonstrated by the final applicable column of line 15 beingblank.Inthatevent,carrythenumberfromline5ofthisformtoForm4571,line11andproceedwiththecalculationthere.

Include completed Form 4575 as part of the tax return filing.

94

Michigan Department of Treasury4577 (Rev. 05-18), Page 1 of 2

Attachment 07

2018 MICHIGAN Business Tax Schedule of Shareholders and OfficersFor all Corporations claiming the Small Business Alternative or Start-Up Business CreditsIssued under authority of Public Act 36 of 2007.

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

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

PART 1: SHAREHOLDERS AND OFFICERS. See instructions.

1. A B C D E F G

MemberNumber

Name of shareholder (including corporation, trust, partnership, or family member who is a shareholder through attribution) or officer (Last, First, Middle)

FEIN or Social Security numberof shareholder or officer

Check (X) if anofficer

% Stockdirectly owned

% Stock withattribution

(See instructions.)

% 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 %

Continue below using the same Member Number references from column 1A.H I J K L M N

Member Number

Dividends (used to determine

active shareholders)Salaries, wages and/

or director feesEmployee insurance plans, pensions, etc.

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

holders. Add columns J and K.Share of business income/loss

(See instructions.)Total shareholder/officer

income. Add columns L and M.

If more space is needed, include additional 4577 forms. Identify taxpayer and complete Part 1 and Part 2 on each additional form. (See instructions.)

+ 0000 2018 47 01 27 5 Continue on Page 2.

2018 Form 4577, Page 2 of 2FEIN or TR Number

UBG Member FEIN or TR Number

PART 2: LIST OF FAMILY MEMBERS AND THEIR CORRESPONDING RELATIONSHIPUsing the same Member Number references from Part 1, indicate your attributable family relationship (if any) to each shareholder. (An attributable family relationship is defined as either a spouse, parent, child or grandchild.)

• If an attributable family relationship exists, designate in columns P through S• If no attributable family relationship exists, check box in column T.

2. O P Q R S T

Member Number Spouse Parent Child Grandchild

Check (X) if No AttributableRelationship

PART 3: SMALL BUSINESS ALTERNATIVE CREDIT. See instructions for definition of active shareholder.

3. Compensation and director fees of active shareholders. Add amounts in column L for each active shareholder. Enter here and on Form 4571, line 6 ............................................................................. 3. 00

4. Compensation and director fees of officers. Add amounts in column L for each officer who is not an active shareholder. Enter here and on Form 4571, line 7.............................................................. 4. 00

+ 0000 2018 47 02 27 3

97

Purpose

To determine eligibility for all Corporations to qualify forthe Small Business Alternative Credit.Corporation means ataxpayerthatisrequiredorhaselectedtofileasaCorporationundertheInternalRevenueCode(IRC).

General InstructionsIf filing as a Corporation (including Limited LiabilityCompanies federally taxed as such) and claiming a SmallBusinessAlternativeCredit,complete thisformandincludeitaspartoftheannualreturntoreport:

• ShareholderandCCorporationofficerqualificationsfortheSmallBusinessAlternativeCredit;

• Compensation and director fees of active shareholders andallCCorporationofficers for thecomputationof theSmallBusinessAlternativeCredit.

NOTE:Amemberof aLimitedLiabilityCompany (LLC) ischaracterizedforMBTpurposesasashareholderiftheLLCistaxedasacorporationforfederalpurposes.

NOTE:A federallydisregardedentity is required tofileas ifit were a sole proprietorship if owned by an individual, or abranchordivisionifownedbyanotherbusinessentity.

This form also is required to be completed and included aspart of the return whenever a corporation claims a Start-UpBusinessCredit.ToqualifyfortheStart-UpBusinessCredit,thecompensation, director fees, or distributive shares paid by thetaxpayertoashareholderofaCCorporationorSCorporation,oranofficerofaCCorporation,cannotexceed$135,000.

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

Name and Account Number: Enternameandaccountnumberasreportedonpage1oftheMBT Annual Return(Form4567).

Unitary Business Groups (UBGs): Complete one form foreachmember that is a corporation (including an entity taxedfederally as such).Enter theDesignatedMembername in theTaxpayer Name field and the member to whom the scheduleappliesonthelinebelow.OnthecopyfiledtoreporttheDM’sdata(ifapplicable),enter theDM’snameandaccountnumberoneachline.

PART 1: SHAREHOLDERS AND OFFICERSLine 1 (Columns A through N): In column 1A, assignnumbers (beginning with 1) to all shareholders and CCorporationofficersinorderofpercentageofstockownership(percentageincolumnG),startingwiththehighestpercentagefirst.(RepeatthisnumberinginPart1,line1H,andPart2,line2O.It isessentialthatthisnumberingsystemisfollowed.)Allshareholders’ familymembers, as defined by IRC § 318(a)(1),are considered shareholders andmust be listed in Part 1 and

Part2iftheyreceivecompensationfromthebusiness.ListallshareholdersandCCorporationofficerswho:

• AreemployeesoftheCorporation;• AredirectorsoftheCorporation;or• Own 10 percent or more of the stock of the Corporation,

includingthosebyattribution.

Shareholder means a person who owns outstanding stock ina business or is amember of a business entity that files as acorporation for federal income tax purposes. An individualis considered as the owner of the stock owned, directly orindirectly,byorforfamilymembersasdefinedbyIRC§318(a)(1).

Anofficer of aCCorporation includes thechairpersonof theboard, president, vice president, secretary, and treasurer, orpersonsperformingsimilarduties.

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 persons directly owningstockduringthetaxyearmustbelistedinParts2and3.

If more lines are needed for listing the shareholders and CCorporation officers, include additional copies of this form.Complete the taxpayer name and account number on eachcopy (and UBGmember if applicable), and lines 1 and 2 asnecessary. Ifusingmorethanonecopyof theform,continuethe sequential number system for the Member Number incolumnsA,HandO.

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

Columns B and C: Identify each shareholder (includingCorporations, Trusts, or Partnerships) and C Corporationofficers by name and Social Security number. Corporations,Trusts,andPartnershipsshouldbeidentifiedusingtheFederalEmployerIdentificationNumber(FEIN)orMichiganTreasury(TR)assignednumber.

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 stockeach shareholder or C Corporation officer owns directly.If a shareholder owned stock for a period less than theCorporation’s tax year,multiply that shareholder’s percentageof ownershipby thenumberofmonthsowned anddivide the

Instructions for Form 4577 Michigan Business Tax (MBT) Schedule of Shareholders and Officers

For all Corporations claiming the Small Business Alternative or Start-Up Business Credits

98

resultbythenumberofmonthsintheCorporation’staxyear.Taxpayersmustaccountfor100percentofthestock.Ifitisnotaccountedfor,processingofthereturnmaybedelayed.Column F: Enter the percentage of outstanding stock eachshareholderowns,includingattributionofownershipfromfamilymembersunderIRC§318(a)(1).Ifnoattributionexists,enterthepercentagefromcolumnEincolumnGandleavecolumnFblank.Column G: When reporting ownership of a person whois an active shareholder, do not include in Column G anystock ownership attributed to this person from anotheractive shareholder. See definition of active shareholders inthe Part 3 instructions. For the purposes of determiningdisqualification for the Small Business Alternative Credit, anactiveshareholder’sshareofbusiness income isnotattributedtoanotheractiveshareholder.EXAMPLE: In this case, thehusbandanddaughterareactiveshareholdersbecausetheirtotalcompensation,directorfees,anddividends from the business are greater than $10,000 and theyownmore than5%of stock (columnE).Thewife and son arenot active because their total compensation, director fees, anddividendsfromthebusinessareless than$10,000(eventhoughtheyownmorethan5%ofstock).

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). This includes regular distributions for an SCorporation.

Column J: Enter salaries, wages, and director fees that areattributable to each shareholder or C Corporation officer.Compensation paid by a professional employer organization tothe officers of a client (if the client is aCCorporation) and toemployees of the professional employer organization who areassignedor leased toandperformservices foraclientmustbeincludedindeterminingtheeligibilityoftheclientforthiscredit.

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 actual

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 1: Shareholders and officers - See instructions Part 2: List of family members and their corresponding relationships

1. A B 2. O P Q R S T

Member Number

Name of shareholder (including corporation, trust, partnership, or family member who is a shareholder through attribution) or

officer (Last, First, Middle)Member Number Spouse Parent Child Grandchild

Check (X) ifNo Attributable

Relationship

1 Stone, Larry David 1 2 3

2 Stone, Betty Ann 2 1 8 4 6

3 Stone, Mary Elizabeth 3 1

4 Rock, Tammie Marie 4 5 2 6

5 Rock, Steve Carl 5 4 6

6 Rock, Kathy Evelyn 6 4-5

7 Rock, Mike Joseph 7 X8 Pebble, Bob Kenneth 8 2 4

9 Marble, Terry Robert 9 X

99

amountsonthisform.

NOTE:Allcompensationmustbeincluded,whetherornottheshareholderorCCorporationofficerworkedinMichigan.

Column K: Enter employee insurance payments and pensionsthatareattributabletoeachshareholderorCCorporationofficer.

NOTE:Ifashareholderownedstockforlessthantheentiretaxyear of the corporation, or an officer served as an officer lessthan the entire tax year, report only the employee insurancepayments, and pensions that are attributable while serving asan officer or shareholder. These amounts must be annualizedwhendeterminingdisqualifiers,butshouldbereportedasactualamountsonthisform.

NOTE:Allemployeeinsurancepaymentsandpensionsmustbeincluded,whetherornottheshareholderofCCorporationofficerworkedinMichigan.

Column L: If any shareholder or officer of a C Corporationhas total compensation and director fees in column L of over$180,000afterlossadjustment,theCCorporationisnoteligiblefortheSmallBusinessAlternativeCredit.

Column M:MultiplythepercentageincolumnGbyline5contheMBT Common Credits for Small Businesses(Form4571).

UBGs:MultiplythepercentageincolumnGbythesumoftheMBT Unitary Business Group Combined Filing Schedule for Standard Members(Form4580),Part2A,lines30and34,pluscapitallossdeductedonthefederalreturnsofallmembers.

Column N: If any shareholder or officer has total income incolumnNofover$180,000afterlossadjustment,thetaxpayerisnoteligiblefortheSmallBusinessAlternativeCredit.Ifanyshareholder or officer has total income in columnN of over$135,000,thetaxpayerisnoteligiblefortheStart-UpBusinessCredit.

PART 2: LIST OF FAMILY MEMBERS AND THEIR CORRESPONDING RELATIONSHIP TYPEColumns P through S represent relationships affected byattribution.

For each shareholder listed in Part 1, column A, enter thecorresponding number of the shareholder’s spouse, parent,child,orgrandchild,ifany,listedinPart1,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 2 columns is notadequatetolistallofthecorrespondingrelationships,attachaseparatesheetofpaperwiththemembernumberfromcolumn

O, the corresponding relationship, and the number of themember(s)withthatrelationship.

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

PART 3: Small Business Alternative CreditLine 3:Addcompensationanddirector fees in columnL foreach active shareholder and enter the result on line 3 and onForm4571,line6.

Anactiveshareholder:

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

• Owns at least 5 percent of outstanding stock, includingthrough attribution (column E or F = 5 percent or more),AND

• Receives at least $10,000 in compensation, director fees,and dividends from the business (sum of columns I andL= $10,000 or more). Important: For short-period returnsorapart-yearshareholder,compensation,directorfees,anddividendsofeachindividualmustbeannualizedtomeetthisrequirement.

AnnualizingMultiply each applicable amount by 12 and divide the resultbythenumberofmonthsinthetaxyearthebusinessoperatedor the person was a shareholder. Generally, a business isconsidered inbusiness foronemonth if thebusinessoperatedformorethanhalfthedaysofthemonth.

NOTE: Ifthebusinesswasinoperationforlessthanamonthitisconsideredtohavebeeninbusinessfor1month.

Line 4: AddthecompensationanddirectorfeesincolumnLforeachCCorporationofficerwhoisnotanactiveshareholderandentertheresultonline4andonForm4571,line7.

REMINDER: Active shareholders of an S Corporation areincludedintheline3calculation,eveniftheshareholderisalsoaCCorporationofficer.Becausethedefinitionof“officer”forthis purpose does not apply to an S Corporation, line 4 willalwaysbeblankforanSCorporation.

Include completed Form 4577 as part of the tax return filing.

100

Michigan Department of Treasury4578 (Rev. 04-18)

Attachment 08

2018 MICHIGAN Business Tax Schedule of PartnersIssued under authority of Public Act 36 of 2007.

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

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

PARTNER IDENTIFICATION

1.

AName (If partner is an Individual,

enter Last, First, and Middle Initial)

BFEIN, TR Number or

Social Security Number of Partner

C

% Owned

DShare of

Business Income*

a% 00

b% 00

c% 00

d% 00

e% 00

f% 00

g% 00

h% 00

i% 00

j% 00

k% 00

l% 00

m% 00

n% 00

o% 00

p% 00

q% 00

2. Total of Column C (% Owned). Cannot exceed 100%. ..................................................................................................... 2. %

3. Total of Column D (Share of Business Income). Cannot exceed the partnership’s business income. ............................. 3. 00

*If any partner has a share of business income in column D of over $180,000 after loss adjustment, the Partnership is not eligible for the Small Business Alternative Credit.* If any partner has a share of business income in column D of over $135,000, the Partnership is not eligible for the Start-Up Business Credit.

If more space is needed, submit additional forms 4578. Identify taxpayer and complete Partner Identification on each additional form.(See instructions.)

+ 0000 2018 51 01 27 6

102

Purpose To determine eligibility for the Partnership’s Small BusinessAlternativeCredit.Partnershipmeansataxpayerthatisrequiredto,orhaselectedto,fileasaPartnershipforfederalincometaxpurposes.

This form also is required to be completed and included aspart of the return whenever a Partnership claims a Start-UpBusinessCredit.ApartnershipcannotqualifyfortheStart-UpBusinessCreditifanypartnerhasadistributiveshareofmorethan$135,000.

NOTE: A member of a Limited Liability Company (LLC)is characterized forMBTpurposesasapartner if theLLC istaxedasaPartnershipforfederalpurposes.

NOTE:Afederallydisregardedentityisrequiredtofileasifitwereasoleproprietorshipifownedbyanindividual,orabranchordivisionifownedbyanotherbusinessentity.

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

Name and Account Number:Enternameandaccountnumberasreportedonpage1oftheMBT Annual Return(Form4567).

If more lines are needed for listing the partners, includeadditionalcopiesofthisformandcompletethename,accountnumber,andline1foreachcopy.

Unitary Business Groups: Complete one form for eachmember that is a partnership (including an entity taxedfederally as such).Enter theDesignatedMembername in theTaxpayer Name field and the member to whom the scheduleappliesonthelinebelow.OnthecopyfiledtoreporttheDM’sdata(ifapplicable),enter theDM’snameandaccountnumberoneachline.

Line 1: PartnerIdentification

• Columns A and B: Identify each partner (includingCorporation, Partnership, and Trust) by name. Identifypartners who are individuals by Social Security number.PartnersthatareCorporations,Partnerships,orTrustsshouldbeidentifiedusingaFederalEmployerIdentificationNumber(FEIN)orMichiganTreasury(TR)assignednumber.

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

• Column C: Enter the percentage of profits or capitalinterest of this Partnership owned by each partner. Ifa partner owned this interest for a period less than thePartnership’s taxyear,multiplythatpartner’spercentageofownershipby thenumberofmonthsowned anddivide theresult by the number of months in this Partnership’s taxyear.

• Column D: Enter each partner’s distributive share ofincome, losses, and deductions from U.S. Form 1065,Schedule K-1. Use the Business Income Worksheet (Worksheet 4746) in theMBT Forms and Instructions for Standard Taxpayers (Form 4600) to calculate partnershipbusinessincome.AttachWorksheet4746tothefiling.Eachpartner’s distributive share includes guaranteed paymentstopartnersthataremadetothatpartner.Ifanypartnerhasa share of business income in columnD of over $180,000after lossadjustment, thePartnership isnoteligible for theSmall Business Alternative Credit. If any partner has ashareofbusinessincomeinColumnDofover$135,000,thePartnershipisnoteligiblefortheStart-UpBusinessCredit.

IMPORTANT:Forshort-periodreturns,eachpartner’sshareofbusinessincomemustbeannualizedtomeettheserequirements.AnnualizingMultiplyeachapplicableamountby12anddividetheresultbythenumberofmonthsthebusinessoperatedorthepersonwasa partner. Generally, a business is considered in business foronemonthifthebusinessoperatedformorethanhalfthedaysofthemonth.

NOTE:Ifthebusinesswasinoperationforlessthanamonthitisconsideredtohavebeeninbusinessfor1month.

Line 2: Ifmultiple pages of Form 4578 are included for oneseparatelyfilingtaxpayer,oronememberofaUBG,bringthetotalofallline1CentriestothemainForm4578.

Line 3: Ifmultiple pages of Form 4578 are included for oneseparatelyfilingtaxpayer,oronememberofaUBG,bringthetotalofallline1DentriestothemainForm4578.

Include completed Form 4578 as part of the tax return filing.

Instructions for Form 4578, Michigan Business Tax (MBT) Schedule of PartnersFor all Partnerships claiming the Small Business Alternative Credit or Start-Up Business Credit

Michigan Department of Treasury4580 (Rev. 04-18), Page 1 of 6

Attachment 15

2018 MICHIGAN Business Tax Unitary Business Group Combined Filing Schedule for Standard MembersIssued under authority of Public Act 36 of 2007.

IMPORTANT: Read the instructions before completing this form.

Designated Member Name Federal Employer Identification Number (FEIN) or TR Number

PART 1A: UNITARY BUSINESS GROUP (UBG) MEMBERSList the UBG members whose activity is included on the combined return supported by this form, beginning with the Designated Member (DM). Include all UBG members (with or without nexus), except those excluded in Part 3. If more than one page is needed, repeat the DM’s name and FEIN or TR Number in the field at the top of the page, but not on line 1.

1. A BMember Name FEIN or TR Number

+ 0000 2018 59 01 27 0 Continue on Page 2.

2018 Form 4580, Page 2 of 6 Designated Member FEIN or TR Number

PART 1B: MEMBER IDENTIFICATIONComplete a separate copy of Part 1B for each member listed in Part 1A.2. Member Name 5. Organization Type

C Corporation / LLC C Corporation

3. Member FEIN or TR Number Individual

S Corporation / LLC S Corporation

4. Member Street Address Fiduciary

City State ZIP/Postal Code Partnership / LLC Partnership

6. Federal Tax Period Included in Return (MM-DD-YYYY) ........................................

Beginning Ending10. Check if Nexus with Michigan

Check if Registered for MBT7. If part-year member, enter membership dates (MM-DD-YYYY) .........

11.

8. NAICS Code 9. If discontinued, effective date 12. Check if New Member

13. Nature of business activities or operations resulting in a flow of value between members, or integration, dependence or contribution to other members

PART 2A: MEMBER DATA FOR COMBINED RETURN OF STANDARD TAXPAYERSEnter data for the member listed in Part 1B. Enter whole dollars only.

14. Michigan sales. (If no Michigan sales enter zero) ............................................................................................. 14. 0015. Total sales.......................................................................................................................................................... 15. 0016. Pro forma apportionment percentage. Divide line 14 by line 15 ............ 16. %

Member Modified Gross Receipts

17. Gross receipts ................................................................................................................................................... 17. 0018. Inventory acquired during the tax year .............................................................................................................. 18. 0019. Depreciable assets acquired during the tax year .............................................................................................. 19. 0020. Materials and supplies not included in inventory or depreciable property ......................................................... 20. 0021. Staffing company: Compensation of personnel supplied to customers ............................................................. 21. 00

If the UBG is claiming the Small Business Alternative Credit, skip to line 23.22. Deduction for contractors in SIC Codes 15, 16 and 17 (see instructions) ......................................................... 22. 00

SIC Code:23. Film rental or royalty payments paid by a theater owner to a film distributor and/or film producer ................... 23. 0024. Qualified Affordable Housing Project (QAHP) deduction

a. Gross receipts attributable to residential rentals in Michigan ........... 24a. 00b. Number of residential rent restricted units in Michigan owned

by the QAHP ...................................................................................... 24b.c. Total number of residential rental units in MI owned by the QAHP ....... 24c.d. Divide line 24b by line 24c and enter as a percentage ..................... 24d. %e. Multiply line 24a by line 24d ............................................................ 24e. 00f. Limited dividends or other distributions made to QAHP owners ...... 24f. 00g. QAHP Deduction. Subtract line 24f from line 24e ....................................................................................... 24g. 00

25. Payments made by member licensed under Article 25 or Article 26 of the Occupational Code to independent contractors licensed under Article 25 or Article 26 ........................................................................ 25. 00

26. Miscellaneous subtractions (see instructions) ................................................................................................... 26. 0027. Modified gross receipts. Subtract lines 18 through 23 and 24g through 26 from line 17 .................................. 27. 00

28. Enrichment prohibition for dealer of personal watercraft or new motor vehicles. Enter amount collected during tax year. If zero, enter zero and skip line 29. If greater than zero, enter number here, then see instructions for how to complete line 29 ............................................................................................................ 28. 00

29. Excess enrichment prohibition tax collected (see instructions) ......................................................................... 29. 00

+ 0000 2018 59 02 27 8 Continue on Page 3.

2018 Form 4580, Page 3 of 6 Designated Member FEIN or TR NumberMember FEIN or TR Number

PART 2A: MEMBER DATA FOR COMBINED RETURN OF STANDARD TAXPAYERS (Cont.) — Member Business Income

30. Business income. If negative, enter as negative. (If business activity protected under PL 86-272, complete and attach Form 4581 or Form 4586, as applicable; see instructions.)............................................................. 30. 00

31. Interest income and dividends derived from obligations or securities of states other than Michigan ................ 31. 0032. Taxes on or measured by net income................................................................................................................ 32. 0033. Tax imposed under MBT .................................................................................................................................... 33. 0034. Any carryback or carryover of a federal NOL .................................................................................................... 34. 0035. Losses attributable to other flow-through entities taxed under the MBT .......................................................... 35. 00

Account No.36. Royalty, interest, and other expenses paid to a related person not within the UBG (see instructions) ............ 36. 0037. Miscellaneous additions (see instructions) ....................................................................................................... 37. 0038. Dividends and royalties received from persons other than U.S. persons and foreign operating entities ......... 38. 0039. Income attributable to other flow-through entities taxed under the MBT .......................................................... 39. 00

Account No.40. Interest income derived from U.S. obligations .................................................................................................. 40. 0041. Net earnings from self-employment. If less than zero, enter zero .................................................................... 41. 0042. Miscellaneous subtractions (see instructions) .................................................................................................. 42. 0043. Business Income Tax Base. Add lines 30 through 37 and subtract lines 38 through 42 .................................. 43. 0044. Available MBT business loss carryforward from previous period MBT return (see instructions) ....................... 44. 0045. Qualified Affordable Housing Deduction. Members claiming the seller’s deduction only, skip lines 45a through 45h and carry the amount from Form

4579, line 5, to line 45i. Members claiming the QAHP deduction only, complete lines 45a through 45i. If claiming both deductions, see instructions.a. Gross rental receipts attributable to residential units in MI ............ 45a. 00b. Rental expenses attributable to residential rental units in Michigan ... 45b. 00c. Taxable income attributable to residential rental units.

Subtract line 45b from line 45a ........................................................ 45c. 00d. No. of residential rent restricted units in MI owned by the QAHP .... 45d.e. Total residential rental units in Michigan owned by the QAHP ........ 45e.f. Divide line 45d by line 45e and enter as a percentage.................... 45f. %g. Multiply line 45c by line 45f.............................................................. 45g. 00h. Limited dividends, other distributions made to project owners ........ 45h. 00i. Qualified Affordable Housing Deduction. Subtract line 45h from line 45g ................................................... 45i. 00

46. Unused SBT Historic Preservation Credit carryforward ................................................................................... 46. 0047. Unused SBT “New” Brownfield Credit carryforward ......................................................................................... 47. 0048. Unused MBT Basic/Enhanced Historic Preservation Credit carryforward ........................................................ 48. 0049. Unused MBT Special Consideration Historic Preservation Credit carryforward ............................................... 49. 0050. Unused MBT Low-Grade Hematite Credit carryforward ................................................................................... 50. 0051. Unused MBT MEGA Federal Contract Credit carryforward .............................................................................. 51. 0052. Unused MBT Individual or Family Development Account Credit carryforward ................................................. 52. 0053. Unused MBT Bonus Depreciation Credit carryforward ..................................................................................... 53. 0054. Unused MBT Brownfield Redevelopment Credit carryforward ......................................................................... 54. 0055. Unused MBT Film Job Training Credit carryforward ......................................................................................... 55. 0056. Unused MBT Film Infrastructure Credit carryforward ....................................................................................... 56. 0057. Unused MBT MEGA Plug-In Traction Battery Manufacturing Credit carryforward ........................................... 57. 0058. Unused MBT Anchor Company Payroll Credit carryforward ............................................................................ 58. 0059. Unused MBT Anchor Company Taxable Value Credit carryforward ................................................................. 59. 0060. Unused MBT MEGA Poly-Silicon Energy Cost Credit carryforward ................................................................. 60. 0061. Unused MBT MEGA Plug-In Traction Battery Integration Credit carryforward ................................................. 61. 0062. Unused MBT MEGA Advanced Battery Engineering Credit carryforward ........................................................ 62. 0063. Unused MBT MEGA Battery Manufacturing Facility Credit carryforward ......................................................... 63. 0064. Unused MBT MEGA Large Scale Battery Credit carryforward ......................................................................... 64. 0065. Unused MBT MEGA Advanced Lithium Ion Battery Credit carryforward .......................................................... 65. 0066. Overpayment credited from prior MBT return ................................................................................................... 66. 0067. Estimated tax payments ................................................................................................................................... 67. 0068. There is no amount to be entered on this line ................................................................................................... 68. x x x x x x x 0069. Tax paid with request for extension .................................................................................................................. 69. 00

+ 0000 2018 59 03 27 6 Continue on Page 4.

2018 Form 4580, Page 4 of 6 Designated Member FEIN or TR Number

PART 2B: SUMMARY OF BUSINESS ACTIVITY FOR COMBINED RETURN OF STANDARD TAXPAYERSNOTE: Not all lines from Part 2A are carried to Part 2B. A B C D

Combined Total Before Eliminations Eliminations

Combined TotalAfter Eliminations

Carry to form, line

14. Michigan sales .......................................................... 4567, 11a15. Total sales ................................................................ 4567, 11b17. Gross receipts .......................................................... 4567, 1218. Inventory acquired during the tax year ...................... 4567, 1319. Depreciable assets acquired during the tax year ...... 4567, 14

20. Materials and supplies not included in inventory or depreciable property .................................................. 4567, 15

21. Staffing company: Compensation of personnel supplied to customers................................................ 4567, 16

22. Deduction for contractors in SIC Codes 15, 16 and 17 (see instructions) ........................................... 4567, 17

23. Film rental or royalty payments paid by a theater owner to a film distributor and/or film producer ......... 4567, 18

24g. QAHP Deduction ...................................................... 4567, 19g

25. Payments made by taxpayers licensed under Article 25 or Article 26 of the Occupational Code to independent contractors licensed under Article 25 or Article 26................................................................... 4567, 20

26. Miscellaneous subtractions (see instructions) .......... 4567, 21

27. Modified gross receipts (line 17 minus lines 18 through 26) ..........................

x x x x x x x N/A

28. Enrichment prohibition for dealer of personal watercraft or new motor vehicles. Enter amount collected during tax year........................................... N/A

29. Excess enrichment prohibition tax collected............. See instr.30. Business income ...................................................... 4567, 28

31. Interest income and dividends derived from obligations or securities of states other than Michigan .................. x x x x x x x 4567, 29

32. Taxes on or measured by net income....................... x x x x x x x 4567, 3033. Tax imposed under MBT ........................................... x x x x x x x 4567, 3134. Any carryback or carryover of a federal NOL ........... x x x x x x x 4567, 32

35. Losses attributable to other flow-through entities taxed under the MBT .............................................................. 4567, 33

36. Royalty, interest and other expenses paid to a related person........................................................... x x x x x x x 4567, 34

37. Miscellaneous additions (see instructions) ................. 4567, 35

38. Dividends and royalties received from persons other than U.S. persons and foreign operating entities ..... x x x x x x x 4567, 38

39. Income attributable to other flow-through entities taxed under the MBT .............................................................. 4567, 39

40. Interest income derived from U.S. obligations .......... x x x x x x x 4567, 40

41. Net earnings from self-employment. If less than zero, enter zero ...................................... x x x x x x x 4567, 41

42. Miscellaneous subtractions (see instructions) .......... 4567, 4243. Business Income Tax Base ...................................... x x x x x x x N/A

44. Available MBT business loss carryforward from previous period MBT return(s) ................................. 4567, 46

45i. Qualified Affordable Housing Deduction ..................... 4567, 48i

+ 0000 2018 59 04 27 4 Continue on Page 5.

