* Web tool instructions for separate filers.

2008 MICHIGAN Business Tax Investment Tax Credit Recapture From Sale of Assets Acquired Under Single Business Tax
Updated 08/14/09

This Web-based tool was designed to assist a unitary business group (UBG) in completing 2008 MBT Form 4585, Line 4, Column E. Form 4585 is designed to implement the statutory language in MCL 208.1403(3)(d, e & f).

Who May Use This Tool
This tool may be used only by UBGs in the following situations:

1. Preparing a combined return for a tax year beginning 1/1/08; OR
2. After filing a combined return for tax year beginning 1/1/08, now preparing a combined return on 2008 forms for the immediately succeeding period (e.g., a short period, or fiscal year 2009), and all members reporting on the first return also are reporting on the second return.

NOTE: In either of the foregoing, if the current period Form 4569, Line 4 is zero, this tool works but is not needed. Form 4585, Line 4E instructions provide a simpler method, with the formula "4E = 4C/4B".

Alternative methods for second returns with changed membership
Ideally, a UBG described above in "Who Should NOT Use This Tool" should use privately developed tax preparation software that performs this function correctly. If you do not have access to software, apply the following manual calculation.

For each SBT filing period represented in Lines 4A-4D of Form 4585, enter [Line 4C divided by Line 4B] as the answer in Line 4E. This will produce tax liability from SBT ITC recapture that is equal to or somewhat higher than the amount required by law. A final alternative is direct application of the statutory language in MCL 208.1403(3)(d, e & f) to the taxpayer's facts by a tax professional with extensive MBT experience.

A. Before You Begin Using the Web-based Tool

1. Gather Single Business Tax (SBT) returns for each UBG member for all filing periods beginning after 1999. If any of those SBT returns have been amended, data from the most recent amendment is the data required by this tool.
2. If the group has filed an MBT return for any period prior to this current filing period, also obtain a copy of that return.
3. Prepare the group's MBT return for the current filing period to a sufficient extent that MBT Form 4569 is complete, and a copy of Form 4585 for each member required to file that form is complete through Line 5 (except Line 4, Column E).

B. Using the Web-based Tool

NOTE: Data entered in the Web-based tool is NOT saved by the Michigan Department of Treasury, beyond a 30-minute time-out period. Any action on the tool renews the 30-minute clock. You may also select "Erase All Data" to clear the data immediately after you finish.

1. Taxpayer Name and FEIN/TR Number: Enter the designated member's (DM's) name and Federal Employer Identification Number (FEIN) or TR number in these two fields. Do not include a hyphen in the identification number.
2. UBG Member Name and FEIN/TR Number: In these two fields enter the name and FEIN or TR number of the member whose tax return data is about to be entered. We recommend that you begin with the DM, in which case the DM's name and number will be entered in both this and the preceding line. The tool depends upon entries in each of these name/FEIN lines to manage the data during the brief time that data is maintained in this program.
3. Go: Click the "Go" button to the right of the member's FEIN/TR field. It is essential to do this each time a new member has been identified for data entry.
4. SBT Data Entry: Click the button entitled "Enter ITC Data from SBT returns (2000 - 2007)." This button opens four data fields. In each of these fields, enter data of the specific UBG member identified in the second name/FEIN line above.

File Period End Date: Enter the end date of the SBT filing period for which you are about to enter data. Begin with the oldest applicable SBT period. This must be a filing period beginning after 1999. NOTE: For an SBT filing period in which this member filed a C-8000 with no C-8000ITC attachment, or a C-8030, enter in this field the filing period end date, and enter zero for the three fields described below. However, for an SBT filing period in which this member filed nothing, or filed a C-8044, do not enter any information in this field or the three fields below.

Net Capital Investment: From Form C-8000ITC of this member's SBT return for the filing period identified above, enter net capital investment reported on Line 24. This corresponds to the number entered on MBT Form 4585, Line 4, Column B.

SBT Investment Tax Credit: From Form C-8000ITC of this member's SBT return for the filing period identified above, enter SBT Investment Tax Credit reported on Line 33. This corresponds to the number entered on MBT Form 4585, Line 4, Column C.

SBT ITC Used: From Form C-8000ITC of this member's SBT return for the filing period identified above, enter the amount reported on Line 36. This corresponds to the number entered on MBT Form 4585, Line 4, Column D.

