The Department interprets the limiting phrase "to the extent the credit is used and at the rate at which the credit was used" to apply only to disposal of assets that were acquired under the SBTA, former 1975 PA 228. Available SBT ITC is "used" and is used "at the rate" that was in effect under the SBTA on a FIFO basis. For recapture purposes, SBT ITC carry-forwards are deemed to have been "used" first, before MBT ITC, when computing the "amount used." The Department anticipates developing guidance to assist in the computation of ITC recapture of assets that were acquired under the SBTA.

ITC recapture of MBT assets acquired after December 31, 2007 is not limited by the language "to the extent the credit is used and at the rate at which the credit was used." Therefore, the recapture of ITC upon disposal of assets acquired under the MBT is not dependant on whether the compensation or investment credit is capped. This MBT interpretation for assets acquired under the MBT reverses an interpretation previously given in FAQ #C12.