2018 Form 4580, Page 5 of 6 Designated Member FEIN or TR Number

PART 2B: SUMMARY OF BUSINESS ACTIVITY FOR COMBINED RETURN OF STANDARD TAXPAYERS (CONT.)A B C D

Combined Total Before Eliminations Eliminations

Combined TotalAfter Eliminations

Carry to form, line

46. Unused SBT Historic Preservation Credit carryforward.............................................................. x x x x x x x 4569, 2

47. Unused SBT “New” Brownfield Credit carryforward ... x x x x x x x 4569, 6

48. Unused MBT Basic/Enhanced Historic Preservation Credit carryforward .................................................... x x x x x x x 4584, 4

49. Unused MBT Special Consideration Historic Preservation Credit carryforward ............................... x x x x x x x 4584, 7

50. Unused MBT Low-Grade Hematite Credit carryforward............................................................... x x x x x x x 4573, 20

51. Unused MBT MEGA Federal Contract Credit carryforward............................................................... x x x x x x x 4584, 30

52. Unused MBT Individual or Family Development Account Credit carryforward ...................................... x x x x x x x 4573, 45

53. Unused MBT Bonus Depreciation Credit carryforward............................................................... x x x x x x x 4573, 50

54. Unused MBT Brownfield Redevelopment Credit carryforward............................................................... x x x x x x x 4584, 40

55. Unused MBT Film Job Training Credit carryforward ... x x x x x x x 4573, 6456. Unused MBT Film Infrastructure Credit carryforward .. x x x x x x x 4573, 70

57. Unused MBT MEGA Plug-In Traction Battery Manufacturing Credit carryforward ............................. x x x x x x x 4584, 57

58. Unused MBT Anchor Company Payroll Credit carryforward............................................................... x x x x x x x 4584, 65

59. Unused MBT Anchor Company Taxable Value Credit carryforward .................................................... x x x x x x x 4584, 73

60. Unused MBT MEGA Poly-Silicon Energy Cost Credit carryforward .................................................... x x x x x x x 4584, 81a

61. Unused MBT MEGA Plug-In Traction Battery Integration Credit carryforward .................................. x x x x x x x 4584, 81b

62. Unused MBT MEGA Advanced Battery Engineering Credit carryforward .................................................... x x x x x x x 4584, 81c

63. Unused MBT MEGA Battery Manufacturing Facility Credit carryforward .................................................... x x x x x x x 4584, 81d

64. Unused MBT MEGA Large Scale Battery Credit carryforward............................................................... x x x x x x x 4584, 81e

65. Unused MBT MEGA Advanced Lithium Ion Battery Credit carryforward .................................................... x x x x x x x 4584, 81f

66. Overpayment credited from prior MBT return ............ x x x x x x x 4567, 6067. Estimated tax payments ............................................ x x x x x x x 4567, 6168. There is no amount to be entered on this line ........... x x x x x x x x x x x x x x x x x x x x x X X X69. Tax paid with request for extension ........................... x x x x x x x 4567, 63

Check all that apply to the Unitary Business Group.

70. Group identified consists of a group of U.S. persons, one of which owns or controls, directly or indirectly, more than 50% of the ownership interests with voting or comparable rights of the others.

71. Some or all members are included on a consolidated federal income tax return. If checked, attach a copy of federal Form 851.

72. Each member of the group has business activities or operations resulting in a flow of value between the members or has business activities or operations that are integrated with, dependent upon, or contribute to each other.

73. All members of the Unitary Business Group are included in this unitary filing.

+ 0000 2018 59 05 27 2 Continue on Page 6.

2018 Form 4580, Page 6 of 6 Designated Member FEIN or TR Number

PART 3: AFFILIATES EXCLUDED FROM THE COMBINED RETURN OF STANDARD TAXPAYERSList every person (with or without nexus) for which the “greater than 50%” ownership test of a Michigan Unitary Business Group is satisfied, which is not included on the combined return of standard taxpayers that is supported by this form. Using the codes below, identify in column D why each person is not included in the combined return. If any persons listed here are part of a federal consolidated group, attach a copy of federal Form 851.

REASON CODES FOR EXCLUSION:

74. A B C D E F

Number From Federal Form 851

(if applicable) Name FEIN or TR Number

Reason Code for Exclusion

Check (X) if Nexus with Michigan NAICS Code

PART 4: PERSONS INCLUDED IN THE PRIOR COMBINED RETURN, BUT EXCLUDED FROM CURRENT RETURNList persons included as standard members in the immediately preceding combined return of this Designated Member that are not included as standard members on the return supported by this form. Persons that satisfy the criteria of Part 3 and Part 4 should be listed in each part. See column C instructions.75. A B C

Reason This Person is Not on Current Return (See instructions for reason codes)Name FEIN or TR Number

+ 0000 2018 59 06 27 0

1. Lacks business activities resulting in a flow of value or integration, dependence or contribution to group.

2. Foreign operating entity.4. Foreign entity.5. Member has no MBT tax year (as a member of this UBG) ending

with or within this filing period.

6. Other.7. Insurance company. (Insurance companies generally file separately.)8. Financial institution. (Financial institutions and standard taxpayers

generally are not included on the same combined return.)

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PurposeThepurposeofthisformisto:

• IdentifyallmembersofaUnitaryBusinessGroup(UBG)• Gathertaxreturndataforeachstandardmemberincludedin

the combined return on a separate basis,make appropriateeliminations,anddeterminecombinedUBGdataforthetaxreturn.

NOTE: Thisisnottheprimaryreturn.ItisdesignedtosupporttheMBT Annual Return (Form 4567) submitted on behalf oftheUBGbytheDesignatedMember(DM).

Refund Only: If combined apportioned or allocated grossreceipts of all members (before eliminations) is less than$350,000 and there is no recapture, and the taxpayer is filingForm 4567 solely to claim a refund of estimates paid, Form4580 must also be included. The designated member mustcomplete Part 1A, Part 2B (skip lines 18 through 65), Part 3,andPart4ofForm4580.Foreachmember listed inPart1A,completePart1Band2A(skiplines18through65).SeeForm4567forinstructionsoncompletingthatform.

Tax Years Less Than 12 Months

If thereportedtaxyear is less than12months,grossreceipts,mustbeannualized.Ifannualizedgrossreceiptsdonotexceed$350,000,enterzeroonthisline.

Annualizing

Multiplyeachapplicableamount,totalgrossreceipts,adjustedbusiness income, and shareholder, officer, and partnerincome by 12 and divide the result by the number ofmonthsthe business operated. Generally, a business is considered inbusinessforonemonthif thebusinessoperatedformorethanhalf the days of the month. If the tax year is less than onemonth,considerthetaxyeartobeonemonthforthepurposesofthecalculation.

General Information About UBGs in MBT

Unitary Business Group means a group of United Statespersons,otherthanaforeignoperatingentity,thatsatisfiesthecontroltestandrelationshiptest.

United States personisdefinedinInternalRevenueCode(IRC)§7701(a)(30).Aforeign operating entityisdefinedbystatuteinMichiganCompiledLaws(MCL)208.1109(5).

Control Test. The control test is satisfied when one personowns or controls, directly or indirectly,more than 50 percentof the ownership interestwith voting or comparable rights ofthe other person or persons.A person owns or controlsmorethan 50 percent of the ownership interest with voting rightsor ownership interest that confer comparable rights to votingrightsofanotherpersonifthatpersonownsorcontrols:

• Morethan50percentofthetotalcombinedvotingpowerofallownershipinterestswithvoting(orcomparable)rights,or

• More than 50 percent of the total value of all ownershipinterestswithvoting(orcomparable)rights.

Relationship Tests. ThedefinitionofaUnitaryBusinessGrouprequires that the group of persons have business activities oroperationsthateither:

1)Result in aflowofvaluebetweenor amongpersons in thegroup,or

2)Are integratedwith,dependentupon,or contribute toeachother.

A taxpayerneedonlymeetoneof the twoalternative tests tosatisfytherelationshiptest.

1) Flow of value is established when members of thegroup demonstrate one or more of functional integration,centralized management, and economies of scale. Examplesof functional integration include common programs orsystems and shared information or property. Examples ofcentralized management include common management ordirectors, shared staff functions, and business decisionsmade for the UBG rather than separately by each member.Examplesofeconomiesof scale includecentralizedbusinessfunctions and pooled benefits or insurance. Groups thatcommonly exhibit a flow of value include vertically orhorizontally integrated businesses, conglomerates, parentcompanieswiththeirwhollyownedsubsidiaries,andentitiesin the same general line of business. Flow of valuemust bemore than the mere flow of funds arising out of passiveinvestment.

2) The alternate contribution/dependency relationship testaskswhetherbusinessactivitiesareintegratedwith,dependentupon, or contributed to each other. Businesses are integratedwith, are dependent upon, or contribute to each other undermany of the same circumstances that establish flow of value.However, this alternate relationship test is also commonlysatisfied when one entity finances the operations of anotheror when there exist intercompany transactions, includingfinancing.

For more information on the control and relationship testsfor UBGs, see Revenue Administrative Bulletin (RAB)2010-1, MBT—Unitary Business Group Control Test, andRAB 2010-2, MBT—Unitary Business Group RelationshipTests, on the Department of Treasury (Treasury) Web siteat www.michigan.gov/treasury/, under “Reports and LegalResources.”

Filing Procedures for UBGsBy definition, a UBG can include standard taxpayers,insurance companies, andfinancial institutions. (Note that anentity thatwould otherwise be standard but is owned by and

Instructions for Form 4580 Michigan Business Tax (MBT) Unitary Business Group

Combined Filing Schedule for Standard Members

110

unitarywithafinancialinstitutionisdefinedbystatutetobeafinancialinstitution.)Insomecases,however,notallmembersof the UBG will be included on the same return. Standardmembers(notownedbyandunitarywithafinancialinstitutionintheUBG)fileacombinedreturnonForm4567.Form4580mustbefiledinsupportofthatreturn.

Form 4580 is used to gather and combine data from eachstandard member of the UBG to support the group’s Form4567 and related forms. This formmust be completed beforethe group’s Form 4567 and related forms are completed. IfthisUBGalso includesfinancial institutions and/or insurancecompanies,thosemembersgenerallywillnotreporttaxdataonthisform,butwillbelistedasexcludedaffiliatesinPart3.

Financial institution members will report and combine theirdata using MBT Unitary Business Group Combined Filing Schedule for Financial Institutions (Form 4752), whichsupports the lead financial form, MBT Annual Return for Financial Institutions(Form4590).

Financialinstitutionsincludeanyofthefollowing:

• Abankholdingcompany,anationalbank,astatecharteredbank, an office of thrift supervision chartered bank or thriftinstitution,or a savingsand loanholdingcompanyother thana diversified savings and loan holding company as definedin 12United States Code (USC) 1467a(a)(1)(F) or a federallycharteredFarmCreditSysteminstitution.• Anyperson,otherthanapersonsubjecttothetaximposedunderChapter2AoftheMBTAct(InsuranceCompanies),thatisdirectlyorindirectlyownedbyanentitydescribedaboveandisamemberoftheUBG.• A UBG of entities described in either or both of theprecedingtwobullets.

Eachinsurancecompanymemberwillfileseparately,usingtheInsurance Company Annual Return for Michigan Business and Retaliatory Taxes (Form4588).Because insurance companiesalwaysfileseparately,rather thanonacombinedreturn, thereisnoMBTinsuranceformthatservesafunctionsimilartothatofForm4580andForm4752.

Example A:UBGAiscomposedofthefollowing:• Fourstandardmembers• Threefinancialinstitutions(allwithnexusinMichigan)• Twoinsurancecompanies.All members of UBG A are owned by and unitarywithoneof thestandardmembersof theUBG.UBGAwill need to file Form 4567, supported by Form 4580,containing the four standard members and Form4590, supported by Form 4752, containing the threefinancial institutions. In Part 1 of Form 4580 or Form4752, only themembers that are included on that form(eitherthefourstandardmembers,orthethreefinancialinstitutions) will be listed. Form 4580 with standardmemberswill be prepared under the name and FederalEmployer Identification Number (FEIN) or MichiganTreasury (TR)assignednumberof thegroup’s standardDM.Oneof thefinancial institutionswill serve asDMfor those threemembers andfileForm4590, supportedbyForm4752.OnPart3ofForm4580,listallfinancialandinsurancemembers.OnPart3ofForm4752,listallstandard and insurance members. The two insurancecompanieseachwillfileastand-aloneForm4588.

Example B:UBGBiscomposedofthefollowing:• Four members that would be standard (see below)

unlessownedbyafinancialinstitution• Threefinancialinstitutions(allwithnexusinMichigan)• Twoinsurancecompanies.All members of UBG B are owned by and unitary withone of the financial institutions in the UBG. Due to thisownershipbyafinancialinstitution,thefourmembersthatotherwise would be standard are defined by statute to befinancial institutions.(Seedefinitionoffinancial institutionearlier in these instructions.)Therefore, thisUBGwillnotfileaForm4580orForm4567.Sevenmemberswillfileacombined return on Form 4590, supported by Form 4752,listingthetwoinsurancemembersasexcludedaffiliatesonPart 3 of Form 4752. The two insurance companies eachwillfileastand-aloneForm4588.

Tocompletethisformandprepareacombinedreturn,theUBGmustselectaDM.

InMichigan, a UBGwith standard members must file Form4567. A Designated Member (DM) must file the return onbehalf of the standard members of the group. In a parent-subsidiarycontrolledgroup,thecontrollingmembermustserveasDMifithasnexuswithMichigan.Ifitdoesnothavenexus,the controllingmembermay appoint anymemberwith nexustoserveasDM.ThetaxyearoftheDMdeterminesthefilingperiod for theUBG. The combined returnmust include eachtaxyearofeachmemberthatendswithorwithinthetaxyearoftheDM.

IfaUBGiscomprisedofbothstandardtaxpayersandfinancialinstitutions,theUBGwillhavetwoDMs(oneforthestandardtaxpayer members completing Form 4567 and related forms,

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and one for the financial institution members completingForm4590andrelatedforms).

Role of the DM:TheDMspeaks,acts,andfilestheMBTreturnon behalf of the group forMBT purposes. Only theDMmayfileavalidextension request for thegroup.Treasurymaintainsthe group’s MBT tax data (e.g., prior MBT returns, businessloss carryforward, tax credit carryforward, overpayment creditforward) under the DM’s name and account number. TheDMmust be of the same taxpayer type (standard or financialinstitution)asthemembersforwhichitfilesacombinedreturn.

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

DatesmustbeenteredinMM-DD-YYYYformat.

DonotenterdatainboxesfilledwithXs.

Foradditionalguidance,seethe“SupplementalInstructionsforStandardMembersinUBGs”sectioninForm4600.

Part 1A: Unitary Business Group MembersLines 1A and 1B: Beginning with the DM, list the UBGstandard members and their corresponding FEIN or TRnumber.UseadditionalPart1A,Form4580pagesasneeded.

NOTE:Ataxpayerthat isaUBGmustfileacombinedreturnusingthetaxyearoftheDM.ThecombinedreturnoftheUBGmustincludeeachtaxyearofeachmemberwhosetaxyearendswithorwithin the taxyearof theDM.Forexample,TaxpayerABC is a UBG comprised of three standard members:MemberA,theDMwithacalendartaxyear,andMembersBand C with fiscal years endingMarch 31 and September 30,respectively. Taxpayer ABC’s tax year is that of its DM. Forthis group in 2013, that annual return will include MemberA’s calendar year endingDecember 31, 2013, the tax year ofMemberBendingMarch31,2013,andthetaxyearofMemberCendingSeptember30,2013.

Part 1B: Member IdentificationIncludeaseparatecopyofParts1Band2Aforeachstandardmemberwhose business activity is reported on the combinedreturnsupportedbythisform.Ifamember(otherthantheDM)has two ormore tax periods endingwith orwithin the filingperiodofthereturn,useaseparatecopyofParts1Band2Aforeachofthatmember’staxperiods.

Line 5:Identifytheorganizationtypeofthismember:• Individual.• C Corporation (including an LLC, Trust, or other entity

taxedfederallyasaCorporationunderSubchapterCoftheIRC).

• Fiduciary (a decedent’s estate, and a Trust taxed federallyas aTrust underSubchapter J of the IRC.AgrantorTrustor “revocable living Trust” established by an Individualisnot taxedasaseparateentity,andshouldbe listedasanIndividual).

• S Corporation (including an LLC, Trust, or other entitytaxedfederallyasaCorporationunderSubchapterSof theIRC).

• Partnership(includinganLP,LLP,LLC,Trust,oranyother

entitytaxedfederallyasaPartnership).

NOTE:Apersonthatisadisregardedentityforfederalincometaxpurposesundertheinternalrevenuecodeshallbeclassifiedas a disregarded entity for the purposes of filing the MBTannualreturn.Thismeansthatadisregardedentityforfederaltaxpurposes, includingasinglememberLLCorQ-Sub,mustfileasifitwereasoleproprietorshipifownedbyanindividual,orabranchordivisionifownedbyanotherbusinessentity.

Line 6: List the member’s tax year, for federal income taxpurposes, from which business activity is being reported onthiscopyofParts1Band2A.

Line 7: If the control test and relationship testwerenotbothsatisfied for this member’s entire federal tax year, enter thebeginningandendingdatesoftheperiodwithinthismember’sfederal taxyearduringwhichboth testswere satisfied.Thesedates constitute a short tax period for MBT purposes, evenif there is no corresponding short federal tax period. Thismembermustprepareaproformafederalreturnfortheportionof its federal year during which it was a UBGmember, andusethatproformareturnasthebasisforreportingthetaxdatarequiredbyPart2A.

Line 8:Enterthemember’ssix-digitNorthAmericanIndustryClassification System (NAICS) code. For a complete list of six-digitNAICScodes,seetheU.S.CensusBureauWebsiteatwww.census.gov/eos/www/naics/.EnterthesameNAICScodeusedwhenfilingU.S.Form1120S, U.S.Form1065,Schedule C ofU.S.Form1040,orSchedule KofU.S.Form1120.

Line 9: Enter the date, if applicable, on which this memberwentoutofexistence.ExamplesincludedeathofanIndividual,dissolution of an entity, and a merger in which this memberwas not the surviving entity. Include any event in which theFEINceasestobeusedbythisentity.Ifthismembercontinuestoexist,DO NOTusethislinetoreportthatthismemberhasstoppeddoingbusinessinMichigan.

Line 10: If this member has nexus with Michigan,check this box. Guidance in determining nexus can befound in RAB 2007-6 and 2008-4, available online atwww.michigan.gov/taxes.(Seethe“ReferenceLibrary”linkatleftedgeofpage.)

Line 12:ThislinedoesnotapplytothefirstMBTreturnfiledbythisUBG.Forsubsequenttaxperiods,checkthisboxifthismemberwasnotincludedintheUBG’sprecedingMBTreturn.

Line 13: Enter a concise description of the activities oroperations of this member that result in a flow of valuebetween this member and others in the UBG, or integration,dependence, or contribution to other members. This isnot limited to transactions that are recognized for tax oraccounting purposes. It may include sharing of assets,employees, data, business opportunities, or other resources.(SeeRAB2010-2.)

Part 2A: Member Data for Combined Return of Standard TaxpayersAmember that does not file a separate federal return (e.g., amemberthatisamemberofafederalconsolidatedgroup)mustprepareapro forma federal returnorequivalent scheduleand

112

useitasthebasisforpreparingitsportionoftheMBTreturn.

Line 14: 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.

• Performanceofserviceswhichconstitutebusinessactivities.• Rental, leasing, licensing, or use of tangible or intangible

property, including interest, that constitutes businessactivity.

• Anycombinationofbusinessactivitiesdescribedabove.• Foramembernotengagedinanyotherbusinessactivities,sales

include interest,dividends, andother income from investmentassetsandactivitiesandfromtradingassetsandactivities.

If amember’s business activity is confined solely toMichiganand the member does not establish nexus in another state, allsales are allocated to Michigan. State is defined to include aforeign country. A member is treated as if subject to tax inanotherstateif,inthatstate,thememberissubjecttoabusinessprivilege tax, a net income tax, a franchise tax measured bynet income,a franchise tax for theprivilegeofdoingbusiness,aCorporationstocktax,orataxofthetypeimposedundertheMBTAct, or that state has jurisdiction to subject thememberto one or more of such taxes regardless of whether the tax isimposed.Amemberwillbetreatedassubjecttoataxinanotherstate for these purposes if the member has due process andcommerceclausenexuswiththatstate.

IfthismemberhasnoMichigansales,enterzero.

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

If this member is subject to tax in another state, as describedabove, use the “Sourcing of Sales to Michigan” informationin the Form 4567 instructions to determineMichigan sales. Ifsalesreportedareadjustedbyadeductionforqualifiedsales toaqualifiedcustomer,asdeterminedbytheMichiganEconomicGrowth Authority (MEGA), attach the Anchor District TaxCredit Certificate or Anchor Jobs Tax Credit Certificate fromtheMichiganEconomicDevelopmentCorporation (MEDC) assupport.

For transportation services that source sales based onrevenuemiles, include on Line 14 a sales amount calculatedby multiplying total sales of the transportation service bythe ratio of Michigan revenue miles over revenue mileseverywhere as provided in the “Sourcing of Sales toMichigan”sectionoftheForm4600GeneralInstructions,forthat type of transportation service. Revenue mile means thetransportation for a considerationofonenet ton inweightoronepassengerthedistanceofonemile.

NOTE: Only transportation services are sourced usingrevenuemiles.To the extent theUBGhasbusiness activitiesor revenue streams not from transportation services, thosereceiptsshouldbesourcedaccordingly.

Line 17: Gross receiptsmeans theentireamount receivedbythemember, as determinedbyusing themember’smethodofaccountingforfederalincometaxpurposes,fromanyactivity,whether in intrastate, interstate, or foreign commerce, carriedout for direct or indirect gain, benefit, or advantage to thememberortoothers,withcertainexceptions.Receiptsinclude,butarenotlimitedto:• Someorallreceipts(salesproceeds)fromthesaleofassets

usedinabusinessactivity.• Saleofproducts.• Servicesperformed.• Gratuitiesstipulatedonabill.• Dividendandinterestincome.• Grosscommissionsearned.• Rents.• Royalties.• Salesofscrapandothersimilaritems.• Client reimbursed expenses not obtained in an agency

capacity.• Gross proceeds from sales between affiliated companies,

includingmembersofaUBG.

Use Worksheet 4700 in Form 4600 to calculate gross receipts.Attach the worksheet to the return. Gross receipts are notnecessarily derived from the federal return, however, theworksheetwillcalculategrossreceiptsasdefinedbylawinmostcircumstances. Taxpayers and tax professionals are expected tobe familiar with uncommon situations within their experience,which produce gross receipts not identified by specific lines onWorksheet4700,andreport thatamountonthemostappropriateline.Treasurymayadjustthefigureresultingfromtheworksheettoaccountproperlyforsuchuncommonsituations.

A member should compute its gross receipts using the sameaccounting method used in the computation of its taxableincomeforfederalincometaxpurposes.

Producers of Agricultural Goods: The total gross receiptsfrom all business activity must be reported on line 17,including the gross receipts from agricultural activity of apersonwhoseprimaryactivityistheproductionofagriculturalgoods. A subtraction is allowed on line 26 for the grossreceipts thathavebeen includedon this line thatare fromtheagriculturalactivityofapersonwhoseprimaryactivity is theproductionofagriculturalgoods.

Producers of Oil or Gas, and Minerals: The total grossreceipts fromall business activitymustbe reportedon line17,including the gross receipts from the production of oil or gas,andminerals,evenifthisactivityissubjecttotheSeveranceTaxonOilorGas,1929PA48.Asubtractionisallowedonline26for the gross receipts that have been included on this line thatare from the production of oil and gas that are subject to theSeveranceTaxonOilorGas.

Line 18: Enter inventory acquired during the tax year,including freight, shipping, delivery, or engineering charges

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includedintheoriginalcontractpriceforthatinventory.

Inventorymeansthestockofgoods,includingelectricityandnaturalgas,held for resale in theordinarycourseof a retailorwholesale business, and finished goods, goods in processofamanufacturer,andrawmaterialspurchasedfromanotherperson. Inventory includesshippingandengineeringchargesso longas suchchargesare included in theoriginal contractprice for the associated inventory. Inventory also includesfloor plan interest for new motor vehicle dealers licensedunder theMichigan vehicle code and any pre-paid sales taxrequiredtobepaidontheinventoryatthetimeofpurchase.

For purposes of this deduction, floor plan interest meansinterestpaidthatfinancesanypartoftheperson’spurchaseofnewmotorvehicle inventoryfromamanufacturer,distributor,or supplier. However, amounts attributable to any invoiceditemsusedtoprovidemorefavorablefloorplanassistancetoapersonsubject to the tax imposedunder theMBTAct thantoa person not subject to this tax is considered interest paid byamanufacturer, distributor, or supplier, and is not consideredfloorplaninterest.

For a person that is a securities trader, broker, or dealer, or aperson included in the UBG of that securities trader, broker,or dealer that buys and sells for its own account, inventoryincludescontractsthataresubjecttotheCommodityExchangeAct,7USC1to27f,thecostofsecuritiesasdefinedunderIRC§475(c)(2)and forasecurities trader thecostofcommoditiesasdefinedunderIRC§475(e)(2)andforabrokerordealerthecost of commodities as defined under IRC § 475(e)(2)(b), (c),and(d),excludinginterestexpenseotherthaninterestexpenserelatedtorepurchaseagreements.Asusedinthisprovision:

• Broker and dealer mean those terms as defined undersection78c(a)(4)and(a)(5)oftheSecuritiesExchangeActof1934,15USC78c.

• Securities tradermeansapersonthatengagesinthetradeorbusinessofpurchasingandselling investmentsand tradingassets.

Inventorydoesnotincludeeitherofthefollowing:

• Personal property under lease or principally intended forleaseratherthansale.

• PropertyallowedadeductionorallowancefordepreciationordepletionundertheIRC.

Line 19: Enter assets, including the costs of fabricationand installation, acquired during the tax year of a type thatare, or under the IRC will become, eligible for depreciation,amortization, or accelerated capital cost recovery for federalincometaxpurposes.

Line 20:Totheextentnotincludedininventoryordepreciableproperty, enter materials and supplies, including repair partsandfuel.

Materials and supplies means tangible personal propertypurchased in the tax year that are ordinary and necessary expenses to be used in carrying on a trade or business. Materials and supplies includes repair parts and fuel. Fuelmeansmaterialsusedandconsumedtoproduceheatorpowerbyburning.Fueldoesnotincludeelectricity.

Line 21: A staffing company may deduct compensation(includingwages,benefits,andallpayrolltaxes)paidtopersonnelsuppliedtoitsclients.Staffing companymeansataxpayerwhosebusinessactivitiesare included in IndustryGroup736under theStandardIndustrialClassification(SIC)CodeascompiledbytheUnitedStatesDepartmentofLabor.

Payments to a staffing company by a client do not constitutepurchasesfromotherfirms.

Line 22: For taxpayers that fall under SIC major groups 15(Building Construction General Contractors and OperativeBuilders), 16 (Heavy Construction Other Than BuildingConstruction Contractors), and 17 (Construction Special TradeContractors) who do not claim the Small Business AlternativeCredit (SBAC) under MCL 208.1417 for the tax year, thefollowingpaymentsareconsidered“purchasesfromotherfirms:”

• Paymentstosubcontractorsforaconstructionproject,underacontractspecifictothatproject,and

• To the extent not deducted as “inventory” and “materialsandsupplies,”paymentsformaterialsdeductedaspurchasesin determining the cost of goods sold for the purpose ofcalculatingtotalincomeonthetaxpayer’sfederalincometaxreturn.

NOTE: This subtraction is only available to a member ofthe UBG if the group does not claim the SBAC for the taxyear.However, for purposes of theSIC code requirement, it issufficient that theUBGmember thatmade thepayments listedabovebeincludedinSICcodes15,16,or17.

Persons included in SIC codes 15, 16, and 17 include generalcontractors (of residential buildings including single-familyhomes; industrial, commercial, and institutional buildings;bridges, roads, and infrastructure; etc.), operative builders, andtradecontractors(suchaselectricians,plumbers,painters,masons,etc.). See http://www.osha.gov/pls/imis/sic_manual.html for amorecompletelist.A subcontractor is an Individual or entity that enters into acontractandassumessomeoralloftheobligationsofapersonincludedinSICcodes15,16,and17assetforthintheprimarycontractspecifictoaproject.Thus,paymentstoanindependentcontractorforgenerallaborservicesnotspecifictoaparticularconstruction contract do not constitute purchases from otherfirms.However,paymentsmadetoasubcontractorforservicesandmaterialsprovidedunderacontractspecifictoaparticularconstruction project (such as the construction of commercialproperty at 2400 Main Street) do constitute purchases fromotherfirms.Thereisnorequirementthatthesubcontractorstowhomsuchpaymentsaremadebelicensed.

The taxpayer bears the burden to prove it is entitled to adeductionincomputingitstaxliability.Itiscontemplatedthatgoodbusinesspracticewould includedocumentationsuchasawrittencontractthatwouldsupportadeductionfromgrossreceipts for payments to subcontractors as purchases fromother firms. The supporting information for payments to asubcontractorcouldbe incorporated into thecontract for thespecific project or memorialized in a separate contract witha subcontractor specifying the project to which the costspertain.

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Line 24:Onlines24athrough24g,calculateadeductionfromgrossreceiptsforamemberthatisalimiteddividendhousingassociation that owns and operates a Qualified AffordableHousingProject(QAHP).

PublicAct(PA)168of2008providesforadeductionfromthemodified gross receipts and apportioned business income taxbasesforaQAHP.(Adeductionfromtheapportionedbusinessincometaxbasealsoisavailable.Seebelow.)

Qualified Affordable Housing Project means a person thatis organized, qualified, and operated as a limited dividendhousing association that has a limitation on the amount ofdividends or other distributions thatmay be distributed to itsownersinanygivenyearandhasreceivedfunding,subsidies,grants, operating support, or construction or permanentfundingthroughoneormorepublicsources.

A limited dividend housing association is organized andqualified pursuant to Chapter 7 of the State HousingDevelopmentAuthorityAct(MCL125.1491etseq).

If these criteria are satisfied, a QAHPmay deduct from itsmodified gross receipts, its gross receipts attributable tothe residential rental units in Michigan it owns multipliedby a fraction, the numerator ofwhich is the number of rentrestricted units in Michigan owned by that QAHP and thedenominator ofwhich is the number of all residential rentalunits in Michigan owned by the project. This deductionis reduced by the amount of limited dividends or otherdistributions made to the owners of the project. Amountsreceived by the management, construction, or developmentcompany for completion and operation of the project andrental units do not constitute gross receipts for purposes ofthededuction.