NOTE: An SBT ITC carryforward may be used for up to nine filing periods after the period in which it arose, but not later than the last filing period ending in 2009. A UBG member that had ten or more SBT filing periods after it first created an SBT ITC carryforward must take special care not to include in this field the use of an expired carryforward.

5. Save: Click the "Save" button to complete entry of this SBT filing period.
6. Edit: Note that pressing the "Save" button creates (or adds to) a table reflecting data entered. At the left end of each line in this table is an "Edit" link. If, after saving data you notice an error in the table, use the "Edit" link to amend the line item. After editing a line, press "Save."
7. Repeat for This Member: To enter data of this member for another SBT period, again click the button entitled "Enter ITC Data from SBT returns (2000 - 2007)," and repeat the instructions above. Enter and save data for each applicable SBT period of this member, from oldest to most recent.
8. MBT Data Entry: This step will include data from the partially completed MBT return for the current filing period, as described in section A3 above. When data from all applicable SBT periods of this member has been entered and saved, click the button entitled "Enter ITC Data from MBT Form 4569 (2008 - 2009)." This button opens the following two data fields:

File Period End Date: Enter the end date of the MBT filing period for which you are about to enter data. If this UBG has filed MBT returns for other than the current filing period, begin with the oldest. If an earlier MBT return of this UBG has been amended, enter amended data here. NOTE: If you are preparing the second MBT return for this group, see "Who Should NOT Use This Tool," at the beginning of these instructions.

SBT ITC Carryforward Used: From Form 4569, Line 3, of the MBT return for the filing period identified above, enter SBT ITC Carryforward Used. This is a group-wide figure that does not vary from member to member. Therefore, after completing this field for the first member, it will be pre-populated with the same figure for each subsequent member. NOTE: An SBT ITC carryforward may be used for up to nine filing periods after the period in which it arose, but not later than the last filing period ending in 2009. A UBG that now is reporting the tenth (or greater) filing period after any of its members first created an SBT ITC carryforward must take special care not to include in this field (or on Form 4569) the use of an expired carryforward.

9. Save: Click the "Save" button to complete entry of this MBT filing period.
10. Repeat: To enter data for another MBT filing period of this UBG (if any), again click the button entitled "Enter ITC Data from MBT Form 4569 (2008 - 2009)," and repeat the instructions above. Enter and save data for each applicable MBT period of this UBG, from oldest to most recent, including the partially completed return for the current filing period.
11. Print: This is the most convenient point at which to print the data entry for this member. A printed copy may be helpful later, particularly to identify data entry errors. Do not attach a copy of this printed result to your return.
12. Repeat SBT Data Entry Process for Another UBG Member: Return to the top of this section (B) of instructions. Leave the first name/FEIN line as it is (Instruction B1, identifying the DM). Change the second name/FEIN line (Instruction B2) to identify the member whose data will be entered next. Data entered for the previous member will disappear from the screen when you click "Go," but is retained by the tool and can be recalled to the screen as described in Step B14, below. Repeat for every member that has any of the following:

• Sales in the current filing period of SBT-era ITC assets.
• SBT ITC carryforward available for use as of January 1, 2008.
• Receipt of payments from prior period installment sales of SBT-era ITC assets.

After data has been entered and saved for each member required to file Form 4585, continue with Step B13, below.

13. Run the Program: When all applicable SBT and MBT data has been entered and saved for each required member, and any necessary corrections made with the "Edit" function, press the "Calculate Effective Rate of SBT ITC" button near the bottom of the page. This will populate Column E of each member's table with numbers that should range between 0% and 2.3%.
14. Retrieve Answers for Each Member: There will be a different set of answers in Column E, revealed on different screens within the tool, for each member whose data was entered. To access the screen and answers for a particular member, enter that member's name and FEIN/TR number in the "UBG Member" line near the top of the screen (leaving the DM identifiers unchanged in the "Taxpayer" line), and click "Go." As each member's screen is revealed, print it for your file. Do not attach a copy of this printed result to your return.
15. Complete Each Form 4585: For each member of the UBG that is filing a Form 4585 with the group's current period MBT return, transfer these percentages from Column E of the tool to that member's MBT Form 4585, Line 4, Column E. Take care to enter each percentage on the row corresponding to the filing period end date shown on the Web tool line from which it came.

Print these instructions before proceeding to the tool.

Proceed to the Web tool