* Web tool instructions for unitary business groups (UBGs).

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 you in completing Michigan Business Tax (MBT) Form 4585, Line 4, Column E. Form 4585 is designed to implement the statutory language in MCL 208.1403(3)(d, e & f).

A. Before You Begin Using the Web-based Tool

1. Gather your Single Business Tax (SBT) returns for all filing periods beginning after 1999. If you have amended any of those SBT returns, data from the most recent amendment is the data required by this tool.
2. If you have filed an MBT return for any period prior to this current MBT filing period, also obtain a copy of that return.
3. Complete your MBT return for the current filing period to a sufficient extent that MBT Form 4569 is complete, and Form 4585 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.

Name and FEIN/TR Number: Enter taxpayer's name and Federal Employer Identification (FEIN) or TR number in these two fields. Do not include a hyphen in the identification number. The tool depends upon entries in these fields to manage the data during the brief time that data is maintained in this program.

UBG Member Name and FEIN/TR Number: Leave these two fields blank. These are for use only by a unitary business group. For a UBG, see link at top of these instructions.

SBT Data Entry: Click the button entitled "enter ITC Data from SBT returns (2000 - 2007)." This button opens the following four data fields:

File Period End Date: Enter the end date of the SBT filing period for which you are about to enter data. This must be a filing period beginning after 1999. Begin with the oldest applicable SBT period. NOTE: For an SBT filing period in which the taxpayer 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. Do not enter any information in this field or the three below for an SBT filing period in which the taxpayer filed nothing, or filed a C-8044.

Net Capital Investment: From Form C-8000ITC of the 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 the 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 the 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 taxpayer who 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.

Save: Click the "Save" button to complete entry of this SBT filing period.

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."

Repeat: To enter data 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, from oldest to most recent.

MBT Data Entry: This step will include data from the partially completed MBT form for the current filing period, as described in section A(3) above. When data from all applicable SBT periods 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 you have filed MBT returns for other than the current filing period, begin with the oldest. If you have amended an earlier MBT return, enter amended data here.

SBT ITC Carryforward Used: From Form 4569, Line 3, of the MBT return for the filing period identified above, enter SBT ITC Carryforward Used. 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 taxpayer that now is reporting its tenth (or greater) filing period after it first created an SBT ITC carryforward must take special care not to include in this field the use of an expired carryforward.

Save: Click the "Save" button to complete entry of this MBT filing period.

Repeat: To enter data for another MBT period (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, from oldest to most recent, including the partially completed return for the current filing period.

Run the Program: When all applicable SBT and MBT data has been entered and saved, 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 the table with numbers that should range between 0% and 2.3%. Transfer these percentages to 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 page line from which it came.

Print the final results of this tool for your file. Do not attach a copy of this printed result to your return.

Print these instructions before proceeding to the tool.

Proceed to the Web tool