MCL208.1201(8)governstheterminationofthisdeduction.

Line 24a: Gross receipts attributable to residential rentals inMichigandonotincludeamountsreceivedbythemanagement,construction, or development company for completion andoperationoftheprojectandthoserentalunits.

Line 24b: Rent restricted unit means any residential rentalunit thathasa rental rate restricted inaccordancewith IRC§42(g)(1) as if it was a qualified low-income housing project,or that receives rental assistance from Housing and UrbanDevelopment (HUD) section 8 subsidies, HUD housingassistanceprogramsubsidies,U.S.DepartmentofAgricultureruralhousingprograms,orfromanyoftheprogramsdescribedinMCL208.1203(8)(b).

Line 24c: This includes rent restricted and unrestrictedresidentialrentalunitsownedbytheQAHPinMichigan.

Line 25: If the member is licensed under Article 25 (RealEstate Brokers and Salespersons) or Article 26 (Real EstateAppraisers) of the Occupational Code [MCL 339.2501 to339.2518 and 339.2601 to 339.2637], enter payments made toindependentcontractorslicensedunderArticles25or26.

Line 26: There are three items that qualify for entry on thisline.Ifmorethanonetypeapplies,enterthecombinedtotalasasingleamount.

A)Forapersonclassifiedunder the2002NorthAmericanIndustrial Classification System (NAICS) Number 484, ascompiled by the United States Office ofManagement andBudget, that does not qualify for a credit under Section417, enter the payment,made on or after July 12, 2011, tosubcontractorstotransportfreightbymotorvehicleunderacontract specific to that freight tobe transportedbymotorvehicle.Attachalettertoexplaintheactivitythatqualifiesfor this subtraction and the date of the payment. IncludetheNAICScode.

B) Enter on this line the gross receipts included on line17,which result fromtheagriculturalactivityofapersonwhoseprimaryactivity(i.e.,morethan50percentofgrossreceipts)istheproductionofagriculturalgoods.

C)Enteron this line thegrossreceipts includedonline17whichresultfromtheproductionofoilorgas,andmineralsifthatproductionofoilorgas,andmineralsissubjecttotheSeveranceTaxonOilorGas,1929PA48.

Line 28: Enter amount of theMBTModifiedGrossReceipts(MGR)Taxcollectedinthetaxyear.

MCL208.1203(5) permits newmotor vehicle dealers licensedundertheMichiganVehicleCode,PA300of1949,MCL257.1to 257.923, anddealers of newor used personalwatercraft tocollecttheMGRTaxinadditiontothesalesprice.Thestatutestates that the “amount remitted to the Department for the[Modified Gross Receipts Tax] ... shall not be less than thestated and collected amount.” Therefore, the entire amountof theMGRTaxes stated and collectedbynewmotor vehicledealers and new or used personal watercraft dealers must beremitted to Treasury. There should be no instance in whicha dealer collects amounts of the MGR Tax from customersin excess of the amount ofMGR taxes remitted to Treasury.Eligible taxpayers that elect to separately collect the MGRTaxfromcustomersinadditiontosalespricemayincludethecollectedtaxaspartoftheirestimatedpayments.

NOTE:Onlynewmotorvehicledealersanddealersofneworused personalwatercraft are permitted to separately itemizeandcollectataximposedundertheMBTActfromcustomersinadditiontosalesprice,andthatauthorityislimitedtoonlytheMGRTaximposedandleviedunderMCL208.1203.ThestatutedoesnotauthorizeseparateitemizingandcollectionoftheBusinessIncomeTaxbyanyperson.

Line 29:Amember that is a dealer of personalwatercraft ornew motor vehicles that collectedMGR Tax from customersby separate statement on the invoice during the tax year, asenteredinline28,shouldcompletethefollowingworksheettodetermineexcessMGRTaxcollected.

WORKSHEET – EXCESS MGR TAX COLLECTED

A. ProformaapportionmentpercentagefromForm4580,Part2A,line16a..... %

B. Modifiedgrossreceiptsfrom Form4580,Part2A,line27.IfMGRislessthanzero,enterzero................. 00

C. ApportionedMGRtaxbase. MultiplylineBbylineA.................... 00

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D.

ProformaMGRTaxbeforecredits.MultiplylineCby0.8%(0.008)......... 00

E. Enrichmentprohibition,amountfromForm4580,Part2A,line28............... 00

F.

ExcessMGRTaxcollected. IflineDislessthanlineE,enterthedifference.Otherwise,enterzero.CarryamounttoForm4580,Part2A,line29................................................. 00

Line 30: Business incomemeans that part of federal taxableincome derived from business activity. For MBT purposes,federal taxable income means taxable income as defined inIRC§63,exceptthatfederaltaxableincomeshallbecalculatedas if section168(k) [asapplied toqualifiedpropertyplaced inservice afterDecember 31, 2007] and IRC§ 199were not ineffect. For a Partnership or S Corporation (or LLC federallytaxedassuch),businessincomeincludespaymentsanditemsofincomeandexpensethatareattributabletobusinessactivityofthePartnershiporSCorporationandseparatelyreportedtothepartnersorshareholders.

UsetheBusiness Income Worksheet(Worksheet4746)inForm4600 to calculate business income. Attach Worksheet 4746to the return. The worksheet will calculate business incomeas defined by law in most circumstances. Taxpayers and taxprofessionals are expected to be familiar with uncommonsituations within their experience, which produce businessincome not identified by specific lines on theworksheet, andreportthatamountonthemostappropriateline.Treasurymayadjust the figure resulting from Worksheet 4746 to accountproperlyforsuchuncommonsituations.

For an organization that is a mutual or cooperative electriccompany exempt under IRC § 501(c)(12), business incomeequals the organization’s excess or deficiency of revenuesover expenses as reported to the federal government by thoseorganizations exempt from the federal income tax under theIRC, less capital credits paid tomembers of that organization,less income attributed to equity in another organization’s netincome,andlessincomeresultingfromachargeapprovedbyastateorfederalregulatoryagencythatisrestrictedforaspecifiedpurposeandrefundableifitisnotusedforthespecifiedpurpose.

For a tax-exempt person, business income means only thatpartof federal taxable income (asdefined forMBTpurposes)derivedfromunrelatedbusinessactivity.

For an Individual or an estate, or for a Partnership or Trustorganized exclusively for estate or gift planning purposes,business income is that part of federal taxable income (asdefined for MBT purposes) derived from transactions,activities, and sources in the regular course of the member’stradeorbusiness,includingthefollowing:

• All income from tangible and intangible property if theacquisition, rental, management, or disposition of theproperty constitutes integral parts of themember’s regulartradeorbusinessoperations.

• Gainsor losses incurred in themember’s tradeorbusinessfrom stock and securities of any foreign or domesticcorporation,anddividendandinterestincome.

• Income derived from isolated sales, leases, assignment,licenses, divisions, or other infrequently occurringdispositions, transfers, or transactions involving propertyif the property is or was used in the member’s trade orbusinessoperation.

• Incomederivedfromthesaleofabusiness.

NOTE: Personal investment income, gains from the sale ofproperty held for personal use and enjoyment, or other assetsnot used in a trade or business, and any other income notspecifically derived from a trade or business that is earned,received, or otherwise acquired by an Individual, an estate,or aTrust or Partnership organized or established exclusivelyfor estate or gift planning purposes, are not included in theBusiness IncomeTaxbase.This exclusiononly applies to thespecific types of persons identified above. Investment incomeandanyother typesof incomeearnedorreceivedbyallothertypesofpersonsnotspecificallyreferencedmustbeincludedinthebusinessincomeofthemember.

IMPORTANT: Ifbusiness activity isprotectedunderPublicLaw(PL)86-272foranymemberoftheUBG,thenthemembermust claim protection by filing the MBT Tax Schedule of Business Activity Protected Under Public Law 86-272 (Form4586)(ifmemberistheDM)ortheMBT Schedule of Business Activity for Non-Designated Members of a Unitary Business Group Protected Under Public Law 86-272 (Form 4581) (ifmember is not the DM) and reporting its individual activity.Unless allmembers of theUBG have PL 86-272 protection, amemberclaimingprotectionmustcompletelines30through45i.Ifallmembersof theUBGareclaimingPL86-272protection,leavelines30through45iblank.

So long as onemember of a UBG has nexus withMichiganandexceeds theprotectionsofPL86-272,allmembersof theUBG, including members protected under PL 86-272, mustbe included when calculating the UBG’s Business IncomeTaxbaseandapportionmentformula. (Inotherwords,PL86-272willonlyremovebusiness incomefromtheapportionableBusiness IncomeTaxbasewhenallmembersof theUBGareprotected under PL 86-272.) The inclusion of the businessincomeofmembers that fall underPL86-272 in the taxbaseoftheUBGandthesubsequentapportionmentofsuchincomedoes not constitute taxation upon those PL 86-272members.Rather, this method is required for properly determining theMichiganincomeoftheUBG.

Line 31: Enter any interest income and dividends frombondsandsimilarobligationsorsecuritiesofstatesotherthanMichigan and their political subdivisions in the same amountthat was excluded from federal taxable income (as definedfor MBT purposes). Include only the income derived frombusinessactivity.Reducethisadditionbyanyexpensesrelatedto the foregoing income that were disallowed on the federalreturnbyIRC§265or291.

Line 32: Enter all taxes on, or measured by, net incomeincluding city and state taxes, foreign income tax, andFederalEnvironmentalTaxclaimedasadeductiononthefederalreturn.

Line 33: Enter the Michigan Business Taxm, includingsurcharge, claimed as a deduction on this member’s federal

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return(orthismember’sallocableshare,ifclaimedonafederalconsolidatedreturn).

Line 34:Enter anynetoperating loss carryoveror carrybackthatwasdeductedinarrivingat thismember’sfederal taxableincome(asdefined forMBTpurposes) reportedon line30. IfthememberreportingonthiscopyofPart2Aisamemberofafederalconsolidatedgroup,orforanyotherreasondidnotfileaseparatefederalreturnfortheperiodreportedhere,thefederalnet operating loss (NOL)carryoveror carrybackenteredheremust be based on a pro forma federal return for thememberreporting on this copy of Part 2A. Enter this amount as apositivenumber.

Line 35: Enter any losses included in federal taxable income(as defined for MBT purposes) that are attributable to otherentities that have made a valid election to file and have filedunder theMBT. If this member owns an interest in only onesuchentity,listthatentity’sFEINorTRnumberinthefieldonthisform.Ifthismemberownsinterestsinmorethanonesuchentity,enterontheformtheFEINorTRnumberofoneof theentities and attach a list of the account numbers of all.On thelistincludeabreakdownoftheamountofthislossadd-backthatisattributabletoeachentity.Inanycase,theamountonline35shouldbethetotalofalllosses,notjustthelossoftheoneentityidentifiedontheform.Thisadditionincludesalossattributableto thismember’s ownership interest in anothermember of theUBG, to the extent that loss was included in this member’sfederaltaxableincome(asdefinedforMBTpurposes).

Line 36: Enter any royalty, interest, or other expense paidto a person related to the member by ownership or controlfor theuseofan intangibleasset if theperson isnot includedin the member’s UBG. Royalty, interest, or other expensedescribedhereisnotrequiredtobeincludedifthetaxpayercandemonstratethatthetransactionhasanontaxbusinesspurposeother than avoidanceofMBT, is conductedwith arm’s-lengthpricingandratesandtermsasappliedinaccordancewithIRC§482and1274(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.

• IsunreasonableasdeterminedbyTreasury,andthetaxpayeragreesthattheadditionwouldbeunreasonablebasedonthetaxpayer’sfactsandcircumstances.

• Therelatedperson(recipientofthetransaction)isorganizedunder the laws of a foreign nation which has in force acomprehensiveincometaxtreatywiththeUnitedStates.

Line 37:Therecurrentlyarenoadditionsthatarerecordedonthisline.Leavethislineblank.

Line 38:To theextent included in federal taxable income(asdefined forMBTpurposes), enter anydividends and royaltiesreceived from persons other than United States personsand foreign operating entities, including, but not limited to,amountsdeterminedunderIRC§78orIRC§951to965.

NOTE: To the extent deducted in arriving at federal taxableincome,anydeductionunderIRC250(a)(1)(B)shouldbeaddedbackonthisline(i.e.,nettedagainstsubtractionsmadeonthisline).

Line 39: Enteranyincomeincludedinfederaltaxableincome(as defined for MBT purposes) that is attributable to otherentities that havemade a valid election to file and have filedunder theMBT. If thismember owns an interest in only onesuch entity, list that entity’s FEIN or TR number in the fieldon the form. If thismember owns interests inmore than onesuchentity,enteron the formtheFEINorTRnumberofoneof the entities andattach a list of the accountnumbersof all.Onthe list includeabreakdownof theamountof this incomesubtraction that is attributable to each entity. In any case, theamount on line 39 should be the total of all income, not justthe income of the one entity identified on the form. Thissubtraction includes income attributable to this member’sownership interest in another member of the UBG, to theextent that income was included in this member’s federaltaxableincome(asdefinedforMBTpurposes).

Line 40:To theextent included in federal taxable income (asdefined for MBT purposes), deduct interest income derivedfromUnitedStatesobligations.

Line 41:To theextent included in federal taxable income (asdefined forMBT purposes), deduct any earnings that are netearningsfromself-employmentasdefinedunderIRC§1402oftheUBGmember reporting here. The amount deducted shallbe theamountproperly reportedonascheduleK-1-form1065as self-employment earnings for federal income tax purposesforthetaxyear.

Line 42: There are two items that qualify for entry on thisline. If both types apply, enter the combined total as a singleamount.

A) For tax years that begin after December 31, 2009, tothe extent included in federal taxable income, deductthe amount of a charitable contribution made to theAdvance Tuition Payment fund created under section 9of the Michigan Education Trust Act, PA 316 of 1986,MCL 390.1429. This is deductible only to the extent thatcontributionwasNOT federallydeductible.

B) On a fiscal 2015-16 tax return, enter the Book-Taxdeduction to the extent available. The deduction is onlyavailabletoataxpayerthatreportedaBook-TaxamountonForm4593withanoriginal2008MBTannualreturn.

TheBook-Taxdeductioniscalculatedasfollows:

1) Total of amount reported onColumnC of Form 4593with the original 2008 MBT annual return. (For UBGs,compute the sum of the amounts reported by all currentmembersofthegroupwhofiledForm4593.)

2) Calculate the amount needed to offset the net deferredtax liability of the taxpayer which results from theimpositionof thebusiness income tax, at a rateof4.95%,and the modified gross receipts tax, at a rate of 0.8%,calculated for the first fiscal period ending after July 12,2007.

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3)Takethelesseroftheresultofstep1orstep2.

4) Report on this line 4% of the result of step 3. Theremaining percentage of the amount from step 3 will bedeductibleinfutureyears.

A taxpayer claiming the Book-Tax deduction must maintainrecords and work papers necessary to support the calculationandjournalentryidentifiedforthesamelengthoftimethatthededuction is available, and to support a potential audit of thetaxpayer’sbusinessbytheMichiganDepartmentofTreasury.

Line 44: Enter any unusedMBT business loss carryforwardthat was reported on the MBT return for the immediatelyprecedingtaxperiodontheappropriategroupmembercopyofthisformasexplainedinthebulletedsectionbelow.OnlyMBTbusiness losses that were incurred after December 31, 2007,maybeenteredonthisline.

Business lossmeansanegativebusinessincometaxbaseafterallocationorapportionment.Thebusiness losswillbecarriedforward to the year immediately succeeding the loss year asanoffset to theallocatedorapportionedBusinessIncomeTaxbase,thensuccessivelytothenextninetaxableyearsfollowingthe loss year or until the loss is consumed,whichever occursfirst,butfornotmorethantentaxableyearsafterthelossyear.

A taxpayer that acquires the assetsof another corporation ina transaction described under section 381(a)(1) or (2) of theInternalRevenueCode (IRC)may deduct anyMBT businessloss carryforward (hereinafter, loss carryforward) attributabletothatothercorporation.LossesacquiredviaIRCsec.381(a)(1)or(2)arereportedonthislinebythememberidentifiedinthebulletedsectionbelow.

On the DM’s copy of this form:Enterlosscarryforwardfromthegroup’simmediatelyprecedingForm4567,lessanypartofthat carryforward subsequently taken by departing members(seebelow),plusanylossacquiredbythegroupviaIRC§381(asdefinedabove).Includealistofalllosscorporationswhoselosseswere acquired in thismanner by thisUBG during thefiling period. Provide name and FEIN of acquiring member,nameandFEINof losscorporation,and lossamountforeachlosscorporation.

On a non-DM member’s copy of this form:Onlyamemberthat joined the group in the current tax year may report aloss carryforward on its copy of this form. Report the losscarryforward that the member brings into the group. If theincoming 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 Form4567. 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 Form4567filedbythatmemberonastandalonebasis.

When anew, incomingmember created aMBTbusiness losscarryforward from a MBT tax period prior to joining thecurrent tax year UBG, the carryforward on that member’saccountwillbeusedbythecurrentyeargroupuntilitisfully

consumed (or that member leaves the group). This will bebaseduponaccurate reportingof the incomingmember’s losscarryforward on its copy of the current year group’s Form4580, as explained in the bulleted section above. When amemberthatgeneratedacarryforwardinapriorperiodleavesthegroup,thatmemberwilltakewithitanamountequaltothegroup’sremainingcarryforwardfromthatperiodmultipliedbythe amount thatmember contributed and divided by the totalamountcontributedbyallgroupmembersforthecarryforwardinthatsameperiod.

If these instructions are not followed carefully, losscarryforward available for use by the group in the currentfiling period will be miscalculated. It is important to reviewa carryforward for the possibility that some or all of it hasexpired,orthatsomeorallofitwaswithdrawnfromthegroupbyadepartingmember.

Loss carryforward consumedon a return always is theoldestavailable on that return, regardless ofwhether the oldest losswasgeneratedbythegroup,broughtbyanincomingmember,or acquired by a member of the group via IRC § 381. Losscarryforward of a UBG, including loss carryforward broughtby an incoming member and loss carryforward acquired bythegrouporitsmembersviaIRC§381,agesaccordingtothetaxyearsof thegroup, rather than taxyearsofanyparticularmember.

NOTE:MBTbusiness losscarryforward isnot thesameasafederalnetoperatinglosscarryforwardorcarryback,oraCITlosscarryforward.

Line 45: If taking the QAHP deduction only, complete lines45athrough45iinPart2A:MemberDataforCombinedReturnof Standard Taxpayers. If taking the seller’s deduction only,skip lines 45a through 45h and carry the amount from Form4579,line5,toline45i.Iftakingbothdeductions,completetheQAHPdeductioncalculationonlines45athrough45h,andaddtothetotalatline45itheamountfromForm4579,line5.

PA168of2008providesforadeductionfromtheapportionedBusinessIncomeTaxbasetoaQAHPandasellerofresidentialrentalunits to aQAHP.Qualified Affordable Housing Project isdefinedunderinstructionsforline24.

TheQAHPmaydeductfromitsapportionedBusinessIncomeTaxbaseanamountequaltotheproductofthetaxableincomeattributable to residential rental units in Michigan it ownsmultipliedbyafraction,thenumeratorofwhichisthenumberof rent restrictedunits inMichiganownedby thatQAHPandthedenominatorofwhichisthenumberofallresidentialrentalunits in Michigan owned by the project. MCL 208.1201(8)governstheterminationofthisdeduction.

The seller’s deduction is described in the instructions to line45i.

Lines 45a through 45c:Ingeneral,taxableincomeattributableto residential rental units is gross rental receipts attributableto residential rental units in Michigan less rental expensesattributable to residential rental units inMichigan, including,but not limited to, repairs, interest, insurance, maintenance,utilities,anddepreciation.

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Specifically, Partnerships may use a Rental Real EstateIncome and Expenses of a Partnership or an S Corporation(U.S.Form8825) todetermine its taxable incomeattributableto residential rental units inMichigan. To the extent that theQAHP is taxed as something other than a Partnership or SCorporation,theQAHPmayusetheSupplementalIncomeandLoss(U.S.Form1040,ScheduleE)ortherelevantportionsofthe U.S. Corporation Income Tax Return (U.S. Form 1120),as appropriate. If the QAHP is a Corporation, the expensespermitted should be limited to those also listed on the Low-IncomeHousingCreditAgenciesReportofNoncomplianceorBuilding Disposition (U.S. Form 8823) and U.S. Form 1040,Schedule E. Rental receipts and expensesmust be calculatedwithoutregardtoanygainorlossresultingfromthedispositionof rental property.Also, since Partnerships are subject to taxas a person under MBT, flow-through amounts from otherPartnershipsarenotconsidered.

Improvementsthatincreasethevalueofthepropertyorextendits life, such as replacing a roof or renovating a kitchen, arenot deductible rental expenses. Any passive activity losslimitationsapplicable to theQAHP’sfederal returnalsoapplyforpurposesofMCL208.1201(7).

Line 45d: Rent restricted unit means a residential rentalunit’s rental income is restricted in accordance with IRC §42(g)(1) as if it was a qualified low-income housing project,or receives rental assistance in the form of HUD section 8subsidies or HUD housing assistance program subsidies, orrentalassistancefromtheU.S.DepartmentofAgricultureruralhousingprograms,orfromanyoftheotherprogramsdescribedinMCL208.1203(8)(b).

Line 45e: This includes rent restricted and unrestrictedresidentialrentalunitsownedbytheQAHPinMichigan.

Line 45h:TheQAHP’sdeductionisreducedbytheamountoflimiteddividendsorotherdistributionsmadetotheownersoftheproject.Incomereceivedbythemanagement,construction,or development company for completion and operation of theproject and rental units does not constitute taxable incomeattributabletoresidentialrentalunits.

Line 45i:ThesellermaytakeadeductionfromitsapportionedBusiness IncomeTax base equal to the gain from the sale ofthe residential rental units to the QAHP, as calculated onthe MBT Qualified Affordable Housing Seller’s Deduction (Form 4579). Enter the amount from Form 4579, line 5. AllMBT forms, including Form 4579, are available online atwww.michigan.gov/mbt.

When the seller claims a deduction for the year of sale, theStatewillplacea lienon thepropertyequal to theamountoftheseller’sdeduction. If thebuyer fails toqualifyasaQAHPor fails to operate any of the residential rental units as rentrestricted units in accordance with the operation agreementwithin 15 years after the date of purchase, the lien placed ontheproperty for theamountof the seller’sdeductionbecomespayabletotheState.Thelienispayablethrougha“recapture”to be added to the tax liability of the buyer in the year therecapture event occurs. The recapture is calculated on MBT Schedule of Recapture of Certain Business Tax Credits and Deductions(Form4587),andisreducedproportionallyforthe

numberofyearsthebuyerqualifiedforthededuction.

Lines 46 through 65: These lines are for reporting eachmember’s credit carryforwards remaining from a previousyear.Ifthegroupcreatedacreditcarryforwardinaprecedingtaxperiod,Treasurywillhavemaintainedthatcarryforwardonthe DM’s account. Enter unused credit carryforwards of thistypeontheDM’scopyofPart2A.

If a member created a credit carryforward prior to joiningthe UBG, Treasury will maintain that carryforward on thatmember’saccount,subjecttousebythegroup,untilitisfullyconsumedorthatmemberleavesthegroup.EnterunusedcreditcarryforwardsofthistypeonthecopyofPart2Afiledforthememberthatbroughtthecarryforwardtothegroup.

Available credit carryforwards, regardless of whether theyarosewithinthegrouporoutsideof it,areappliedagainst theUBG’s tax liability on the basis of age (oldest first). CreditcarryforwardofaUBG,includingcreditcarryforwardbroughtbyanincomingmember,agesaccordingtothetaxyearsofthegroup,ratherthantaxyearsofanyparticularmember.

If two members each created a carryforward of the samecreditand thesameage,and together theyexceed theamountallowable in this filing period, those members’ respectivecredit carryforwards are used in proportion to the amountthey contributed to the group. If a member that generated acarryforward in a prior period leaves the group, thatmemberwill take with it an amount equal to the group’s remainingcarryforward from that period multiplied by the amount thatmembercontributedrelativetothetotalamountcontributedbyallgroupmembersforthesamecreditinthatsameperiod.

NOTE: It is important to review a carryforward for thepossibilitythatsomeorallofithasexpired,orthatsomeorallofitwaswithdrawnfromthegroupbyadepartingmember.

Eachoftheselinesforataxcreditcarryforwardistheamountoftheidentifieditemthatmaybeclaimedinthisfilingperiod.

See the “Supplemental Instructions for StandardMembers inUBGs”sectioninForm4600forinformationontheeffectsofmembersleavingorjoiningaUBGoncreditcarryforwards.

Line 66: Enter overpayment credited from the priorMBTorCorporate Income Tax (CIT) return.When membership of aUBGchangesfromonefilingperiodtothenext,carryforwardofanoverpaymentfromthepriorreturnremainswiththeDM’saccount.Aswith business loss carryforwards, in general thislineshouldbeusedonlyon theDM’scopyofPart2A(creditforwardfromthegroup’spriorreturn)orthatofanewmember(credit forward from the new member’s final return as aseparatefiler).

Line 67: AllMBT estimated payments for a UBG should bemadebytheDM.EnterestimatespaidbytheDMonthislineoftheDM’scopyofPart2A. Ifanyothermemberpaidestimatesattributable to the group return supported by this form, enterthose estimates on thatmember’s copy of Part 2A. Include allpayments made by that member for any portion of its federalfilingperiod that is includedon thegroupreturn.Forexample,ifanon-DMmemberhasa12-monthfiscalyearbeginningApril1,2010,andisamemberofacalendaryearUBGthroughoutthat

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period, itsbusinessactivity fromApril1,2010, throughMarch31, 2011, will be reported on the group’s December 31, 2011,return. If that member pays MBT quarterly estimates, it willmake twoestimatesduring2010,before theDM’sfilingperiodbegins.Because thoseestimatesareattributable toactivity thatwillbereportedonthegroup’sDecember31,2011,return,theyshouldbeincludedonthepayingmember’scopyofPart2AfortheDecember31,2011,groupreturn.

Line 68: This line is no longer is use.

Line 69: Only the DM may request a filing extension for aUBG. If any other member submits an extension request, itwillnotcreateavalidextensionfortheUBG,butanypaymentincludedwith such a request can be credited to the UBG byentering that payment on this line in that member’s copy ofPart2A.

Part 2B: Summary of Business Activity for Combined Return of Standard Taxpayers

Part2Bsupports,linebyline,thecombinationofallmembers’entriesforeachcorrespondinglineinPart2A,andeliminationofintercompanytransactiondatawhereappropriate.Ingeneral,see instructions for corresponding line numbers in Part 2A.Guidance specific to the combination andeliminationprocessisprovidedbelow.

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.

Line 29C: Add the combined total after eliminations fromPart 2B, line 29C, to the number on Form 4567, line 25, andcarrythesumtoForm4567,line26.ThiscalculationmethodisdesignedtopreventthefactofonememberoverchargingMGRTax to its customers frombeing obscured by activities of theothermembers.

Line 43C:BusinessIncomeTaxBase.AddColumnC,lines30through37andsubtractColumnC,lines38through42.

Line 70: U.S.personisdefinedinIRC§7701(a)(30).

Line 72: Flow of value, integration, dependence, andcontribution in a UBG context are described under “GeneralInformationAboutUBGs inMBT” at the beginning of theseinstructionsforForm4580,andinRAB2010-2.

Part 3: Affiliates Excluded From The Combined Return of Standard TaxpayersThestatutorytestformembershipinaUBGisagroupofU.S.persons(otherthanaforeignoperatingentity):

• Oneofwhichownsorcontrols,directlyor indirectly,morethan 50 percent of the ownership interest with voting rightsorownership interests thatconfer rightscomparable tovotingrightsoftheotherU.S.persons(seeRAB2010-1);and• Thathasbusinessactivitiesoroperationswhich result inaflowofvaluebetweenoramongpersonsincludedintheUBGor has business activities or operations that are integratedwith, are dependent upon, or contribute to each other. Flowof value is determined by reviewing the totality of facts andcircumstancesofbusinessactivitiesandoperations.(SeeRAB2010-2.)

A person that would be a standard taxpayer if viewedseparatelyisdefinedandtaxedasafinancialinstitutionifitisowned,directlyorindirectly,byafinancialinstitutionandisinaUBGwithitsowner.

The purpose of Part 3 is to identify persons for which theownership test described above is satisfied, but which are notincludedonthecombinedreturnsupportedbythisform,eitherbecausetherelationshiptestisnotsatisfiedorbecausethepersonisexcludedbystatute.AnewmemberwhosebusinessactivityisnotincludedinthecurrentcombinedreturnbecauseitstaxyearendsafterthefilingperiodoftheUBGshouldalsobelistedhere.

Line 74A: If a person being listed here is listed onU.S. Form 851, enter the identifying number for that personthatiscalled“Corp.No.”attheleftedgeofpages1,2,and3ofU.S.Form851.

Line 74D:Reasoncodesforaffiliatesbeingexcludedfromthecurrentcombinedreturn:

1 Lacksbusinessactivities resulting inaflowofvalueorintegration,dependenceorcontributiontogroup.

2 Foreignoperatingentity.4 Foreignentity.5 Member has no MBT tax year (as a member of this

UBG)endingwithorwithinthisfilingperiod.6 Other.(Includeanexplaination.)7 Insurancecompany.(Insurancecompaniesgenerallyfile

separately.)8 Financialinstitution.(Financialinstitutionsandstandard

taxpayers generally are not included on the samecombinedreturn.)

For questions call Treasury Technical Services at 517-636-4230,todiscussanappropriateentry.

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Line 74E: If this person has nexus with Michigan, enter acheckinthisbox.

Line 74F: Enter the person’s six-digit NAICS code. For acomplete list of six-digit NAICS codes, see the U.S. CensusBureauWeb site atwww.census.gov/eos/www/naics/, or enterthe same NAICS code used when filing the U.S. Form 1120,Schedule K; U.S. Form 1120S; U.S. Form 1065; or U.S. Form1040,ScheduleC.

Part 4: Persons Included in the Prior Combined Return, but Excluded From Current ReturnThe purpose of Part 4 is to assist Treasury in trackingmembershipchangesofaUBGfromyeartoyear.

NOTE: If a person satisfies the criteria for both Part 3 andPart 4, report that person in both parts. This is a change ofprocedurefrompriorMBTformsandinstructions.

Line 75C: Reason codes for a person being included in lastyear’sreturnbutnotonthecurrentcombinedreturn:

10 The member no longer meets the control test, but theownershipinterestisstillgreaterthanzero.

12 The member no longer meets the control test and theownershipinterestiszero.

14 Beforethebeginningofthegroup’sfilingperiodforthegroup’s current combined return, the person ceased toexistduetodissolution.

16 Beforethebeginningofthegroup’sfilingperiodforthegroup’s current combined return, the person ceased toexistduetoamergerorsimilarcombination.

If the reason isnot listedamong these reasoncodes,describethereasonin21charactersorlessinthespaceprovided.

Other Supporting Forms and SchedulesFor each member that files a separate federal return, attachcopiesofthesamepagesofthatmember’sfederalreturnasarerequired for a separatefiler in similar circumstances. See the“OtherSupportingFormsandSchedules”sectionofForm4567instructionsforguidanceonrequiredpagesoffederalreturns.

If some or all members reporting on the current combinedreturnarealsomembersofafederalconsolidatedgroup,eachmemberwillprepareitsportionofthisForm4580onthebasisof a pro forma federal return. In this case, attach a copy ofthe applicable pro forma form and schedules as listed in the“OtherSupportingFormsandSchedules”sectionofForm4567instructions.

Include completed Form 4580 as part of the tax return filing.

Michigan Department of Treasury4582 (Rev. 11-18), Page 1 of 2

Attachment 16

2018 MICHIGAN Business Tax Penalty and Interest Computationfor Underpaid Estimated TaxIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

PART 1: ESTIMATED TAX REQUIRED1. Annual tax from Form 4567, line 59; or Form 4588, line 47; or Form 4590, line 32 .............................................. 1. 002. Required estimate amount. Enter 85% (0.85) of line 1.......................................................................................... 2. 00

See MBT instruction booklet for exceptions to penalty and interest computation. A B C D

3. 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 70, 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 payments and refundable credits (see instr.)..... 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 larger 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 due date of the quarter to the date on line 15 .................................................................... 16.

17. No. of days on line 16 after 04-15-18 and before 07-01-18.. 17.18. No. of days on line 16 after 06-30-18 and before 01-01-19.. 18.19. No. of days on line 16 after 12-31-18 and before 07-01-19.. 19.20. No. of days on line 16 after 06-30-19 ................................... 20.21. Number of days on line 17 x 5.15% (0.0515) x line 14 ....... 21.

365

22. Number of days on line 18 x 5.41% (0.0541) x line 14 ....... 22.365

23. Number of days on line 19 x 5.9% (0.0590) x line 14 ......... 23.365

24. Number of days on line 20 x *% x line 14 .......................... 24.365

25. Interest on underpayment. Add lines 21 through 24 ........... 25.26. Interest Due. Add line 25 columns A through D and enter the result here....................................................... 26. 00

* Interest rate will be set at 1% above the adjusted prime rate for this period.

+ 0000 2018 63 01 27 1 Continue on Page 2.

2018 Form 4582, Page 2 of 2 FEIN or TR Number

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. 00

38. Total Penalty and Interest. Add lines 26 and 37. Enter here and on Form 4567, line 68; or Form 4588, line 56; or Form 4590, line 41 ................................................................................................................................................ 38. 00

PART 4: ANNUALIZATION WORKSHEET FOR MODIFIED GROSS RECEIPTS AND BUSINESS INCOME TAXES(If filing Form 4588 or Form 4590, see instructions.)Complete worksheet if liability is not evenly distributed throughout year.

AFirst 3 Months

BFirst 6 Months

CFirst 9 Months

DFull 12 Months

39. Gross receipts (GR) ......................................................... 39.40. Subtractions..................................................................... 40.41. Modified GR. Subtract line 40 from line 39 ...................... 41.42. Apportionment percentage from Form 4567, line 11c ..... 42. % % % %43. Apportioned GR Tax Base. Multiply line 41 by line 42 ..... 43.44. Multiply line 43 by 0.8% (0.008) ...................................... 44.45. Enrichment Prohibition for dealers of boats/new motor vehicles ... 45.46. GR Tax Before Credits. Enter the greater of lines 44 or 45 46.47. Business Income (BI) ...................................................... 47.48. Additions .......................................................................... 48.49. Add lines 47 and 48 ......................................................... 49.50. Subtractions..................................................................... 50.51. BI Tax Base. Subtract line 50 from line 49 ....................... 51.52. Apportioned BI Tax Base. Multiply line 51 by line 42 ....... 52.53. MBT business loss carryforward ..................................... 53.54. Qualified Affordable Housing Deduction .......................... 54.

55. Subtract line 54 and line 53 from line 52. If less than zero, enter zero. ............................................. 55.

56. BI Tax Before Credits. Multiply line 55 by 4.95% (0.0495) 56.57. Total MBT Before Credits. Add lines 46 and 56 ............... 57.

58. The annual surcharge is no longer applicable. There is no amount to be entered on this line ................. 58. X X X X X X X X X X X X X X X X X X X X

59. Enter amount from line 57 ............................................... 59.60. Nonrefundable Credits..................................................... 60.61. Subtract line 60 from line 59. If less than zero, enter zero 61.62. Recapture of certain MBT credits and deductions ........... 62.63. Corporate Income Tax adjustment (see instructions) ...... 63.64. Net Tax Liability. Add lines 61, 62 and 63 ........................ 64.65. Annualization ratios ......................................................... 65. 4 2 1.3333 166. Annualized tax. Multiply line 64 by line 65 ....................... 66.67. Applicable percentage ..................................................... 67. 21.25% 42.5% 63.75% 85%68. Multiply line 66 by line 67 ................................................ 68.69. Combined amounts of line 70 from all preceding columns 69. X X X X X70. ESTIMATE REQUIREMENTS BY QUARTER.

Subtract line 69 from line 68. If less than zero, enter zero. Enter here and on page 1, line 4 ........................................ 70.

NOTE: Totals on line 70 must equal 85% of the current year tax liability on page 1, line 1.

+ 0000 2018 63 02 27 9

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Purpose To compute penalty and interest for underpaying, late filing,or late 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. Part 4 of this form also is used to determine andreporttheamountofestimatesduewhenincomeisnotevenlydistributedthroughthetaxyear.

NOTE:Penaltyand interest for latefilingor latepaymentontheannualreturniscomputedseparately.Seethe“ComputingPenalty and Interest” section of the “General Information forStandard Taxpayers” in theMBT Forms and Instructions for Standard Taxpayers(Form4600).

Estimated returns and payments are required from anytaxpayer that expects an annual MBT liability (includingCorporate Income Tax adjustment) of more than $800.Exceptions are listed below. If a taxpayer owes estimatedtax and the estimated returnwith full payment is notfiledoris filed late, penalty is added at 5 percent of tax due, for thefirst twomonths.Penalty increasesbyanadditional5percentper month, or fraction thereof, after the second month, to amaximumof25percent.Ifthetaxpayermadenoestimatedtaxpaymentsandnoneoftheexceptionsbelowapply,computetheinterestdue(Part2)andthepenaltyfornon-filing(Part3).

ExceptionsIfanyoftheconditionslistedbelowapply,donotpaypenaltyandinterest. Ifabusinessoperatedless than12monthsin thecurrent or preceding year, annualizefigures (as applicable) todetermineiftheexceptionsapply.SeeForm4600forcompleteannualizinginstructions.

• Theannualtaxonthecurrentannualreturnis$800orless.• Thereturnisforataxableperiodoflessthanfourcalendar

months.• The estimated quarterly payments reasonably approximate

thetaxliabilityincurredforeachquarterandthetotalofallpayments equals at least 85 percent of the annual liability.Complete the Annualization Worksheet (Part 4) if theliabilityisnotevenlydistributedthroughthetaxyear.

• Thesumofestimatedpaymentsequalstheannualtaxontheprecedingyear’s return,provided thesepaymentsweremadeinfourtimelyequalpaymentsandtheprecedingtaxyear’staxundertheMBTActwas$20,000orless.Iftheprioryear’staxliabilitywas reported for a period less than 12months, thisamountmustbeannualizedforpurposesofboththe$20,000ceilingandcalculatingthequarterlypaymentsdueunderthismethod.See“FilingifTaxYearIsLessThan12Months”inthe “General Information” section of Form 4600 for moreinformation. Reliance on the prior year’s tax liability as ameans to avoid interest and penalty charges is only allowedifyouhadbusinessactivityinMichiganinthatprioryear.Areturnmust have been filed to establish the tax liability forthat prior year, even if gross receipts in the prior yearwere

less than $350,000. In addition, if your business was not inexistenceintheprecedingyear,nosafeharborexists.Insuchacase,estimatesmustbebasedon theMBTliability for thecurrentyear.

• Thetaxpayerisafarmer,fisherman,orseafarerandfilestheMBT Annual Return(Form4567)byMarch1,oratentativeannual return with payment by January 15, and the finalreturnonorbeforeApril15.

AnnualizingToannualizeforaperiodoflessthan12months,multiplyeachapplicable amount by 12 and divide the result by the numberofmonths the business operated or the personwas a partner.Generally,abusinessisconsideredinbusinessforonemonthifthebusinessoperatedformorethanhalfthedaysofthemonth.If the business was in operation for less than a month it isconsideredtohavebeeninbusinessfor1month.

NOTE: For a taxpayer that calculates and pays estimatedpayments for federal income tax purposes pursuant to section6655(e)oftheInternalRevenueCode,thattaxpayermayusethesamemethodology as used to calculate the annualized incomeinstallment or the adjusted seasonal installment, whichever isusedasthebasisforthefederalestimatedpayment,tocalculatetheestimatedpaymentsrequiredeachquarterunderthissection.Retainthecalculationforyourrecords.

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

DonotenterdatainboxesfilledwithXs.

DatesmustbeenteredinMM-DD-YYYYformat.

Name and Account Number: Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either Form 4567, the MBT Annual Return for Financial Institutions (Form 4590), or the Insurance Company Annual Return for Michigan Business and Retaliatory Taxes (Form4588)).

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, and January 15. For fiscal year filers, these dates are the15th day of the 4th, 7th, 10th and 13th months after the start ofthefiscalyear.Forany taxyear that includesanestimated taxpaymentperiodof less than threemonths, thequarterly returnforthatperiodisdueonthe15thdayofthemonthimmediatelyfollowingthefinalmonthoftheestimatedtaxpaymentperiod.

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 tax

Instructions for Form 4582, Michigan Business Tax (MBT) Penalty and Interest Computation for Underpaid Estimated Tax

124

due based on the actual tax base for each quarter, completePart4first,thenbringthetaxfromline70oftheAnnualizationWorksheettoline4.SeePart4instructionsfortaxpayersfilingareturnother thanForm4567.Thetotalof thefourcomputedamountscannotbelessthanline2.

Line 5: Complete columnA only. Enter the amount of prioryearoverpaymentcreditedtothecurrenttaxyearestimates.

Line 6:AmountPaid.

• Column A:Enterestimatedpaymentsmadebytheduedatefor the first quarterly return. Also in columnA, enter thetotalrefundablecreditsfromline23oftheMBT Refundable Credits (Form4574)or line5of theMiscellaneous Credits for Insurance Companies(Form4596).

• 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,penaltyandinterest will apply until the payment is received. If less thanfullpaymentismadewithalatefiling,thetaxpayerwillneedtocomputemultiplepenaltyand 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.

PART 3: FIGURING PENALTYComputethepenaltydueforbothnon-filingandunderpaymentof the required estimated tax in this section. Follow theinstructions for each line, as the penalty and interest iscalculatedseparatelyforeachquarterandthepenaltypercentageandinterestratemightnotbethesameforeachquarter.

Avoiding Penalty and Interest Under MBTIf estimated liability for the year is reasonably expected toexceed$800,ataxpayermustfileestimatedreturns.Ataxpayermay remit quarterly estimated payments by check with aCorporate IncomeTaxQuarterlyReturn (Form 4913) ormayremitmonthly or quarterly estimated payments electronicallybyElectronicFundsTransfer(EFT).WhenpaymentsaremadebyEFT,Form4913isnotrequired.

Formerly, taxpayerscouldmakepaymentsonamonthlybasisby remitting a check with a Combined Return for Michigan Tax (Form 160). Form 160 was replaced effective Janaury2015.ThenewformnolongeraccommodatesMBTpayments.

Asaresult,Form4913istheonlyformthatsupportsanMBTestimatedpayment.

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.

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)EFTUnitat517-636-6925foralternatepaymentmethods..

PART 4: ANNUALIZATION WORKSHEET FOR MODIFIED GROSS RECEIPTS AND BUSINESS INCOME TAXESStandard taxpayers may use the AnnualizationWorksheet tocalculateandreporttheamountofestimatesduewhenincomeisnotevenlydistributedthroughoutthetaxyear.

IffilingForm4588,orForm4590,submitascheduleshowingthe entity’s computations for each quarter. Enter the totalamounts on line 64 and follow the instructions for lines 65through70.

Eachcolumnrepresentsaquarterlythree-monthfilingperiod.

The AnnualizationWorksheet essentially leads filers throughthe steps required to calculate the actual MBT due for thetax year to date. The net tax liability is then annualized andmultiplied by the percentage of estimates required for thatquarter.

Line 42:Ifnotsubjecttoapportionment,enter100percent.

Line 53: Deduct any available MBT business loss incurredafterDecember31,2007.Enterasapositivenumber.

Business lossmeansanegativebusinessincometaxbase,afterapportionment,ifapplicable.

NOTE: MBT business loss carryforward is not the same asthe federalnetoperating loss carryforwardor carryback. It isalso not the same as aCorporate IncomeTax (CIT) businesslosscarryforward.CITbusinesslosscarryforwardmaynotbeenteredonthislineorappliedagainsttheMBTtaxbase.

Line 63:EnterinColumnAtheentireamountofCITadjustmentfrom Form 4567, Line 58; Form 4590, Line 31; or Form 4588,Line28.Onlyapositiveamountmaybeenteredonthisline.

Line 70: The totals for line70, columnsA,B,C, andD,mustequal85percentofthecurrentyeartaxliabilityonpage1,line1.

Include completed Form 4582 as part of the tax return filing.

125

126

Michigan Department of Treasury4584 (Rev. 04-18), Page 1 of 4

Attachment 13

2018 MICHIGAN Business Tax Election of Refund or Carryforward of Credits, and Calculation of Historic Preservation and Brownfield Redevelopment CarryforwardIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

1. Tax liability after Renaissance Zone Credit from Form 4573, line 15, or tax liability after Renaissance Zone Credit from Form 4596, line 16 .................................................................................................................................................... 1. 00

HISTORIC PRESERVATION CREDIT. If not claiming, skip to line 29.Recapture Calculation

2. Historic Preservation Credit recapture. Carry to Form 4573, line 17a, or Form 4596, line 18a............................. 2. 003. Tax Liability After Historic Preservation Credit Recapture. Add lines 1 and 2........................................................ 3. 004. Unused Basic/Enhanced credit from previous period return ................................................................................. 4. 005. Tax liability after Basic/Enhanced credit carryforward. Subtract line 4 from line 3. If less than zero, enter zero ... 5. 006. Basic/Enhanced credit carryforward to the next period. If line 4 is greater

than line 3, enter the difference ....................................................................... 6. 007. Unused Special Consideration credit from previous period return (see instructions) ............................................ 7. 008. Tax liability after Special Consideration credit carryforward. Subtract line 7 from line 5. If less than zero,

enter zero .............................................................................................................................................................. 8. 009. Special Consideration credit carryforward to the next period. If line 7 is

greater than line 5, enter the difference ........................................................... 9. 0010. Basic/Enhanced credit received by assignment in this filing period. (Attach Michigan Department of Treasury

approval letter received from Assignor.) ................................................................................................................ 10. 0011. Tax liability after Basic/Enhanced credit received by assignment. Subtract line 10 from line 8. If less than zero,

enter zero ........................................................................................................................................................................ 11. 0012. Assigned Basic/Enhanced credit carryforward to the next period. If line 10 is

greater than line 8, enter the difference ........................................................... 12. 0013. Special Consideration credit received by assignment for this filing period. (Attach Michigan Department of

Treasury approval letter received from Assignor.) ................................................................................................. 13. 0014. Tax liability after Special Consideration credit received by assignment. Subtract line 13 from line 11. If less than

zero, enter zero ..................................................................................................................................................... 14. 0015. Assigned Special Consideration credit carryforward for the next year. If line

13 is greater than line 11, enter the difference ................................................ 15. 0016. Current period Basic credit from Form 3581, line 4d ....................................... 16. 0017. Current period Enhanced credit from Form 3581, line 5d ............................... 17. 0018. Current period Basic/Enhanced credits. Add lines 16 and 17. .............................................................................. 18. 0019. Tax liability after current period Basic/Enhanced credits. Subtract line 18 from line 14.

If less than zero, enter zero ................................................................................................................................... 19. 0020. Current period Basic/Enhanced credits that exceed liability. If line 18 is

greater than line 14, enter the difference. ........................................................ 20. 0021. Special Consideration credit from Form 3581, line 6d..................................... 21. 0022. Allowable current period Special Consideration credit. Enter the lesser of lines 19 and 21 ................................. 22. 0023. Current period Special Consideration credit carryforward to next period. If

line 21 is greater than line 22, enter the difference ......................................... 23. 0024. Tax liability after Historic Preservation Credit. Subtract line 22 from line 19 ........................................................ 24. 00

Carryforward Calculation25. Prior year and assigned Basic/Enhanced credit carryforward to next period.

Add lines 6 and 12 ........................................................................................... 25. 0026. Total Special Consideration credit carryforward to next period.

Add lines 9, 15, and 23 .................................................................................... 26. 0027. Total Basic/Enhanced credit carryforward to next period.

Add lines 25 and 20 ......................................................................................... 27. 0028. Total Historic Preservation Credit. Subtract line 24 from line 3.

Carry amount to Form 4573, line 16, or Form 4596, line 17............................ 28. 00

+ 0000 2018 71 01 27 4 Continue on Page 2.

2018 Form 4584, Page 2 of 4 FEIN or TR Number

MEGA FEDERAL CONTRACT CREDIT. If not claiming, skip to line 38.29. Tax liability before MEGA Federal Contract Credit from Form 4573, line 40 ......................................................... 29. 0030. Unused credit from previous period MBT return .................................................................................................... 30. 0031. Tax After Previous Period Credit. Subtract line 30 from line 29. If less than zero, enter zero ............................... 31. 0032. Remaining unused credit from previous period MBT return. If line 30 is

greater than line 29, enter the difference .......................................................... 32. 0033. Available credit from the MEDC Certificate (attach) .............................................................................................. 33. 0034. Tax After Current Period Credit. Subtract line 33 from line 31. If less than zero, enter zero here and

complete line 35; Otherwise, skip to line 36 .......................................................................................................... 34. 0035. If line 33 is greater than line 31, elect a refund or carryforward of credit by entering the difference on either

line 35a or line 35b. a. Refundable Amount. Carry amount to Form 4574, line 16 ........................ 35a. 00b. Carryforward Amount.................................................................................. 35b. 00

36. Total Credit Carryforward. Add lines 32 and 35b ............................................. 36. 0037. MEGA Federal Contract Credit. Subtract line 34 from line 29.

Carry amount to Form 4573, line 41 ................................................................ 37. 00

BROWNFIELD REDEVELOPMENT CREDIT. If not claiming, skip to line 56.Recapture Calculation

38. Tax liability before Brownfield Redevelopment Credit from Form 4573, line 55, or Form 4596, line 19 ................ 38. 0039. If completing Form 4569, enter amount from Form 4569, line 8; Otherwise,

enter MBT Brownfield Redevelopment Credit recapture amount .................... 39. 0040. Unused credit from previous period MBT return .............................................. 40. 0041. Subtract line 40 from line 39. If less than zero, enter zero .............................. 41. 0042. Remaining prior year carryforward. If line 40 is greater than line 39, enter the difference .................................... 42. 0043. Assigned credit from MBT Brownfield Redevelopment Credit Assignment

Certificate (attach) ........................................................................................... 43. 0044. Subtract line 43 from line 41. If less than zero, enter zero .............................. 44. 0045. Remaining assigned credit. If line 43 is greater than line 41, enter the difference ................................................ 45. 0046. Available credit from MBT Brownfield Redevelopment Credit Certificate of

Completion (attach) ......................................................................................... 46. 0047. Subtract line 46 from line 44. If less than zero, enter zero here;

Otherwise, carry amount to Form 4587, line 7 ................................................ 47. 00

Carryforward Calculation48. Remaining current year credit. If line 46 is greater than line 44, enter the difference ........................................... 48. 0049. Available prior year and assigned credit. Add lines 42 and 45 .............................................................................. 49. 0050. Tax after available prior year and assigned credit. Subtract line 49 from line 38. If less than zero, enter zero ..... 50. 0051. Prior year and assigned credit carryforward. If line 49 is greater than

line 38, enter the difference ............................................................................. 51. 0052. Tax after Brownfield Redevelopment Credit. Subtract line 48 from line 50. If less than zero, enter zero here

and complete line 53; otherwise, skip to line 55 .................................................................................................... 52. 0053. If line 48 is greater than line 50, enter the difference ....................................... 53. 0054. Total Credit Carryforward. Add lines 51 and 53 .............................................. 54. 0055. Brownfield Redevelopment Credit. Subtract line 52 from line 38.

Carry amount to Form 4573, line 56, or Form 4596, line 20............................ 55. 00

+ 0000 2018 71 02 27 2 Continue on Page 3.

2018 Form 4584, Page 3 of 4 FEIN or TR Number

MEGA PLUG-IN TRACTION BATTERY MANUFACTURING CREDIT. If not claiming, carry amount from line 56 to line 61, and continue to the next credit.

56. Tax liability before MEGA Plug-In Traction Battery Manufacturing Credit from Form 4573, line 73 ...................... 56. 0057. Unused credit from previous period MBT return .................................................................................................... 57. 0058. Tax After Previous Period Credit. Subtract line 57 from line 56. If less than zero, enter zero ............................... 58. 0059. Remaining unused credit from previous period MBT return. If line 57 is

greater than line 56, enter the difference .......................................................... 59. 0060. This credit is no longer available, except a carryforward amount reported on line 57. Leave this line blank ....... 60. X X X X X X X X 00

61. Enter amount from line 58. Skip to line 63............................................................................................................. 61. 00

62. a. Leave this line blank and skip to line 63 ..................................................... 62a. X X X X X X X X 00b. Leave this line blank and skip to line 63 ..................................................... 62b. X X X X X X X X 00

63. Total Credit Carryforward. Enter amount from line 59 ..................................... 63. 0064. MEGA Plug-In Traction Battery Manufacturing Credit. Subtract line 61

from line 56. Carry amount to Form 4573, line 75 ........................................... 64. 00

ANCHOR COMPANY PAYROLL CREDIT.If not claiming, carry amount from line 61 to line 69, and continue to the next credit.

65. Unused credit from previous period MBT return .................................................................................................... 65. 0066. Tax After Previous Period Credit. Subtract line 65 from line 61. If less than zero, enter zero ............................... 66. 0067. Remaining unused credit from previous period MBT return. If line 65 is

greater than line 61, enter the difference .......................................................... 67. 0068. Available credit from the MEDC Certificate (attach) .............................................................................................. 68. 0069. Tax After Current Period Credit. Subtract line 68 from line 66. If less than zero, enter zero here and complete

line 70; otherwise, skip to line 71........................................................................................................................... 69. 0070. If line 68 is greater than line 66, elect a refund or carryforward of credit by entering the difference on either line

70a or line 70b.a. Refundable Amount. Carry amount to Form 4574, line 20 ......................... 70a. 00b. Carryforward Amount.................................................................................. 70b. 00

71. Total Credit Carryforward. Add lines 67 and 70b .............................................. 71. 0072. Anchor Company Payroll Credit. Subtract line 69 from line 61.

Carry amount to Form 4573, line 77 ................................................................. 72. 00

ANCHOR COMPANY TAXABLE VALUE CREDIT. If not claiming, carry amount from line 69 to line 77, and continue to the next credit.73. Unused credit from previous period MBT return .................................................................................................... 73. 0074. Tax After Previous Period Credit. Subtract line 73 from line 69. If less than zero, enter zero ............................... 74. 0075. Remaining unused credit from previous period MBT return. If line 73 is

greater than line 69, enter the difference .......................................................... 75. 0076. Available credit from the MEDC Certificate (attach) .............................................................................................. 76. 0077. Tax After Current Period Credit. Subtract line 76 from line 74. If less than zero, enter zero here and complete

line 78; Otherwise, skip to line 79 .......................................................................................................................... 77. 0078. If line 76 is greater than line 74, elect a refund or carryforward of credit by entering the difference on either

line 78a or line 78b.a. Refundable Amount. Carry amount to Form 4574, line 21 ......................... 78a. 00b. Carryforward Amount.................................................................................. 78b. 00

79. Total Credit Carryforward. Add lines 75 and 78b ............................................ 79. 0080. Anchor Company Taxable Value Credit. Subtract line 77 from line 69.

Carry amount to Form 4573, line 79 ................................................................ 80. 00

+ 0000 2018 71 03 27 0 Continue on Page 4.

2018 Form 4584, Page 4 of 4 FEIN or TR Number

MEGA POLY-SILICON ENERGY COST CREDIT AND MISCELLANEOUS MEGA BATTERY CREDITS — See InstructionsLines 81 through 88 calculate the following credits: MEGA Poly-Silicon Energy Cost Credit; MEGA Plug-In Traction Battery Integration Credit; MEGA Advanced Battery Engineering Credit; MEGA Battery Manufacturing Facility Credit; MEGA Large Scale Battery Credit; and MEGA Advanced Lithium Ion Battery Credit. If claiming multiple credits, see instructions.

81. Unused credit from previous period MBT return.a. Unused MEGA Poly-Silicon Energy Cost Credit.......................................... 81a. 00b. Unused MEGA Plug-In Traction Battery Integration Credit......................... 81b. 00c. Unused MEGA Advanced Battery Engineering Credit ................................. 81c. 00d. Unused MEGA Battery Manufacturing Facility Credit .................................. 81d. 00e. Unused MEGA Large Scale Battery Credit.................................................. 81e. 00f. Unused MEGA Advanced Lithium Ion Battery Credit .................................. 81f. 00g. Total of all unused credits. Add lines 81a through 81f ....................................................................................... 81g. 00

82. Tax After Previous Period Credit. Subtract line 81g from line 77. If less than zero, enter zero .............................. 82. 0083. Remaining unused credit from previous period MBT return. If line 81g is

greater than line 77, enter the difference .......................................................... 83. 0084. Available credit from the MEDC Certificate (attach).

a. MEGA Poly-Silicon Energy Cost Credit ....................................................... 84a. 00b. MEGA Plug-In Traction Battery Integration Credit ...................................... 84b. 00c. This credit is no longer available. Skip to line 84d....................................... 84c. X X X X X X X X 00d. MEGA Battery Manufacturing Facility Credit ............................................... 84d. 00e. This credit is no longer available. Skip to line 84g....................................... 84e. X X X X X X X X 00f. This credit is no longer available. Skip to line 84g....................................... 84f. X X X X X X X X 00g. Total of all available credits. Add lines 84a, 84b and 84d .................................................................................. 84g. 00

85. Tax After Current Period Credit. Subtract line 84g from line 82. If less than zero, enter zero here and complete line 86; Otherwise, skip to line 87 ........................................................................................................................... 85. 00

86. If line 84g is greater than line 82, elect a refund or carryforward of credit by entering the difference on either line 86a or line 86b.a. Refundable Amount. Carry amount to Form 4574, line 22 .......................... 86a. 00b. Carryforward Amount................................................................................... 86b. 00

87. Total Credit Carryforward. Add lines 83 and 86b .............................................. 87. 00

88. MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery Credit. Subtract line 85 from line 77. Carry amount to Form 4573, line 81 ............................................................................................................... 88. 00

+ 0000 2018 71 04 27 8

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Purpose Beginning January 1, 2012, only those taxpayers with acertificatedcredit,which isawardedbutnotyet fullyclaimedorutilized,mayelecttobeMBTtaxpayers.

The purpose of this form is to allow standard taxpayersto claim certain “hybrid” credits that, if greater than thetax liability, can either be refunded or carried forward tooffset future liabilities (historic preservation and brownfieldcertificatedcreditsaretheexceptiontothis,seebelowformoredetail).Credits andanyoverpaymentsarecalculatedhereandthen carried to either theMBT Miscellaneous Nonrefundable Credits (Form 4573) or the MBT Refundable Credits (Form4574),dependingontheelectionchosen.

Financial institutions and insurance companies may use thisformtoclaimtheHistoricPreservationCreditandBrownfieldRedevelopmentCreditonly.

Theelectiontotreatthecreditasrefundableornon-refundablemustbemadeontheoriginalreturnfiledfortheyearinwhichthe credit was earned. No amendment will be allowed tochange this election. Amounts elected to be carried forwardmay not be subsequently refunded, nor can assigned creditsbe refunded. Treatment of any excess creditmay not be splitbetweenarefundandcarryforward.

Special Instructions for Unitary Business Groups (UBGs)If a member of a UBG has a qualifying certificated credit,the group, and not the member, must make the electionto file under theMBT. The election should bemade by thedesignated member (DM) of the UBG by filing an MBTreturn. Once the groupmakes the election, allmembers ofthegrouparerequiredtofileandpaytheMBTuntilclaimedcertificatedcreditsandanycarryforwardof thosecreditsareextinguished.

Credits on this form are earned and calculated on an entity-specific basis, as determined by relevant statutory provisionsfor the respective credits. Intercompany transactions are noteliminated,andthecreditsareappliedagainstthetaxliabilityoftheUBG.

If the group has made the election to remain in the MBT,a memberof aUBGmayclaimanyof theapplicablecreditscontained on this form by attaching the member’s creditcertificate to thereturn. Ifmore thanonemember isclaimingthe same credit, the total amount from all claimingmembersshould be entered on each corresponding line on this form.Line-by-line instructions indicate additional informationrequiredforUBGs.

See the “Supplemental Instructions for StandardMembers inUBGs” section in Form 4600 for information on the effectsof members leaving or joining a UBG on certificated creditcarryforwards.

Line-by-Line InstructionsLinesnotlistedareexplainedontheform.

NOTE:Although qualification for certain credits is reviewedand approved by the Michigan Economic Growth Authority(MEGA), in many cases the certificates for such credits areissued by the Michigan Economic Development Corporation(MEDC).

Name and Account Number: Enter the name and accountnumber as reported on page 1 of the applicableMBT annualreturn(eithertheMBT Annual Return(Form4567)forstandardtaxpayers, theMBT Annual Return for Financial Institutions (Form 4590), or the Insurance Company Annual Return for Michigan Business and Retaliatory Taxes (Form4588)).

UBGs:Completeoneformforthegroup.EntertheDMnameintheTaxpayerNamefieldandtheDMaccountnumberintheFederalEmployerIdentificationNumber(FEIN)field.

Historic Preservation Credit The Historic Preservation Credit provides tax incentives forhomeowners, commercial property owners, and businesses torehabilitatehistoricresourceslocatedintheStateofMichigan.Rehabilitation projectsmust be certified by theStateHistoricPreservationOffice(SHPO).

Beginning January 1, 2012, the historic preservation credit isavailable to the extent that a taxpayer had a part 2 approval,approvedrehabilitationplan,approvedhighcommunityimpactrehabilitation plan or preapproval letter before by December31, 2011, but has not fully claimed the credit before January1, 2012. The credit may be claimed as either a refundableaccelerated credit (on Form 4889) or a non-refundable credit.Non-refundable credits and non-refundable carryforwardsof the credit are claimedhere.A taxpayermay elect to claima certificatedhistoric preservation credit in theyear inwhicha credit is available andwill be taxable under theMBTuntilthe qualifying credit and any carryforward of the credit areextinguished. The credit must first be claimed in the yearthat the certificate of completed rehabilitation of the historicresourcewasissued.

AqualifiedtaxpayerthathasmadetheelectiontoremaintaxableundertheMBTwithacertificatedcreditandhasarehabilitationplancertifiedbeforeJanuary1,2008,undertheSingleBusinessTax(SBT)fortherehabilitationofahistoricresourceforwhicha certificationof completed rehabilitationhasbeen issuedaftertheendofthetaxpayer’slasttaxyearunderSBTmayalsoclaimsuchcrediton this form,even though thishistoricpreservationcreditisnotacertificatedcredit.

QualifiedtaxpayersmayreceiveaBasicMichiganCreditequalto25percentoftheirqualifiedexpenditures.Fortaxpayerseligiblefor the federal Rehabilitation Credit under Internal RevenueCode (IRC) § 47(a)(2), theBasicMichiganCredit is 25 percentofthequalifiedexpenditureslesstheamountofthefederalcreditclaimed.Forexample,ifthefederalcreditis20percent,theStatecreditis5percentofthequalifiedexpenditures.

Instructions for Form 4584 Michigan Business Tax (MBT) Election of Refund or Carryforward of Credits

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A qualified MBT taxpayer may take one of two additionalcredits. The Enhanced Credit is equal to a percentage ofqualifiedexpenditures,nottoexceed15percent,establishedinapreapprovalletterissuedbySHPO.

TheSpecial Consideration Credit is equal to a percentageofqualifiedexpenditures,not toexceed15percent, recordedon theCertificate ofCompletion awarded by SHPO. SpecialConsideration Credits are granted to rehabilitation plansexpected to have a high community impact and to havesignificantly greater historic, social, and economic impactthan those plans that earnEnhancedCredits.Themaximumamount of credit that may be claimed during a tax year is$3,000,000perproject,withtheexcessbeingcarriedforwarduntil used up. The Enhanced and Special ConsiderationCredits are taken in addition to the Basic Credit. All threearecalculatedonMichigan Historic Preservation Tax Credit (Form3581).

A qualified taxpayermay assign all or a portion of its creditto any assignee. The credit assignment cannot be revoked,but an assignee may subsequently reassign a credit, or anyportion of an assigned credit, to one or more assignees.Generally, both the initial assignment of the MichiganHistoric Preservation Tax Credit by the qualified taxpayer tothe first assignee(s) and the subsequent reassignment by thefirst assignee(s) to reassignee(s)must be done in the tax yearin which the certificate of completed rehabilitation is issued.For information on assignments, contact the State HistoricPreservationOffice(SHPO).

For Basic, Enhanced and Special Consideration credits forwhich a certificate of completed rehabilitation is issued for ataxyearbeginningafterDecember31,2007andendingbeforeJanuary 1, 2012, an assignment by a qualified taxpayer of allor any portion of a credit allowed may be made within the12months immediately succeeding the tax year inwhich thecertificateofcompletedrehabilitationisissued.

An unused carryforward of a Historic Preservation CreditgeneratedunderSBTmaybeclaimedagainstthetaximposedby MBT for the years the carryforward would have beenavailableunderSBT (maximum tenyears) if the taxpayerhasmade the election to remain taxable under the MBT with acertificated credit. This carryforward is claimed on theMBT Single Business Tax Credit Carryforwards(Form4569).

Line 2: Recapture. Enter the sum of all SBT and MBTHistoricPreservationCredit recaptureamounts. Ifa recaptureeventoccurs,intheyearoftheeventthefollowingpercentageof the credit amount previously claimedmust be added backto the tax liability of the qualified taxpayer that received thecertificateofcompletedrehabilitationorpreapprovedletter.FortaxyearsbeginningafterDecember31,2008,arecaptureeventoccursif:

• A certificate of completed rehabilitation is revoked or apreapproval letter for an enhanced credit is revoked or ahistoric resource is soldordisposedof less thanfiveyearsafterthehistoricresourceisplacedinservice(asdefinedinIRC§47(b)(1)andrelatedfederalregulations);or

• A certificate of completed rehabilitation issued afterDecember1,2008,isrevoked;orapreapprovalletterforan

enhancedcredit issuedafterDecember1,2008,isrevoked;or a historic resource is sold or disposed of less than fiveyearsafterthehistoricresourceisplacedinserviceduringataxyearbeginningafterDecember31,2008.

100percent Iflessthan1year80percent Ifatleast1year,butlessthan2years60percent Ifatleast2years,butlessthan3years40percent Ifatleast3years,butlessthan4years20percent Ifatleast4years,butlessthan5years

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.

UBGs: If any member of the UBG is reporting recapture,a statement must be attached to this form identifying thereportingmember.

Line 4:EntertheamountofBasic/Enhancedcreditcarryforwardfrom the prior year MBT Form 4584, if any. Available SBTcreditcarryforwardisclaimedseparatelyonForm4569.

UBGs: Standard taxpayers, enter the carryforward amountfrom Form 4580, Part 2B, line 48, column C. Financialinstitutions,enterthecombinedtotalofcarryforwardamountsreportedontheUBG Combined Filing Schedule for Financial Institutions(Form4752),line28,byallmembersofthegroup.

Line 7: Enter amount of Special Consideration creditcarryforward from prior year MBT Form 4584, if any. TheSpecial Consideration credit carryforwardmust be separatelyrecorded because, unlike the Basic/Enhanced Creditcarryforward, itmaybecarriedforwarduntilusedup.Itdoesnotexpireafter10years.

UBGs: Standard taxpayers, enter the carryforward amountfrom Form 4580, Part 2B, line 49, column C. Financialinstitutions,enterthecombinedtotalofcarryforwardamountsreportedonForm4752,line29,byallmembersofthegroup.

Line 10: Basic/Enhanced Credit.IftheHistoricPreservationCredit has been assigned, include the approval letter receivedfrom theMichiganDepartment of Treasury (Treasury) in thereturn.(Ifnotattached,thecreditwillbedisallowed.)

NOTE:Ifthetaxpayerassignedpart,butnotall,ofthecredit,includehere theamountofcredit retainedby the taxpayer.Tothisextenttheassignorisalsoanassignee.

Line 13: Special Consideration Credit. If the HistoricPreservation Credit has been assigned, attach the approvalletter received from Treasury to the return. (If the approvalletterisnotattached,thecreditwillbedisallowed.)

NOTE:Ifthetaxpayerassignedpart,butnotall,ofthecredit,includehere theamountofcredit retainedby the taxpayer.Tothisextenttheassignorisalsoanassignee.

Line 25: Addline6and12.ThisamountisthePrioryearand

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Assigned Basic/Enhanced credit carryforward to be used onthenextMBTreturn.

Line 26: Add lines 9, 15, and 23.This amount is theSpecialConsiderationCreditcarryforwardtobeusedonthetaxpayer’snextMBTreturn.

Line 27: Addlines25and20.Thisamount is the totalBasic/Enhanced credit carryforward to be used on the next MBTreturn.

MEGA Federal Contract CreditTheMEGAFederalContractCreditisavailableforaqualifiedtaxpayer or collective group of taxpayers that have beenawardedafederalprocurementcontractfromtheUnitedStatesDepartmentofDefense,DepartmentofEnergy,orDepartmentofHomelandSecurity,resultinginaminimumof25newfull-time jobs. The credit amount is 100 percent of the qualifiedtaxpayer’s payroll attributable to employees who performqualifiednewjobsasaresultofthecontractmultipliedbytheMichigan Individual Income Tax rate. Beginning January 1,2012,thiscreditisavailableasacertificatedcredittotheextentthatthetaxpayerhasenteredintoanagreementwithMEGAbyDecember 31, 2011, but the credit has not been fully claimedor paid prior to January 1, 2012.This creditmust be claimedbeginning with the taxpayer’s first tax year ending afterDecember31,2011,inorderforthetaxpayertoremaintaxableundertheMBTandclaimthecredit.

Thiscreditmaybetakenforaperiodofuptosevenyears,asdeterminedbyMEGA.Anyamountthatexceedsthetaxpayer’stax liabilitymaybe refundedorcarried forward for tenyearsoruntilitisusedup,whicheveroccursfirst.Tobeeligibleforthecredit,ataxpayermustenterintoanagreementwithMEGAandbecertifiedbyMEGA. Ifamisrepresentation ismadeonthe application for this credit, the designation of a qualifiedtaxpayer may be revoked and the taxpayer may be requiredto refund or recapture credits received. Credit recapture iscalculatedonForm4587.

Formoreinformation,contactMEDCat(517)373-9808orvisittheMEDCWebsiteathttp://www.michiganadvantage.org/.

Line 30: UBGs: Enter the unused credit amount from Form4580,Part2B,line51,columnC.

Line 33: Approved businesses receive a certificate fromMEGA each year showing the total amount of tax creditallowed.AttachtheDefenseContractingTaxCreditCertificateto the return. (If thecertificate isnotattached, thecreditwillbedisallowed.)

Line 36: Add lines 32 and 35b. This is the MEGA FederalContractCreditcarryforwardtobeusedonthetaxpayer’snextMBTreturn.

Brownfield Redevelopment CreditThe Brownfield Redevelopment Credit encourages businessestomakean investment ineligibleMichiganproperty thatwasusedoriscurrentlyusedforcommercial,industrial,public,orresidential purposes and is either a facility (environmentallycontaminatedproperty),functionallyobsolete,orblighted.

Beginning January 1, 2012, the Brownfield RedevelopmentCredit may be claimed as a certificated credit if a taxpayerhas a preapproval letter by December 31, 2011, but has notfully claimed the credit by January1,2012. Thecreditmaybe claimed as either a refundable accelerated credit (onForm4889) or a non-refundable credit. Non-refundable creditsand non-refundable carryforwards of the credit are claimedhere.Thecreditmustfirstbeclaimedintheyearinwhichthecertificateofcompletionisissued.

A qualified taxpayer that has made the election to remaintaxable under the MBT with a certificated credit and hasreceived a pre-approval letter prior to January 1, 2008, undertheSBTAct toreceiveaCertificateofCompletionmayclaimthe credit (which is not a certificated credit) on this form,providedthatallotherrequirementsaremet.

For projects approved or amended byMEGA, prior to April8, 2008, the credit is limited to 10 percent of the cost of theeligible investment. For projects approved or amended on orafterApril8,2008,thecreditisauthorizedforapercentageofthecostofeligibleinvestmenttobedeterminedbyMEGA,upto20percentofthecost.

A taxpayer claiming a nonrefundable certificated brownfieldcreditmaymake the election in the year inwhich a credit isavailable and will remain taxable under the MBT until thequalifying credit and any carryforward of the credit areextinguished. AtaxpayerwithamultiphasebrownfieldcreditunderMCL 208.1437(10), thatmakes the election, is requiredto continue to file and pay the MBT until the certificatedcredit is complete and the credit is used up. Except for amultiphase project, the Brownfield Redevelopment Creditmust first be claimed in the tax year inwhich theCertificateofCompletion is issued.Forcredits for aproject approvedbyMEGAwithtotalcreditsgreater than$10,000,000, thecreditsmust be claimed at the rate of 10 percent per year for tenyears,beginningwiththefirstyearspecifiedbyMEGAontheCertificateofCompletion.

If a Brownfield Redevelopment Credit exceeds a taxpayer’staxliabilityfortheyear,theexcessmaybecarriedforwardtooffset tax liability in subsequent tax years for amaximumoftenyears.

NOTE:An unused SBT credit carryforwardmay be claimedagainst the tax imposed under the MBT for the same yearsthecarryforwardwouldhavebeenavailableunderSBT, if thetaxpayer has made the election to remain taxable under theMBTwith a certificated credit, but it expires after ten years(combinedSBTandMBTyears).ThiscarryforwardisclaimedonForm4569.

Alloraportionofthecreditmaybeassigned.Theassignmentofthecreditisirrevocable,andexceptforanassignmentbasedonamultiphaseproject,mustbemadeinthetaxyearinwhichtheCertificateofCompletionwasissued.Ifproperassignmentis completed, the assignee may make the election to remaintaxableundertheMBTonthebasisoftheassignedbrownfieldcertificated credit in the year of assignment, provided thatcreditamountisavailableinthatyear.

The administration of the Brownfield Redevelopment Credit

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program is assigned toMEGA. Formore information on theapprovalprocess,contacttheMEDCat(517)373-9808.

Line 38:Enter tax liabilitybeforeBrownfieldRedevelopmentCreditfromForm4573,line55,orForm4596,line19.

Line 39: Recapture. The disposal or transfer to anotherlocationofpersonalpropertyused tocalculate thiscreditwillresultinanadditiontothetaxliabilityofthequalifiedtaxpayerthat was originally awarded the credit in the year in whichthe disposal or transfer occurs.This is true even if the creditwas assigned to someone else. This additional liability willbe calculated by multiplying the same percentage as is usedtocalculate thecredit (e.g.,10percent) times thefederalbasisofthepropertyusedtocalculategainorloss[ascalculatedforfederal purposes] as of the date of the disposition or transfer.The amount otherwise added to the tax liabilitymay also beused to reduce any carryforward of credits available to thetaxpayer.

UBGs: If any member of the UBG is reporting recapture,a statement must be attached to this form identifying thereportingmember.

Line 40:EnteronlytheunusedcreditfromapreviousperiodMBT return. Available SBT credit carryforward is claimedseparatelyonForm4569.

UBGs: Standard taxpayers, enter the unused credit amountfrom Form 4580, Part 2B, line 54, column C. Financialinstitutions,enterthecombinedtotalofcarryforwardamountsreportedonForm4752,line31,byallmembersofthegroup.

Line 43: If the Brownfield Redevelopment Credit has beenassigned, attach the MBT Brownfield Redevelopment CreditAssignment Certificate to the return. (If the certificate is notattached,thecreditwillbedisallowed.)

Line 46: For the credit to be valid, attach the Certificateof Completion, issued after the completion of the approvalprocess, to the return. (If the certificate is not attached, thecreditwillbedisallowed.)

Line 54:Addlines51and53.Thisamount is theBrownfieldRedevelopment credit carryforward to be used on thetaxpayer’snextMBTreturn.

MEGA Plug-In Traction Battery Manufacturing CreditThe MEGA Plug-In Traction Battery Manufacturing Creditencourages investment in the development, manufacture,commercialization, and affordability of advanced automotivehigh-power energy batteries. The credit is available only toa taxpayer that has entered into an agreement with MEGAthat provides that the taxpayer will manufacture plug-intraction battery packs inMichigan.This credit is no longer available. However, unused credit carryforward from the immediately preceding tax year may still be claimed, if available.

Formoreinformation,contactMEDCat(517)373-9808orvisittheMEDCWebsiteathttp://www.michiganadvantage.org/.

Line 57: UBGs: Enter theunusedcreditamountfromForm4580,Part2B,line57,columnC.

Line 60: For tax years ending after December 31, 2014,this credit is no longer available. However, unused creditcarryforward from the immediately preceding tax year maystillbeclaimedonline57,ifavailable.

Line 63: Enter the amount from line 59. This is theMEGAPlug-InTractionBatteryManufacturingCreditcarryforwardtobeusedonthetaxpayer’snextMBTreturn.

Anchor Company Payroll CreditTheAnchorCompanyPayrollCreditisavailableforaqualifiedtaxpayerthatwasdesignatedbyMEGAasananchorcompanywithin the last five years and that has influenced a newqualified supplier or customer to open, locate, or expand inMichigan.BeginningJanuary1,2012,thiscreditisavailableasacertificatedcredit totheextent that thetaxpayerhasenteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

Aqualifiedtaxpayermaytakeacreditupto100percentofitssupplier’s or customer’s payroll for employees who performqualified new jobs multiplied by the Michigan IndividualIncomeTaxrate.Thiscreditmaybetakenforaperiodofuptofiveyears,asdeterminedbyMEGA.Anyamountthatexceedsthetaxpayer’staxliabilitymayberefundedorcarriedforwardfortenyearsoruntilitisusedup,whicheveroccursfirst.Tobeeligiblefor thecredit,a taxpayermustbecertifiedbyMEGA.MEGA also may provide that qualified sales to a qualifiedcustomer not be considered in calculating the sales factor forthetaxyearforwhichacreditisprovided.

Thestatuteprovidesforreduction,termination,orrecaptureofthecreditifthetaxpayerfailstocomplywithitsagreementorthestatute.CreditrecaptureiscalculatedonForm4587.

Formoreinformation,contactMEDCat(517)373-9808orvisittheMEDCWebsiteathttp://www.michiganadvantage.org/.

Line 65: UBGs:EnterunusedcreditamountfromForm4580,Part2B,line58,columnC.

Line 68: Approved businesses receive a certificate fromMEGA each year showing the total amount of tax creditallowed.Attach theAnchor JobsTaxCreditCertificate to thereturn. (If the certificate is not attached, the credit will bedisallowed.)

Line 71: Add lines 67 and 70b. This amount is the AnchorCompany Payroll credit carryforward to be used on thetaxpayer’snextMBTreturn.

Anchor Company Taxable Value CreditTheAnchorCompanyTaxableValueCredit is available for aqualifiedtaxpayerthatwasdesignatedbyMEGAasananchorcompany within the last five years and that has influenced anewqualified supplier or customer toopen, locate, or expandinMichigan.

Beginning January 1, 2012, this credit is available as a

135

certificated credit to the extent that the taxpayer has enteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. This credit must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimedthecredit.

A qualified taxpayermay take a credit in an amount up to 5percent of its supplier’s or customer’s taxable property valuewithin a tenmile radiusof thequalified taxpayer.This creditmay be taken for a period of up to five years, as determinedbyMEGA.Anyamountthatexceedsthetaxpayer’staxliabilitymayberefundedorcarriedforwardforfiveyearsoruntilitisusedup,whicheveroccursfirst.Tobeeligibleforthecredit,ataxpayermustbecertifiedbyMEGA.MEGAalsomayprovidethatqualifiedsalestoaqualifiedcustomernotbeconsideredincalculatingthesalesfactorforthetaxyearforwhichacreditisprovided.

The statute provides for reduction, termination, or recaptureofthecreditifthetaxpayerfailstocomplywithitsagreementor the statute. Credit recapture is calculated on the MBTSchedule of Recapture of Certain Business Credits andDeductions (Form 4587). For more information, contact theMEDC at (517) 373-9808 or visit the MEDC Web site athttp://www.michiganbusiness.org/.

Line 73: Enter unused credit amount from a previous periodMBTreturn.

UBGs:Enter theunusedcreditamount fromForm4580,Part2B,line59,columnC.

Line 76: Approved businesses receive a certificate fromMEGA each year showing the total amount of tax creditallowed.Attach theAnchorDistrict Tax Credit Certificate tothereturn.(If thecertificate isnotattached, thecreditwillbedisallowed.)

Line 79: Add lines 75 and 78b. This amount is the AnchorCompanyTaxableValuecreditcarryforwardtobeusedonthetaxpayer’snextMBTreturn.

MEGA Poly-Silicon Energy Cost Credit and Miscellaneous MEGA Battery CreditsBeginning January 1, 2012, these credits are available ascertificated credits to the extent that the taxpayer has enteredinto an agreement with MEGA by December 31, 2011, butthe credithasnotbeen fully claimedorpaidprior to January1, 2012. These credits must be claimed beginning with thetaxpayer’s first tax year ending after December 31, 2011, inorder for the taxpayer to remain taxable under theMBT andclaimthecredit.

For tax years ending after December 31, 2014, the MEGA Advanced Battery Engineering Credit is no longer available.

For tax years ending after December 31, 2016, the MEGA Advanced Lithium Ion Battery Credit is no longer available.

For tax years ending after December 31, 2017, the MEGA

Large Scale Battery Credit is no longer available.

However, unused credit carryforward of these credits fromthe immediately preceding tax year may still be claimed, ifavailable.

Line 81a-f:EnterunusedcreditamountfromapreviousperiodMBTreturnfortheappropriatecredit.

UBGs:Enter theunusedcreditamount fromForm4580,Part2B,fortheappropriatecredit.

Line 81a-f: EnterunusedcreditamountfromapreviousperiodMBTreturnfortheappropriatecredit.

Line 84a-f: Approved businesses receive a certificate fromMEGA each year showing the total amount of tax creditallowed.Attachthecertificatetothereturn.(Ifthecertificateisnotattached,thecreditwillbedisallowed.)

NOTE: Line 84e: For tax years ending after December 31, 2017, the MEGA Large Scale Battery Credit is no longer available.

NOTE: Line 84f: For tax years ending after December 31, 2016, the MEGA Advanced Lithium Ion Battery Credit is no longer available.

NOTE: Line 84c: For tax years ending after December 31, 2014, the MEGA Advanced Battery Engineering Credit, line 84c, is no longer available.

Line 87: Add lines 83 and 86b. This amount is the MEGAPoly-SiliconEnergyCostCreditand/orMiscellaneousMEGABatteryCreditscarryforwardtobeusedonthetaxpayer’snextMBTreturn.

NOTE:TheMEGAbatterymanufacturingfacilitycreditnowhas a limited accelerated option. For more information onacceleratedcertificatedcredits,seeForm4589.

Include completed Form 4584 as part of the tax return filing.

136

Michigan Department of Treasury4585 (Rev. 04-18), Page 1 of 2

Attachment 05

2018 MICHIGAN Business Tax Investment Tax Credit RecaptureFrom Sale of Assets Acquired Under Single Business TaxIssued under authority of Public Act 36 of 2007.

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

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

PART 1: CALCULATION OF SINGLE BUSINESS TAX (SBT) INVESTMENT TAX CREDIT (ITC) RECAPTURE BASESEach row in lines 1-3 is for assets acquired in an SBT tax year and disposed of this year. Enter years in date order, with the oldest listed first. Columns B and C are totals by acquisition year. Line 1, column D, and Line 2, column E: For all years, enter MBT apportionment percentage from Form 4567, line 11c. Enter amounts in whole dollars (no cents).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

ApportionmentPercentage

From Form 4567, line 11c

ApportionedGain/Loss

Multiply Column Cby Column D

SBT ITC Recapture(Base 1)

Subtract Column EFrom Column B

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 4567, line 11c

SBT ITC Recapture(Base 2)

Multiply Column Dby Column E

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)

+ 0000 2018 75 01 27 6 Continue on Page 2.

2018 Form 4585, Page 2 of 2 FEIN or TR NumberUBG Member FEIN or TR Number

PART 2: CALCULATION OF SBT ITC RECAPTURE RATESEnter amounts from ALL prior SBT C-8000ITC forms filed for tax years beginning on or after January 1, 2000. Enter SBT tax years in date order. Enter amounts in whole dollars only (no cents).4. 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)

Effective Percentage Rate of

SBT ITC by Year%%%%%%%%%

Enter amounts from Form 4569, line 3, for all periods ending in 2008 or 2009.5. A B

Return ForTaxable Year

Ending(MM-DD-YYYY)

SBT ITC Carryforward Used(Form 4569, line 3)

PART 3: CALCULATION OF SBT ITC RECAPTURE AMOUNTSEnter amounts in whole dollars only (no cents).6. A B C DTaxable Year (End Date)

In Which Disposed Assets Were Acquired

(MM-DD-YYYY)

Total SBT ITC Recapture Base by Year of Acquisition

Add Amounts from Columns 1F, 2F and 3B

Year-Specified Recapture Percentage Rate from

Line 4, Column ERecapture Amount

Multiply Column B by Column C%%%%%%%%%

7. TOTAL. Enter total of Line 6, column D. Add this amount to the total of Form 4570, Worksheet 2 (in instructions), column U, if applicable, and carry the sum to Form 4570, line 19 ......................... 7. 00

+ 0000 2018 75 02 27 4

139

Purpose

To calculate the InvestmentTaxCredit (ITC) recapture amountfor the disposition or transfer of tangible, depreciable real orpersonalpropertyacquiredintaxyearsbeginningafter1999andpriorto2008whichmustberecapturedtotheextentusedandattherateusedundertheSingleBusinessTax(SBT)orMBT.Form4585must be filed as a supporting form for the total recaptureamount reported on the MBT Credits for Compensation, Investment and Research and Development (Form4570).

NOTE:Recapture ismandatoryeven ifa taxpayer isotherwisenot required to file a return because it does notmeet the filingthresholdof$350,000.

Public Act 282 of 2014PA 282 of 2014 provides for a change to the Investment TaxCredit (ITC) Recapture. For assets purchased, acquired,or transferred into Michigan in a tax year beginning afterDecember31,2007, thatweresoldorotherwisedisposedof,ortransferred outsideMichigan during the tax year, recapture isnow required to the extent and at the rate the creditwas usedundertheMBT.Theamountonline7ofthisformwillbeusedonForm4570.Taxpayersneedto takespecialcare toreadtheinstructionsforForm4570,line19.

Line-by-Line Instructions

Lines not listed are explained on the form.

REMINDER: Report all amounts in whole dollars. Rounddown amounts of 49 cents or less. Round up amounts of 50cents ormore. If cents are entered on the form, theywill betreatedaswholedollaramounts.

DatesmustbeenteredinMM-DD-YYYYformat.

Name and Account Number:Enternameandaccountnumberasreportedonpage1ofForm4567.

UBGs:Complete one form for eachmember that disposedofcapitalassetsthattriggerSBTITCcreditrecapture.EntertheDesignatedMember (DM) name in the Taxpayer Name fieldand the specific member of the UBG for which this form isfiled on the line below.On the copy filed to report theDM’sdata(ifapplicable),enter theDM’snameandaccountnumberoneachline.

UBGs: If capital asset subject to recapture is fromamemberthat was not part of the group in the tax year the asset wasacquired (and other years since the acquisition), take careto report in this line (and the others that pertain to years themember was not part of the group) information requested ineach column only from the member’s single filings, not thegroup’s.

PART 1: CALCULATION OF SBT ITC RECAPTURE BASESInPart1,computetheadjustedproceeds(proceedsincludeany

benefit derived) from the disposition of tangible, depreciablereal or personal property that was acquired in a tax yearbeginningafter1999andprior to2008, and the recapture forpropertymovedoutofstate.Thecalculationofgrossproceedsmaybereducedbysellingexpenses.Lines1,2,and3representthree different categories of SBT ITC assets, categorized bytypeofassetornatureofdisposition.

NOTE:Asaleofqualifyingpropertyreportedontheinstallmentmethod for federal income tax purposes causes a recapture ofthe entire gross proceeds in the year of the sale.The recaptureis reduced by any gain reported in federal taxable income intheyearofthesale.Thegainattributabletotheinstallmentsalethatisreportedinsubsequentyearsincreasesthecreditbase(orreducesothersourcesofrecapture)for thoseyears,andmustbereportedeitheronline1,columnC,orline2,columnC,basedonthetypeofasset.

Line 1:FordepreciabletangibleassetslocatedinMichiganthatwereacquiredormovedintoMichiganafteracquisitioninataxyearbeginningafter1999andpriorto2008,andweresoldorotherwisedisposedofduringthetaxyear,enterthefollowing:

• Column A: Separate the depreciable tangible assets thatwere disposed of during the filing period by the tax yearinwhich theywere acquired.Use a separate row for eachacquisitionyear.Enterthetaxyearsofacquisition(enddatesonly) inchronologicalorder,startingwith thefirst taxyearbeginning after 1999. An acquisition year for which therewere no dispositions of depreciable tangible assets duringthefilingperiodmaybeomitted.However,donotomittheacquisition year of depreciable tangible assets that havebeen soldonan installmentmethod ifgainsattributable toinstallment payments received during the current filingperiodmustbereported.

• Column B: Totalgrossproceedsfromalldepreciabletangibleassets that were acquired in the same taxable year anddisposedofduringthefilingperiod.Ifaqualifyingassetwassoldonaninstallmentsaleinapriorfilingperiod,theentiresalepricewasreportedforrecapturepurposesintheyearofsale.Therefore,ifapaymentwasreceivedonthatinstallmentsaleinthecurrentfilingperiod,donotreportthatamountasgrossproceedsforthisperiod.SeeColumnC,however,withrespecttothegainfromthatinstallmentpayment.

• Column C: Net total gains/losses reflected in federaltaxable income from all depreciable tangible assets thatwere acquired in the same taxable year and disposed ofduring the filing period. Report also in column C anygain reflected in federal taxable income that is attributedto an installment payment received during the currentMBT filing period, from a prior installment sale of anasset that was of a type and acquisition date covered byline 1. For property placed in service prior to January 1, 2008,gainreflectedinfederaltaxableincomeisequaltothegainreportedforfederalpurposes.

Instructions for Form 4585 Michigan Business Tax (MBT) Investment Tax Credit Recapture

From Sale of Assets Acquired Under Single Business Tax

140

Keep in your files a separate worksheet with the appropriateinformation regarding each depreciable tangible asset locatedinMichigan that was acquired ormoved intoMichigan afteracquisition in a tax year beginning after 1999 and prior to2008, and was sold or otherwise disposed of during the taxyear. Sum the total gross proceeds and gain or loss for alldisposed assets acquired in the same taxable year. Enter inthis form only the total sum of gross proceeds and gain/lossgroupedbytaxableyeartheassetswereacquired.Useonerowpergroupofdisposedassetsacquiredinthesametaxableyear.Startfromtheearliestacquisitionyear.

• Column D:EntertheapportionmentpercentagefromForm4567, line11c.Ifnotapportioning,enter100percent.Enterthesameapportionmentpercentageforeachrowcompleted.

• Column F:SubtractcolumnEfromcolumnBforeachrow.IfcolumnEisaloss,additspositivevaluetocolumnBforeachappropriate row.Aloss incolumnEwill increase therecapturebase.

Line 2: Mobile tangible assetsareallofthefollowing:

• Motor vehicles that have a gross vehicle weight rating of10,000poundsormoreandareusedtotransportpropertyorpersonsforcompensation;

• Rolling stock (railroad freight or passenger cars,locomotives or other railcars), aircraft, and watercraftused by the owner to transport property or persons forcompensationorusedbytheownertotransporttheowner’spropertyforsale,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:

• Column A:Separatethedepreciablemobiletangibleassetsthatweredisposedofduringthefilingperiodbythetaxyearinwhich theywere acquired.Use a separate row for eachacquisitionyear.Enterthetaxyearsofacquisition(enddatesonly) inchronologicalorder,startingwith thefirst taxyearbeginning after 1999. An acquisition year for which therewere no dispositions of depreciable mobile tangible assetsduring the filing periodmay be omitted. However, do notomit the acquisition year of depreciable mobile tangibleassetsthathavebeensoldonaninstallmentmethodifgainsattributable to installment payments received during thecurrentfilingperiodmustbereported.

• Column B:Totalgrossproceedsfromalldepreciablemobiletangible assets that were acquired in the same taxable yearanddisposedofduringthefilingperiod.Ifaqualifyingassetwas sold on an installment sale in a prior filing period, theentire sale pricewas reported for recapture purposes in theyear of sale. Therefore, if a payment was received on 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.

• Column C: Net total gains/losses reflected in federaltaxable income from all depreciablemobile tangible assetsthat were acquired in the same taxable year and disposedof during the filing period. Report also in column C anygain reflected in federal taxable income that is attributedto an installment payment received during the currentMBT filing period, from a prior installment sale of anasset that was of a type and acquisition date covered byline 2. For property placed in service prior to January 1, 2008,gainreflectedinfederaltaxableincomeisequaltothegainreportedforfederalpurposes.

Keep in your files a separate worksheet with the appropriateinformation regarding each depreciable mobile tangible assetacquiredinataxyearbeginningafter1999andpriorto2008,andsoldorotherwisedisposedofduringthetaxyear.Sumthetotal gross proceeds and gain or loss for all disposed assetsacquired in the same taxable year. Enter in this form onlythe total sum of gross proceeds and gain or loss grouped bytaxableyear theassetswereacquired.Useone rowpergroupofdisposedassetsacquiredinthesametaxableyear.Startfromtheearliestacquisitionyear.• Column D: Subtract figures in column C from figures in

columnBforeachrow.IfcolumnCisaloss,additspositivevalue to column B for each appropriate row. A loss incolumnCwillincreasetherecapture.

• Column E:EntertheapportionmentpercentagefromForm4567,line11c.EnterthesameapportionmentpercentageforeachrowyouhavefilledcolumnsAthroughD.

• Column F:Multiplyfigures incolumnDbycolumnEforeachrow.

Line 3: For depreciable tangible assets other than mobiletangible assets acquired in tax years beginning after 1996and prior to 2008, thatwere eligible for the ITC in tax yearsbeginning after 1999 and prior to 2008, andwere transferredoutsideMichiganduringthetaxyear,enterthefollowing:• Column A: Separate the depreciable tangible assets other

than mobile tangible assets that were transferred out ofMichiganduring thefilingperiodby the taxyear inwhichtheywereacquired.Useaseparaterowforeachacquisitionyear. Enter the tax years of acquisition (end dates only)in chronological order, starting with the first tax yearbeginning after 1999. An acquisition year for which therewere no transfers of depreciable tangible assets out ofMichiganduringthefilingperiodmaybeomitted.

• Column B: Total sum of adjusted federal basis from alldepreciabletangibleassetsacquiredinthesametaxableyearandtransferredoutofMichiganduringthefilingperiod.

Keep in your files a separate worksheet with the appropriateinformationregardingeachdepreciabletangibleassetotherthanmobiletangibleassetsacquiredintaxyearsbeginningafter1999and prior to 2008, that were eligible for the ITC in tax yearsbeginning after 1999 and prior to 2008, and were transferredoutside Michigan during the tax year. Sum the total adjustedfederalbasisforallsuchtransferredassetsacquiredinthesametaxable year. Enter in this form only the total sumof adjustedfederalbasisgroupedby taxableyear theassetswereacquired.Useonerowpergroupofsuchtransferredassetsacquiredinthesametaxableyear.Startfromtheearliesttaxableyear.

141

METHOD SUMMARY TABLETYPE OF METHOD PROS CONSMethod A • Easytocalculate.

• Taxpayer or UBG member disposing of ITCasset only need to enter information on line 4for years inwhich assets that trigger recapturewereacquired.

• MethoddoesnottakeintoaccounttheextenttowhichtheITCwasused.

Method B • Takesintoaccounttheextent towhichtheITCwasused.

• Taxpayers must fill lines 4, 5, 6, Table Iat the end of the instructions, and enternecessary information in Treasury webtool. (www.michigan.gov/mbt4585tool)

• Information on line 4 must be entered for allyears in which assets were bought and ITCwas claimed,whether or not those assetsweredisposedinthecurrenttaxyear.

Method C • Taxpayerscompleteline4,columnE. • Taxpayer needs to develop own calculationprocedurethatreflectstheMBTstatute.Retainrecordstosubstantiatecalculation.

PART 2: CALCULATION OF SBT ITC RECAPTURE RATESRecapture rates can be calculated using any of 3 methodsdescribed in the“MethodSummaryTable” below.TheTablehighlights themethods’prosandcons. Chooseyourmethod,andfollowtheappropriateinstructionstocalculatetheratesonline4,columnE.

NOTE: Whichever method used, the calculated effectiverecapture rate of SBT ITCby year cannot be higher than thefigurecalculatedunderMethodAforanyyear.

NOTE ON USING SIMPLEST METHOD: When amountofSBT ITCused equals the amount ofSBT ITCcreated, thethreemethodsyieldthesameresult.Thisoccursinanyofthefollowingsituations:

• Calendar year filer(*): 2009 MBT Single Business Tax Credit Carryforwards(Form4569),lines2and3,areequalforthelatest2009taxyearreturnfiled;

• Fiscal year filer(*): 2008MBT Form 4569, line 4, equalszeroforthelatest2009taxyearreturnfiled;

• Filers(**) who created SBT ITC credits and have filed anMBT Simplified Return(Form4583)foreither2008or2009taxyear;or

• Filers(**) who created SBT ITC credits, have NOT filed2008or2009MBTreturn,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. To preserve the SBT credit carryforward from one year to the next the taxpayer is required to file Form 4567.

ThesimplestmethodthatcanbeusedisMethodA.TaxpayersthatmeetanyofthesituationsaboveshoulduseMethodA.Itprovides correct results using the least amount of data inputfromthetaxpayer.

Completeline4andline5accordingtothemethodchosen,asexplainedbelow:

• Method A: ○ Line 4, columns A through D:Enterthetaxyearenddate of each acquisition year of disposed assets thattriggeredSBT ITC recapture. (Those dates should bethesameasappearincolumnAoflines1-3.)Foreachyear displayed in column A, enter Form C-8000ITC(SBT Investment Tax Credit) information required inthe appropriate column, using return data specificfromeachapplicabletaxyear.IftheamountofcolumnC is zero for a particular year, and the amount onC-8000ITC, line 10 for that year is larger than zero,taxpayers may not enter zero on column E if thetaxpayers fall ineitherof the twocategoriesexplainedbelow, and must do the appropriate calculations asfollows:

1) TaxpayersusedthestraightmethodtocalculatetheSBTliabilityforthattaxableyear:calculatethecreditrateasinstructedonC-8000ITC,line26forthat taxableyear,andentertheresultoncolumnE;or

2) Taxpayer used the excess compensation reductionmethod to calculate the SBT liability for that taxableyear: calculate the credit rate on C-8000ITC, line 26,for that taxableyear; subtract thepercentage foundonC-8000S, line 6, from 100%, and multiply the resultof that subtraction by the calculated credit rate onC-8000ITC,line26.EntertheresultoncolumnE.

○ Line 5, columns A and B:Leavelinesblank.

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Table I: Determining Credit Amount that Offsets Credit Recapture7. A B C D

Taxable Year (End Date)

In Which MBT ITC Disposed Asset Was

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

8. 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

9. 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

○ Line 4, column E: Divide the amount in column Cby the amount in column B, for each taxable year incolumnA,andenterasapercentage.

• Method B: ○ Line 4, columns A through D: Gather all C-8000ITCformsfiled for tax years beginning on or after January1, 2000. (If an amended C-8000ITCwas filed, use thefigures from the amended form, not the original.) Sortallthereturnsinchronologicalorderoftaxableyearenddate,fromearliesttolatestdate.StartingwiththeFormC-8000ITCfortheearliestapplicableSBTfilingperiod,enter the information requested on the table for eachtaxableyear(useonerowforeachreturn).

NOTE: For SBT tax yearswhen the taxpayer filed aC-8000(SBT Annual Return) with no C-8000ITC, or a C-8030 (SBT Notice of No SBT Return Required), enter on line 4A thetaxableyearenddate,andenterzeroforlines4B,4C,and4D.Donotenteranyinformationonlines4Athrough4DforSBTtaxyearsinwhichthetaxpayerfilednothingORfiledaC-8044(SBT Simplified Return). If more than one return was filedfor the same tax year (that is, the taxpayer filed an amendedreturn),useonlytheinformationfromthelatestreturnfiledforthattaxyear.

○ Line 5, columns A and B:StartingwithForm4569fortheearliest2008andlatest2009applicableMBTfilingperiod,entertheinformationrequestedontable.Ifmore

than one return was filed for the same tax year (thatis, the taxpayerfiled an amended return), useonly theinformationfromthelatestreturnfiledforthattaxyear.

NOTE:ForMBTtaxyearsthetaxpayerfiledForm4567andnoForm4569,enteronline5Athetaxableyearenddate,andenterzerofor line5B.Donotenteranyinformationonlines5Aand5B forMBTyears inwhich the taxpayerfilednothingorfileda Form 4583. SeeNote on Using Simplest Method under theheadingCalculation of SBT ITC Recapture Rates on theseinstructions.NotfilingaForm4567doesnotallowataxpayertopreserveSBTcreditcarryforwardfromoneyeartothenext.

UBGs:During taxyears ending in2008and2009,UBGgroups were allowed to offset the group liability byclaiming member’s SBT ITC credit carryforward. Whencompletingline5,columnB,entertheportionofthetotalgroup SBT ITC credit carryforward used by the groupfor each year that pertains to the specificmember that iscompleting Form 4585. If the member completing Form4585wasnotpartofaUBGin2008and/or2009taxyears,andfiledas anon-UBGfiler, take care to reporton lines5A and 5B information from the member’s singly filedreturns. Likewise, if the member completing Form 4585waspart of anotherUBG in2008 and/or 2009 taxyears,takecaretoreportonline5Aand5BmemberinformationresultingfromusingtheotherUBG’sreturnsinformation.

Example:In2008,groupABCfilesMBTreturnclaiming

143

$1,000,000 in SBT ITC credit carryforward. The groupconsisted of Company 1, Company 2, Company 3, andCompany 4. Company 4’s tax year ended after the taxyear of the group’s Designated Member, so Company4’s data was not included in group ABC’s 2008 MBTreturn, even though Company 4 was part of the UBG.The total $1,000,000 in SBT ITC credit carryforwardresulted from the sum of $200,000 in SBT ITC creditcarryforward fromCompany 1, $300,000 fromCompany2, and $500,000 from Company 3. In the current year,Companies 2, 3, and 4 dispose of capital investmentoutside of the UBG, which triggers SBT ITC creditrecapture. In the current year, group ABC files MBTreturns. The UBG fills one MBT Form 4585 for eachCompany 2, Company 3, and Company 4, in which isreportedtheSBTITCcreditrecapturefromeachmember.When filling Form 4585,line 5, column B for Company2, report $200,000 – which represents the portion of thetotal SBT ITC credit carryforward claimed by the groupin 2008 that corresponds only to Company 2’s SBT ITCcredit carryforward in 2008. When filling Form 4585,line5,columnBforCompany3,report$500,000–whichrepresentsCompany3’sportionofthetotalSBTITCcreditcarryforwardclaimedbythegroupin2008.WhenfillingForm 4585, line 5B for Company 4, report $0 – whichrepresentsCompany4’sportionofthetotalSBTITCcreditcarryforwardclaimedbythegroupin2008.

○ Line 4, column E:Foreachtaxableyear,entertheratescalculatedonTableI,line9,columnM.

○ Filling Table I at the end of these Instructions(linesandcolumnsnotlistedareexplainedonthetable):• Line 7, column A: Enter only taxable years in

which SBT ITC disposed assets were acquired.Datesshouldmatchthoselistedonlines1,2,and3,columnsA.Listeachdateonlyonce.

• Line 7, column C:Foreachtaxableyearonline6,columnA,findthecorrespondingSBTITCamountreported on line 4, column C, and Net CapitalInvestment amount reported on line 4, column B.Divideamountsfromline4,columnCbyamountsfrom line 4, column B for each taxable year andenter results here. If the quotient of that divisionforaparticular taxyear listedequalszero,and theamount on line 7, columnB is positive, instead ofzero, enter the following on line 7, column C asappropriate:

1) Taxpayer used the straightmethod to calculate theSBT liability for that taxable years: calculated thecredit rate on C-8000ITC, line 26 for that taxableyear,andentertheresulthere;

2) Taxpayer used the excess compensation reductionmethodtocalculatetheSBTliabilityforthattaxableyear: calculate the credit rate on C-8000ITC, line26, for that taxable year; subtract the percentagefoundonC-8000S(SBT Deductions to Adjusted Tax Base), line 6, from 100%, and multiply the resultof that subtraction by the calculated credit rate onC-8000ITC,line26.Entertheresulthere.

• Line 9, column J: Enter amount of ITC creditused provided by the webtool that correspondsto each taxable year displayed on line 9, columnI. Access the Michigan Department of Treasury(Treasury)Web tool by going to the Treasury site(www.michigan.gov/mbt4585tool), and enter thenecessaryinformationasinstructed).

• Line 9, column M: For each taxable year on line9, column I, multiply line 7, column C by line 9,column L. Enter results here. Match the taxableyear on line 9, column I with the taxable year online 4, column A, and carry amount from line 9,columnMtoline4,columnEforeachappropriatedtaxyearline.

• Method C: ○ Line 4, columns A through D: Fill column A, andleaveallothersblank.

○ Line 5, columns A and B: Leavelinesblank. ○ Line 4, column E: Enter results from the taxpayer’sown software of choice (that is, a non-Treasury Webtool)or the taxpayer’sowncalculation that reflects theMBT statute. Retain records to substantiate figuresenteredinthefiledreturn.

PART 3: CALCULATION OF SBT ITC RECAPTURE AMOUNTS

Line 6:Followtheinstructionsbelow:

Column A: Enter in chronological order, beginning withthe earliest, the tax year end date of each acquisition year ofdisposedassetsthattriggeredSBTITCrecapturefromlines1-3.

Column B: Separately for each acquisition year listed incolumn A, combine the corresponding amounts in line 1,column F, line 2, column F, and line 3, column B for alldisposedassetsthattriggeredSBTITCrecapture.

Column C:ForeachacquisitionyearlistedincolumnA,enterthecorrespondingSBTITCeffectiveratefromline4,columnE. Match the acquisition year in line 6, column A, with thecorrespondingacquisitionyearinline4,columnA.

Column D: Multiply column B by column C for eachacquisitionyear.

Line 7:Addfigures in each rowof line 6, columnD, andenterthetotalhere.

If no assets purchased in MBT years were disposed of or transferred out of Michigan this year, carry the amountreportedonthislinetoForm4570,line19.

If any assets purchased in MBT years were disposed of or transferred out of Michigan this year,addtheamountreported on line 7 of this form to the sum of amountscalculatedonColumnUofWorksheet2intheinstructionsof Form 4570. Report the sum of those two figures onForm4570, line19. This calculation change implements arequirementofPublicAct282of2014.

Include completed Form 4585 as part of the tax return filing.

144

Michigan Department of Treasury4587 (Rev. 04-18)

Attachment 21

2018 MICHIGAN Business Tax Schedule of Recaptureof Certain Business Tax Credits and DeductionsIssued under authority of Public Act 36 of 2007.

Taxpayer Name Federal Employer Identification Number (FEIN) or TR Number

Complete this schedule for any recapture in this tax year of previous tax credits and deductions listed on this schedule.1. This recapture has expired. Leave this line blank and skip to line 2a .................................................................. 1. X X X X X X X X 002. a. Recapture of Michigan Business Tax MEGA Employment Tax Credit ............................................................. 2a. 00

b. This recapture has expired. Leave this line blank and skip to line 4 ............................................................... 2b. X X X X X X X X 00c. This recapture has expired. Leave this line blank and skip to line 4 ............................................................... 2c. X X X X X X X X 00

3. This recapture has expired. Leave this line blank and skip to line 4 .................................................................... 3. X X X X X X X X 004. Recapture of MEGA Federal Contract Credit ........................................................................................................ 4. 005. Recapture of MEGA Photovoltaic Technology Credit ............................................................................................ 5. 006. This recpature has expired. Leave this line blank and skip to line 7 ..................................................................... 6. X X X X X X X X 007. Recapture of MBT Brownfield Redevelopment Credit. Enter the amount from Form 4584, line 47 ...................... 7. 008. Recapture of Film Infrastructure Credit

a. Enter all eligible depreciable tangible assets located in Michigan that were acquired in a tax year beginning after December 31, 2007, and were sold or otherwise disposed of during the tax year. (Date format: MM-DD-YYYY)

ADescription

BCity

CDate Acquired

DDate Sold

EGross Sales Price

FGain/Loss

b. Total columns E and F. A loss in column F will increase recapture............................ 8b.

c. Adjusted Proceeds. If line 8b, column F, is a gain, subtract line 8b, column F, from line 8b, column E.If line 8b, column F, is a loss, add line 8b, column E and F .............................................................................. 8c. 00

If taxable in another state, complete lines 8d and 8e; otherwise, skip to line 8f.d. Apportioned gains (losses). Multiply line 8b, column F, by the percentage from Form 4567, line 11c ............. 8d. 00e. Apportioned Adjusted Proceeds. If line 8d is a gain, subtract line 8d from line 8b, column E.

If line 8d is a loss, add line 8d and line 8b, column E ....................................................................................... 8e. 00f. Recapture of Film Infrastructure Credit. Multiply line 8c or line 8e by 25% (0.25)........................................... 8f. 00

9. Recapture of Anchor Company Payroll Credit ....................................................................................................... 9. 0010. Recapture of Anchor Company Taxable Value Credit ........................................................................................... 10. 0011. Recapture of Qualified Affordable Housing deductions ......................................................................................... 11. 0012. Recapture of Miscellaneous MEGA Battery Credits (for the recapture of the MEGA Battery Manufacturing Facility

Credit, MEGA Large Scale Battery Credit, and MEGA Advanced Lithium Ion Battery Credit; see instructions)00a. Total Recapture of Miscellaneous MEGA Battery Credits ................................................................................. 12a.

b. Battery Credit code ...................................................................................... 12b.c. Second Battery Credit code......................................................................... 12c.

13. Total Recapture of Certain Business Tax Credits and Deductions. Add lines 2a, 4, 5, 7, 8f, 9, 10, 11 and 12a. Carry amount to Form 4567, line 56, Form 4588, line 26, or Form 4590, line 29 .................................. 13. 00

+ 0000 2018 81 01 27 3

147

PurposeComplete this schedule for any recapture in this tax year ofpreviouslyclaimedtaxcreditslistedonthisschedule.Recaptureof some tax credits occurs at the same point in the forms asthe credit is calculated.The credits on this form, however, arerequired by statute to be recaptured at a later point in the taxcalculationprocess.This form isalsoused to reporta requiredrecaptureofanAffordableHousingDeduction.

Attachments in support of these recapture amounts are notrequired. Maintain the recapture calculation information inyourfilesforreviewduringaudit.

Special Instructions for Unitary Business GroupsIf any member of the Unitary Business Group (UBG) isreportingrecapture,astatementmustbeattachedtothisformidentifyingthereportingmemberandtheamountofrecapturefor each applicable credit. If more than one member isreportingrecapture, requested informationshouldbeprovidedinthestatementonapermemberbasis.Thetotalamountfromall reportingmemberswill be entered on each correspondinglineonthisform.

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

DatesmustbeinMM-DD-YYYYformat.

Name and Account Number: Enternameandaccountnumberas reported on page 1 of the applicable MBT annual return(either the MBT Annual Return (Form 4567) for standardtaxpayers, theMBT Annual Return for Financial Institutions (Form 4590), or the Insurance Company Annual Return for Michigan Business and Retaliatory Taxes(Form4588)).

UBGs: A UBG reporting recapture should include onlyone copy of this form as part of its annual return. Enter theDesignated Member (DM) name in the Taxpayer Namefield and the DM account number in the Federal EmployerIdentificationNumber(FEIN)field.

Line 1:TheResearchandDevelopmentCreditthatiscertifiedby Michigan Economic Growth Authority (MEGA) is nolongersubjecttorecapture.Leavethislineblank.

Line 2: If a taxpayerclaimsanMBTorSingleBusinessTax(SBT) MEGA Employment Tax Credit or an SBT MEGABusiness Activity Credit for a previous tax period under anagreementwithMEGAbasedonqualifiednewjobs,and thenremoves 51percent ormore of those qualifiednew jobs fromMichigan within three years after the first year in which thetaxpayer claims such a credit, the taxpayermust recapture anamount equal to the total of all such credits claimedonpriorreturns.

Line 2a: Enter the total amount of the MBT MEGAEmploymentTaxCreditclaimedonpreviouslyfiled4574formssubjecttorecapture.

Line 2b: The SBT MEGA Employment Tax Credit is nolongersubjecttorecapture.Leavethislineblank.

Line 2c: The SBT MEGA Business Activity Credit is nolongersubjecttorecapture.Leavethislineblank.

Line 3: The Entrepreneurial Credit is no longer subject torecapture.Leavethislineblank.

Line 4: Enter the total amount of MEGA Federal ContractCredit claimed on previously filed MBT Election of Refund or Carryforward of Credits forms (Form 4584) subject torecapture.

NOTE:TheMEGAFederalContractCreditisclaimedthroughanagreementwithMEGA.Ifataxpayerclaimsthiscreditandsubsequently fails to meet requirements of the MBT Act orconditions of the agreement, the taxpayermust recapture theentireamountofsuchcreditpreviouslyclaimed.

Line 5: Enter the total amount of the MEGA PhotovoltaicTechnology Credit claimed on previously filed 4574 formssubjecttorecapture.

Line 6:TheBiofuelInfrastructureCreditisnolongersubjecttorecapture.

Line 8: TheFilmInfrastructureCreditisavailablethroughanagreementbetweenthetaxpayerandtheMichiganFilmOffice,withtheconcurrenceoftheStateTreasurer.Thecreditamountis up to 25 percent of the base investment expenditures in aqualified film and digital media infrastructure project. If thetaxpayersellsorotherwisedisposesofatangibleassetthatwaspaid for or accrued afterDecember 31, 2007, andwhose costis included in the base investment, the taxpayer must reportrecaptureequal to25percentof thegrossproceedsorbenefitfrom the saleordisposition, adjustedby theapportionedgainorloss.

NOTE: A sale of qualifying property reported on theinstallment method for federal income tax purposes causesrecaptureoftheentiregrossproceeds(includingtheamountofthenote) in theyearof sale, lessanygain reflected in federaltaxable income (as defined forMBT purposes) in the year ofthesale.Ineachsubsequentyearoftheinstallmentnote,enterzeroinline8a,columnE,andenterthegainreflectedinfederaltaxable income (as defined for MBT purposes) in columnF. For property placed in service prior to January 1, 2008,gain reflected in federal taxable income (as defined forMBTpurposes)isequaltothegainreportedforfederalpurposes.

Line 8a: Enter all dispositions of depreciable tangible assetsincluded in base investment expenditures that were paid oraccrued afterDecember31, 2007, andwere soldor otherwisedisposedofduringthetaxyear.

• Columns A through D: Enter a brief description of theasset,thecityortownshipinwhichtheassetislocated,andthedatesthattheassetwaspaidfororaccruedanddisposedof or sold. To list multiple disposition as one entry, thedate the assets were acquired and sold must be the same;dispositionswithvariabledatesmustbelistedseparately.

Instructions for Form 4587, Michigan Business Tax (MBT) Schedule of Recapture of Certain Business Tax Credits and Deductions

148

• Column E:EnterthetotalgrossproceedsfromthesaleordispositionofdepreciabletangibleassetslistedincolumnA.

• Column F:Enter totalgainor loss included incalculatingfederaltaxableincome(asdefinedforMBTpurposes).

Lines 9-10: NOTE: The Anchor Company Payroll Creditand the Anchor Company Taxable Value Credit are claimedthroughanagreementwithMEGA.Ifa taxpayerclaimedoneofthesecreditsandsubsequentlyfailstomeetrequirementsoftheMBTActorconditionsoftheagreement,thetaxpayermustrecapturetheentireamountofsuchcreditpreviouslyclaimed.

Line 9: EnterthetotalamountoftheAnchorCompanyPayrollCredit claimed on previously filed 4584 forms subject torecapture.

Line 10: Enter the total amount of the Anchor CompanyTaxableValue Credit claimed on previously filed 4584 formssubjecttorecapture.

Line 11: Under Michigan Compiled Laws 208.1201(6), thesellerof residential rentalunitsmay takeadeductionfromitsBusiness Income Tax base, after apportionment, of the gainfromthesaleoftheresidentialrentalunitstoabuyerwhoisaQualifiedAffordableHousing Project (QAHP). To qualify foradeduction,thesellerandbuyermustenterintoan“operationagreement” in which the buyer agrees to operate a specificnumber of the residential rental units sold as rent restrictedunitsforaminimumof15years.TheDepartmentofTreasury(Treasury) will record a lien against the property subject tothe operation agreement, to enforce the possibility of futurerecaptureofthisdeduction.

When thebuyer fails to qualify as aQAHPor fails to operateany of the residential rental units as rent restricted units inaccordancewith the operation agreementwithin 15years afterthe date of purchase, the lien recorded by Treasury becomespayabletotheState.Failuretooperateevenoneresidentialrentalunit in accordance with an operation agreement constitutesfailuretooperateallorsomeoftheresidentialrentalunitsasrentrestrictedunitsinaccordancewiththeoperationagreement,andthereforeisarecaptureevent.Thelienispayableintheyeartherecapture event occurs. This recapture is mandatory even if ataxpayerisotherwisenotrequiredtofileareturnbecauseitdoesnotmeetthefilingthresholdof$350,000.

Enter a recapture amount equal to the full amount of thededuction allowed to the seller multiplied by a fraction, thenumeratorofwhichisthedifferencebetween15andtheyearstheaffordablehousingprojectqualifiedandcompliedwith thetermsoftheagreementandthedenominatorofwhichis15.

Line 12 NOTE: There are three different MEGA batterycredits that are eligible for recapture and are reportedon thisline. If the taxpayerhasmore thanoneof these credits, enterthecombinedamountofthosecreditsonline12a.

Line 12a: Enter the total amount of the MEGA BatteryManufacturing Facility Credit, MEGA Large Scale BatteryCredit and MEGA Advanced Lithium Ion Battery Creditdeemed tobeaddedback to the tax liabilityby theMichiganEconomicGrowthAuthority.

Line 12b-c: If reporting recapture for only one of the three

eligible battery credits, enter the appropriate two-digit codefrom the listbelow in line12b. If reporting recapture for twocredits, enter the appropriate code for one of the recapturedcreditsonline12b,andtheotheronline12c.

Miscellaneous MEGA Battery Credit Codes

CREDIT CODE

MEGABatteryManufacturingFacilityCredit..................11

MEGALargeScaleBatteryCredit................................... 12

MEGAAdvancedLithiumIonBatteryCredit.................. 13

Line 13: Add lines 1, 2a, 3, 4, 5, 7, 8f, 9, 10, 11, and 12a.Standard taxpayers carry this amount to Form 4567, line 56.InsurancecompaniescarrythisamounttotheForm4588,line26.Financial Institutionscarry thisamount to theForm4590,line29.

Include completed Form 4587 as part of the tax return filing.

Michigan Department of Treasury4595 (Rev. 04-18), Page 1 of 2

Attachment 12

2018 MICHIGAN Business Tax Renaissance Zone Credit ScheduleIssued under authority of Public Act 36 of 2007.

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

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

1. Tax liability before Renaissance Zone Credit. Enter amount from Form 4573, line 13, or Form 4596, line 14 ...... 1. 002. Enter property information below. If operating in multiple Zones, file a separate Form 4595 for each Zone:

Street Address Zone or Subzone

Check if a certificated credit (see instructions)

City Parcel Number

3. Average value of property owned within the Zone ................................................................................................. 3. 004. Multiply rent paid for property within the Zone by 8 and enter the result ................................................................ 4. 005. Total property value within the Zone. Add lines 3 and 4 ......................................................................................... 5. 006. Average value of all property owned in Michigan ................................................................................................... 6. 007. Multiply rent paid for property in Michigan by 8 and enter the result ...................................................................... 7. 008. Total property value in Michigan. Add lines 6 and 7 ............................................................................................... 8. 009. Divide line 5 by line 8 and enter as a percentage................................................................................................... 9. %

10. Total payroll for services performed within the Zone .............................................................................................. 10. 0011. Total Michigan payroll ............................................................................................................................................. 11. 0012. Divide line 10 by line 11 and enter as a percentage ............................................................................................... 12. %13. Add lines 9 and 12 and enter as a percentage ....................................................................................................... 13. %14. Business Activity Factor. Divide line 13 by 2 and enter as a percentage ............................................................... 14. %15. Credit based on the Business Activity Factor. Multiply line 14 by line 1 ................................................................. 15. 00

Adjusted Services Performed in the Renaissance Zone16. Enter amount from line 10 ................................................................................ 16. 00

17. Enter depreciation for tangible property in the Zone exempt under MCL 211.7ff. Claim property exempt in tax year; also claim new property that will be exempt in immediately following tax year (see instructions)........................ 17. 00

18. Add lines 16 and 17 ........................................................................................................................................... 18. 0019. Partnerships, S Corporations and Individuals Only (see instructions); UBGs, see instructions

a. Business income from Form 4567, line 28. If less than zero, enter zero ........ 19a. 00b. Apportionment percentage from Form 4567, line 11c ................................. 19b. %c. Enter percentage from line 14 ..................................................................... 19c. %d. Multiply line 19a by line 19b by line 19c ...................................................... 19d. 00e. Add lines 18 and 19d ................................................................................... 19e. 00

20. Enter amount from line 18, or, if taxpayer is a Partnership, S Corporation or Individual, enter amount from line 19e .................................. 20. 00

21. Credit based on adjusted services performed in the Zone. Multiply line 20 by 10% (0.10) ............................... 21. 0022. Taxpayers first located within the Renaissance Zone before 12-01-2002 ONLY.

(All others, leave lines 22a-e and line 23 blank.)a. Renaissance Zone Credit allowed in 2007 .................................................. 22a. 00b. Michigan payroll in 2007 .............................................................................. 22b. 00c. Business Activity Factor for tax year 2007 and enter as a percentage........ 22c. %d. Divide line 11 by line 22b and enter as a percentage .................................. 22d. %e. Divide line 14 by line 22c and enter as a percentage .................................. 22e. %

23. Multiply line 22a by line 22d by line 22e ........................................................................................................... 23. 0024. Tentative Renaissance Zone Credit. Taxpayers first located in Zone before 12-01-2002, enter the greater of

(i) line 23 or (ii) the lesser of lines 15 and 21. All others, enter the lesser of lines 15 and 21 ............................... 24. 0025. a. Reduced credit percentage from Reduced Credit Table on page 2 ............. 25a. %

b. Reduced Renaissance Zone Credit. Multiply line 24 by the reduced credit percentage on line 25a. Carry amount to Form 4573, line 14, or Form 4596, line 15............................................................................ 25b. 00

+ 0000 2018 95 01 27 4

2018 Form 4595, Page 2 of 2

REDUCED CREDIT TABLE

If this tax period begins in the: The reduced credit is:

Final year of designation as a Renaissance Zone.................25 percent (0.25) of tentative credit on line 24.

Year immediately preceding the final year of designation as a Renaissance Zone .........................................................50 percent (0.50) of tentative credit on line 24.

Second year before the final year of designation as a Renaissance Zone................................................................ 75 percent (0.75) of tentative credit on line 24.

Third (or greater) year before the final year of designation as a Renaissance Zone ........................................................ 100 percent (1.00) of the tentative credit on

line 24.

+ 0000 2018 95 02 27 2

151

Purpose

To allow eligible taxpayers to calculate and claim theRenaissance ZoneCredit. For standard taxpayers and financialinstitutions, the credit is calculated on Form 4595 and thencarried to the MBT Miscellaneous Nonrefundable Credits (Form4573). Insurance companieswill carry this credit to theMiscellaneous Credits for Insurance Companies(Form4596).

NOTE: If a person is located and has business activity inmorethanoneRenaissanceZone,useaseparateForm4595tocalculate the credit for eachZone.For each line that requiresZone-specificdata, enterdatabasedonlyonbusiness activityintheZoneidentifiedonline2ofthiscopyoftheform.

Renaissance Zone CreditThe Renaissance Zone Credit encourages businesses andindividualstohelprevitalizeadesignatedZonebyprovidingacredit for businesses located and conducting business activitywithin the Zone. The method of calculating the credit isdifferent for businesses first locating and conducting businessactivity within the Renaissance Zone before December 31,2002, and those businesses first locating and conductingbusinessactivitywithintheRenaissanceZoneafterDecember30,2002.

Use this form to calculate both a certificated and non-certificated renaissance zone credit. Check the certificatedcredit box if the credit being calculated is a certificatedrenaissance zone credit. File a separate Form 4595 for eachzoneandtype(certificatedornon-certificated)ofcredit.

Beginning January 1, 2012, only those taxpayers with acertificatedcredit,which isawardedbutnotyet fullyclaimedor utilized,may elect to beMBT taxpayers.A taxpayerwithacertificatedrenaissancezonecreditmaymaketheelectiontoremaintaxableundertheMBTforitsfirsttaxyearendingafterDecember31,2011.

The certificated renaissance zone credits are the following types of zones for which the taxpayer has a development agreement with the Michigan Strategic Fund (MSF) before January 1, 2012:

• agriculturalprocessing,• bordercrossing,• forestproductsprocessing,• Michigan strategic fund designated renewable energy

renaissancezones,• AND the tool and die renaissance zones for which

the taxpayer has entered into a qualified collaborativeagreementwiththeMSFbeforeJanuary1,2012.

Ataxpayer located inadesignatedrenaissancezone thatdoesnothaveacertificatedrenaissancezonecreditbutwhichmakesthe election to remain taxable under the MBT on the basisof another certificated credit may also claim this credit. Formore information on certificated credits see the Schedule of

Certificated Credits(Form4947).

EXAMPLE 1: Taxpayer enters into a qualified collaborativeagreement with the MSF and locates and begins conductingbusinessinatoolanddierenaissancezoneonJanuary1,2011.TaxpayermayelecttocontinueundertheMBTonthebasisofthiscertificatedrenaissancezonecredit.

EXAMPLE 2: Taxpayer located and began conductingbusiness in a designated renaissance zone on January 1, 2011;however,therenaissancezonedoesnotqualifyasacertificatedcredit for purposes of the MBT election (see the certificatedrenaissancezonecreditslistedpreviouslyintheseinstructions).The taxpayer also holds a certificated anchor company credit.Taxpayer may make the election to remain taxable under theMBTonthebasisofitscertificatedanchorcompanycreditandcontinue to claim the non-certificated renaissance zone creditonceithasproperlyelectedtheMBT.

To obtain the credit an otherwise qualified taxpayermust fileanMBTannualreturn.Thecreditisequaltothelesserofthefollowing:

• The tax liabilityattributable tobusinessactivityconductedwithintheRenaissanceZoneinthetaxyear.

• 10percentofadjustedservicesperformedinthedesignatedRenaissanceZone.

• For a taxpayer located and conducting business activity intheRenaissanceZonebeforeDecember1,2002, the credit is equal to the greater of the two results below:

Result 1 ○ Thelesserof1)thebusinessactivityconductedwithin

the zone (from line 15) OR 2) the adjusted servicesperformedinthezone(fromline21)

Result 2 ○ Theproductofthefollowing:

• TheSingleBusinessTax (SBT)RenaissanceZoneCreditclaimedforthetaxyearendingin2007.

• The ratio of the taxpayer’s payroll in thisState in the taxyeardividedbythe taxpayer’spayrollinthisStateinitsSBTtaxyearendingin2007.

• Theratioofthetaxpayer’sRenaissanceZoneBusinessActivityFactorforthetaxyeardividedbythetaxpayer’sRenaissanceZoneBusinessActivityFactorforitsSBTtaxyearendingin2007.

ThecreditallowedcontinuesthroughthetaxyearinwhichtheRenaissanceZonedesignationexpiresandisnonrefundable.

Business activities relating to a casino, including operatinga parking lot, hotel, motel, or retail store, cannot be used tocalculate thiscredit.Businessesdelinquent infilingorpayingPropertyTax,SBT,MBTorCityIncomeTaxasofDecember31ofthepriortaxyeararenoteligibleforthiscredit.Taxpayerswillbenotifiedifaclaimedcreditisdisallowed.

For more information on Renaissance Zones, contact

Instructions for Form 4595 Michigan Business Tax (MBT) Renaissance Zone Credit Schedule

152

the Michigan Economic Development Corporation(MEDC) at (517) 373-9808 or visit their Web site athttp://www.michiganadvantage.org/. For information on theMBT credit, contact the Michigan Department of Treasury,CustomerContactDivision,MBTUnit,at(517)636-6925.

Special Instructions for Unitary Business Groups

If the entity located and conducting business activity in theRenaissance Zone is amember of a Unitary Business Group(UBG), the Renaissance Zone Credit must be calculated atthemember entity level.Calculationof theRenaissanceZoneCredit should be done before elimination of intercompanytransactions, such as rent payments by the member claimingthiscredittoanothermemberoftheUBG.

IncludethisformaspartoftheUBG’scombinedannualreturn.Ifmore than onemember is eligible for this credit, completeoneForm4595foreacheligiblemember(ormultipleformsforamember that is locatedandhasbusinessactivity inmultipleZones) and include all of them as part of the UBG’s annualreturn. IffilingmultiplesofForm4595,enter the totalof line25bforallmembersonForm4573,line14.

Whenthisformrefersto“taxpayer,”itisreferringtotheUBGmembercompletingthisform.

Line-by-Line Instructions

Lines not listed are explained on the form.

Name and Account Number: Enternameandaccountnumberasreportedonpage1oftheannualreturn.

UBGs: Complete one form for each member for whom thisscheduleapplies(ormultipleformsforamemberthatislocatedand has business activity in more than one Zone). Enter theDesignatedMember (DM) name in the TaxpayerName field,followedbytheDM’sFederalEmployerIdentificationNumber(FEIN), and the specific member of the UBG for which thisformisfiled,anditsFEIN,onthelinebelow.Onthecopyfiledto report the DM’s data (if applicable), enter the DM’s nameandaccountnumberoneachline.

Line 1:Enter the tax liability before the Renaissance ZoneCredit.

UBGs:Thismust be a pro forma tax liability of thememberwhose activity is represented on the form. See guidance onpro forma calculations in the “Supplemental Instructions forStandardMembers inUBGs” section in theMBT Forms and Instructions for Standard Taxpayers(Form4600).

Line 2:Enter the street address and parcel number of theproperty.EnterthenameoftheZoneorSubzoneinwhichthepropertyisincluded.

Check the certificated credit box if the Renaissance Zonedesignation is based on a Development Agreement or aQualifiedCollaborationAgreement.

BUSINESS ACTIVITY CONDUCTED WITHIN THE RENAISSANCE ZONELine 3:Determinetheaverage valueofpropertybyaveragingthe values at the start and end of the tax period. The State

Treasurermayrequiretheperiodicaveragingofvaluesduringthe tax year if reasonably required to reflect properly theaveragevalueofataxpayer’sproperty.Propertyownedbythetaxpayerisvaluedatitsoriginalcost.

Line 4:Property rentedby the taxpayer isvaluedat eight (8)times the net annual rental rate.Net annual rental rate is theannual rental rate paidby the taxpayer less any annual rentalratereceivedbythetaxpayerfromsubrentals.

ADJUSTED SERVICES PERFORMED IN THE RENAISSANCE ZONE Line 17: Enter the amount deducted in arriving at federaltaxable income (as defined for MBT purposes) for the taxyear for depreciation, amortization, or accelerated write-off for tangible property in aZone exempt underMichiganCompiled Law (MCL) 211.7ff. Claim property exempt inthe tax year; also claim new property that will be exemptin the immediately following tax year (i.e., property thathas not been subject to, or exempt from, the collection oftaxesunder theGeneralPropertyTaxActandhasnotbeensubjectto,orexemptfrom,advalorempropertytaxesleviedin another state, except that receiving an exemption asinventorypropertydoesnotdisqualifyproperty).

Line 19:OnlyapersonreportingunderanMBTorganizationtype of Individual, Partnership, or S Corporation shouldcomplete line 19. This includes a Limited Liability Company(LLC) that files its federal return as a Partnership or SCorporation.

NOTE:Aperson that isadisregardedentity for federal incometax purposes under the internal revenue code shall be classifiedasadisregardedentityforthepurposesoffilingtheMBTannualreturn. This means that a disregarded entity for federal taxpurposes,includingasinglememberLLCorQ-Sub,mustfileasifitwereasoleproprietorshipifownedbyanindividual,orabranchordivisionifownedbyanotherbusinessentity.

Line 19a: UBGs: Enter the business income from theMBT UBG Combined Filing Schedule for Standard Members,Form4580,Part2A,line30,forthememberwhoseactivityisreportedonthiscopyofForm4595.

Insurance companies and financial institutions:Thesetypesoftaxpayersdonotcalculatebusinessincomeastheirtaxbase.For Renaissance Zone credit purposes, however, they mustcalculate and enter here pro forma business income. Use theBusiness Income Worksheet (Worksheet 4746), inForm4600,to calculate business income. Attach that worksheet to thereturn.SeeMCL208.1201forfurtherguidance.

Line 19b: UBGs: Enter the pro forma apportionmentpercentagefromForm4580,Part2A,line16a,forthememberwhoseactivityisreportedonthiscopyofForm4595.

Insurance companies and financial institutions: Unlikestandard taxpayers, these types of taxpayers donot apportiontheir tax base by a sales factor. For Renaissance Zone creditpurposes, however, they must calculate pro forma sales inMichigan and sales everywhere, and enter here a pro formaapportionment percentage based on those figures. Seeinstructions for Form 4567 for guidance on the definition ofsalesandapplicablesourcingprovisions.

153

Line 20:Enter amount from line 18, or, if the taxpayer is anIndividual, Partnership, S Corporation, or an LLC federallytaxed as a Partnership or S Corporation, enter amount fromline19e.

TAXPAYERS FIRST LOCATED WITHIN THE RENAISSANCE ZONE BEFORE 12-31-2002 ONLYDuetoPublic Act 282 of 2014,instructionsthatappliedtotaxpayersfirstlocatedwithintheRenaissanceZonebefore12-31-2002nowapplytotaxpayersfirstlocatedwithintheRenaissanceZoneBEFORE 12-01-2002.

Line 22:Taxpayersfirst locatedwithin theRenaissanceZonebefore December 1, 2002, ONLY (all others, leave lines 22athrough22eblank).Ataxpayer that is locatedandconductingbusinessactivityintwoZoneswillpreparetwocopiesofForm4595. Base each copy on the taxpayer’s history in the Zonebeingreported.

Line 24: ThefollowingisanadjustmentduetoPublic Act 282 of 2014.

For taxpayers first located within the Zone before December 1, 2002Step 1:Determinethelesserofline15andline21.

Step 2:Determinethegreaterof line23andtheresultofStep1.Enterthisamountonline24.

All other taxpayersEnterthelesserofline15andline21.

Lines 25a and 25b:For a taxyear thatbeginswithinoneofthelastthreeyearsoftheZone’sdesignation,areducedcreditisallowed,asfollows:

• ForataxyearthatbeginswithinthesecondyearbeforethefinalyearofdesignationasaRenaissanceZone,75percentofthenormallycalculatedcreditisallowed.

• For a tax year that beginswithin the year before the finalyearofdesignationasaRenaissanceZone,50percentofthenormallycalculatedcreditisallowed.

• For a tax year that begins within the final year ofdesignation as a Renaissance Zone, 25 percent of thenormallycalculatedcreditisallowed.

Line 25b: Multiply line 24 by the reduced credit percentageprovidedintheReducedCreditTable.Carryamounttoline14oftheMBT Miscellaneous Nonrefundable Credits(Form4573),or line 15 of the MBT Miscellaneous Credits for Insurance Companies (Form4596).

If filing multiple 4595 forms, enter the total of line 25b forall Zones on Form 4573, line 14, or Form 4596, line 15, asapplicable.

Include completed Form 4595 as part of the tax return filing.

154

# 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

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 2017 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

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,thisdateis12-2017.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 isadjustedonJanuary1andJuly1.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.

Form 4, Page 2

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.

157

NOTE: These instructions for Unitary Business Groups(UBGs) are meant to supplement general instructions andform-specific instructions for standard taxpayers of theMichiganBusinessTax(MBT),nottoreplacethem.

StandardtaxpayersandstandardmembersrefertoalltaxpayersorUBGmembers,respectively,otherthanfinancialinstitutionsor insurance companies. Financial institutions that aremembersofaUBGshouldsee“SupplementalInstructionsforFinancial Institution Members in UBGs” in theMBT Forms and Instructions for Financial Institutions(Form4599).

There is not a corresponding supplement for insurancecompaniesbecause,althoughtheycanbemembersofaUBG,theydonotfilecombinedreturns.

Introductory pages of this MBT instruction booklet containgeneral information designed to assist in identifyingthe existence and membership of a UBG. The followinginstructionsaddress:

• FilingcombinedreturnsbydifferentmembertypeswithinaUBG.

• UnderstandingtheroleoftheDesignatedMember(DM).

ForeachtypeofUBGmemberthatisreportedonacombinedreturn (standard and financial institution), there is a requiredform that collects data that is necessary for preparation of acombinedreturn:

• The MBT Unitary Business Group Combined Filing Schedule for Standard Members (Form 4580) supportsa combined return of standardmembers to be filed on theMBT Annual Return(Form4567).

• TheMBT Unitary Business Group Combined Filing Schedule for Financial Institutions (Form 4752) supports a combinedreturnoffinancialinstitutionmemberstobefiledontheMBT Annual Return for Financial Institutions(Form4590).

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 theMBT Tax Loss Adjustment for the Small Business Alternative Credit (Form 4575), the following areinstructionsthatapplytomorethanoneform.

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)fileasinglecombinedreturnonForm4567.Financial institutionmembersof a UBG (and any standard member owned by and unitarywithafinancialinstitutioninthegroup)fileacombinedreturnonForm4590.InsurancecompanymembersofaUBGeachfileseparatelyonForm4588.

Before completing a combined return, UBGs should firstcomplete theForm4580orForm4752.These forms areusedto gather and combine 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 4588, but should be listed as an excludedaffiliatewithan incompatible taxbaseonForm4580orForm4752,asapplicable.

NOTE: IfamemberofaUBGholdsacertificatedcreditandwishes to claim that credit, the group and not the member,mustmaketheelectiontoremaintaxableundertheMBT.TheentireUBGwill remain taxable until the certificated and anycarryforwardofthatcreditisexhausted.

The Designated Member (DM)AUBGcombined returnof standardmembers isfiledunderthenameandFederalEmployerIdentificationNumber(FEIN)or Michigan Treasury (TR) assigned number of the DM ofthe standard member group. Designated Member means aUBGmember thathasnexuswithMichiganandwillfile thecombinedMBTreturnonbehalfof thestandardmembersofthe group. In a brother-sister controlled group, anymemberwith nexusmay be designated to serve asDM. In a parent-subsidiary controlled group or a combined controlled group(aninterlockingcombinationofaparent-subsidiarygroupandabrother-sistergroup),thecontrollingmembermustserveasDMifithasnexuswithMichigan.Ifitdoesnothavenexus,thecontrollingmembermayappointanymemberwithnexuswith Michigan to serve as DM. That DM must continueto serve as such every year, unless it ceases to be a groupmember or the controlling member attainsMichigan nexus.The filing period of a combined return is based on the taxyearoftheDM.

IfaUBGiscomprisedofbothstandardmembersandfinancialinstitutions,theUBGwillhavetwoDMs(oneforthestandardmembers completing Form 4567 and related forms, and onefor the financial institution members completing Form 4590and related forms). If the standardmembers are owned by afinancialinstitution,theywillfileonthefinancialUBGreturn,Form4590.

NOTE:IftheUBGfiledMBTin2011andelectedtofileMBTin2012, thentheUBGmustuse thesameDMif theDMstillhasnexusandisstillamemberoftheUBGin2012.IftheDMnolongerhasnexusorisnolongeramemberoftheUBG,thentheUBGmustselectanewDM.

Role of the DM: The DM speaks, acts, and files the MBTreturn on behalf of the group for MBT purposes. Only theDMmayfileavalidextensionrequestforthegroup.Treasurymaintains the group’s MBT tax data (e.g., prior MBTreturns, business loss carryforward, tax credit carryforward,overpaymentcreditforward)undertheDM’snameandaccountnumber.Thedesignatedmembermustbeofthesametaxpayertype (standard or financial institution) as the members forwhichitfilesacombinedreturn.

2018 Supplemental Instructions for Standard Members in Unitary Business Groups (UBGs)

158

Special Instructions for Supporting FormsMostformsarecompletedbyUBGsonagroupbasis.However,the following forms must be completed with entity-specificdata,ratherthangroupwidedata:

• Michigan Historic Preservation Tax Credit(Form3581)• MBT Loss Adjustment for the Small Business Alternative

Credit (Form 4575). (In some circumstances, a separatecopyofForm4575alsoiscompletedwithgroupwidedata.)

• MBT Schedule of Shareholders and Officers(Form4577)• MBT Schedule of Partners(Form4578)• MBT Qualified Affordable Housing Seller’s Deduction

(Form4579)• MBT Investment Tax Credit Recapture From Sale of Assets

Acquired Under Single Business Tax(Form4585)• MBT Schedule of Business Activity Protected Under Public

Law 86-272 (Form 4586) or MBT Schedule of Business Activity for Non-Designated Members of a Unitary Business Group Protected Under Public Law 86-272(Form4581),asapplicable.

• Michigan Farmland Preservation Tax Credit(Form4594)• MBT Renaissance Zone Credit Schedule(Form4595)• Gross Receipts Worksheet (Worksheet4700)• Business Income Worksheet (Worksheet4746).

If more than one member completes one of these forms,multiple copies of that formmust be included in the group’scombinedreturn.

Inaddition,manycreditsrequireanentity-specificcalculationofacreditamount.ThefollowingtableprovidesasummaryofUBGcreditcalculations,where:

A)Thetestorcriteriatoqualifyforthecreditshouldbeappliedonagroupbasis(G)oraseparateentitybasis(E),

B) If the qualification test is satisfied, the calculation of theavailable credit amount should be on a group basis (G) or aseparateentitybasis(E),

C) Calculation of the credit should be done after eliminationofintercompanytransactions(YorN).Note:Thisappliesonlyto the calculation of the credit. The tax liability of the UBGagainst which the credit will be applied is calculated aftereliminationofallintercompanytransactionsfromthetaxbasesandapportionment.

Credit (A) (B) (C)Anchor Company Payroll Credit E E N

Anchor Company Taxable Value Credit E E N

Arts and Culture Credit G G N

Bottle Deposit Administration Credit E E N

Brownfield Redevelopment Credit E E N

Community or Education Foundation Credit G G N

Compensation Credit G G N

Farmland Preservation Credit E E N

Film Infrastructure Credit E E N

Film Job Training Credit E E N

Credit (A) (B) (C)Film Production Credit E E N

Gross Receipts Filing Threshold Credit G G N

Historic Preservation Credit E E N

Homeless Shelter/Food Bank Credit G G N

Hybrid Technology Research and Development Credit E E N

Individual or Family Development Account Credit G G N

International Auto Show Credit E E N

Investment Tax Credit G G *

Large Food Retailer Credit G G N

Low-Grade Hematite Credit G G N

MEGA Advanced Lithium Ion Battery E E N

MEGA Battery Cell Sourcing E E N

MEGA Employment Tax Credit E E N

MEGA Federal Contract Credit E E N

MEGA Photovoltaic Credit E E N

MEGA Plug-In Traction Battery Integration E E N

MEGA Plug-In Traction Battery Manufacturing Carryforward E E N

MEGA Poly-silicon Energy Cost Credit E E N

Mid-size Food Retailer Credit G G N

NASCAR Speedway Credit E E N

New Motor Vehicle Dealer Inventory Credit E E N

Next Energy Business Activity Credit E E N

Next Energy Payroll Credit E E N

Personal Property Tax Credit G G N

Private Equity Fund Credit E E N

Public Contribution Credit G G N

Renaissance Zone Credit E E N

Research and Development Credit G G N

Small Business Alternative Credit G G N

Start-up Business Credit E E N

Workers’ Disability Supplemental Benefit Credit G G N

* Assets transferred between members of the group arenot a capital investment in qualifying assets for purposesof calculating this credit. Intercompany eliminations areotherwisenotapplicable.

The available amount of each of the above credits is takenagainst the entire group’s tax liability. Additional UBGinstructions are provided on forms where these credits arecalculated.

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).

Pro Forma Calculations for Certain CreditsForsomecredits,evaluationofwhetheraUBGisqualified toclaim the credit is based on characteristics and activities of a

159

singlemember,ratherthanthegroupasawhole.Similarly,forsomecredits,after it isdetermined thataUBGisqualified toclaimthecredit,calculationoftheamountofcreditavailableisbasedondataofasinglemember,ratherthanthegroup.Eachcreditrequiringthismethodisidentifiedontheformonwhichit iscalculated.Apro formaMBTliability is required for themembergeneratingthecredit.

Where a pro forma calculation is required, the underlyingobjective is to determine what the tax liability (immediatelyprior to the credit) of theUBGmember generating the creditwouldhavebeenifthatmemberwasnotincludedinthegroup.Therefore, the member generating the credit must calculateits pro forma tax liability as if it was a singular, stand-alonetaxpayer inall aspects.This supportingpro formacalculationshould be provided in a statement attached to the return.However, this calculation and its results should never betransferred to Form 4567 or displayed in a layout similar toForm4567.

Effects of Members Joining a GroupWhenanentitybecomesamemberofaUBGpartwaythroughthemember’staxyear,forMBTpurposesthenewmemberwillexperienceashorttaxyearbeginningonthedatethememberjoins 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 acertificatedcreditorcarryforwardofacertificatedcredit, theUBG taxpayer will continue to apply the choice it made forthefirst taxyear ending afterDecember 31, 2011, concerningthe MBT election. Or, in the case of a qualifying historicpreservation, brownfield redevelopment, or farmland credit,the electionmadeby thegroupat a later time. If the joiningmemberbringsaqualifyingbrownfieldorhistoricpreservationcredit for which credit amount remains available, the UBGtaxpayermaymake theelection tobe taxableunder theMBTinayearinwhichcreditamountisavailableandmustremaintaxable under the MBT for all years in which brownfield orhistoric preservation credit amount is available if the electionismade.

Effects of Members Leaving a GroupWhen a member of a UBG ceases to be a member partway through the member’s tax year, for MBT 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.

When amember leaves theUBG other than at the end of itsfederal tax year, any available certificated credit generatedby the member will be allocated to the period that includesthe effective date of the certificate. A credit carryforward

attributable to the departing member and existing in thedeparting member’s (or the group’s) account prior to leavingthegrouptypicallywillbeappliedfirsttothegroupreturnforthe group filing period that includes the end of the departingmember’s short state tax year that ended upon leaving thegroup.Anycarryforwardremainingafterthatapplication(i.e.,neitherconsumedorexpired)will,generally,befullyavailableforusebythedepartingmember.

If the remainingUBGdoesnotholdacertificatedcreditafterthedepartingmember leaveswith credit then thegroup is nolonger eligible to continue under the MBT. If the departingmember joins another UBG, bringing the certificated credit,the UBG taxpayer will continue to apply the choice it madeconcerning the credit election. (In the case of qualifyingbrownfield and historic preservation certificated credits, see“EffectsofJoiningaGroup”formoredetail.)Ifthedepartingmemberbecomesasolofilerwithremainingcertificatedcredit,that member will continue to file under the MBT until thecreditisusedup.TheseresultsdonotchangeifthedepartingmemberistheDM.

Other UBG-Related IssuesAn affiliated person that is excluded from membership in aUBGbecauseitisaforeignperson,whichhasnexusandmeetstheapplicablefilingthreshold,mustfileaseparateMBTreturn.

Supplemental Instructions for the MBT Loss Adjustment for the Small Business Alternative Credit, Form 4575For thepurposeofapplying lossadjustment fromamember’sseparately filed year, when members’ separate years sharea common year end and the amount of available loss from asingletaxyearexceedstheamountneededtooffsettheUBG’sadjusted business income (ABI) disqualifier, the portion ofavailablelossfromthattaxyearusedbyeachmembertooffsetthe group’s disqualifier must reflect the proportion of eachmember’stotallossavailablefromthattaxyearwithrespecttothetotallossavailabletotheUBGfromthesametaxyear.

EXAMPLE: (Note that while the dates in the following example don’t apply to a tax year 2018 return, the concept remains the same.) The total loss adjustment needed toreduce a UBG’s ABI disqualifier is $65. The UBG has lossavailable in the amount of $50 from its 2008 tax year,whichhadataxyearendofDecember31,2008.MemberA,whowasincludedintheUBG’s2008taxyearreturn,haslossavailableintheamountof$20fromits2006SBTtaxyearwhichendedSeptember30,2006.MemberB,whobecameamemberoftheUBGduringthecurrenttaxyearduetoachangeinownership,haslossavailableintheamountof$25fromits2006SBTtaxyear which ended September 30, 2006, and loss available intheamountof$25fromitsseparate2008taxyearwhichendedSeptember30,2008.MemberCalsobecameamemberoftheUBGduring thecurrent taxyearandhas lossavailable in theamount of $75 from its separate 2008 tax year which endedSeptember30,2008.

In thisexample, threecolumnsof the tablewillbepopulated:one columnwith a tax year end of 09-30-2006 and availableloss of $45; a second column with a tax year end of 09-30-

160

2008 and available loss of $100; and a third column with ataxyearendof12-31-2008andavailable lossof$50.Becauselossisusedonafirst-in,first-outbasis, thegroupwillusetheentireamountoflossavailable($45)fromthecolumnwiththe09-30-2006 tax year end; that is, all ofMemberA’s availableloss ($20) from its 2006 SBT year, aswell as all ofMemberB’s available loss from its 2006 SBT year ($25). The use ofthe members’ losses must be maintained in the taxpayer’srecords. The remaining $20 of loss adjustment needed toreduce the groups’ ABI disqualifier will be subtracted fromthe loss available in the second column with the 09-30-2008year end.MembersB andCwill account for this adjustmentin their records in aproportionalmanner.That is,MemberBwill record a $5 loss adjustment used from its 2008 separatetax year, or the remaining loss adjustment needed to reducethe group’s ABI disqualifier ($20) multiplied by a fraction,the numerator of which is Member B’s available loss ($25)and the denominator of which is the total loss available inthe second column ($100). Likewise, Member C will recorda lossadjustmentusedof$15.Thus, insubsequent taxyears,the UBGwill have the following remaining loss available toreduce its ABI disqualifier:Member B’s available loss in theamount of $20 from its 2008 separate tax year;Member C’savailablelossintheamountof$60fromits2008separatetaxyear,and theUBG’savailable loss in theamountof$50fromits2008 taxyear.The lossavailable to theUBGto reduce itsABIdisqualifierwillnotbeaffectedbyMemberB’sorC’suse,ifany,ofavailablelossfromtheirseparatetaxyearstoreducetheirrespectiveshareholderincomedisqualifiers.

Further Guidance on Existence and Membership of a UBGForfurtherguidance,pleaseconsultthefollowing:

• Onlineatwww.michigan.gov/treasury/.Clickon“Reportsand Legal Resources” for information on RevenueAdministrative Bulletins (RABs). Of particular interestare RAB 2010-1, MBT—Unitary Business Group ControlTest, and RAB 2010-2, MBT—Unitary Business GroupRelationshipTests.

Michigan Department of Treasury4700 (12-18), Page 1

FEIN or TR Number

UBG Member FEIN or TR Number

Gross Receipts WorksheetComplete the appropriate parts below based on the person’s organization type. Part 1 is for an Individual or Fiduciary; Part 2 is for a C Corporation (or a person filing federal returns as a C Corporation); and Part 3 is for a Partnership or S Corporation (or a person filing a federal return as a Partnership or an S Corporation). Parts 4 and 5 apply to all filers, independent of their organization type.

Gross receipts is not necessarily derived entirely from the federal return, however, this worksheet will calculate gross receipts as defined by law in most circumstances. Taxpayers and tax professionals are expected to be familiar with uncommon situations within their experience, which produce gross receipts not identified by specific lines on this worksheet, and report that amount on the most appropriate line. The Michigan Department of Treasury may adjust the figure resulting from this worksheet to account properly for such uncommon situations. Complete and attach this worksheet to your return. Unitary Business Groups (UBGs) must complete and attach a worksheet for each member.

Gross receipts, before applying the statutory exceptions, consists solely of positive amounts derived from transactions or events. Therefore, if any of the federal return items utilized in Part 1, Part 2 or Part 3 is a net result of both negative and positive transactions, it must be recalculated for use here by counting only the positive elements represented in that net figure.

INFORMATION DIRECTLY FROM SPECIFIC FEDERAL RETURNS

PART 1: INDIVIDUALS AND FIDUCIARIES1. U.S. Form 1040, Schedule C or C-EZ gross receipts (net of returns) .................................................................. 1. 002. U.S. Form 1040, Schedule C, other income ......................................................................................................... 2. 003. U.S. Form 1040, Schedule D, short- and long-term sales price*........................................................................... 3. 004. U.S. Form 1040, Schedule E

a. Part I, total rents received ............................................................................................................................... 4a. 00b. Total royalties received ................................................................................................................................... 4b. 00

5. U.S. Form 4797, gross sales price,* business assets ........................................................................................... 5. 00

6. Gross Receipts from Federal Return for Individuals and Fiduciaries. Add lines 1 through 5. Carry amount to line 19 ..................................................................................................... 6. 00

PART 2: C CORPORATIONS7. U.S. Form 1120, balance of gross receipts or sales less returns and allowances ................................................ 7. 008. U.S. Form 1120, sum of dividends, interest, gross rents and gross royalties ........................................................ 8. 009. U.S. Form 1120, other income ............................................................................................................................... 9. 00

10. U.S. Form 1120, Schedule D, short- and long-term sales price* ........................................................................... 10. 0011. U.S. Form 4797, gross sales price* ....................................................................................................................... 11. 00

12. Gross Receipts from Federal Return for C Corporations. Add lines 7 through 11. Carry amount to line 19 ................................................................................................... 12. 00

PART 3: PARTNERSHIPS AND S CORPORATIONS13. U.S. Form 1065, or U.S. Form 1120S

a. Gross receipts (net of returns) ......................................................................................................................... 13a. 00b. Other income/receipts ...................................................................................................................................... 13b. 00

14. U.S. Form 8825, gross income from real estate rentals ........................................................................................ 14. 0015. U.S. Form 1065, or 1120S, Schedule D, short- and long-term sales price* .......................................................... 15. 0016. U.S. Form 1065, or 1120S, Schedule K

a. Gross other rental income ............................................................................................................................... 16a. 00b. Interest, dividend, royalty income .................................................................................................................... 16b. 00c. Other income ................................................................................................................................................... 16c. 00

17. U.S. Form 4797, gross sales price*, business assets ........................................................................................... 17. 00

18. Gross Receipts from Federal Return for Partnerships and S Corporations. Add lines 13 through 17. Carry amount to line 19 ................................................................................................ 18. 00

* See the definition of Gross Receipts under MCL § 208.1111.

Continued on Page 2

4700, Page 2 FEIN or TR NumberUBG Member FEIN or TR Number

ADJUSTMENTS TO FEDERAL GROSS RECEIPTS

19. Gross Receipts as recorded on line 6, 12 or 18 ............................................................................................... 19. 00

PART 4: ADDITIONS TO GROSS RECEIPTSTo the extent EXCLUDED or DEDUCTED in arriving at the number used in line 19, include the following:

20. Proceeds from the sale of assets used in a business activity ............................................................................... 20. 0021. Dividend and interest income ................................................................................................................................ 21. 0022. Receipts from gratuities stipulated on a bill ........................................................................................................... 22. 0023. Receipts from gross commissions earned............................................................................................................. 23. 0024. Receipts from client reimbursed expenses not obtained in an agency capacity ................................................... 24. 0025. Gross proceeds from intercompany sales ............................................................................................................. 25. 0026. Rents ..................................................................................................................................................................... 26. 0027. Royalties ................................................................................................................................................................ 27. 0028. Sales of scrap and other similar items................................................................................................................... 28. 0029. Other receipts not included in previous lines ......................................................................................................... 29. 0030. Add lines 20 through 29......................................................................................................................................... 30. 0031. SUBTOTAL Add line 19 and line 30 ................................................................................................................. 31. 00

PART 5: EXCLUSIONS FROM GROSS RECEIPTSTo the extent INCLUDED in arriving at line 31, enter the following receipts:

32. Proceeds from sales by a principal collected by the taxpayer in an agency capacity and delivered to the principal .... 32. 0033. Amounts received on behalf of a principal that are received and expended by the taxpayer in an agency capacity

for the following:

a. Performance of service by third party for the benefit of the principal for service required by law to be performed by a licensed person .................................................................................................................................................................... 33a. 00

b. Performance of service by a third party for the benefit of the principal that the taxpayer has not undertaken a contractual duty to perform .................................................................................................................................................. 33b. 00

c. Payment of principal and interest under a mortgage loan or land contract, lease or rental payments, or taxes, utilities, or insurance premiums relating to real or personal property owned or leased by the principal .................... 33c. 00

d. Capital asset that is or will become eligible for depreciation, amortization, or accelerated cost recovery by the principal for federal income tax purposes, or real property owned or leased by the principal .................................... 33d. 00

e. Property not described above that is purchased by taxpayer on behalf of the principal, where taxpayer does not take title to or use in the course of performing its contractual business activities ....................................... 33e. 00

f. Fees, taxes, assessments, levies, fines, penalties, or other payments established by law that are paid to a governmental entity and that are the legal obligation of the principal ............................................................... 33f. 00

34. Amounts excluded from gross income of a foreign corporation engaged in the international operation of aircraft under IRC § 883(a) ................................................................................................................................................ 34. 00

35. Amounts received by advertising agency used to acquire advertising media time, space, production, or talent on behalf of another person................................................................................................................................... 35. 00

36. Amounts received by a newspaper to acquire advertising space not owned by that newspaper in another newspaper on behalf of another person, excluding any consideration received by taxpayer for acquiring that advertising space................................................................................................................................................... 36. 00

37. Amounts received by taxpayer that manages real property owned by a third party that are deposited into a separate account kept in the name of that third party and that are not reimbursements to the taxpayer and are not indirect payments for management services that the taxpayer provides to that third party ................................. 37. 00

38. For taxpayers that during tax year do NOT both buy and sell any receivables, proceeds from the taxpayer’s transfer of an account receivable, if the sale that generated that receivable was included in Gross Receipts for Federal Income Tax purposes ................................................................................................................................................. 38. 00

39. Proceeds from original issue of stock or equity instruments or equity issued by a regulated investment company as defined in IRC § 851 ........................................................................................................................................... 39. 00

40. Proceeds from the original issue of debt instruments ......................................................................................................... 40. 0041. Refunds from returned merchandise ...................................................................................................................................... 41. 0042. Cash and in-kind discounts ................................................................................................................................... 42. 00

Continued on Page 3

4700, Page 3 FEIN or TR NumberUBG Member FEIN or TR Number

PART 5: EXCLUSIONS FROM GROSS RECEIPTS — CONTINUED43. Trade discounts ..................................................................................................................................................... 43. 0044. Federal, state, or local tax refunds ........................................................................................................................ 44. 0045. Security deposits ................................................................................................................................................... 45. 0046. Payment of the principal portion of loans .............................................................................................................. 46. 0047. Value of property received in a like-kind exchange ............................................................................................... 47. 00

48. Proceeds from a sale, transaction, exchange, involuntary conversion, maturity, redemption, repurchase, recapitalization, or other disposition or reorganization of tangible or intangible property that are capital assets and IRC § 1231(b) land:

a.

Amount from such dispositions of capital assets as defined in IRC § 1221(a) or land used in a trade or business as defined in IRC § 1231(b) ................... 48a. 00

b.

Combined gains from each disposition in this category that produced a gain that is included in that taxpayer’s federal taxable income. (Do not net against dispositions that produced loss.).............................................. 48b. 00

c. Amount excluded from Gross Receipts. Subtract line 48b from line 48a .................................................... 48c. 0049. Proceeds from a sale, transaction, exchange, involuntary conversion, maturity, redemption, repurchase,

recapitalization, or other disposition or reorganization of tangible or intangible property that is a hedging transaction(a):a. Amount from such dispositions of property used in a hedging transaction ..... 49a. 00b. Amount of overall net gain from hedging transactions entered into during

the tax year ................................................................................................. 49b. 00c. Amount excluded from Gross Receipts. Subtract line 49b from line 49a .................................................... 49c. 00

50. Proceeds from a sale, transaction, exchange, involuntary conversion, maturity, redemption, repurchase, recapitalization, or other disposition or reorganization of tangible or intangible property that is investment and trading assets managed as part of the person’s treasury function(b):

a. Amount from such dispositions of property that is investment and trading assets managed as part of the person’s treasury function ......................... 50a. 00

b. Amount of overall net gain from treasury function incurred during tax year.. 50b. 00c. Amount excluded from Gross Receipts. Subtract line 50b from line 50a .................................................... 50c. 00

51. Proceeds from an insurance policy, a settlement of a claim or a judgment in a civil action, less any proceeds that are included in federal taxable income (as defined for MBT purposes) ......................................................... 51. 00

52. For a sales finance company, as defined in MCL § 492.102 and directly or indirectly owned in whole or in part by a motor vehicle manufacturer as of January 1, 2008, and for a person that is a broker or dealer as defined under 15 USC § 78c(a)(4) or (5), or a member of the UBG of that broker or dealer that buys and sells con-tracts subject to 7 USC § 1 to 27f for its own account:

a. Amounts realized from the repayment, maturity, sale, or redemption of the principal of a loan, bond, or mutual fund, certificate of deposit, or similar marketable instrument provided such instruments are not held as inventory .............. 52a. 00

b. Principal amount received under a repurchase agreement or other transaction properly characterized as a loan ... 52b. 0053. For a mortgage company(c), proceeds representing the principal balance of loans transferred or sold ................ 53. 00

54. For a professional employer organization(d) (PEO), any amount charged that represents the actual cost of wages and salaries, benefits, worker’s compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the PEO under a professional employer arrangement ............................ 54. 00

55. Any invoiced items used to provide more favorable floor plan assistance to a person subject to the MBT than to a person not subject to the MBT and paid by a manufacturer, distributor, or supplier ....................................... 55. 00

56. For an individual, estate, or other person organized for estate or gift planning purposes:

a. Receipts from investment activity, including interest, dividends, royalties, and gains from an investment portfolio or retirement account, if the investment activity is not part of the taxpayer’s trade or business ......... 56a. 00

b. Receipts from the disposition of tangible or intangible property held for personal use and enjoyment, such as a personal residence or personal assets ..................................................................................................... 56b. 00

c. Other amounts received that are NOT from transactions, activities, and sources in the regular course of the taxpayer’s trade or business ............................................................................................................................ 56c. 00

57. Receipts derived from investment activity by a person organized exclusively to conduct investment activity and that does not conduct investment activity for any person other than an individual or a person related(e) to that individual, or by a common trust fund established under MCL § 555.101 to 555.113 ........................................... 57. 00

58. Interest and dividends derived from obligations or securities of the United States government, this state, or any governmental unit of this state (as defined under MCL § 141.1053) ..................................................................... 58. 00

Continued on Page 4

4700, Page 4 FEIN or TR NumberUBG Member FEIN or TR Number

PART 5: EXCLUSIONS FROM GROSS RECEIPTS (CONT.)59. Amounts attributable to an ownership interest in a pass-through entity, regulated investment company, real estate

investment trust, or cooperative corporation whose business activities are taxable under the modified gross receipts tax or would be subject to the modified gross receipts tax if the business activities were in this state(f) ..... 59. 00

60. For a regulated investment company as that term is defined under IRC § 851, receipts derived from investment activity by that regulated investment company ...................................................................................................... 60. 00

61.

Only Health Maintenance Organizations (HMOs) holding contract with the State for Medicaid services may complete this line: If applicable per MCL § 208.1111(1) (dd), enter amounts received during the period that is both within the tax year and within October 1, 2018, through September 30, 2019, for Medicaid premium or reimbursement of costs associated with service provided to a Medicaid recipient or beneficiary. The State Budget Director has until January 1, 2019, to certify that necessary rates provide explicit adjustment for MBT obligations, in which case NO deduction will be allowed for any HMO holding contract with the State for Medicaid services(g).. 61. 00

62. For a taxpayer that provides health care management consulting services, amounts received by the taxpayer as fees from its clients that are expended by the taxpayer to reimburse those clients for labor and nonlabor services that are paid by the client and reimbursed to the client pursuant to a services agreement ........................................ 62. 00

63. Bad Debt amounts deducted for Federal Income Tax that correspond to items included in MGR tax base for current or prior MBT return .................................................................................................................................... 63. 00

64a. Dividends and royalties received or deemed received from a foreign operating entity or a person other than a U.S. person, including, but not limited to, the amounts determined under IRC § 78, or 951 through 964 ................ 64a. 00

64b. Exclusion of amounts attributed to the taxpayer pursuant to a discharge of indebtedness as described under IRC 61(a)(12), including forgiveness of a nonrecourse debt. 64b. 00

65. Add lines 32 through 47, 48c, 49c, 50c, and 51 through 64b ............................................................................... 65. 00

To the extent INCLUDED in arriving at line 31, and to the extent NOT deducted as purchases from other firms on the MBT Annual Return, Form 4567, lines 13, 14 or 15, (or, for UBG standard members, the MBT UBG Combined Filing Schedule for Standard Members, Form 4580, lines 18, 19 or 20) enter:

66. Sales or use taxes collected from or reimbursed by a consumer or other taxes collected from or reimbursed by a purchaser and remitted to a local, state, or federal tax authority........................................................................ 66. 00

67. In the case of receipts from the sale of motor fuel by a person with a motor fuel tax license or a retail dealer, the amount equal to federal and state excise taxes paid by any person on such motor fuel under IRC § 4081 or applicable state law ... 67. 00

68. In the case of receipts from the sale of beer, wine, or intoxicating liquor by a person holding a license to sell, distribute, or produce those products, the amount equal to federal and state excise taxes paid by any person on or for such products under IRC Subtitle E or applicable state law ................................................................... 68. 00

69. In the case of receipts from the sale of communication, video, internet access and related services and equipment, any government imposed tax, fee, or other imposition in the nature of a tax or fee required by law, and authorized to be charged on a customer’s bill or invoice, but not including net income taxes, net worth taxes, property taxes, or the MBT ......................................................................................................................... 69. 00

70. In the case of receipts from the sale of electricity, natural gas, or other energy source, any government imposed tax, fee, or other imposition in the nature of a tax or fee required by law, and authorized to be charged on a customer’s bill or invoice, but not including net income taxes, net worth taxes, property taxes, or the MBT ............ 70. 00

71. Any deposit required under the following:a. 1976 IL 1, MCL § 445.571 to 445.576 ............................................................................................................... 71a. 00b. R 436.1629 of the Michigan administrative code............................................................................................... 71b. 00c. R 436.1723a of the Michigan administrative code............................................................................................. 71c. 00d. Any substantially similar beverage container deposit law of another state ....................................................... 71d. 00

72. Excise tax collected from or reimbursed by a consumer and remitted pursuant to MCL § 207.371 to 207.383 ... 72. 00

73.In the case of receipts from the sale of cigarettes or tobacco products by a wholesale dealer, retail dealer, distributor, manufacturer, or seller, the amount equal to the federal and state excise taxes paid by any person on or for such products under IRC Subtitle E or applicable state law ................................................................... 73. 00

74. SUBTOTAL Add lines 66 through 73............................................................................................................... 74. 00

GROSS RECEIPTS FOR MBT PURPOSES

75. Subtract lines 65 and 74, from line 31. Carry this amount to Form 4567, line 12. Standard members of a UBG will carry this amount to Form 4580, Part 2A, line 17 ............................................................................................ 75. 00

Superscript Explanations on Page 5

4700, Page 5

Additional instructionsa) For purposes of this provision, a hedging transaction is one entered into by the taxpayer in the normal course of the taxpayer’s trade or business primarily to manage (i) risk of exposure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity, or investments in foreign operations; (ii) interest rate fluctuations; or (iii) commodity price fluctuations. Transfer of title of real or tangible personal property is not a hedging transaction. “Hedging transaction” means that term as defined under IRC § 1221 regardless of whether the transaction was identified by the taxpayer as a hedge for federal income tax purposes, provided, however, that transactions not identified as a hedge for federal income tax purposes shall be identifiable to the department by the taxpayer as a hedge in its books and records.b) For purposes of this provision, a person principally engaged in the trade or business of purchasing and selling investment and trading assets is not performing a treasury function. “Treasury function” means the pooling and management of investment and trading assets for the purpose of satisfying cash flow or liquidity needs of the taxpayer’s trade or business.c) “Mortgage company” means a person that is licensed under MCL § 445.1651 to 445.1684, or MCL § 493.51 to 493.81, and has greater than 90 percent of its revenues, in the ordinary course of business, from the origination, sale, or servicing of residential mortgage loans.d) Professional employer organization is not the same thing as a staffing company, and it means an organization that provides the management and administration of the human resources of another entity by contractually assuming substantial employer rights and responsibilities through a professional employer agreement that establishes an employer relationship with the leased officers or employees assigned to the other entity by doing all of the following: • Maintaining a right of direction and control of employees’ work, although this responsibility may be shared with the other entity. • Paying wages and employment taxes of the employees out of its own accounts. • Reporting, collecting, and depositing state and federal employment taxes for the employees. • Retaining a right to hire and fire employees.e) For purposes of this provision, a person is related to an individual if that person is a spouse, brother or sister, whether of the whole or half blood or by adoption, ancestor, lineal descendent of that individual or related person, or a trust benefiting that individual or one or more persons related to that individual.f) For this provision, the following definitions apply: Cooperative Corporation means those organizations described under subchapter T of the IRC; Pass-through entity means a partnership, subchapter S Corporation, or other person, other than an individual, that is not classified for Federal Income Tax purposes as an association taxed as a corporation; Real estate investment trust means the term defined under IRC § 856; and Regulated investment company means the term defined under IRC § 851.

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Michigan Department of Treasury4746 (12-18), Page 1 FEIN or TR Number

UBG Member FEIN or TR Number

Business Income WorksheetComplete the appropriate parts below, based on the person’s organization type. Part 1 is for an Individual or Fiduciary; Part 2 is for a C Corporation (or a person filing federal returns as a C Corporation); and Part 3 is for a Partnership or S Corporation (or a person filing a federal return as a Partnership or an S Corporation). This worksheet will calculate business income as defined by law in most circumstances. Taxpayers and tax professionals are expected to be familiar with uncommon situations within their experience, which produce business income not identified by specific lines on this worksheet, and report that amount on the most appropriate line. Include an attachment explaining that line. The Michigan Department of Treasury may adjust the figure resulting from this worksheet to account properly for such uncommon situations. Complete and attach this worksheet to your return. Unitary Business Groups (UBG) must complete and attach a worksheet for each member.

PART 1: INDIVIDUALS AND FIDUCIARIES1. U.S. Form 1040, Schedule C or C-EZ, net profit/loss............................................................................................ 1. 002. U.S. Form 1040, Schedule D, gain/loss (a) ............................................................................................................. 2. 003. U.S. Form 1040, Schedule E, line 26 rent and royalty income/loss ...................................................................... 3. 004. U.S. Form 4797 gain/loss not included in Schedule D (a) ....................................................................................... 4. 005. Domestic Production Activities deduction based on IRC § 199 reported on U.S. Form 8903, to the extent

deducted from federal taxable income (d) ............................................................................................................... 5. 006. Other Income. Include an attachment explaining this line. .................................................................................... 6. 007. Total business income before adjustment. Add lines 1 through 6 ..................................................................... 7. 008. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC. If adjustment is negative,

enter as negative:a. Net bonus depreciation adjustment (b) ............................................................................................................. 8a. 00b. Gain/loss adjustment on the sale of an eligible depreciable asset (c) .............................................................. 8b. 00

9. Add lines 8a and 8b. If negative, enter as negative.............................................................................................. 9. 0010. Total business income after adjustment. Add lines 7 and 9. Carry amount to Form 4567, line 28.

For a UBG member, carry amount to Form 4580, Part 2A, line 30 ....................................................................... 10. 00

PART 2: C CORPORATIONS11. Federal taxable income from U.S. Form 1120 ....................................................................................................... 11. 0012. Domestic Production Activities deduction based on IRC § 199 reported on U.S. Form 8903, to the extent

deducted from federal taxable income (d) ............................................................................................................... 12. 0013. Miscellaneous. Include an attachment explaining this line .................................................................................... 13. 0014. Total business income before adjustment. Add lines 11, 12 and 13 ............................................................... 14. 0015. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC. If adjustment is negative,

enter as negative:a. Net bonus depreciation adjustment (b) ............................................................................................................. 15a. 00b. Gain/loss adjustment on the sale of an eligible depreciable asset (c) .............................................................. 15b. 00

16. Add lines 15a and 15b. If negative, enter as negative.......................................................................................... 16. 0017. Total business income after adjustment. Add lines 14 and 16. Carry amount to Form 4567, line 28.

For a UBG member, carry amount to Form 4580, Part 2A, line 30 ....................................................................... 17. 00

PART 3: PARTNERSHIPS AND S CORPORATIONS18. U.S. Form 1065, or 1120S Schedule K, Income (loss):

a. Ordinary income/loss ....................................................................................................................................... 18a. 00b. Net real estate rental income/loss ................................................................................................................... 18b. 00c. Net other rental income/loss ............................................................................................................................ 18c. 00d. Interest, dividend, and royalty income ............................................................................................................. 18d. 00e. Net short-term gain/loss .................................................................................................................................. 18e. 00f. Net long-term gain/loss.................................................................................................................................... 18f. 00

g. Other portfolio income/loss .............................................................................................................................. 18g. 00h. Guaranteed payments to partners or wages paid to a member of a LLC Partnership .................................... 18h. 00i. Other net gain/loss under section 1231 ........................................................................................................... 18i. 00j. Other income. Include an attachment explaining this line ............................................................................... 18j. 00

19. Total income/loss. Add lines 18a through 18j ...................................................................................................... 19. 00

Continued on Page 2

4746, Page 2 FEIN or TR NumberUBG Member FEIN or TR Number

PART 3: PARTNERSHIPS AND S CORPORATIONS (CONT.)20. U.S. Form 1065 or 1120S, Schedule K, Deductions:

a. Charitable contributions ................................................................................................................................... 20a. 00b. Section 179 expense ....................................................................................................................................... 20b. 00c. Deductions related to portfolio income ............................................................................................................ 20c. 00d. Other deductions, excluding deductions for domestic production activities (IRC § 199).(d) Include an attachment

explaining this line. ................................................................................................................................................ 20d. 0021. Total deductions. Add lines 20a through 20d ...................................................................................................... 21. 0022. Total business income before adjustments. Subtract line 21 from line 19 ....................................................... 22. 0023. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC (If adjustment is negative,

enter as negative):a. Net bonus depreciation adjustment (b) ............................................................................................................. 23a. 00b. Gain/loss adjustment on the sale of an eligible depreciable asset (c) .............................................................. 23b. 00

24. Add lines 23a and 23b. If negative, enter as negative.......................................................................................... 24. 0025. Total business income after adjustment. Add lines 22 and 24. Carry amount to Form 4567, line 28.

For a member of a UBG, carry amount to Form 4580, Part 2A, line 30 ................................................................ 25. 00

(a) U.S. Forms 1040D and 4797: Report only gains or losses from assets used in a business activity. Do not include personal gains and losses. (b) For the computation of business income for Michigan Business Tax (MBT) purposes, persons who claimed a federal special depreciation deduction under IRC § 168(k) on property first placed in service in 2008 or later must calculate the net bonus depreciation adjustment on those assets as follows: net bonus depreciation adjustment in tax year equals the total federal depreciation claimed in tax year less the total amount of depreciation that would be claimed in the federal return in the tax year if the person had elected not to utilize the bonus depreciation allowance at IRC § 168(k). A person may not elect IRC § 179 expensing of an asset for MBT purposes if it did not elect to use IRC § 179 for that asset federally.

(c) For the computation of business income for MBT purposes, persons who claimed a federal special depreciation deduction under IRC § 168(k) on property first placed in service in 2008 or later and subsequently disposed of that property in the current tax year must calculate the gain/loss adjustment on the sale of those assets as follows: gain/loss adjustment in tax year equals the total amount of federal depreciation that would be claimed in the federal return over the years (starting the year the asset was placed in service and ending on the current tax year) if the person had elected not to utilize the bonus depreciation allowance at IRC § 168(k) on the property being disposed LESS the total federal depreciation claimed over the years (starting the year asset was placed in service and ending on the current tax year). A person may not elect IRC § 179 expensing of an asset for MBT purposes if it did not elect to use IRC § 179 for that asset federally.

(d) Domestic production activites can be considered only for tax years starting before January 1, 2018.

169

170

Country Codes

Countriesareidentifiedbytwo-lettercodes–CountryCodes–whicharerequiredonsomeMichiganBusinessTax(MBT)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